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Technology Provider for Lottery Protesting Loss of Contract

Tuesday, May 27, 2008 at 4:20 AM

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The company that has provided betting technology to the Ohio Lottery for more than two decades is protesting losing its contract to a competitor. ideastream®'s Kymberli Hagelberg has the story.

Bob Vincent, vice president of equipment maker G-TECH, says his company lost a $170 million bid to a rival vendor Intralot because the lottery changed its bidding rules to favor pick a contract that is cheaper but not better.

Vincent says G-TECH filed an official complaint and has asked the lottery to redo the bid.

VINCENT: The process that they went through, convoluted at best, tends to level out risk, tends to level out capabilities, so that what really gets focused on in these procurements is price.

Vincent cites five problems with the selection of Intralot, including giving the company extra points for promising to build a new ticket machine in Ohio. 

He says if the award isn’t reconsidered, G-TECH is prepared to do a lot more than protest.

VINCENT: We absolutely are talking about litigation.

A lottery spokeswoman says her agency is happy with its bidding process, but will give G-TECH the opportunity to make an appeal to the director.

Both sides will make their cases to state board of control in Columbus, which has to approve the lease, on June 2.

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