East Hall houses the main event hall, ballroom hall, and various ancillary spaces. The organization gave out $323,500 in scholarships in 2014, but reported $8.9 million in revenue (and it ended that year with negative $1.6 million in its accounts).The nonprofit employs between 11 and 50 people, according to its LinkedIn profile.
The authority’s procurement protocol was developed in accordance with a 2006 executive order (EO 37), which specifically addresses the procurement process for state authorities, includes limited circumstances in which exception to public advertising and a competitive process shall apply, and additionally requires specific documentation and procedures when an exception is invoked. At that time, the authority evaluated the use of and costs associated with repurposing and/or demolishing West Hall and determined that the associated costs would be prohibitive compared to the budgeted costs to repair and/or replace the roofing system.In March 2015, the authority issued an RFP and subsequently awarded a two-year contract, not to exceed $500,000, for an as-needed roofing contractor to the sole respondent of the RFP and immediately identified three projects, totaling $455,000 to be completed under this contract. When we questioned the price of the lease, they told us that the office space is “not upscale or highly visible and it features no windows.”.“It’s average space at best and is located in the ‘back-of-house’ area of Boardwalk Hall,” wrote a CRDA spokesman in an email. We were not provided with this required memorialized concurrence of three authority officials.Based on the lapse in time between the emergency and authorization to commence work and documentation presented, we question whether a public exigency existed. How can you discover a land already occupied? The highest and lowest combined bids were approximately $5.4 million and $3.46 million, respectively.
Additionally, our walkthrough of the West Hall area identified that the affected switchgear room was out of public view and only accessible by authorized personnel.When an exception to competitive purchasing is invoked under EO 37, a proposed resolution concerning the contract shall set forth the justification for invoking the exception, and the authority’s Executive Director shall certify the circumstances that warrant application of the exception.The CRDA did not prepare a resolution or formally receive board approval, nor did the Executive Director certify that circumstances warranted application of the exception. A draft resolution was prepared for the September 2016 board meeting to reflect these recommendations; however, the board chose to reject all bids on the basis of examining the scope of work for the proposed construction and, once again, to further examine potential options related to the repair and/or replacement of the roofing system. The authority determined that emergency work was required and sought a competitive process by releasing roof designs to replace a portion of the West Hall roof to four contractors who had participated in the original 2014 public bid. A $1.4 million contract was awarded in August to the vendor who was recently awarded the as-needed roofing contract and was the lower of the two bids.June to September 2016 – RFP for the East Hall Roof and Remainder of the West Hall Roof; Rejection of Bids; Increase As-Needed Contract.It was not until June 2016, when the CRDA released an RFP to repair and replace the East Hall roof areas and the remainder of the West Hall roof. The planned New Year’s Eve Concert at Boardwalk Hall has been cancelled, at least for this year… says the CRDA; Casino Reinvestment Development Authority. The CRDA also oversees Historic Boardwalk Hall (the leading entertainment venue of its size in the country) and the Atlantic City Convention Center. We calculated that 77 calendar days lapsed from the incident date to April 11, 2017, when the Executive Director authorized the commencement of work, which is not an immediate response.
At that same board meeting, the board immediately presented and approved a resolution to increase the as-needed roofing contract by $2 million (from $500,000 to $2.5 million), to effectuate certain limited emergency repairs to a portion of the East Hall roofing system, even though the vendor holding the as-needed contract had just submitted the highest bid for the East Hall and West Hall roof projects.Less than two months after the board’s rejection of the competitive bids, the authority requested a proposal for an emergency roof replacement at East Hall. Separately, CRDA said a Starbucks would open in Boardwalk Hall, fronting on the boardwalk and making a casino-style investment in the building’s appearance. Seven Arrested.
Our review noted that the lapse in time between identifying the need for roof repair and replacement, and the questionable application of multiple emergency procurement, resulted in all roof work being awarded to one vendor at an additional cost to the authority of up to $2.1 million.A Request for Proposal (RFP) was released in November 2014 for the repair and replacement of the East and West Hall roofs.
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