New Jersey picked an E-ZPass bid $251 million dearer. Its rival went to court.
The New Jersey Turnpike Authority awarded the 11-year, $1.7 billion contract to run the state's E-ZPass system to TransCore in September 2024.
The incumbent, Conduent, had bid $251 million less, the Jersey Vindicator reported on Sunday. An appeals court has now heard Conduent's challenge. The judges questioned how the authority evaluated the competing bids.
Conduent argues the bidding was unfair and that the authority never justified the extra cost. Lawyers for the authority and TransCore say the award followed a thorough review and complied with state contracting rules. The authority's lawyer told the judges that price made up 20% of the overall score, and that the projected difference was "to an extent, illusory" because the final cost depends on transaction volumes.
After further evaluation, Conduent's score fell from 72.3 to 67.7 and TransCore's rose from 77 to 82.7. TransCore finished 15 points ahead with the higher price. The report does not show how the $251 million gap was turned into price points, or on what transaction volumes it was calculated.
How much weight does price get when your company scores a vendor?
Sources
For your next steering committee
- 1Ask which exit clauses your largest software and services contracts carry, and when each can be used.
- 2Ask what leaving would cost, in money and in months.
- 3Ask who reads the contract when a dispute starts, and whether they have read it before.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
