L.A. DWP Renews Wackenhut Contract

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Wackenhut Corp. won a second fight in its long-running battle with the Service Employees International Union on Tuesday when the Los Angeles Department of Water and Power renewed the national private security firm’s temporary contract for security guards.

The temporary contract was approved by the DWP for an extension through Sept. 30, and the department will be deciding whether the contract will be extended through March 31, 2009. It is worth $133,000 per month, and would total $1.2 million for services the company will be providing if the contract is extended through March 2009.

Last month, Florida-based Wackenhut went before the DWP’s board to defend itself against claims made by the SEIU that the company discriminates racially and violates labor laws. During the July 24 hearing, Wackenhut argued that the company should be considered a responsible contractor and be allowed to bid for DWP contracts.

In addition to contracting with the DWP, Wackenhut has also held a contract with the Department of General Services to provide security guards for city buildings.

Wackenhut sued the city last year after claiming that the SEIU, which has close ties to City Hall, influenced the competitive bidding process and caused the company to lose a multi-million dollar contract with the department.

A Los Angeles Superior Court judge ruled on July 2 that the city violated its competitive bidding procedures when awarding the Department of General Services contract, and must redo the bidding process.

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