Veolia: CapMetro’s new contracts illegal

Austin Business Journal

Recently fired rail contractor Veolia Transportation Inc. said Capitol Metro broke state and federal procurement laws when officials signed contracts without a bid process.

Cap Metro

The Capital Metropolitan Transportation Authority last week terminated its five-year, $105 million rail operation and maintenance agreement with Veolia and almost immediately signed two replacement contracts with Missouri-based Herzog Transit Services Inc. and Watco Companies Inc. of Kansas.

Veolia sent an official protest today that does not challenge the authority’s right to terminate its contract, but “its right to mislead us, disrupt our contractual relationship, and to violate state procurement laws.”

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[via the Austin Business Journal]