Bidding process laments detailed
On one side, a frustrating search; on the other, rants about being “bullied”
Two officials with a SUNY Polylinked board that approved bids for projects in Gov. Andrew Cuomo’s “Buffalo Billion” program ranted about being “bullied” because a Syracuse developer complained about the bidding process now at the heart of the Alain Kaloyeros federal corruption trial.
“Some companies aware of state rules utilize their knowledge to bully state agencies,” Joseph Schell, an attorney who handled procurement matters for the Fort Schuyler Management Corp, told its president, Alicia Dicks, in a Nov. 27, 2013 email. “(Fort Schuyler) is not obligated by state rules on this procurement, and having been a bighearted husky youth, I have a strong dislike for being bullied.”
Dicks responded: “I can appreciate your sentiment on being bullied. I feel the same way. Let me know how it goes.”
The exchange was revealed in Schell’s testimony Thursday at Kaloyeros’ trial in U.S. District Court in Manhattan. Federal prosecutors allege the “fix was in” and that Kaloyeros – the founder and former president at SUNY Polytechnic Institute – used his inf luence at Fort Schuyler to rig bids worth more than $850 million for favored upstate developers.
In late 2013, the board of direc-
tors at Fort Schuyler, a nonprofit development arm of SUNY Poly that gets significant state funds, approved bids for COR Development in Syracuse and Lpciminelli in Buffalo to be chosen as preferred developers for strategic future SUNY Poly-related projects in those areas.
The “bullying” was allegedly by Andrew Breuer, president of Hueber Breuer construction in Syracuse, after he complained only one bidder – later revealed as COR Development – responded to a request for proposals put out by Fort Schuyler, according to Schell’s testimony.
On Nov. 14, 2013, Breuer emailed Dicks and said he searched “high and low” but could not find a listed publishing of the Syracuse area RFP, which went out Oct. 1. Developers had a 10-day window to request a copy of the RFP so they could respond to it. Fort Schuyler listed the RFP in a Syracuse newspaper, the Post-standard, for three days and online that whole week, Schell testified.
On Nov. 25, 2013, Breuer emailed Dicks, as well as Schell, wanting to know when the RFP went out. Schell responded to Dicks – but it went to Breuer, too.
“If he wants the posting he can go to the library with the days provided and look it up,” Schell said in the email.
Breuer responded: “Obviously, I’m very frustrated, and I know I’m not the only one in the local contracting and development community who feels this way. Not sure where to take it from here, but I hope you can appreciate my concern for the way this process has been handled.”
Breuer told Schell he struggled to know why the RFP had not been listed on the New York State Contract Reporter like other Suny-related bids. The state website touts itself as “NYS’ official source of contracting opportunities. Bringing business and government together.”
On Nov. 27, 2013, Schell and Dicks emailed each other on how to respond to Breuer, who’d missed the deadline by over a month.
“Any thoughts in following up with Andy? If at all?” Dicks asked about Breuer.
Schell told Dicks: “I intend to clarify in a polite and friendly way that this procurement is not a state procurement and therefore not subject to advertisement in the Contract Reporter.”
Schell told Dicks he contemplated mentioning to Breuer that other developers had asked for a copy.
“Mentioning defers some blame while somewhat addressing the ‘not the only contracting and development firm who feels this way,’” Schell wrote. “I will artful decline comment on the number of bidders, we do not reveal this, especially while the process is ongoing.”
The conversation then turned to the perceived bullying, but not before Dicks suggested Schell not mention another bidder.
“Syracuse is like Utica, small fishbowl and everyone
knows what’s going on. One degree of separation,” she said. “I sure he got an earful from CEO, and they are not a fan of CNSE.”
Also charged in the trial are COR President Steve Aiello, COR General Counsel Joseph Gerardi and Lpciminelli President Louis Ciminelli. Charges are wire fraud and conspiracy to commit wire fraud. Gerardi is also charged with making false statements to federal officers.
Aiello attorney Scott Iseman told the judge he objected to Breuer’s expected testimony later in the trial. He said three other companies requested a copy of the RFP.
The trial continues on Monday in Manhattan.