Bid award might spur lawsuit

A contested bid for one of the final phases of the Mob Museum was awarded Wednesday by the Las Vegas City Council, but the dispute between two contractors vying for the job might not be over.

"This may be going to court," said Mark Ferrario, an attorney for Flagship Construction Co., which protested the awarding of an $11.5 million contract to APCO Construction.

Flagship had the second-lowest bid.

Ferrario said a lawsuit would be filed today or Monday if his client decides to litigate.

The contract was for hazardous materials removal, a seismic retrofit, remodeling and historic restoration of the former federal courthouse on Stewart Avenue and Third Street downtown.

The building is to house the museum, formally known as the Las Vegas Museum of Organized Crime and Law Enforcement.

The council voted 4-1 to award the bid to APCO.

Mayor Oscar Goodman abstained because he has a joint interest in Apex Industrial Park with APCO, and Councilwoman Lois Tarkanian recused herself as well. She said a long-running dispute between the city and APCO prevented her from being objective.

Councilman Stavros Anthony voted no, saying the city had other priorities.

"I don't believe we should be spending $11 million on a museum right now," Anthony said. "It's my belief that we should put this project on hold until the economy comes around."

Flagship voiced a number of complaints about APCO's bid, saying the contractor didn't have the qualifications to do the job, had not performed satisfactorily in the past and didn't disclose its legal entanglements, including a contract dispute with Las Vegas over courts at the Amanda and Stacy Darling Memorial Tennis Center.

"This process has been flawed from the start," Ferrario said, noting that Flagship was the low bidder in an earlier set of bids that were thrown out, improperly, he contended, as not meeting specifications.

City staff reviewed the complaints Ferrario submitted and found them to be without merit, City Attorney Brad Jerbic said.

And it's not a secret that Las Vegas and APCO are in arbitration.

The matter has been discussed at council meetings, and Jerbic noted that the city has spent $2.7 million in legal fees. APCO also has received other city contracts since the arbitration started and performed well, he said.

Overall, the museum is expected to cost $50 million, funded mostly from city Redevelopment Agency bonds used to boost downtown development. There also are grants and private donations in the mix.

It was scheduled to open in 2010, but with litigation, that could be delayed.

Mayor Pro Tem Gary Reese said bids on public contracts are being scrutinized more now because of the lack of other construction work caused by the economic slowdown, which makes moving forward with the project even more important.

"To further our redevelopment of downtown, we have projects like this," he said. "If we don't support them, then we're not doing our job."

Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.