the staff of the Ridgewood blog
East Rutherford NJ, Conduent, the former E-ZPass service provider for the New Jersey Turnpike Authority, is pushing back after losing a $1.7 billion contract to its rival, TransCore. The company has requested that the Turnpike Authority delay awarding the contract while it prepares to file a legal challenge.
Dispute Over Contract Cost and Transparency
Conduent claims its bid was at least $250 million cheaper than TransCore’s and is questioning the transparency of the selection process. The Turnpike Authority had initially approved TransCore’s proposal in September, and on Tuesday, a hearing officer issued a final decision rejecting Conduent’s protest.
However, Conduent’s legal counsel, Paul P. Josephson of Duane Morris LLP, has asked for a pause in the proceedings to allow time for appellate review, potentially escalating the dispute to the New Jersey Appellate Division.
National Security Concerns Raised
In a strongly worded letter, Josephson criticized the Authority’s decision:
“The Authority’s decision to arbitrarily spend an additional $251 million more for these services will directly affect E-ZPass users when tolls increase to offset that exorbitant cost,” he wrote.
He also raised national security concerns, citing TransCore’s foreign ownership through its parent company, ST Engineering in Singapore. He pointed to previous board ties to the Chinese Communist Party (CCP), asserting that user data may be at risk.
TransCore has denied all allegations, stating it has a National Security Agreement with the U.S. Treasury and Justice Departments, ensuring no user data can be accessed by foreign governments.
Authority Defends Decision
Thomas Holl, who authored the Turnpike Authority’s decision, said TransCore’s proposal demonstrated stronger commitments to domestic labor and was more technically sound than Conduent’s. He criticized Conduent for vague labor details and lack of demonstrated software upgrades.
The Turnpike Authority has yet to respond to the request for a delay.
Background
Conduent has been the longtime provider of E-ZPass for New Jersey’s toll roads, but its presence has waned after losing several tolling contracts in recent years.
If the legal challenge proceeds, it could delay implementation of a new tolling system and potentially impact toll rates and system updates for millions of E-ZPass users in the state.
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