NJ Transit board members unanimously rejected two contracts with Academy Express, LLC on Monday night in what one member called a “difficult and unclear situation.”
Instead, the council handed out contracts for bus routes in Hudson County with ONE Bus, a subsidiary of Coach USA, which ranks second.
Four weeks ago the Academy agreed to pay $ 20.5 million to settle the charges, she tricked NJ Transit with more than $ 15 million from 2012 to 2017. The Hoboken company has been accused of invoicing NJ Transit for tens of thousands of bus trips they did not service.
Although the amicable settlement provided a number of conditions that the Academy had to fulfill in order to obtain a future contract with NJ Transit, the Attorney General’s Office did not prevent the company from bidding for contracts. That made them has the right to participate in contract bidding on Monday’s agenda.
However, many board members said they did not think the Academy was ready to fulfill contracts.
“As of this meeting, these remedies are not working, so we will not be presented with such awards at this meeting in time,” said Diana Gutierrez-Scacheti, Chair of the Board.
Under state law, NJ Transit is required to contract with the “lowest liability participant,” in which case the Academy rate was $ 8 million less than the next lowest bidder’s bid.
However, board member Bob Gordon said the Academy did not meet the threshold in order to be the most “responsible” contender.
“I would argue that advancing the policies that have led to 50,000 missed trips over the years and maintaining two sets of books raises questions about the moral integrity of the Academy’s organization and its leadership,” Gordon said.
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State Sen. Joe Krayan, D-Union, told board members that awarding this contract to the Academy “essentially (rejects) the spirit of the case.”
The contracts together serve seven routes in Hudson County, № 2, 84, 88, 22, 23, 86 and 89, starting June 26, 2022 and ending June 21, 2025. The cost of two contracts based on Paramus ONE Bus is about 57, $ 4 million, plus 5% on contingencies.
Charles Hall Jr., who represents the union workers of the Academy, asked the board to contract with the company because of what they have done for its members.
“I consider the Academy a good employer who has always done the right things with his employees,” Hall said. “The academy is a professional transportation company with better equipment than most in the state to perform basic work.”
Board member Cedric Fulton said that although he found the Academy’s behavior “disgusting”, he weighed the Academy’s contribution to the bid by deciding to vote.
“I also remember the work in question involving Academy staff who, by themselves, cannot be found guilty of the crimes they are accused of,” Fulton said.
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Bill Herlock, a lawyer from Monkler who specializes in False Claims Act, such as the one concerning the Academy, said it is not uncommon to see such settlements that do not prevent the accused company from bidding on contracts for a period of time.
“You see the contracts are constantly being extended,” Herlock said. “The government – be it state, local, federal – is very reluctant to apply this sanction to entities.”
The academy could file a lawsuit to prove it was the “least responsible participant”. The company has not acknowledged any offenses or liability in the amicable settlement.
“The academy will still have full redress if it does not receive an application, if it will be the lowest and most responsible rate in the process,” Herlock said. “On this occasion, all legal issues are widely open.”
Colin Wilson covers the Port of New Jersey administration and transit for NorthJersey.com. To get unlimited access to her work covering the region’s transportation systems and how they affect your travels, sign up or activate your digital account today.
Email: cwilson2@gannettnj.com
Twitter: @colleenallreds
