Business Resources Corporation: Texas Company Asking Court to Halt Work in No-Bid Dallas County Contract Granted to GTSI

DALLAS, Feb. 3 /PRNewswire/ -- Dallas-based Business Resources Corporation is asking a state district court to keep additional work from being performed under the terms of a no-bid contract that Dallas County signed with a Virginia company last year.  The contract with Herndon, Va.-based GTSI Corp. (Nasdaq: GTSI) calls for the company to preserve some of the county's oldest paper records. 

Attorneys for Business Resources want the court to hold hearings on the firm's motion for a temporary injunction that would stop GTSI from performing any further work under the contract. Today's request also seeks an expedited deposition of Dallas County Clerk John Warren to determine his role in awarding the contract, as well as document production and depositions of GTSI officials.

Judge Bruce Priddy of Dallas County's 116th Civil District Court has set a hearing on the motion for expedited discovery for Feb. 11. The hearing to consider a temporary injunction is set for March 5. Business Resources filed suit against GTSI and Dallas County last December, claiming the county's award of a $17.5 million contract to GTSI violated state law by failing to follow a mandated competitive-bidding process. 

"We believe that millions of dollars in public money are being wasted and we're asking the court to help us do something to stop that," says attorney Michael Hurst of the Dallas law firm Gruber Hurst Johansen & Hail LLP.  "Business Resources has publicly stated that it can provide these services at a higher quality and lower cost, which is exactly why the law requires competitive bidding. We contend that Mr. Warren either willfully disregarded the law or was misled by GTSI about how the contract was awarded and GTSI's qualifications to manage the contract."

The lawsuit alleges GTSI justified bypassing the competitive bid process by "piggy-backing" the deal on an unrelated national purchasing agreement for technology services. The lawsuit claims GTSI is not even providing the document preservation services, and instead is misusing its approved-vendor status to subcontract the work to Louisiana Binding Service, Inc., located in DeRidder, La. 

As outlined in the lawsuit, at the urging of Mr. Warren, Dallas County Commissioners approved a seven-year contract with GTSI in April of 2009 for the preservation of the county's historical paper records, such as books of property titles, deeds and plats.  By law, county clerks are required to maintain paper records, which have a lifespan far longer than their electronic counterparts. 

"GTSI has blatantly manipulated the contracting process, misrepresented its capabilities, and deceived the Commissioner's Court regarding the county's obligations to pursue a competitive bid for these services," says Mr. Hurst.

For more information on the lawsuit involving Business Resources Corporation and GTSI, please contact Barry Pound at 800-559-4534 or [email protected]. 

SOURCE Business Resources Corporation