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HRT takes contract that costs more

Contract deals with bus ads

Updated: Friday, 01 Apr 2011, 6:03 AM EDT
Published : Thursday, 31 Mar 2011, 7:31 PM EDT

NORFOLK, Va. (WAVY) - The loser in a contract war to get HRT bus advertising claims taxpayers are getting ripped off. Gateway Outdoor Advertising has had the contract for five years.

The company was told Thursday is their last day on the job. Employees first caught wind of this last Thursday at the HRT Board meeting. Gateway lost the contract, and the company claims there's never been any complaints about work, or job performance.

Rob Cole, a subcontractor for Gateway Outdoor Advertising, puts the advertising signs on the side of the HRT buses. "I've been doing it 5-6-7 nights a week for the last six months," said Cole. When we asked him what he thought when they didn't get the contract Cole responded, "I was shocked."

Gateway Outdoor Advertising lost the contract they claim was the best deal for taxpayers, and told that to the HRT Board last Thursday.

"We are the high bidder with more money coming into HRT from my client than the others," said Gateway's Attorney Bill Bischoff.

Here's the pricing proposal for HRT bus advertising:

- Direct Media offered $2.47 million
- Gateway offered $105,000 more to HRT with $2.575 million
- Gateway also offered $700,000 in advertising trade with other media that HRT would not have to pay.

At the board meeting HRT President Philip Shucet did not want to talk about the advertising bid. Cole was also at the meeting, and complained to the board members he had the best bid which Shucet clearly did not appreciate.

"There should be no expectation whatsoever because someone shows up here and makes certain allegations that the decision may change," said Shucet.

On Monday after Thursday's board meeting, HRT sent a letter to Gateway's President Craig Heard which said, "Gateway...has been operating under an extension of the contract term on a month-by-month basis...extension is herby terminated."

Heard and others at Gateway considered this a retaliatory move by HRT against Gateway for showing up at the Board meeting. The last day on the job is today. Cole said, "I've been told we are no longer supposed to be on the property."

Gateway has sent a protest to HRT claiming Gateway's proposal is in effect the best deal for taxpayers. HRT has no comment on the ad wars except spokesperson Tom Holden said, "Consideration of the final contract has been deferred due to the Gateway Complaint."

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