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Court Confirms Award of NYS DMV Contract to Hodgson Russ Client CBN Secure Technologies, Inc.

The New York State Supreme Court, Albany County, upheld the award of an eight-year contract to produce state-of-the-art driver's licenses and identification cards for the New York State Department of Motor Vehicles to Canadian Bank Note Ltd. subsidiary and Hodgson Russ client, CBN Secure Technologies, Inc.

CBN STI was awarded the contract to produce the driver's licenses and identification cards on a laser-engraved polycarbonate card in 2012. Under its proposal, photos will be laser-engraved onto the document in grayscale, with a second grayscale photo engraved into a ghost window embedded in the card. The DMV found that CBN STI's bid was the most secure solution and warranted the extra cost necessary to produce the highly secure documents.

The DMV's determination prompted the two unsuccessful bidders, De La Rue North America and Morpho Trust USA, to challenge the award before the Office of the State Comptroller (OSC). The OSC confirmed the award, finding no indication of an unfair advantage. Following the decision of the OSC, De La Rue and Morpho Trust filed an Article 78 proceeding, which Hodgson Russ attorneys Robert J. McLaughlin and Michelle L. Merola opposed on CBN STI's behalf. Mr. McLaughlin represented CBN STI at oral argument on May 1. In a written decision, the court denied petitioners' requests and dismissed their petitions.

The court's decision vindicates the DMV's procurement process and represents a significant victory for CBN STI, which expects to begin producing New York State's driver's licenses within the next few months.