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Omaha City Council upholds rejection of Principal Bank bid, citing missing bid security
Summary
After extended debate, the Omaha City Council denied Principal Bank’s appeal of a rejected custody-services bid, finding required bid security was not uploaded by the 11:00 a.m. deadline; the denial was upheld by a 6-0 roll call.
The Omaha City Council on a unanimous roll call denied an appeal from Principal Bank after finding required bid security was not submitted by the 11:00 a.m. deadline for custody services for the City of Omaha’s police and fire retirement plans.
Robert Coleman, representing Principal Bank, said the bank submitted a complete bid by the Oct. 29 deadline and that a cashier’s check was mailed and ultimately delivered the same day. “Our proposal included confirmation of a $50 cashier’s check issued from our partner bank, including both the check number and FedEx tracking numbers,” Coleman said, asking the council to consider the bid alongside others.
Tyler Hezekiah of the City of Omaha Law Department recommended rejecting the appeal, saying city ordinance requires scanned bid security to be uploaded before the 11:00 a.m. opening. Hezekiah told the council that Ionwave, the city’s bidding software provider, had no server record showing an uploaded bid security for Principal Bank before the deadline: “It wasn’t here by 11,” he said, adding that the mailed check did not arrive in the bid room until after opening and therefore did not meet code requirements.
Coleman responded that Ionwave logged the bidder in before the deadline and that the firm attempted to upload the documentation but the system refused changes prior to the cutoff. “The system declined our ability to actually update the bid,” Coleman said, adding that the bank provided FedEx tracking and the check number and believed it had made a good-faith effort to comply.
Council members questioned whether an electronic placeholder or mail tracking would suffice. Councilmember Melton asked what substitute was uploaded; Coleman said a FedEx tracking number and a note that the check was in the mail were attached. Hezekiah emphasized the need for a scanned image of an actual certified U.S. bank check to verify bank and certification requirements before opening.
Council President Harding framed the decision around precedent and fairness: he said the city must apply procurement rules consistently so other bidders are not disadvantaged. Harding moved to deny the appeal and the council approved the motion on a unanimous roll call.
The denial leaves the city’s procurement decision intact; no further action on this appeal was reported during the meeting.
