02-000140BID
South Florida Blood Banks, Inc. vs.
Miami-Dade County School Board
Status: Closed
Recommended Order on Wednesday, August 14, 2002.
Recommended Order on Wednesday, August 14, 2002.
1STATE OF FLORIDA
4DIVISION OF ADMINISTRATIVE HEARINGS
8SOUTH FLORIDA BLOOD BANKS, INC., )
14)
15Petitioner, )
17)
18vs. ) Case No. 02 - 0140BID
25)
26MIAMI - DADE COUNTY SCHOOL BOARD, )
33)
34Respondent, )
36)
37and )
39)
40COM MUNITY BLOOD CENTERS OF SOUTH )
47FLORIDA, INC., )
50)
51Intervenor. )
53__________________________________)
54RECOMMENDED ORDER
56Pursuant to notice, a final hearing was conducted on May 2 2
68and 23, 2002, at Miami, Florida, before Claude B. Arrington, a
79duly - designated Administrative Law Judge of the Division of
89Administrative Hearings.
91APPEARANCES
92For Petitioner: Mitchell A. Bierman, Esquire
98Weiss, Serota, Helf man, Pastoriza & Guedes
1052665 South Bayshore Drive, No. 420
111Miami, Florida 33134
114For Respondent: Pamela Young Chance, Esquire
120Miami - Dade County School Board
1261450 Northeast Second Avenue, Suite 400
132Miami, Florida 33132
135For Intervenor: J. Frost Walker, III, Esquire
142100 West Sunrise Avenue
146Coral Gables, Florida 33133 - 691 0
153STATEMENT OF THE ISSUES
157Whether Respondent acted contrary to its governing
164statutes, rules, policies, or project specifications in
171selecting the winning response to the subject Request for
180Proposals and, if so, whether any such act was clearly
190erroneou s, arbitrary, capricious, or contrary to competition
198within the meaning of Section 120.57(3)(f), Florida Statutes.
206PRELIMINARY STATEMENT
208Respondent, Miami - Dade County School Board (Respondent or
217School Board), issued its Request for Proposals 169 - AA10 ( the
229RFP) with a proposal return date of June 14, 2001. The RFP
241sought proposals to administer blood collection drives over a
250stated period of time with provisions for renewal terms. Only
260two organizations, South Florida Blood Banks, Inc. (Petitioner)
268and Community Blood Centers of South Florida, Inc. (Intervenor),
277submitted proposals.
279Consistent with the evaluation provisions of the RFP,
287Respondent appointed a Selection Committee to evaluate the
295proposals and to recommend the proposal that Respondent sh ould
305select. At its meeting on June 18, 2001 (the First Meeting),
316the Selection Committee determined that the contract should be
325awarded to Intervenor.
328Petitioner timely protested the recommendation that
334resulted from the First Meeting and Respondent fo rwarded the
344protest to the Division of Administrative Hearings (DOAH).
352Before any hearing before an Administrative Law Judge occurred,
361Respondent determined that the First Meeting violated the
369Sunshine Law due to inadequate notice of the meeting.
378Thereaf ter, the DOAH proceeding was dismissed, and jurisdiction
387of the matter was relinquished to Respondent, which nullified
396the Selection Committees recommendation and scheduled a second
404meeting for August 29, 2001 (the Second Meeting).
412The Selection Committ ee voted to recommend that Intervenor
421receive the contract at the Second Meeting. Petitioner timely
430protested this recommendation, incorporating the grounds from
437its original protest and adding additional grounds based on
446actions that occurred during and after the Second Meeting. 1
456Thereafter, the matter was referred to DOAH, and this proceeding
466followed. Intervenor timely filed a motion to intervene, which
475was granted. The parties attempted to amicably resolve this
484matter and waived the statutory time c onstraints to allow
494additional opportunities to attempt settlement. After
500settlement negotiations broke down, a final hearing was set for
510May 22 and 23, 2002.
515Prior to the hearing Respondent, through its attorneys,
523determined that it would not defend the award of the contract to
535Intervenor. Respondent stipulated with Petitioner that the
542selection process by which Intervenor was selected was
550materially flawed, and that the only issue to be determined by
561DOAH was the appropriate remedy. Petitioner did not join in
571that stipulation, and the undersigned has not viewed the
580stipulation as being evidence that the selection process was
589materially flawed.
591Petitioner presented testimony from seven witnesses and
598offered 18 sequentially numbered exhibits, 17 of which were
607admitted into evidence. John Flynn (President and chief
615executive officer of Petitioner), Vanessa Fabien (a student
623member of the Second Selection Committee), Elda Martinez (a
632former School Board employee), Linda Brown (a current School
641Board E mployee) and Bruce Lenes (Medical Director of Intervenor)
651appeared live. Excerpts from depositions of Alex Bromir (a
660former School Board employee) and Barbara Jones (a current
669School Board employee) were read into the record by agreement of
680all parties.
