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| Subject: Sydney in 2001---news story | |
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Author: SMH---ITS no longer J/V MOT--wholly owned ERG Group |
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Date Posted: 11:13:42 01/14/03 Tue http://www.smh.com.au/news/0201/15/biztech/biztech12.html ---------------------------------------------------------------------- Ticketing tender case accelerated By Anne Lampe ---------------------------------------------------------------------- The NSW Supreme Court yesterday ordered an expedited hearing of a legal challenge to the State Government's tendering process by smartcard ticketing provider Cubic Transportation Systems. ---------------------------------------------------------------------- Cubic Transportation's rival, Integrated Transit Solutions (ITS), was last year selected by the Government as preferred tenderer for a $100 million-plus ticketing system covering trains, buses and ferries. ---------------------------------------------------------------------- ITS is a joint venture between smartcard specialist ERG and former shareholder Motorola. ---------------------------------------------------------------------- Cubic Transportation claims the Government intervened in the tendering process with the result that ITS gained an advantage. ---------------------------------------------------------------------- Before Christmas the court granted an interlocutory injunction preventing the contract between the Government and ITS from progressing. ---------------------------------------------------------------------- Cubic wants to set aside ITS's selection and restrain the Government from entering into a contract with the group. ---------------------------------------------------------------------- Yesterday, John Griffiths, SC, for the Government, told the court his client wanted the injunction dissolved and that "24 or 25 affidavits" denying the allegations had been served on Cubic Transportation. ---------------------------------------------------------------------- The tender was first announced in May 1999. Bids closed later that year and a contract was originally expected to be awarded in March 2000. ---------------------------------------------------------------------- However, a final price still has to be negotiated. As the price crept up, the contract was again put out to tender. ---------------------------------------------------------------------- It is unclear what role remains for Motorola in respect of the proposed contract sought by ITS. ---------------------------------------------------------------------- Mr Griffiths said the Government "has a very keen interest in moving to tie up a contract with ITS". ---------------------------------------------------------------------- ITS has given a deadline of February 15 for a decision. It will then withdraw its offer. ---------------------------------------------------------------------- A final hearing on the interlocutory matter before then therefore "is critical", Mr Griffiths said. ---------------------------------------------------------------------- Counsel for Cubic Transportation agreed an early hearing was required. ---------------------------------------------------------------------- Justice Harold Sperling therefore suggested it be placed on the expedited list for January 29. ---------------------------------------------------------------------- He said a hearing of the matter in the second week of February would enable a decision to be made before the February 15 deadline. ---------------------------------------------------------------------- A spokesman for the Department of Transport said yesterday that the Government would continue to vigorously defend the allegations. ---------------------------------------------------------------------- ERG closed yesterday at 53c. ---------------------------------------------------------------------- [ Next Thread | Previous Thread | Next Message | Previous Message ] |