The state budget director announced today he has rejected bids from two companies vying to take over the state’s liquor distribution system.
“Based upon an extensive evaluation process, OFM (Office of Financial Management) has determined that neither proposal results in net positive financial benefit to the state or local government or meets the best interest of the state,” OFM Director Marty Brown wrote in a letter to members of the Washington State Liquor Control Board.
“When analyzing the factors relative to the financial section of the proposals, neither proposal was able to provide enough assurance that the firm could achieve its projected sales growth assumptions. If these assumptions were not achieved, the state and local government could be left with significant financial risk in future years,” he continued.
A law passed earlier this year directed the department to solicit bids for putting a private firm in charge of the state’s liquor warehouse operation in Seattle. Under the law, OFM could award a contract if a bidder could show the changeover could make money for the state.
Two firms submitted bids and neither had been publicly disclosed pending a decision. OFM intends to post both proposals on its website today.
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