682Respondent did not present a case in chief, but it did
693offer one exhibit, which was admitted into evidence.
701Intervenor's case in chief consisted of additional
708testimony from Dr. Lenes and two sequentially numbered exhibits,
717both of which were admitted i nto evidence.
725The Transcript was filed with DOAH on July 15, 2002.
735Petitioner and Intervenor timely filed Proposed Recommended
742Orders, which have been duly - considered by the undersigned in
753the preparation of this Recommended Order. Respondent did not
762file a proposed recommended order.
767FINDINGS OF FACT
7701. At all times material to this proceeding, Respondent
779was a duly - constituted School Board with the duty to operate,
791control, and supervise all free public schools within the School
801District of Miami - Dade County, Florida, pursuant to Article IX,
812Florida Constitution, and Section 230.03, Florida Statutes.
8192. For over 25 years Respondent has used school facilities
829to conduct blood collection drives from students over the age of
84017 years and adults. Int ervenor conducted the blood drives for
851Respondent in the past and, at the time of the RFP at issue in
865this proceeding, was the incumbent provider.
8713. The only previous request for proposal (the 1998 RFP)
881issued by Respondent for the blood collection dri ve occurred in
8921998. Petitioner and Intervenor were the only two entities
901submitting responses to the 1998 RFP. Intervenor was selected
910as the winning proposer in 1998.
9164. At times pertinent to this proceeding, Elda Martinez
925was Respondent's Coordinat or of Special Projects for the Bureau
935of Community Services, Linda Brown was the supervisor for
944Ms. Martinez, and Alex Bromir was the supervisor for Ms. Brown.
9555. Ms. Martinez, under the supervision of Ms. Brown and
965Mr. Bromir, had the primary respons ibility of preparing the 1998
976RFP and the RFP. Barbara Jones, Director of Procurement
985Management and Material Testing for Respondent, assisted
992Ms. Martinez in the preparation of the RFP.
10006. On May 21, 2001, Respondent mailed the RFP to potential
1011propos ers to solicit proposals for the administration of its
1021blood collection drive program. Respondent received timely
1028responses to the RFP from Petitioner and from Intervenor.
10377. No timely protest to the RFP specifications was filed. 2
10488. Article II of the RFP provides that the purpose of the
1060RFP is ". . . to designate one blood center to collect blood
1073donations from students and staff at Miami - Dade County Public
1084Schools [sic] facilities."
10879. Article IV of the RFP provides general information
1096about the s chool district and a general description of the blood
1108collection drive program. Article IV(K) provides that the blood
1117center must have donor and individual school recognition
1125programs acceptable to Respondent. Article IV(L) provides that
1133a scholarship in centive program through the College Assistance
1142Program (CAP) is desirable.
114610. Article V of the RFP sets forth certain technical
1156requirements. Responders to the RFP were required by Article
1165V(A) to provide the following documentation and information:
11731. Documentation of its status as a not -
1182for - profit organization.
11862. The last two years of audited
1193financial records. The blood center must
1199agree to complete and open access by
1206appropriate Miami - Dade School Board
1212representatives and by the media, to the
1219details of these financial records, if
1225requested.
12263. The past three years of the Federal
1234Drug Administration (FDA) and the American
1240Association of Blood Banks (AABB) inspection
1246reports, including 483 forms, warning
1251letters, or intent to revoke licen se
1258correspondence with the FDA.
1262* * *
12655. Documentation that the blood center is
1272active in the educational efforts of the
1279school system they serve. (i.e., provide
1285educational programs for teachers, staff,
1290and students) [sic]
12936. Documentation th at the blood center
1300can develop, implement, and actually execute
1306a school - based scholarship program within a
1314school district at no cost to the school
1322district.
13237. Description of existing programs in
1329the school districts currently served. . . .
133711. Art icle V(B) is as follows:
1344B. The organization shall provide an
1350adequate number of mobile units, personnel,
1356materials, equipment, and supervision to
1361carry out the estimated number of blood
1368units to be collected in the blood drive.
137612. Article V(C) is a s follows:
1383C. The blood center must provide
1389sufficient trained and skilled personnel to
1395screen the donors to insure that they will
1403not be placed at risk by donating blood.
141113. Article VII of the RFP, which pertains to evaluation
1421of proposals, provides as follows:
1426Proposals will be evaluated by
1431representatives of the school district in
1437order to ascertain which proposal best meets
1444the needs of the School Board. The
1451Selection Committee will consist of the
1457following or their designees:
1461- Chief Administr ator, Bureau of Community
1468Services
1469- Executive Director, Community Participation
1474- Representative from Risk and Benefits -
1481Management and Services
1484- Principal, Senior High
1488- Principal, Adult Center
1492- Coordinator of Special Projects, Bureau of
1499Community Services
1501- A school based Activities Director
1507- A representative from PTSA Council
1513- A representative from Student Services
1519- A representative from the Student
1525Government
1526- A representative from Comprehensive
1531Health/Health Education
1533- A representative from the Division o f
1541Business Development and Assistance
1545- A representative from the Division of
1552Procurement Management and Materials Testing
1557Evaluation considerations will include but
1562not [be] limited to the following:
1568A. Responsiveness of the proposal clearly
1574stating a n understanding of the work to be
1583performed meeting all guidelines.
