06 July 2009
Software supplier Epix Systems is suing a West Yorkshire council over what it describes as a "fundamentally flawed" procurement exercise.
Epix brought the £400,000 action against Kirklees Council after it lost out on a contract to replace a call centre software system.
According to Epix, Kirklees breached a 2006 public contract regulation on eight counts by not fairly comparing its bid against the winning tender.
Epix also claims the council was engaged in exclusive discussions with the winning supplier during the procurement process.
The upgrade of call centre software was the third and final part of one tender issued by Kirklees. Epix had been the council's incumbent supplier on the other two parts of the deal, which included the installation of the call centre software.
Stephen Earl, managing director of Epix, said that he was "extremely disappointed" and described Kirklees' conduct as "puzzling".
A spokesperson from Kirklees said: "The council has received a claim from Epix which has been placed into the hands of our legal advisers. We can make no further comment at this stage."