A San Francisco Native, Woman Owned Business, Files Multi-Million Dollar Claim for Malfeasance by The Port of San Francisco

USA - English

• USA - English

SAN FRANCISCO, June 17, 2020 /PRNewswire-PRWeb/ -- SUSTAP LLC, an experienced, minority and women-owned business, a United States certified Federal Government Contractor and a certified Minority Business Enterprise with the State of California with decades of management experience in both the shipyard industry and project management, announced that it has filed a Claim against The Port of San Francisco, seeking multi-million dollars in damages. The Claim and Whistleblower's Complaint JYYL9Mkd was filed by SUSTAP's counsel, Marc R. Greenberg, Tucker Ellis, LLP on June 10, 2020 in the United States, City of San Francisco, Controller's Office, Claims Division 1390 Market Street, 7th Floor, San Francisco, Ca 94102

SUSTAP alleges in its Claim that its response to the Port of San Francisco's Request For Proposal (RFP) for Lease Operation of the Pier 70 Shipyard was feasible and The Port's inaction and "gamesmanship in the handling of the restart of the Ship Repair facility suggests that there was never a true intent to include Ship Repair as part of the redevelopment of Pier 70."

The Claim alleges because a formal rejection has yet to be issued, SUSTAP is significantly limited in its ability to bid on other projects. Separate from the damages suffered, the company also claims it incurred damages by The Port's improper conduct.

The Claim alleges, The Port requests and accepts Grants from the United States Government agencies and that The Port's Water Front Plan states "maintaining the ship repair industry is key to the historic preservation strategy and also is a key industry that supports the City's economic base." 1 This commitment is also stated in the Port of San Francisco's 10 Year Capital Plan (2016-2025).

The Claim alleges Pier 70 is a 69-acre property owned by the Port of San Francisco located in the City's Central Waterfront that contains dozens of industrial facilities which form the Union Iron Works (UIW) Historic District. Listed on the National Register of Historic Places, the UIW is historically significant as the center of shipbuilding and repair on the West Coast for nearly 150 years, and as an exceptional example of shipyard architecture and industrial design from the 1880s to the end of WW II.

The Claim alleges under the US Department of Interior, National Park Service, National Register of Historic Places, Pier 70 incorporates 41 active buildings and 4 structures that include a 15-acre active dry-dock and ship repair. In turn and pursuant to this agreement, the Claim alleges, the City of San Francisco receives annual financial funding from the U.S. federal government.

The Claim alleges, in April 2018, The Port of San Francisco issued an RFP seeking a new ship repair operator and SUSTAP responded to the RFP. SUSTAP operated by a San Francisco native with extensive business and maritime experience, including 25 years of contracting with the City of San Francisco teamed with a Naval contractor, a California business out of San Diego operated by a U. S. Navy veteran Annapolis graduate with extensive experience in operating shipyards as well as performing government contracts. The SUSTAP team states in the Claim that the proposal response submitted and the team's ability to perform met all criteria presented in the RFP and was indeed practical or feasible as the preparation of SUSTAP's proposal was completed by a team of experts and involved many layers, including senior advisors.

The Claim states SUSTAP is a certified client of the U.S. Department of Commerce (USDOC) Minority Business Development Authority's (MBDA) Minority Business Development Center (MBDC) and that through the assistance of the USDOC MBDA's MBDC, SUSTAP received a "pre-qualified $10 million dollar loan "for the dry-dock opportunity in San Francisco," and also secured, through the USDOC MBDA's MBDC assistance a "$25 million line of credit."

The Claim alleges, SUSTAP received a letter from the Port that read "We are pleased to inform you that you are one of the respondents that we have initially determined has met the minimum qualifications detailed in Shipyard RFP #2." The Claim alleges SUSTAP was never notified to attend "oral interviews for shortlisted firms" and that due to delays and mismanagement by The Port, SUSTAP submitted a PROTEST, and The Port responded to meet and discuss.

The Claim alleges, SUSTAP attended a meeting and The Port's Maritime director at the time, advised in the meeting attended by SUSTAP representatives and The Port members "this was not dead in the water to go back and sharpen your pencils" and get back..."

The Claim alleges, SUSTAP submitted a "best and final" offer and the COO of the Port said, "this is what we were looking for." The Claim alleges, The Port continued to engage SUSTAP in conversations, emails, meetings (both formal and informal), and The Port conversed and emailed the U. S. Department of Commerce MBDA MBDC (SUSTAP's customer/client) at SUSTAP's introduction.

The Claim alleges, in 2019 The Port then continued to engage SUSTAP by touring the dry dock with SUSTAP with one of SUSTAP companies who would sublease from SUSTAP revealing future additional income plans to the Port and that The Port requested additional Marketing ideas (outside of any SOW requirement).

The Claim alleges the RFP appeared to be used in a fraudulent manner, where the secretive nature of the Port knowingly or through malfeasance evaded an open and transparent process. The Claim alleges, "by using these tactics of ignoring a minority and women-owned company, The Port used an open form of bid manipulation by changing the announced evaluation criteria during the evaluation process."    

The Claim alleges it appears that the Port, while receiving various state and federal funding to support Pier 70, was simultaneously supporting its' demise, while publicly appearing to seek a qualified operator for the active dry-dock and ship repair area.

In its Claim, SUSTAP also alleges an array of acts by The Port of San Francisco:

Allegedly, for the past three years, the Port allows the Pier 70 Ship Repair facility to sit empty and fall into decay, while causing the loss of more than 200 jobs; The Port and the City of San Francisco incur the expense of security and electricity of the shuttered Ship Repair facility at a cost of $150,000 a month in tax dollars and allegedly the Ship Repair facility could be operating today and producing lease payments and tax revenue, but for the inaction of The Port.

Allegedly, in February 2020, The Port issued a statement of the Project Goals for redevelopment for the entire Pier 70 area. Conspicuously missing from the publication is any mention of the plan to restart the ship repair facility or why the ship repair parcel has been stalled by The Port. The Claim alleges, "If The Port delays long enough in issuing an award, SUSTAP claims the Ship Repair facility will fall into such disrepair that recovery of the facility and its jobs will be impossible, which is perhaps the goal." And, "whatever underlying agenda is guiding the Port in its actions, that agenda has caused, and continues to cause, damages to SUSTAP, LLC and the City of San Francisco."

A copy of SUSTAP's civil Claim and submittal and Whistleblower Report is available from SUSTAP's counsel, Marc R. Greenberg, Tucker Ellis, LLP, by sending email to [email protected].

###

Media Contacts:

[email protected]                                        
Attn: Daisy Gallagher, AMA, CPM, CHT                                        
Chief Public Affairs Officer 202-465-0009 (direct)

Marc R. Greenberg, Esquire
Tucker Ellis LLP - 213-430-3355/213-215-8887 (mobile)

Virginia Gibson, Chief Operating Officer - Maritime        
Cofounder SUSTAP LLC
[email protected] / 650-201-4723                                                                                        

1 Water Front Pier 70 Masterplan

SOURCE SUSTAP