For additional information, contact
Kathy
Brailer, (301) 419-3900
SPHERIX PROTEST WIN PROMPTS U.S.D.A. FOREST SERVICE TO REOPEN CAMPING RESERVATION PROCUREMENT
Spherix's National Park Service Contract is Extended
FOR IMMEDIATE RELEASE:
BELTSVILLE,
MD, Spherix Incorporated (NASDAQ/SPEX) – Following a GAO decision that the
Forest Service had unfairly favored its own incumbent contractor over a much
lower priced competitor, the agency will reopen the competition for its
National Recreation Reservation Service contract, also known as the “Recreation
1-Stop” program. The decision (http://www.gao.gov/decisions/bidpro/294572.htm)
by the Government Accountability Office (GAO) will cause the Forest Service to
move the startup of this new reservation service, one of the Bush
administration’s e‑government initiatives, to November 2005.
The
contract award in August generated controversy because of the huge price
difference between the bids of ReserveAmerica, a TicketMaster subsidiary, and
Spherix Incorporated, the second-place finisher. Spherix is a Maryland-based company that has won a reputation for
outstanding performance at lower prices in operating similar reservations
services for the National Park Service and several state park agencies.
The
GAO determined that the Forest Service’s justification for accepting
ReserveAmerica’s substantially higher prices was unreasonable and
unsupported. Spherix contends that
there were no technical differences that would favor ReserveAmerica’s solution.
In
December the GAO sustained Spherix’s protest of the award, and on January 5
released a redacted version of its official decision. The GAO indicated that the Forest Service’s proposal evaluation
team unfairly favored ReserveAmerica during the evaluation, inaccurately
portrayed Spherix’s proposal to the agency’s source selection official, and
failed to conduct proper discussions as required by law.
The
Forest Service indicates it has ordered ReserveAmerica to stop work on the
project and will amend the solicitation, hold additional discussions, and
request another submission from the current offerers. Spherix expects to continue to provide reservation services to
National Parks under its existing contract until at least November 2005.
Spherix’s
President and CEO Richard Levin said, “We’re very pleased that the Forest
Service has agreed to follow GAO’s recommendations. Hopefully, they’ll make some substantial changes in the way they
run this procurement to ensure a completely level playing field. If that happens, we think we have an
excellent chance of winning the award.
Spherix has won nearly all of the recent competitions for State
reservation contracts where we have competed with ReserveAmerica. We have proven technology, do what we
promise to do, and typically offer much lower prices to the public.”
Certain statements contained
herein are “forward looking” statements as defined in the Private Securities
Litigation Reform Act of 1995. Because
such statements include risks and uncertainties, actual results may differ
materially from those expressed or implied.
Factors that could cause actual results to differ materially from those
expressed or implied include, but are not limited to, those discussed in
filings by the Company with the Securities and Exchange Commission, including
the filing on Form 8-K made on March 3, 1999.
Under
its motto, “A World of Solutions,” Spherix’s mission is to create value and increase shareholder wealth through innovations
that benefit our clients and the human condition. Spherix offers innovations in information technology, knowledge
management, and biotechnology.
Our
Internet address is http://www.spherix.com.
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