02-000140BID South Florida Blood Banks, Inc. vs. Miami-Dade County School Board
 Status: Closed
Recommended Order on Wednesday, August 14, 2002.


View Dockets  
Summary: Selection process to evaluate responses to Request for Proposals was materially flawed.

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 Committee’s 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

3808“documentation” 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.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 09/23/2002
Proceedings: Final Order of the School Board of Miami-Dade County, Florida (filed via facsimile).
PDF:
Date: 09/12/2002
Proceedings: Agency Final Order
PDF:
Date: 08/14/2002
Proceedings: Recommended Order
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: 05/20/2002
Proceedings: (Joint) Pre-Hearing Stipulation (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 of Taking Deposition, B. Lenes filed.
PDF:
Date: 04/22/2002
Proceedings: Response to Request for Production filed by Petitioner.
PDF:
Date: 04/22/2002
Proceedings: Notice of Filing Answers to Interrogatories filed by Petitioner.
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: Order of Pre-hearing Instructions issued.
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).
PDF:
Date: 01/10/2002
Proceedings: Request for Proposals (filed via facsimile).
PDF:
Date: 01/10/2002
Proceedings: Petition of South Florida Blood Banks, Inc for Relief From Decision Affecting Substantial Interest (filed via facsimile).
PDF:
Date: 01/10/2002
Proceedings: Agency referral (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

Related Florida Statute(s) (2):