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San Diego County officials on Thursday rejected an attempt by AT&T; Information Systems to overturn a decision recommending that another telecommunications firm receive a lucrative contract to install a new county telephone system.

The Contract Protest Review Board voted, 3-0, to deny the protest by AT&T;, which alleged that the county staff members who recommended that the contract go to Contel Business Networks Inc. failed to follow correct contract evaluation procedures.

AT&T; officials said the errors, which involved maintenance of the system and financing, among other issues, inflated the cost of their bid as reported by the county and lowered the cost of Contel’s proposal by about $2 million.

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The 10-year cost of AT&T;’s proposal was set by the county at $71.9 million, compared to Contel’s $65.25 million. A third bidder, Pacific Bell/PacTel, proposed a system estimated to cost $66.59 million.

The Contel recommendation will now go to the Board of Supervisors, which is scheduled to review the issue and vote Jan. 28.

The telephone project was originally awarded to Telink Inc., but that contract was canceled in 1983 after a scandal that resulted in the indictment of two corporations and 13 men, including two former county officials, on charges of racketeering, bribery and fraud.

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