1587B. Documentation of present
1591certification; qualification of laboratory
1595staff members; past experience and record of
1602performance; verification of references.
1606C. Primary emphasis in the selection
1612process will be placed on the background,
1619experience, and service of staff to be
1626assigned to the project. Expertise in the
1633areas addressed in the RFP, and the ability
1641to respond in a timely, accurate manner to
1649the district's requirements is essential.
1654D. An important consideration is the
1660methodology of blood collection which takes
1666into consideration not only expediency but
1672the safest and least painful procedures.
1678E. The blood center must demonstrate
1684commitment to the continuing educa tion of
1691the students and faculty.
1695F. The generosity of the scholarship
1701program to be distributed by the College
1708Assistance Program (CAP) will be another
1714factor to be taken into account.
1720G. The availability of sufficient mobile
1726units to cover all hi gh schools, adult
1734centers, and vocational/technical schools so
1739that all the students have an equal
1746opportunity to participate in the program.
1752The school district reserves the right to
1759reject any and all proposals submitted.
1765When the final selection is ma de, a contract
1774acceptable to the Attorney of the Board
1781[sic] will be entered into with the
1788successful proposer. No debriefing or
1793discussions will be held with unsuccessful
1799vendors.
180014. Proposals from Petitioner and Intervenor were opened
1808on June 14, 2 001. On June 18, 2001, a Selection Committee,
1820formed in accordance with the requirements of the RFP, met to
1831evaluate the proposals. There was no issue at the First Meeting
1842as to whether both proposals had satisfied the technical
1851specifications of the RFP .
185615. At the beginning of the First Meeting the Selection
1866Committee members were given an agenda of the meeting, a chart
1877comparing the scholarship programs being offered by the two
1886proposals (the chart), and evaluations of the Intervenor's
1894performance a s the present provider.
190016. There were 14 members of the Selection Committee.
1909Mr. Bromir was the chairman and a voting member of the First
1921Meeting. Ms. Martinez and Ms. Brown were also voting members of
1932the Selection Committee.
193517. Ms. Martinez h ad worked with Intervenor's staff for
1945several years and thought they did a good job directing the
1956blood drive. She believed that Intervenor's contract with
1964Respondent (as a result of the 1998 RFP) should have been
1975renewed without the necessity of a new RF P. Intervenor honored
1986Ms. Martinez, who was about to retire, at an awards luncheon
1997shortly before the First Meeting. Ms. Martinez clearly favored
2006Intervenor throughout the selection process and greeted
2013representatives of Intervenor with embraces prior to the start
2022of the First Meeting.
202618. Both proposals responded to the evaluation criteria
2034set forth in Article VII(F) pertaining to the generosity of the
2045scholarship program.
204719. Ms. Martinez prepared the chart that was distributed
2056at the beginning o f the meeting. The chart purported to compare
2068the two scholarship proposals and was the focus of considerable
2078attention at the final hearing. The evaluation included a
2087determination as to what could not be included in Petitioner's
2097proposal and estimates as to what would likely be included in
2108Intervenor's proposal.
211020. Petitioner's response to the RFP committed to
2118contribute $225,000 in direct donations to the CAP. In
2128addition, the response reflected that participating schools
2135would earn a minimum of $ 217,000 in recognition payments during
2147the contract's initial, three - year term. A direct donation to
2158participating schools is prohibited by School Board rule, and,
2167consequently, a participating school could not earn such a
2176donation. However, the RFP cont ained the following savings
2185clause: "Any surplus funds not earned, as part of this
2195guaranteed minimum funding to participating schools, will become
2203an added donation to the College Assistance Program (CAP)."
2212Because of the savings clause, Ms. Martinez co rrectly determined
2222that the minimum guarantee to the CAP over the initial three -
2234year term was $442,000 ($225,000 $217,000).
224321. In addition to the foregoing, Petitioner's proposal
2251contains a bonus program that could be earned by participating
2261schools. Because these are the type payments that are
2270prohibited (and were not requested by the RFP) and because there
2281was no savings clause pertaining to these funds, Ms. Martinez
2291correctly determined that the bonus program could not be
2300considered in evaluating Petitioner's proposal.
