Press Release

Lockheed Martin Announces Intent to Sue over New Jersey Turnpike Deal

11/19/96

Lockheed Martin IMS Issues Statement


TEANECK, N.J., Nov. 15 -- Lockheed Martin IMS
Executive Vice President John McCarey today issued the following
statement in response to the administrative decision issued by Acting
Turnpike Authority Executive Director and Administrative Hearing
Officer Ed Gross concerning New Jersey's electronic toll procurement:

"Lockheed Martin IMS is extremely disappointed in the decision handed
down today by Edward Gross. As a result, we are left with no
alternative but to appeal this matter before an objective and
impartial court.

"Today's decision flies in the face of the facts. We filed this
protest because we believed we could and did demonstrate that the
year-long electronic toll procurement, in which we participated, was
skewed in the twelfth hour to focus on the sale of state fiber optic
cable rights-of-way. The result is that instead of the procurement
being determined on competence, and best value to the state on
providing electronic toll and related services, the determination was
mistakenly shifted to a questionable assessment of potentially
valuable fiber optic rights without adequate competitive involvement.

"Had this been made clear from the start it would have been one thing.
But we believe we were misled in this procurement by the state and we
were prevented from presenting expert testimony during the recent
hearing that would have supported our position. Thus, we are left with
no alternative but to pursue this matter in the state appellate court.

"We strongly object to the hearing officer's contention that we
impugned Commissioner Wilson's integrity. That is simply not the case.
We made it clear from the outset of the protest hearing. We believe,
however, that the testimony presented during the hearing clearly shows
his continued involvement in the procurement process after his letter
of recusal was filed. We question his judgment and its impact on the
process. We do not question his integrity. The ultimate determiner of
that will be the Executive Commission on Ethical Standards, not the
consortium's hearing officer.

"Clearly, the leasing and sale of the state's fiber optics
rights-of-way holds great potential for generating revenues for the
state. At the same time, electronic toll implementation holds great
potential for facilitating commuter travel on New Jersey's toll roads.

"It is unfortunate for the people of New Jersey that a flawed
procurement process and a flawed administrative review will now result
in delayed implementation of both electronic toll implementation and
fiber optic rights revenue generation.

"Serious issues have been raised in this matter which we believe would
lead impartial evaluators to conclude that the process was flawed and,
therefore, should be scrapped. We plan to pursue this matter
aggressively before an objective and impartial court for final
resolution.

"We are confident that with the full, impartial opportunity for review
of the documents and witnesses offered in the courts, the complete
story will be told and the obvious violation of the public interest
will become evident. We are saddened by the necessity to pursue these
actions, but in light of the facts, we have no alternative."