Gov. Bill Richardson today ordered the cancellation of contract negotiations on the redevelopment of the Department of Transportation headquarters, a project that has been mired in controversy involving the governor, a donor and men indicted in the
It will be the second time the project has been rebid. On the first round, the contract was awarded to the sole bidder,
“I still believe these public-private projects can be an innovative way to serve the public better by spending taxpayer dollars on highways and public transportation, rather than paying for buildings for bureaucrats,” Richardson said. “But it is clear that these projects are complicated and can be risky, which is why we need an extra layer of oversight to ensure public trust in what we are trying to do for the state.”
The plan for the project is to have a developer construct the new state facility at his or her expense. In exchange, the contractor gets the right to lease and develop the rest of the 25 acres of DOT land.
The decision comes a day after Speaker of the House Ben Lujan and Rep. Peter Wirth met with the governor to discuss the possibility of rebidding the project.
In addition to the involvement in the early stages of the project by two men indicted in the courthouse scandal, the project has been dogged by other issues:
• The state claimed in its original request for proposals that the project was not subject to the state procurement code, but has repeatedly cited the code in refusing to release documents or discuss negotiations.
• The scope of work in the RFP listed the DOT headquarters size at a minimum of 300,000 square feet. The state later cut the building’s size in half. Though both bidders were given an opportunity to respond to the change, it was apparently made after the deadline had passed for other prospective contractors to submit bids. Consequently, the change would cut the developers’ cost to build the public facility and increased the land available for private development.
• Peters donated to and held a fundraiser for the governor’s presidential campaign while the negotiations were ongoing. Were
The news release said the governor wants to “structure a new bidding process that better reflects the complex nature of public-private construction projects that involve state land and millions of dollars in investment. The new process will include a three-person oversight group, which will include the secretaries of the Department of Finance & Administration, General Services Department and Department of Transportation. That group will oversee every aspect of the bidding process for the public-private projects.”
That won’t happen until reviews of the project by the DOT and an independent counsel hired by
Update, 5:50 p.m.
Peters released a statement saying it was “ironic” that he has been accused of “receiving special treatment” when the project is going out to bid a third time when he has twice won the contract. Regardless, he said rebidding is necessary “to reconcile the public perception of this project with the reality of its merits and the integrity of those involved.”
“It is extremely important that the first public-private partnership for
Peters was critical of the secrecy of the existing process, saying the “confidentiality restrictions imposed by the lawyers were intended to make the lawyers’ work easier. Instead, the secrecy made every aspect of the project more difficult and subject to rumor and speculation.”
“I can only hope the state develops a transparent and open process for this project and other public-private partnerships,” Peters said. “The potential benefits to the state and its citizens are immense.”