230522. The printed agenda for the First Meeting, prepared by
2315Ms. Martinez, included the following item:
2321Before starting the discussion, explain
2326that the RFP did not request for [sic]
2334direct donations to the schools and that
2341therefo re the monies earmarked for this
2348purpose will not be considered (as part of a
2357scholarship or incentive program). However,
2362since the agency (Petitioner) that offered
2368it (direct donations to the schools) had a
2376clause whereby "surplus funds that are not
2383earn ed from the guaranteed minimum funding
2390will become an added donation to the CAP",
2398the minimum funding may be added to the CAP
2407guaranteed donation. However, the bonus
2412program should not be considered.
241723. Ms. Martinez spent considerable time in prepari ng the
2427chart and attempted to present a fair comparison between the two
2438proposals. Unfortunately, Ms. Martinez was required to make
2446certain assumptions as to Intervenor's proposal because it
2454contained a bonus plan that depended on the success of future
2465bl ood drives. The Intervenor's bonus plans, which neither
2474contains a minimum nor a maximum, required Ms. Martinez to
2484estimate the success of future blood drives. 3 Ms. Martinez'
2494chart set forth that Intervenor's guaranteed scholarship
2501contribution over the initial three - year term would be $124,800
2513and the estimated contribution from bonuses during that period
2522would be $325,145.00, so that the total scholarship contribution
2532would equal $449,945.00 for the initial three - year term
2543(compared with $442,000.00 for Petitioner). The evidence
2551presented at the final hearing failed to establish that her
2561estimates were reliable.
256424. Because of her estimates, Ms. Martinez' chart did not
2574provide an accurate comparison of the two proposals. In
2583weighing the impact of th e misleading chart, the undersigned has
2594considered Ms. Martinez' leadership role in securing the
2602procurement, the absence of specific evaluation criteria in the
2611RFP, and the lack of instruction as to how the Selection
2622Committee was to evaluate the scholars hip proposals. Those
2631considerations establish that the misleading chart was not a de
2641minimis error.
264325. Prior to the decision to issue the RFP, Ms. Martinez
2654attempted to evaluate Intervenor's performance as the provider
2662pursuant to the 1998 RFP. She s olicited evaluations from
2672personnel at the various schools at which blood drives had been
2683conducted. In addition to distributing the misleading chart,
2691Ms. Martinez distributed to the Selection Committee at the First
2701Meeting summaries of the positive evalu ations of Intervenor that
2711she had solicited from school personnel and added her own
2721positive comments as to Intervenor's performance. Further,
2728Ms. Martinez asked other persons on the Committee to attest to
2739their own good experiences with Intervenor.
27452 6. The testimonials on behalf of Intervenor came from a
2756nurse instructor, an activities director, principals, a student,
2764and a PTA representative. The testimonials made the following
2773points: Intervenor stresses education; Intervenor encourages
2779student - r un blood drives; blood unit giving greatly increased
2790during Intervenor's contract; there was excellent cooperation
2797from all of Intervenor's staff; and the program runs smoothly in
2808schools.
280927. Ms. Martinez' acts of distributing the positive
2817evaluation s ummaries and of soliciting testimonials on behalf of
2827Intervenor tainted the Selection Committee's evaluation process
2834at the First Meeting because it moved the focus of the
2845evaluation from the evaluation criteria set forth in the RFP to
2856the issues of whethe r the existing provider for the blood drive
2868had been doing a good job and whether there was a need for
2881change. Such acts were contrary to the evaluation criteria set
2891forth in the RFP.
289528. Petitioner was not given an equal opportunity to
2904supply positive recommendations from its clients nor was it
2913allowed to have its clients address the Selection Committee to
2923attest to their positive experiences with Petitioner.
2930Intervenor was accorded an unfair competitive advantage by
2938Ms. Martinez' acts of distributing positive evaluation summaries
2946and soliciting testimonials on behalf of Intervenor.
295329. In addition to the foregoing, the minutes of the First
2964Meeting reflect that the Selection Committee found the following
2973to be of significance: number of mobile unit s available (25 for
2985Intervenor and 17 for Petitioner), bad donor letter
2993(attachment 7 to its proposal), 4 personnel available (150 for
3003Intervenor and 84 for Petitioner), the scholarships being
3011offered, and the cash and cash equivalents at the end of the
3023yea r as reflected by the financial statements ($1,800,000 for
3035Intervenor and $26,200 for Petitioner).
304130. Article V(B) of the RFP requires the proposer to
3051provide an adequate number of mobile units, personnel,
3059materials, equipment, and supervision to carry out the estimated
3068number of blood units to be collected in each blood drive. The
3080Selection Committee had not determined the number of mobile
3089units and personnel needed to perform the contract. Because
3098that determination had not been made, there was no b asis to
3110judge what constituted an adequate number of mobile units and
3120personnel. It was a material error for the Selection Committee
3130to base its decision on the relative number of mobile units and
3142personnel each proposer had available without first determ ining
3151what constituted an adequate number of mobile units and
3160personnel.
