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Lawsuit seeks to overturn bid on Butler's VA project

WASHINGTON, D.C. — A development company is asking a federal judge to set aside the construction and lease contract for Butler’s new VA Butler Healthcare center, and to order the government to revisit its bidding process.

Oxford Development Co. filed the bid protest in the U.S. Court of Federal Claims on June 26, saying that it’s not satisfied with the scope of corrective action that VA officials agreed to as part of a previous complaint filed by the company.

In its suit, Oxford asks Judge Victor J. Wolski to issue a temporary restraining order and injunctions to the government preventing work on the project; order the VA to revisit the bidding process; and award Oxford monetary damages and “other relief” tied to its costs and legal fees.

In 2012 the project was awarded to the Westar Development Co. But the following year the government initiated an investigation into that contract after contractor Michael Forlani pleaded guilty to bribery and racketeering charges in another previous project.

The VA alleged that Westar was acting as a front company for Forlani.

VA officials ultimately terminated the Westar contract.

Then in 2014 the VA awarded the project to Cambridge Healthcare Solutions, and the clinic’s location was moved from the Deshon Woods site off Route 68 in Butler Township to the Herold site off North Duffy Road in Center Township.

Oxford, which obtained the Deshon Woods property from Wester and was in the second round of project bidding, filed a protest with the U.S. Government Accountability Office in January of this year.

But the GAO rejected Oxford’s protest and determined the company was only entitled to financial compensation from the VA for its bid proposal and protest costs.

In Oxford’s filing a week ago, the company said negotiations with the VA over that settlement have been ongoing since April, but were scuttled June 10, when the government abruptly told Cambridge to proceed with the construction project.

Cambridge sought to intervene in the case, which Judge Wolski granted Monday.

In its court filing, Cambridge said it expects to file a motion to dismiss Oxford’s latest protest, arguing that Oxford lacks the legal standing to halt its work and isn’t entitled to anything beyond the GAO’s ruling.

In an additional filing Thursday, Cambridge said it plans to complete buying the Herold property within the next week, which it says would allow preparation work to begin on the site.

Attorneys for both companies did not return messages left seeking comment on the lawsuit.

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