A $235 million state contract that awarded transportation services for Medicaid patients to two out-of-state providers is on hold after a high-stakes legal challenge by local carriers.

The state wants to award the Medicaid transportation services to LogistiCare Solutions of Georgia and Medical Transportation Management Inc. of Missouri.

Attorneys representing a group of in-state carriers Thursday asked a judge to nullify the contracts based on misrepresentations in the contract. The contract would have to be re-bid.

Local carriers in the state’s six Medicaid transportation zones, some of whom bid on the contract, also claim the contract was unfairly awarded.

A decision on the contract award is due by Dec. 27.