316131. It was not error for the Selection Committee to
3171consider attachment 7 to Petitioner's proposal. The referenced
3179material includes negative findings and comments from regulatory
3187a uthorities following inspections of Petitioner's laboratories.
3194Petitioner's complaint that it had to submit information as to
3204its in - house laboratories while Intervenor did not have to
3215submit similar information as to the independent laboratories it
3224used is a collateral attack on the specifications of the RFP
3235that is rejected as being untimely and without merit.
324432. The RFP required each proposer to submit audited
3253financial statements as part of its response. Petitioner's
3261assertion that it was error for the Selection Committee to
3271consider the relative financial strengths of the two proposers
3280is without merit.
328333. At the First Meeting the committee voted 14 to 0 in
3295favor of awarding the contract to Intervenor.
330234. Thereafter Petitioner timely filed a c hallenge to the
3312proposed award and the matter was referred to DOAH for formal
3323proceedings and assigned DOAH Case No. 01 - 3047BID. Prior to a
3335formal hearing before an Administrative Law Judge, Petitioner
3343and Respondent filed a Joint Motion for Withdrawal of Petition
3353and Dismissal Without Prejudice on the grounds that the
3362proceeding was not ripe for hearing because the five - day public
3374notice requirement for the First Meeting was not observed.
338335. Pursuant to the Joint Motion, DOAH Case No. 01 - 3047BID
3395was c losed and jurisdiction of the matter was relinquished to
3406Respondent for further proceedings. Thereafter, Respondent
3412invalidated the actions taken at the First Meeting and scheduled
3422the Second Meeting.
342536. Mr. Bromir and Ms. Martinez retired between the First
3435Meeting and the Second Meeting, which occurred August 29, 2001.
3445Ms. Brown chaired the Second Meeting, which consisted of 11
3455voting members. Eight of the 11 voting members at the Second
3466Meeting had participated as voting members at the First Meetin g.
347737. No new instructions were given the members at the
3487Second Meeting, other than they were to disregard the actions of
3498the First Meeting. No financial analysis of the two proposals
3508was distributed or discussed at the Second Meeting.
3516Accordingly, th e only analysis any of the committee considered
3526or discussed regarding a comparison of the financial benefits
3535offered by the two proposals was the misleading chart prepared
3545by Ms. Martinez. In addition, no instructions were given at the
3556Second Meeting to ensure that members who were present at the
3567First Meeting would not be improperly swayed by the positive
3577evaluations and testimonials presented on behalf of Intervenor.
3585It is clear that the Selection Committee at both the First
3596Meeting and the Second Meet ing selected Intervenor in large part
3607because it was doing a good job as the incumbent provider. The
3619eight members of the Selection Committee who had been at the
3630First Meeting and improperly selected Intervenor based in part
3639on its incumbency were not adv ised that they could not make
3651their selection on that improper basis. The failure of
3660Respondent to cure the defects of the First Meeting tainted the
3671Second Meeting.
367338. The minutes of the Second Meeting contain an incorrect
3683fact that was a factor in th e Selection Committee's evaluation
3694of the two proposals. The minutes reflect that Petitioner had
3704only two mobile units available to serve the school system.
3714That reference is clearly an error because Petitioner's proposal
3723represents that it had 17 mobile units available. According to
3733the minutes, the number of available mobile units was a factor
3744favoring the selection of Intervenor. 5 Consequently, the
3752reference to the two mobile units is a material error that
3763tainted the Second Meeting.
376739. At the Se cond Meeting, Ms. Jones, a non - voting staff
3780member who assisted in conducting the meeting, raised the issue
3790as to whether Petitioner's proposal was unresponsive to one of
3800the technical criteria, namely, the requirement of presenting
3808documentation of its educational efforts in the school systems
3817in which it serves. There was no determination by the Selection
3828Committee that Petitioner was not a responsive proposer, and
3837there was no evidence that Ms. Jones raised that issue for
3848improper motives. Since the actions of the First Meeting had
3858been invalidated, the issue as to whether the proposals met the
3869technical criteria was an appropriate issue for the Second
3878Meeting. Petitioner's argument to the contrary is rejected.
388640. Respondent's procurement rules r equire that minutes be
3895kept of each Selection Committee meeting and that the minutes
3905document the reasons for the recommendation coming out of the
3915meeting. The minutes kept for the First Meeting and the Second
3926Meeting do not accurately reflect what was di scussed. For
3936example, according to Ms. Jones, there was a discussion of the
3947relative financial terms being offered by the proposals at the
3957First Meeting. No such discussion is reflected in the minutes
3967of that meeting. Additionally, there was limited dis cussion
3976about financial benefits at the Second Meeting, yet minutes of
3986the Second Meeting do not reflect that the Committee discussed
3996or considered the relative financial merits of each proposal.
4005There was no other written statement by either the First or
4016Second Selection Committee of the reasons for its decisions.
