Sumitomo Files Formal Protest Regarding Winning Bid on Part of the Honolulu Rail Project

Media Release:

Sumitomo Corporation of America (SCOA) filed a formal protest today regarding the selection of the winning bid for the Core Systems DBOM (Design, Build, Operate and Maintain) part of the Honolulu rail project.

“We regret having to take this action. It is not how we normally respond to bid outcomes,” said Gino Antoniello, Vice President, Transportation Systems and Equipment, SCOA. “However, we are working with many local partners and our team includes several Honolulu-based companies. We owe it both to ourselves and to them to challenge what we believe to be a wrong decision.”

Antoniello went on to explain: “Our concerns have only intensified following our debriefing meeting with the City last Monday and as we thoroughly reviewed the documents that were made available to us. The failure of the City to recognize and properly take into account the cost of the project over its total life-cycle will leave the Honolulu taxpayers with the burden of paying as much as $900 million more to operate and maintain the system.”

“We believe that the City must give our protest serious consideration and we fully expect the City to realize that the Sumitomo offer provides the best value to the City and the taxpayers,” said Antoniello.

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