Schneider Airport Surveillance Contract Cancelled, 2 Year Ban

By Carlton Purvis, Published on Mar 21, 2014

Schneider Electric had its contract rescinded and was banned from bidding on projects after the South Jersey Transit Authority Board of Commissioners voted to kill the deal March 19th. In the note, we share our findings from talking to officials and look at why.

The Project

The Atlantic City Airport wanted to upgrade its analog system to IP. For “security reasons” the airport won’t say how many cameras they plan to add or release any details about the project.

The Bid Process and Contract

The SJTA has not released detailed bids, however it did release a bid summary showing Schneider's bid was chosen because it was the lowest:



Contract Cancelled

The contract with Schneider was cancelled after the company requested modifications to the bid specifications after the contract award and “failure to adhere to the General Conditions of the Bid Specifications.”

The complete bid specification document has only been released to vendors because it contains “security sensitive information,” an official with knowledge of the project said. However, he did say the sections in question deal with liability insurance.

“We require a certain amount of insurance and liability insurance, and they decided they didn’t want to adhere to our procedures and they tried to do an exception to it. There was some negotiation between our counsel and them and we revoked it,” he said.

The resolution also bans Schneider Electric from bidding on any SJTA projects for two years.

Contract Re-awarded

In the same meeting, the contract was re-awarded to Chammings Electric, the second lowest bidder.

Insurance

Is it a common issue that a company wouldn't have the amount of insurance needed to be part of a project? And why would a company try to change the requirements after winning the bid? Schneider Electric has not responded to emails or calls about the contract, but if you have any insight on how insurance requirements have impacted your decision to bid on a project, let us know in the comments.

[Update Monday: March 24, 2013]

Schneider Electric says the local newspaper article about the contract "unfairly portrays the situation" and says the company could not agree on the contract terms and made a choice not to sign the contract it was awarded. It provided this statement by email:

Schneider Electric was awarded the contract for new security cameras in the passenger terminal at the Atlantic City International Airport, it is our standard practice to review all contract terms and conditions before signing. The South Jersey Transportation Authority contract was reviewed by the Schneider Electric legal team, and as is the case with many projects, a few changes to the contract were presented to SJTA. The SJTA did not approve these requested changes, so we requested that only the insurance term be changed. It is our standard protocol to provide a certification of insurance, but not provide a copy of Schneider Electric's policy. This request was denied, therefore Schneider Electric could not agree to the contract terms required by SJTA, did not sign the contract and notified the SJTA we would not be able to move forward with this project.

Comments (29) : Members only. Login. or Join.

Related Reports

Chile Cancels 1,000 Camera Hikvision Project on Oct 12, 2020
Six months ago, Chile awarded a 1,000-camera project using Hikvision. The...
Genetec Goes Virtual, Drops Essen and GSX, Skeleton Crew to ISC West 2020 on May 05, 2020
Genetec is dropping Essen and GSX shows this year as well as planning to send...
Ban Rules Released: Use Dahua or Hikvision, No US Government Contracts on Jul 13, 2020
The US government has released the rules implementing the "Prohibition on...
ISC West 2020 Finally Cancelled on Jun 25, 2020
ISC West has now been cancelled for the third time, now for all of...
Directory of Companies Dropping ISC West 2020 on Mar 06, 2020
UPDATE March 2020: UPDATE April 2020: ISC West 2020 Cancelled Again,...
Wyze Fails To Deliver Own On-Board Analytics, Launches Novel Name Your Own Price Service on Jul 24, 2020
While Wyze failed to deliver their own onboard analytics to replace the...
JCI Slashes ISC West Booth 88.8% on Mar 05, 2020
The mega-booth at the main entrance of the ISC West show floor is now...
ISC West March 2020 Cancelled, Postponed to July 2020 on Mar 06, 2020
[Now the July 2020 show is cancelled with hopes to run it in October...
Intersec 2021 Is Open In Dubai [Now Cancelled] on Sep 03, 2020
While ISC East November 2020 just cancelled and CES January 2021 has been...
CANCELLED: IPVM Conference 2020 on Feb 13, 2020
CANCELLED, May 6th: We are canceling the IPVM September 2020 Conference and...
Integrators Avoiding Coronavirus Air Travel on May 29, 2020
IPVM asked integrators if air travel is part of their 2020 plans to see how...
ISC West 2020 Removes China Pavilion, No Plans To Cancel Or Postpone on Feb 17, 2020
ISC West plans to go on next month, amidst concerns over coronavirus....
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
Genetec CEO Declares "We Don't Negotiate Payment With Patent Trolls" on Aug 11, 2020
Are patent trolls like terrorists? Genetec's CEO is coming out strongly...
Hikvision Admits Minority Recognition, Now Claims Canceled on Jul 23, 2020
For the first time, Hikvision has directly addressed its minority recognition...

Recent Reports

ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...