(Source: MIRS.news, Published 08/23/2024) A Warren company alleges the state abused its discretion when canceling a request for proposal (RFP) process before investigating allegations of fraud and conspiracy in the process.

LG Solutions Unlimited, which created an app that connects those needing a tow to towing companies, alleges in a Court of Claims lawsuit that the Department of Technology, Management & Budget’s cancelation of the RFP for web-based services to dispatch towing services was “in retaliation” for its protest for awarding the bid to another company.

“The integrity and the goodwill of the State of Michigan Procurement Process will be compromised if the DTMB is permitted to cancel the RFP process before a complete investigation of the allegations and evidence submitted in the bid protest is completed,” the complaint filed Wednesday reads.

Laura Wotruba, director of communications for DTMB, said the department doesn't comment on pending litigation.

According to the complaint, the DTMB published an RFP on its vendor service on behalf of the Michigan State Police in January 2023.

LG Solutions and Vehicle Management Solutions were the “only two bidders” and the state provided a notice of intent to award the contract to New York-based Vehicle Management.

LG Solutions filed a protest on Aug. 2, alleging bid-rigging and conspiracy in violation of the Michigan Anti-trust Act.

Among the allegations LG-Solutions made was a claim that Vehicle Management’s parent company “may have engaged in anti-competitive behavior by re-branding part of its operations to disguise” the nature of its towing and vehicle storage business. The state, the complaint noted, prohibited bidders from owning a towing business and storage facility.

On Aug. 15, DTMB canceled its earlier award notice and LG-Solutions filed a Freedom of Information Act request with MSP for records in the Department of Transportation’s possession, the complaint said.

LG-Solutions alleges DTMB’s solicitation manager threatened to publish the company’s proposal, which LG-Solutions claims could include trade secrets. The company wants the court to prohibit the publication of its proposal and stop the state from “destroying, deleting, shredding or otherwise disposing of any records” related to the RFP.