402541. Intervenor represented that it and the labs it use are
4036considered by the Food and Drug Administration to be among the
4047best in the United States. That statement is at most a minor,
4059waivable defect that should be considered puffery. The
4067statement is not a material misrepresentation.
407342. Intervenor represented in its response that it was the
4083only blood bank in South Florida that had the endorsement of the
4095Red Cross. That statement is at m ost a minor, waivable defect
4107that should be considered puffery. The statement is not a
4117material misrepresentation.
4119CONCLUSIONS OF LAW
412243. Parties stipulated that DOAH has personal and subject
4131matter jurisdiction in this proceeding pursuant to Florida
4139S tatutes 120.569 and 120.57(1).
414444. Section 120.57(3)(f), Florida Statutes, provides as
4151follows:
4152(f) In a competitive - procurement protest,
4159no submissions made after the bid or
4166proposal opening amending or supplementing
4171the bid or proposal shall be con sidered.
4179Unless otherwise provided by statute, the
4185burden of proof shall rest with the party
4193protesting the proposed agency action. In a
4200competitive - procurement protest, other than
4206a rejection of all bids, the administrative
4213law judge shall conduct a de no vo proceeding
4222to determine whether the agency's proposed
4228action is contrary to the agency's governing
4235statutes, the agency's rules or policies, or
4242the bid or proposal specifications. The
4248standard of proof for such proceedings shall
4255be whether the proposed agency action was
4262clearly erroneous, contrary to competition,
4267arbitrary, or capricious. In any bid -
4274protest proceeding contesting an intended
4279agency action to reject all bids, the
4286standard of review by an administrative law
4293judge shall be whether the agen cy's intended
4301action is illegal, arbitrary, dishonest, or
4307fraudulent. 6
430945. The Florida Supreme Court discussed the object and
4318purpose of competitive bidding statutes in Wester v. Belote ,
4327103 Fla. 976, 138 So. 721 (1931). The following language, found
4338a t paragraphs 3 and 4 of the Syllabus by the Court, is
4351frequently cited in cases involving bid disputes:
43583. The object and purpose of competitive
4365bidding statutes is to protect the public
4372against collusive contracts; to secure fair
4378competition upon equal terms to all bidders;
4385to remove, not only collusion, but
4391temptation for collusion and opportunity for
4397gain at public expense; to close all avenues
4405to favoritism and fraud in its various
4412forms; to secure the best values at the
4420lowest possible expense; and to afford an
4427equal advantage to all desiring to do
4434business with the public authorities, by
4440providing an opportunity for an exact
4446comparison of bids.
44494. Laws requiring contracts to be let by
4457public authorities to the lowest responsible
4463bidder serve the object of protecting the
4470public against collusive contracts and
4475prevent favoritism toward contractors by
4480public officials; because they tend to
4486remove temptation on the part of public
4493officers to seek private gain at the
4500taxpayers' expense, they are of hi ghly
4507remedial character, and should always
4512receive a construction which effectuates
4517their true intent and avoids the likelihood
4524of their being circumvented, evaded, or
4530defeated.
453146. The evidence clearly established that the First
4539Meeting was materiall y flawed, that those flaws spilled over to
4550the Second Meeting, and that the Second Meeting had material
4560errors independent of the First Meeting. The recommendation
4568from the Second Meeting was the result of a clearly erroneous
4579process that stifled competit ion.
458447. Based on the foregoing findings and conclusions, it is
4594concluded that the evaluation and selection in this case were
4604materially flawed, and that the award to Intervenor should be
4614invalidated. Respondent should submit the two responses to a
4623new Selection Committee with instructions that it should
4631evaluate the two proposals only on the criteria set forth in the
4643RFP.
464448. The parties should not construe the recommendations
4652and findings set forth in this Recommended Order to be a ruling
4664on the meri ts of the two proposals.
4672RECOMMENDATION
4673Based on the foregoing Findings of Fact and Conclusions of
4683Law, it is RECOMMENDED that the Miami - Dade County School Board
4695invalidate the award of the contract to Intervenor and conduct a
4706new selection process.
4709DO NE AND ENTERED this 14th day of August, 2002, in
4720Tallahassee, Leon County, Florida.
4724___________________________________
4725CLAUDE B. ARRINGTON
4728Administrative Law Judge
4731Division of Administrative Hearings
4735The DeSoto Building
47381230 Apalachee Parkway
4741Tallahassee, Florida 32399 - 3060
4746(850) 488 - 9675 SUNCOM 278 - 9675
4754Fax Filing (850) 921 - 6847
4760www.doah.state.fl.us
4761Filed with the Clerk of the
4767Division of Administrative Hearings
4771this 14th day of August, 2002.
4777ENDNOTES
47781/ Prior to the Second Meeting, the School Boa rd delegated to
4790the Superintendent the authority to enter into a contract with
4800the entity recommended at the Second Meeting. After
4808Petitioner's protest of the action taken at the Second Meeting,
4818the Superintendent awarded the subject contract to Interveno r
4827pursuant to his emergency powers and subject to the results of
4838this bid protest.
