Document talks about pilot project CS-1347 that DLZ did related to water systems replacements. That was under consultant contract, Ferguson Enterprises and Hayes Excavating worked with them on this pilot project.
WS 642, 649, 650 and 650 contracts were held by DWSD because DLZ didn't have a bond.
Memo from Victor Mercado to Audrey Jackson in Purchasing on January 12th 2004. Contracts 642, 649, 650 and 651 were directly negotiated by DLZ with FEI and Hates Excavating.
"The combined estimated cost of the five contracts is $3,805,000. WS 642 and 649 assigned to Hayes Excavating. WS 650 and 651 to Ferguson enterprises." Goes on to say both firms have demonstrated ability to work and are minority bsuinesses. Contract WS 652 was up in the air at this point.
Rataj says at this point FEI had provided insurance and bonds required by law? Correct.
Did not have fully executed contracts because DLZ had not produced a bond? Correct.
Document form Awni Qaqish to Mercado. It's not low bid contract so doesn't matter who lowest bidders are? Correct.
So this was just for one contract- for Washington Blvd? Yes.
Ferguson Enterprises ranked 8 on this list and Hayes Excavating ranked #9.
June 1st 2005. Letter from DLZ to Mercado regarding CM 2012, contract WS 656 approval of change order #12. Contractor is Lanzo Construction. Talking about replacing 350 linear feet of water main at $514 per linear feet.
Lanzo Construction had quoted more than $274 per linear feet on Washington Blvd bid.
Rataj says it has no importance that Posen, L D'Agostini and Lanzo were 3 lowest bidders? Correct.
What happened with Lanzo construction asks Rataj? There was an error on one of their unit prices.
Rataj shows witness document from August 2004. Breakdown of all contracts assigned by DLZ under umbrella contract CM 2012. letter from Mercado to City council on emergency contracts.
Eagle Excavation and they weren't even in the Washington Blvd bid process? that's correct because they were already on site for a compuware project.
So it was a cost saving method? Correct.
Rataj brings up one of the change orders for WS 651. Says that negotiations resulted in savings of $281,475.
1st change order on contract for more than $400,000 on 651 . Then another change order for $356,000.
"I'm almost done. Mercifully I would imagine," says Rataj. You have no idea Mr. Rataj.
Contract WS 656 for Lanzo construction. Change order #12- so they went through a bunch of change orders says Rataj? Yes.
This is 12th change order for Lanzo. Amount on order is for $183,000 went all the way up to $6.5 million. Started out at close to $1.3 million. Not unusual to have this many change orders? That's correct.
L D'agostini originally contract price of 1.3 million at change order #8, new total is $5.4 million. So again not unusual? Yes.
DLZ was able to make more than $19 million dollars without putting up any bond.
Witness corrects. So DLZ made $7 million without risk and all the subs assumed risk? Yes.
Rataj finally wraps up. Judge dismisses jurors.