HUDSON COUNTY HANDED THREE STRAIGHT COURT LOSSES, CONTINUES APPEALING FLAWED $22 MIL CONTRACT

January 18, 2010 – whatsgoingoninhudsoncounty.com

Hudson County was defeated twice in court last week over a controversial $22 million medical services contract it gave a politically connected bidder.  Wednesday a two judge panel of the New Jersey Appellate Division refused the county’s request to stay a previous court decision throwing out an amendment to the awarded contract.   The New Jersey Supreme Court later similarly refused to issue a stay.

Despite the consecutive court rulings, the county continues to appeal.

Superior Court Assignment Judge Maurice Gallipoli voided the contract amendment last month, saying it so changed the specifications to the original advertised contract that it became a new contract that “was never really put out for public bid.”

In July 2008, the county solicited bids for medical services at its correctional and juvenile detention centers.  The Hudson County Board of Chosen Freeholders in April 2009 awarded the contract to Correctional Health Services.

Instead of awarding CHS the contract as it was advertised and bid on by CHS and CFG Health Systems, the other bidder, the county altered the contract’s specifications and failed to solicit competitive bids for the new altered contract.

CHS, through its president, Geoffrey Perselay, has a history of political contributions to Hudson County officials.  Perselay donated $1,100 to Hudson County Executive Thomas A. DeGise on March 6, 2008, and $1,000 to Freeholder Anthony T. Romano on May 30, 2008.  Perselay is formerly Hudson County’s administrator and acting warden of the corrections center.

“Gallipoli’s decision has been upheld repeatedly,” said Les Paschall, president of CFG.  “It’s bewildering why Hudson County would waste tax dollars on an appeal when they should be focused solely on seeking new bids to obtain the best possible vendor.”