48412/ By letter dated June 5, 2001, John Flynn wrote Alex Bromir a
4854letter complaining that the RFP required Petitioner to submit
4863certain information pertaining to its in - house inspection
4872laboratories, but it did not require that information from
4881proposers, such as Intervenor, who used independent inspection
4889laboratories. Mr. Bromir responded to that letter on June 11,
48992001. Thereafter, Petitioner submitted its response t o the RFP
4909without filing a protest as to the specifications. Pursuant to
4919Article IV of the RFP and Section 120.57(3), Florida Statutes,
4929Petitioner waived its right to challenge the specifications of
4938the RFP by failing to timely protest same. Petitioner's
4947arguments in this proceeding collaterally attacking the
4954specifications of the RFP are rejected as being untimely and
4964without merit.
49663/ Intervenor's bonus proposal contained a point system, the
4975achievement of which would translate into scholarship
4982cont ributions. Ms. Martinez estimated the amount of the
4991scholarship contribution from the bonus program. While she
4999explained what she had done, she did not adequately explain why
5010she adopted the methodology she employed and did not justify the
5021assumptions sh e made. Dr. Lenes, on behalf of Intervenor, could
5032not explain his company's bonus program and he could not confirm
5043that the estimates were reliable.
50484/ See paragraph 31, infra .
50545/ Vanessa Fabien testified that she recalled the discussion
5063during the Second Meeting that Petitioner had only two mobile
5073units compared with Intervenor's 25 mobile units. Because of
5082Ms. Fabien's testimony, it is found that the reference in the
5093minutes to Petitioner's two mobile units is not merely a
5103scrivener's error.
51056/ Administrative Law Judge John Van Laningham recently
5113addressed at length the appropriate interpretation of Section
5121120.57(3)(f), Florida Statutes. See R. N. Expertise, Inc. v.
5130Miami - Dade School Board and Preventive Medical Testing Centers,
5140Inc., d/b/a G lobal MRO , DOAH Case No. 01 - 2663BID.
5151COPIES FURNISHED:
5153Mitchell A. Bierman, Esquire
5157Weiss, Serota, Helfman, Pastoriza & Guedes
51632665 South Bayshore Drive, No. 420
5169Miami, Florida 33134
5172Pamela Young Chance, Esquire
5176Miami - Dade County School Board
51821450 No rtheast Second Avenue, Suite 400
5189Miami, Florida 33132
5192J. Frost Walker, III, Esquire
5197100 West Sunrise Avenue
5201Coral Gables, Florida 33133 - 6910
5207Merrett R. Stierheim, Superintendent
5211Miami - Dade County School Board
52171450 Northeast Second Avenue, Suite 912
5223Mia mi, Florida 33132
5227James A. Robinson, General Counsel
5232Department of Education
5235The Capitol, Suite 1701
5239Tallahassee, Florida 32399 - 0400
5244NOTICE OF RIGHT TO SUBMIT EXCEPTIONS
5250All parties have the right to submit written exceptions within
526010 days from the date of this Recommended Order. Any exceptions
5271to this Recommended Order should be filed with the agency that
5282will issue the Final Order in this case.
- Date
- Proceedings
- PDF:
- Date: 09/23/2002
- Proceedings: Final Order of the School Board of Miami-Dade County, Florida (filed via facsimile).
- PDF:
- Date: 08/14/2002
- Proceedings: Recommended Order cover letter identifying hearing record referred to the Agency sent out.
- PDF:
- Date: 08/14/2002
- Proceedings: Recommended Order issued (hearing held May 22-23, 2002) CASE CLOSED.
- PDF:
- Date: 08/09/2002
- Proceedings: (Proposed) Petitioner, South Florida Blood Bank`s Proposed Recommended Order filed.
- PDF:
- Date: 08/09/2002
- Proceedings: Notice of Filing Petitioner, South Florida Blood Bank`s Proposed Recommended Order filed.
- PDF:
- Date: 07/24/2002
- Proceedings: (Proposed) Recommended Order (filed by Intervenor via facsimile).
- PDF:
- Date: 07/24/2002
- Proceedings: Intervenor`s Notice of Filing Recommended Order (filed via facsimile).
- PDF:
- Date: 07/24/2002
- Proceedings: Community Blood Centers of South Florida, Inc.`s Post-Trial Memorandum (filed via facsimile).
- Date: 07/15/2002
- Proceedings: Transcript (Volumes I, II) filed.
- PDF:
- Date: 07/12/2002
- Proceedings: Community Blood Centers of South Florida, Inc.`s, Memorandum Distinguishing R.N. Expertise, Inc., From the Case at Bar (filed via facsimile).
