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HODGSON RUSS LLP
We had a Canadian client very experienced in the business of repairing mass transit cars. Because of their expertise, they decided to see if they could start to gain contracts with mass transit authorities in the US.
Even though NAFTA was in effect, and one would think that Canadian companies would have full access to the US market place, this was not the case.
Although US mass transit authorities are creatures of state law, they receive federal funds, which makes them subject to the Buy American rules which continue to apply to transportation projects.
The client had their US subsidiary apply for a contract in a large southern city. They filled out the forms correctly and were otherwise a qualified bidder, but the project office did not give them the forms they needed to apply for a Buy American waiver.
The opportunity was worth more than a million dollars, which was a big contract for a relatively small company, but they were disqualified for not submitting the right forms.
There were only a handful of companies who could do this work. The US bids were very close to each other and pretty high. Our client’s bid was substantially below the nearest U.S. competitor’s price. The client and I were outraged about the rejection, and at their request, I immediately called the transit authority, but they were not inclined to admit their error with the forms.
Then I talked to Judy Bradt, who I knew through the Canadian-American Business Council, and I explained to her what the problem was.
Judy walked me through the proper bidding procedure and the rules and, from the Canadian government’s perspective, how these things typically worked.
Each time I talked to her, I would go back to the transit authority and have a further conversation about how they had done it wrong and why they needed to re-bid this. I just kept going back and forth. In the end, the price differential was just too great for the transit authority to ignore. It took about four to six weeks of back and forth – but finally they re-bid the contract. The other bidders came down substantially, but our client remained low bidder and was awarded the contract.
What did Judy bring to your client's problem?
Judy Bradt has years of practical experience in dealing with US government agencies and their implementation and application of the Buy American Act.
Judy can put you in the place of the US agency, in their mind set, turn the picture around, and really look at the problem from their point of view. She really understands the bidding and contracting process.
Judy works to understand the specific issues for each project from A to Z so she can walk her clients through them step by step, so they can navigate both the technical aspects – which she understands thoroughly – but she also has the understanding of the government mind set, because there’s always a subjective element here.
If the bids are close, they can always say that the other company can’t meet certain requirements – they might be bigger, more established, or have “worked on our transit cars before”. Judy doesn’t get defensive about all that. She figures out a way to appeal to government buyers and decision-makers and to respond to their concerns.
What we created was a win-win. Our client got to bid again – extraordinary that they got to do that, but
because of Judy’s help, we were able to use the process that was intended for redress, and the transit authority ended up with substantial savings because the bid process was better.
Being able to add qualified suppliers to the mix is just good for the customer. In so many areas there are few suppliers, so to add a new one keeps the old guys on their toes, and the city saved a lot of money.
As a result:
Judy really educated me and our client on the process they were going through.
Having talked so extensively to Judy, my client now understood how to get these contracts themselves, and became a competitive bidder in the United States for the first time.
And once they got the contract with one large city, since the transit authorities all know each other and all talk about their contractors, they won contracts in other cities right away – what a terrific benefit! If I know anybody who’s trying to navigate any aspect of the US government, I’d steer them in Judy Bradt’s direction first: it just makes so much sense for them to work with her.
The technical side is so complex, the applicable rules aren’t all in the same place -- NAFTA, transit funding...she knows what applies to what industry, and she has that beautiful sense of how government works.
What I enjoyed most about working with Judy is her creativity....again, for Judy, her attitude is that the problem can be solved. She has a very deep tool box, longstanding technical knowledge, she knows the people: there’s no substitute for that. Having been in Canadian government and worked so long with both that government and the American side, she knows the level of official to go in at so you do not go too high or too low.
Judy has that very deliberate way of working through the issues. Government does not respond well to the big stick approach. You have got to find a way to help them look good.
That is how we got the authority to re-bid: because we helped them to save over a millions dollars.
Should you hire her? Absolutely! I think for anyone, whether or not it’s worth large dollars, anyone who would like an edge in government contracting, it is her experience with those uniquely Canadian issues, and her contacts, that really count.
Pamela Davis Heilman
Partner
Hodson Russ Andrews Woods & Goodyear LLP
Buffalo, NY
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