Shenango Township v. Commonwealth, Department of General Services, No. 320 M.D. 2017 (Commonwealth Court)

The Township filed a Petition for Review with the Commonwealth Court, challenging the sale of the former New Castle Youth Development Center (YDC) property by the Commonwealth Department of General Services. The Department of General Services (DGS) issued an invitation to bid for the purchase of the YDC property, which was assessed in excess of Three Million Dollars ($3,000,000.00). DGS ultimately declared HIRA Educational Services of North America (HIRA) as the winning bidder, with the bid of Four Hundred Thousand Dollars ($400,000.00). The Township filed a Petition with the Commonwealth Court pursuant to the Commonwealth Procurement Code, challenging the extremely low winning bid, raising issues of collusion between HIRA and its CEO who also submitted a separate bid under his own name, failure to comply with the bidding requirements, and that the award of the bid was contrary to law. The sale of the YDC property to HIRA fell through, and the Township withdrew its Petition. Subsequently, the property was re-bid by DGS, ultimately selling to Lawrence County Community Action Partners (LCCAP) for Two Million Dollars ($2,000,000.00).

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