- PDF:
- Date: 07/12/2002
- Proceedings: Intervenor`s Notice of Filing Memorandum Delivered to Parties and to the Administrative Law Judge at Final Hearing (filed via facsimile).
- PDF:
- Date: 07/08/2002
- Proceedings: Stipulation of Substitution of Counsel (filed by Petitioners via facsimile).
- Date: 05/22/2002
- Proceedings: CASE STATUS: Hearing Held; see case file for applicable time frames.
- PDF:
- Date: 05/21/2002
- Proceedings: Petitioner`s Notice of Additions to Exhibit List (filed via facsimile).
- PDF:
- Date: 05/17/2002
- Proceedings: Intervenor`s Exhibit List and Witness List (filed via facsimile).
- PDF:
- Date: 05/15/2002
- Proceedings: Community Blood Centers of South Florida, Inc.`s Trial Memorandum (filed via facsimile).
- PDF:
- Date: 05/15/2002
- Proceedings: Community Blood Centers of South Florida, Inc.`s, Notice of Docketing Error and Resubmission of Trial Memorandum (filed by Intervenor via facsimile).
- PDF:
- Date: 05/14/2002
- Proceedings: Notice of Hearing issued (hearing set for May 22 and 23, 2002; 9:00 a.m.; Miami, FL).
- PDF:
- Date: 05/14/2002
- Proceedings: Joint Status Report and Request to Re-Schedule Final Hearing (filed via facsimile).
- PDF:
- Date: 04/29/2002
- Proceedings: Order Granting Continuance and Placing Case in Abeyance issued (parties to advise status by May 24, 2002).
- PDF:
- Date: 04/26/2002
- Proceedings: Joint Motion to Cancel Hearing and Place Case in Abeyance (filed via facsimile).
- PDF:
- Date: 04/25/2002
- Proceedings: Intervenor Community Blood Centers of South Florida, Inc.`s Motion to Limine (filed via facsimile).
- PDF:
- Date: 04/22/2002
- Proceedings: Notice to Produce Evidence at Trial (filed by Respondent via facsimile).
- PDF:
- Date: 03/27/2002
- Proceedings: Notice of Non Availability of Counsel for intervenor (For Dates Immediately Following Scheduled Hearing Dates filed by J. Walker via facsimile).
- PDF:
- Date: 03/18/2002
- Proceedings: Notice of Taking Depositions (Duces Tecum) E. Martinez, A. Bromir filed.
- PDF:
- Date: 03/15/2002
- Proceedings: Re-Notice of Taking Depositions (Duces Tecum) (cancels setting on March 14, 2002) L. Brown, C. Nelson, B. Jones, Y. Martin H. Reyes filed.
- PDF:
- Date: 03/13/2002
- Proceedings: Notice of Taking Deposition Duces Tecum (5), L. Brown, C. Nelson, B. Jones, Y. Martin, H. Reyes filed.
- PDF:
- Date: 02/08/2002
- Proceedings: Notice of Serving First Set of Interrogatories to Miami-Dade County School Board filed.
- PDF:
- Date: 02/08/2002
- Proceedings: South Florida Blood Bank`s Request for Production to Miami-Dade County School Board filed.
- PDF:
- Date: 02/06/2002
- Proceedings: Notice of Serving First Set of Interrogatories to Miami-Dade County School Board, Interrogatories (filed via facsimile).
- PDF:
- Date: 02/06/2002
- Proceedings: South Florida Bank`s Request for Production to Miami-Dade County School Board (filed via facsimile).
- PDF:
- Date: 01/29/2002
- Proceedings: Petitioner`s Notice of Waiver of Statutory Time Limits (filed via facsimile).
- PDF:
- Date: 01/28/2002
- Proceedings: Notice of Hearing issued (hearing set for April 30 and May 1, 2002; 9:00 a.m.; Miami, FL).
- PDF:
- Date: 01/28/2002
- Proceedings: Order Granting Intervention (of Community Blood Centers of South Florida, Inc.) issued.
- PDF:
- Date: 01/25/2002
- Proceedings: Respondent`s Notice of Waiver of Statutory Time Limits (filed via facsimile).
- PDF:
- Date: 01/24/2002
- Proceedings: Community Blood Centers of South Florida, Inc.`s, Petition for Leave to Intervene as Additional Party Respondent (filed via facsimile).
Case Information
- Judge:
- CLAUDE B. ARRINGTON
- Date Filed:
- 01/10/2002
- Date Assignment:
- 01/11/2002
- Last Docket Entry:
- 09/23/2002
- Location:
- Miami, Florida
- District:
- Southern
- Agency:
- ADOPTED IN TOTO
- Suffix:
- BID
Counsels
-
Mitchell A. Bierman, Esquire
Address of Record -
John A Greco, Esquire
Address of Record -
J. Frost Walker, III, Esquire
Address of Record -
Mitchell A Bierman, Esquire
Address of Record