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AECOM RFQ No. 14 -07 -02 Dispute Disclosure Form — cont.
<br />19.2. Has your firm, or any member of your firm, been declared in default, terminated or removed
<br />from a contract or job related to the services your firm provides in the regular course of business
<br />within the last five (5) years?
<br />AECOM Technical Services, Inc. ( "ATS ") performs thousands of contracts each year. From time to time,
<br />occasions arise when ATS does not complete the performance of an awarded contract resulting in its
<br />termination. These situations include (i) where a client terminates the contract for its convenience; e.g.
<br />where the client is unable to secure continued funding for the underlying project and, as a result,
<br />terminates the associated contract, (ii) where ATS ceases performance under the contract in accordance
<br />with the applicable terms of the contract in response to the client's nonpayment or other breach, and
<br />the contract is ultimately terminated; and (iii) where one of the contracting parties terminated the
<br />contract for default. Upon knowledge and belief, formed after reasonable inquiry, ATS (i) has not failed
<br />to complete a contract where the other party to such contract was not in breach unless the contract
<br />afforded ATS that right and (ii) ATS has not had a contract terminated by a client wherein that
<br />termination was ultimately determined to be other than for convenience except in the following three
<br />instances: 1) in May 2012, ATS received a letter of termination from its client Covidien, Inc., relating to a
<br />remediation project being performed on a Time & Materials basis. At the time this letter was received,
<br />ATS was awaiting authorization to continue site activities as the project budget had been exhausted.
<br />Covidien refused to issue additional authorizations and refused to make payment on overdue amounts
<br />within the prior Covidien- issued authorization. ATS was subsequently forced to file a claim in the
<br />Massachusetts state court. Covidien had the matter removed to Federal Court where the claims were
<br />consolidated. ATS disputes the validity of the termination; 2) in November of 2012, ATS received a
<br />notice from the City of Sarasota, Florida, notifying ATS that it has terminated its contract with ATS for
<br />the design of a sewer lift station for default. ATS disagrees with the termination. The City of Sarasota
<br />ultimately filed suit. ATS is vigorously defending the City's claims and the matter remains pending; and
<br />3) In August 2013 and December 2013, AECOM Technical Services, Inc. (ATS) entered into contracts
<br />with the City of West Hollywood, California (City) to update the Sunset Specific Plan relative to
<br />billboards and tall walls. Thereafter, in February 2014, unbeknownst to ATS, a company in which ATS's
<br />ultimate parent AECOM Technology Corporation holds an interest ( AECOM Sunset Olive, LLC) purchased
<br />a 50% interest in a project known as Sunset Time, which is located in the Sunset Specific plan area. ATS
<br />has provided the City with information showing that although two entities (ATS and AECOM Sunset
<br />Olive, LLC) have partial overlapping ownership, their management structures and reporting relationships
<br />are wholly separate. Nonetheless, on June 19, 2014, ATS received notice from the City that it was
<br />terminating the contracts for cause, but would be willing to agree to a mutual termination if ATS would
<br />take certain actions, including re- paying all compensation that ATS received for the work that it
<br />performed under the contract, or in the alternative, the City would rescind the notice of termination of
<br />ATS's contracts if AECOM Sunset Olive, LCC divests its interest in the Sunset Time project. ATS disagrees
<br />with the City's assessment, but plans to negotiate with the client to reach agreement on a mutual
<br />termination.
<br />Moreover and, again, in an effort to be a responsive as possible to this RFP, in 2013 AECOM Technical
<br />Services, Inc. filed a protest with Miami -Dade County in connection with the County's proposed
<br />selection of consultants to manage a program for its water and sewer department. Subsequent to such
<br />protest, the County reviewed the procurement, made changes it deemed necessary, and ultimately
<br />awarded the project to AECOM. Again, should you require additional information, please contact Chris
<br />Karpathy, Vice President & Senior Counsel for AECOM at 972 - 735 -3011.
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