West Easton Council had to discard the low bid for a new garbage contract due to a “fatal law” in the bid submitted by LMR Disposal, based in Phillipsburg, NJ.
The bidding requirement specified a 10 percent bond on the total of the bid submitted. For LMR, this would have been approximately a $100,000 bond. LMR submitted a bond of, “10 percent of the contract, not to exceed $20,000.”
LMR Disposal, who appeared at the council meeting, explained “this is what NJ requires.”
West Easton’s Solicitor Steve Goudzousian informed LMR that though the $20,000 maximum may be valid in NJ, the limitation is not valid for Pennsylvania bids.
Since the bid contained the fatal flaw which could not be resubmitted for a correction, Goudzousian advised Council to reject the bid.
Council awarded the bid to J.P. Mascaro and Sons, which was about $80,000 more over 5 years, or about $8 more per quarter for each residence, than the bid submitted by LMR.
The refuse portion of the quarterly billing will now be approximately $108. If LMR had submitted a correct bid the quarterly billing would have been approximately $100.
Disclaimer: On January 4, 2016, the owner of WestEastonPA.com began serving on the West Easton Council following an election. Postings and all content found on this website are the opinions of Matthew A. Dees and may not necessarily represent the opinion of the governing body for The Borough of West Easton.
