Detroit Public Library Owes E-rate-Approved IT Provider $376,000, Alleges Suit
The Detroit Public Library owes about $376,000 to IT contractor Ahead in the Cloud and hasn't responded to requests for payment, alleged the contractor's breach of contract complaint Wednesday (docket 2:24-cv-11424) in U.S. District Court for Eastern Michigan in Detroit.…
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The parties agreed in March 2022 that Ahead, an E-rate-approved contractor, would provide and install security, internet and computer equipment to the library. The agreement called for funding to be provided by the DPL funds, along with receipt and reimbursement of federal funds from Universal Service Administrative Co. (USAC), including E-rate program funding, alleged the complaint. The parties agreed DPL was to pay Ahead and then seek “in whole or in part” reimbursement from USAC for costs incurred, it said. Ahead provided all of the internet communications, security and devices DPL requested, and DPL was to pay the plaintiff $468,948.41 for all work performed, the complaint said. On April 21, 2023, Ahead billed DPL $122,370.97, portions of which were reimbursable from USAC to DPL, said the complaint. Ahead submitted another bill for $298,286.06 in October, also partially reimbursable from USAC to DPL, it said. In February, Ahead received a payment of $44,742.91 from the defendant, leaving $375,914.12 due, the complaint said. Five follow-up letters and emails to DPL regarding payment have “gone unanswered,” the complaint said. The plaintiff seeks the amount due, plus legal costs, interest, and other fees and expenses allowed by law. The library didn't comment.