A chainsaw operator cuts down debris collected from the bottom of Lake Lure in Rutherford County, North Carolina, on April 14, 2025, to make it easier to load into dump trucks for disposal. The submerged debris is made up of vegetative and man-made debris washed into Lake Lure when Hurricane Helene impacted the area. (U.S. Army Corps of Engineers photo by Michael Davis)
North Carolina officials have agreed to schedule a hearing with a firm that is protesting how the state awarded a key hurricane rebuilding contract, according to the company.
IEM International, which is based in Morrisville, filed a complaint in late May about the contract to manage homebuilding efforts in western North Carolina after Hurricane Helene. The firm believes its bid for the contract was improperly disqualified. State officials have said IEM did not submit proper financial documents.
A spokesperson for IEM told NC Newsline that the firm’s request for a hearing had been granted. The NC Department of Commerce, which is overseeing the contract, did not respond to a request for comment Tuesday.
State officials awarded the $81.5 million contract to Horne LLP, a Mississippi-based firm. The award has quickly come under scrutiny from state lawmakers, who cite Horne’s involvement in past troubled recovery efforts.
It is not yet known when the hearing will take place, or the broader timeline for IEM’s protest. The firm has requested that the contract be re-bid; the Department of Commerce has said it believes “this procurement was conducted fairly.”
North Carolina rules state that the meeting between the state and IEM will be scheduled within 30 days. After the meeting, the state will decide if further review of the contract is needed.
In its original statement detailing the protest, IEM said it believed its bid’s disqualification was “highly irregular and concerning.”
The firm’s bid, obtained through a public records request, shows that it provided a balance sheet, income statement and cash flow data from three fiscal years. It added: “As a privately owned company, IEM’s financial statements are not public. IEM can provide to DCR [the relevant Department of Commerce division] upon request.”
State officials have cited a 2024 appeals court ruling that bars agencies from asking vendors for more information once bids have opened. Stephanie McGarrah, who is leading the Department of Commerce division that oversees Helene contracts, said during a hearing that it meant the state could not adequately follow up on IEM’s financials.
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