Company that lost 215 Beltway paving bid sues county

By Steve Green, Jeff Pope

Published Thursday, April 23, 2009 | 5:23 p.m.

Updated Thursday, April 23, 2009 | 6:29 p.m.

A construction company filed a lawsuit against Clark County on Wednesday claiming the County Commission wrongfully awarded a freeway contract.

Fisher Sand & Gravel Co. filed the suit in Clark County District Court one day after county commissioners awarded a $116.8 million contract to Las Vegas Paving for construction on the northern 215 Beltway.

Fisher submitted the lowest bid at $112.2 million, but commissioners voted 6-1 to give the contract to Las Vegas Paving, which bid $4.6 million higher, despite the opinion of Deputy District Attorney Mary Miller that the lower bid met the bid criteria.

Commissioner Steve Sisolak said Fisher's bid was not a responsible bid because two of the company's subcontractors did not have a highway construction license.

Attorneys for both construction companies argued whether the state's code requires subcontractors that perform highway construction to carry an A-2 general contractor's license also.

In a statement released today, Joe Miller, Nevada area manager for Fisher Sand and Gravel, said the bid "was rejected without merit, without legal support and against all legislative statutes written and voted into law by our elected government.''

The lawsuit claims Fisher's rights under the 14th Amendment to the U.S. Constitution were violated when it was deprived of property -- millions of dollars of profits under the contract -- without due process of law.

The company claims the commission's decision was an "abuse of discretion in violation of state law."

Fisher is seeking a court injunction reversing the commission decision and awarding it the contract.

The lawsuit says Las Vegas Paving's protest was filed after the deadline for protests, that county staff agreed with Fisher's contention that its subcontractors didn't need the licenses Las Vegas Paving said they needed and that Las Vegas Paving itself has used subcontractors for similar work that did not have the licenses in question.

Fisher said it's highly qualified to do the work, citing its experience building what it called the state's largest public works project, the I-580 freeway extension connecting Reno and Carson City; and the largest private grading and paving project in the state, the Crystal Ridge/Ascaya residential development in Henderson.

"There is no issue as to FSG's ability to perform," it said, adding its contentions were backed by Marty Manning, former county director of public works; and Donald Wood, former county director of purchasing.

"The Board of County Commissioners ignored the recommendation of county staff, the plain language of the statutes and bid documents, experts, Marty Manning and Donald Wood, and the documents FSG provided that demonstrated that Las Vegas Paving's protest was ridiculous,'' charged the suit, filed by attorneys Stanley Parry and Jacob Bundick of the firm Ballard Spahr Andrews & Ingersoll.