The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, September 22, 1994           TAG: 9409210125
SECTION: SUFFOLK SUN              PAGE: 20   EDITION: FINAL 
SOURCE: BY MAC DANIEL, STAFF WRITER 
DATELINE: SUFFOLK                            LENGTH: Short :   37 lines

CORPORATION, FAILING TO WIN CONTRACT, SUES SUFFOLK

McKenzie Construction Corp. of Virginia Beach has filed suit against the city, contending city officials violated state law by rescinding their intent to give McKenzie a city construction project.

The lawsuit, filed Sept. 12 in Circuit Court in Suffolk, asks that the bid be awarded to McKenzie and also asks for unspecified damages.

The lawsuit focuses on the bidding process for the city's proposed fleet services and animal-control building. Bids from 12 companies were received last month, and McKenzie offered the lowest at $1,393,000.

McKenzie was issued the intent to award the contract on Aug. 12. Five days later, the city retracted and awarded the contract to J.R. Wills & Sons Inc., which bid $1,400,425.

City officials said McKenzie's bid was ``non-responsive'' because the bid required ``an unrealistic commitment'' by Suffolk to begin ordering construction materials by Aug. 20, according to a letter, from the city, contained in the lawsuit.

Other changes in McKenzie's bid, including the company's refusal to waive any future claim against the city for a defective design, were also noted in the letter.

The city's letter said that ``these exceptions to the terms and conditions of the bid are deemed significant with potential adverse effect on the price, quality and delivery schedule of the project.''

An attorney for McKenzie declined to comment on the suit.

No hearing date has been set. by CNB