Bias claims threat to highway money

BOISE – The Idaho Transportation Department Board has two options for choosing a company to manage the state’s largest highway project when it meets today, federal officials say: Start the selection over or modify the existing process so it’s fair.

Otherwise, Idaho won’t get federal money for its $1.2 billion “Connecting Idaho” program, Gov. Dirk Kempthorne’s plan to improve 258 miles of state highways, boost the economy by creating hundreds of construction jobs and cement his pro-business legacy.

In a Dec. 12 letter obtained by the Associated Press, Federal Highway Administration officials said the board’s Oct. 27 vote to give the $5 million annual contract to Boise’s Washington Group International and Denver’s CH2M Hill was a “flawed action” because members used the companies’ Idaho ties to justify their decision.

New York-based Parsons Brinckerhoff lost out – even though its proposal scored higher with a nine-member Transportation Department evaluation committee. It has filed a lawsuit in 4th District Court against Idaho, alleging political favoritism.

“Federal law and regulation do not allow a state to base a procurement decision involving federal highway funds on a firm’s local ties or connections,” wrote Stephen Moreno, the federal agency’s district administrator in Boise.

“We cannot approve for federal assistance a contract awarded on the basis of local preference.”

The federal agency’s admonishment of the board to guarantee fairness comes as some Idaho lawmakers say Kempthorne’s highway plan deserves additional scrutiny – to make certain future contract awards aren’t tarnished by possible bias.

“Maybe there are some things we need to take a second look at,” said Rep. Ken Roberts, R-McCall, who voted against “Connecting Idaho” last year. “It throws up red flags.”

Federal Highway Administration officials say board members at today’s meeting can opt to throw out the competing proposals and start with a new request for bids to manage “Connecting Idaho.”

They also say the board could award the contract once again based on the current process – provided its members comply with rigorous safeguards “to ensure the integrity of the process by which the board reconsiders its earlier, flawed actions,” Moreno said.

Those safeguards include making sure the award happens in a public meeting and ensuring that board members are briefed on federal and state laws prohibiting bias.

What’s more, federal officials say they want the rationale for a final decision in writing.

“If you go back to our rules, they lay out the kind of things that are supposed to be considered when you make the consultant decision,” Moreno said in an AP interview Tuesday.

“We weren’t confident that happened.”

The board sets policy for the state Transportation Department.

Despite the controversy, Kempthorne staffers said they expect the dispute over “Connecting Idaho” will be resolved quickly.

“The governor isn’t concerned,” said press secretary Mike Journee.

“He is fully confident that this is going to be cleared up, and everything is going to be on track, as it is now.”

Any delays caused by the legal dispute could defeat one of the highway plan’s chief aims: Kempthorne envisioned selling bonds to finance construction now and avoid inflation, while paying back the debt with future federal highway money Idaho expects to receive.

“If we spend years in the courtroom, then we’ve lost the very purpose behind (‘Connecting Idaho’),” said Sen. Bart Davis, R-Idaho Falls, a supporter of the plan.

Washington Group officials declined to comment on the Federal Highway Administration letter outlining the board’s options.