12/07/2007 - National Legal News

A Pittsburgh, PA-based company specializing in workers' compensation solutions recently filed a lawsuit against the state, alleging that it erroneously awarded a contract to a competitor without a bid process.

In its lawsuit, Premier Comp Solutions claims that Pennsylvania’s Departments of General Services and Labor & Industry should not have awarded a contract to Industrial Medical Consultants without allowing competition to bid.

Industrial Medical Consultants is affiliated with Highmark, Inc., a high-volume Pittsburg health insurance company.

The suit alleges that approval of the “sole-source” contract violates the state’s procurement code. The code states that only in two situations should a contract be awarded without a bid process: in an emergency or when there is only one contractor available capable of providing required services.

The plaintiff’s case contends that neither situation was applicable; therefore, Industrial Medical Consultants’ contract should be voided.

A Highmark spokesperson could not be reached for comment.