Michael F. McKenna and Timothy R. Ryan Secure $70 Million NJTA Project for El Sol Contracting

In a significant bid protest matter, Cohen Seglias partners Michael McKenna and Timothy Ryan successfully represented El Sol Contracting and Construction Corporation against the New Jersey Turnpike Authority (NJTA) in a $70 million infrastructure project case.

Case Overview

On June 25, 2024, El Sol was identified as the lowest bidder for an NJTA project, with a bid of approximately $70 million—$10 million lower than the second-lowest bid. However, NJTA later disqualified El Sol’s bid as non-responsive, citing an unspecified “incurable error.” NJTA announced its intent to award the project to the second-lowest bidder.

In response, Mike and Tim requested that NJTA stay the contract award and provide additional details on the alleged issue. NJTA subsequently revealed that the disqualification stemmed from the language used in El Sol’s power of attorney and consent of surety submitted with the bid.

Filing the Bid Protest

Mike and Tim promptly filed a formal bid protest, challenging NJTA’s rejection of El Sol’s bid as unlawful. NJTA issued a letter formally rejecting the protest and reaffirmed its intent to award the contract to the second bidder.

Undeterred, Mike and Tim escalated the matter, filing a Notice of Appeal with the New Jersey Appellate Division and submitting a Request for an Emergent Application to stay the project during the appeal.

Successful Appeal

On November 27, 2024, following Mike and Tim’s compelling arguments, the Appellate Division ruled in El Sol’s favor, ordering NJTA to award the project to El Sol. NJTA subsequently filed an Emergent Application with the New Jersey Supreme Court to stay the project award. On December 6, 2024, the Supreme Court denied NJTA’s request, solidifying El Sol’s position as the rightful project awardee.

Key Takeaway

This case underscores the importance of ensuring that all bid documents—especially powers of attorney and consents of surety—are meticulously prepared and reviewed before submission. Even seemingly minor language issues can lead to bid rejections. Additionally, this case highlights the value of pursuing a bid protest when faced with an unjust disqualification. Contractors should proactively protect their competitive bids and engage experienced counsel early in the process to challenge improper actions and secure significant project opportunities.