08-003380BID Spinella Enterprises, Inc. vs. Department Of Environmental Protection
 Status: Closed
Recommended Order on Thursday, October 2, 2008.


View Dockets  
Summary: Respondent`s intended decision to reject all bids is arbitrary.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8SPINELLA ENTERPRISES, INC., )

12)

13Petitioner, )

15)

16vs. ) Case No. 08-3380BID

21)

22DEPARTMENT OF ENVIRONMENTAL )

26PROTECTION, )

28)

29Respondent. )

31)

32RECOMMENDED ORDER

34This case came before Administrative Law Judge John G.

43Van Laningham for final hearing by video teleconference on

52August 7, 2008, at sites in Tallahassee and Lauderdale Lakes,

62Florida.

63APPEARANCES

64For Petitioner: Cas Spinella

68Spinella Enterprises, Inc.

712016 Sacramento

73Weston, Florida 33326

76For Respondent: Suzanne B. Brantley, Esquire

82Department of Environmental Protection

86The Douglas Building, Mail Station 35

923900 Commonwealth Boulevard

95Tallahassee, Florida 32399-3000

98STATEMENT OF THE ISSUE

102The issue in this bid protest is whether Respondent acted arbitrarily when it decided to reject all of the bids it had

124received in response to a solicitation seeking bids on a contract

135for roof repairs.

138PRELIMINARY STATEMENT

140On January 10, 2008, the Florida Department of Environmental

149Protection issued an Invitation to Bid, which sought competitive

158bids from roofing contractors interested in performing roof

166repairs on several buildings located in a state park. After

176opening the bids on February 12, 2008, the Department determined

186that Petitioner Spinella Enterprises, Inc., had quoted the lowest

195price for the work. A notice of intent to award a contract to

208Spinella Enterprises was posted on February 19, 2008.

216Thereafter, a disappointed bidder initiated a protest. On

224May 16, 2008, while this first protest was pending, the

234Department gave notice of its intent to reject all bids and start

246over. Spinella Enterprises timely protested the decision to

254abort the instant procurement.

258The Department referred the matter to the Division of

267Administrative Hearings ("DOAH") on July 10, 2008. The final

278hearing took place as scheduled on August 7, 2008. At the

289hearing, Spinella Enterprises presented the testimony of its

297president, Cas Spinella, and offered Petitioner's Exhibits 1 and

3062, which were received in evidence. During its case, the

316Department called Michael Renard, the project administrator, as a

325witness. The Department also offered Respondent's Exhibits 1-3,

3335-8, and 10, which were admitted.

339The final hearing transcript was filed on September 4, 2008.

349The Department timely filed a Proposed Recommended Order ahead of

359the established deadline, which was September 15, 2008. Spinella

368Enterprises did not submit a Proposed Recommended Order.

376Unless otherwise indicated, citations to the Florida

383Statutes refer to the 2008 Florida Statutes.

390FINDINGS OF FACT

3931. On January 10, 2008, the Florida Department of

402Environmental Protection (the "Department" or "DEP") issued an

411Invitation to Bid (the "ITB"), the purpose of which was to

423solicit competitive bids from qualified contractors on a project

432whose scope of work envisioned repairs to the wind-damaged roofs

442of several buildings located on the grounds of the Hugh Taylor

453Birch State Park in Fort Lauderdale, Florida.

4602. Some of the buildings to be repaired were single-family

470residences. Work on these structures accordingly needed to

478conform to the requirements prescribed in the 2007 Manual of

488Hurricane Mitigation Retrofits for Existing Site-Built Single

495Family Residential Structures (the "Manual"), which the Florida

504Building Commission (the "Commission"), following an explicit

512legislative directive, see Section 553.844(3), Florida Statutes, 1

520recently had adopted, by incorporative reference, as a rule. See

530Fla. Admin. Code R. 9B-3.0475 (2007). 2 The Rule had taken effect

542on November 14, 2007, giving the Manual's contents the same

552status and force as the Florida Building Code. Id.

5613. Just before the Department issued the ITB, the

570Commission had approved, at a meeting on January 8, 2008, a

581modified version of the Manual, which it called the 2007 Manual

592of Hurricane Mitigation Retrofits for Existing Site-Built Single

600Family Residential Structures, Version 2 (the "Revised Manual").

6094. In consequence of the Commission's approval of the

618Revised Manual, the Florida Department of Community Affairs

626("DCA") caused a Notice of Proposed Rule Development to be

638published on January 25, 2008, in the Florida Administrative

647Weekly . This official advertisement announced that the

655Commission intended to amend Rule 9B-3.0475, so that its

664incorporative reference would mention the Revision Manual instead

672of the Manual. See 34 Fla. Admin. W. 461-62 (Jan. 25, 2008). 3

6855. DCA caused a Notice of Proposed Rule respecting the

695intended revision of Rule 9B-3.0475 to be published on

704February 1, 2008, in the Florida Administrative Weekly . See 34

715Fla. Admin. W. 605 (Feb. 1, 2008). 4

7236. On February 5, 2008, the Department issued Addendum

732No. 4 to the ITB (the "Addendum"). The Addendum provided in

744pertinent part as follows:

748Bidders shall bid the project as specified

755despite the recent change in Rule 9B-3.0475

762relating to hurricane mitigation retrofits.

767Any additional water barrier will be

773accomplished by Change Order after award of

780the contract.

782(The foregoing provisions of the Addendum will be referred to

792hereinafter as the "Directive").

7977. On February 12, 2008, the Department opened the bids it

808had received in response to the ITB. Ten (out of 12) of the bids

822submitted were deemed responsive. The bid of Petitioner Spinella

831Enterprises, Inc. ("Spinella") was one of the acceptable bids.

8428. On February 19, 2008, DEP posted notice of its intent to

854award a contract to the lowest bidder, namely Spinella, which had

865offered to perform the work for $94,150.

8739. The second lowest bidder was The Bookhardt Group

882("Bookhardt"). Bookhardt timely protested the intended award,

891raising several objections, only one of which is relevant here.

901In its formal written protest, dated March 3, 2008, Bookhardt

911alleged that "[t]he new State of Florida law F.S. 553.844 was not

923part of the solicitation."

92710. On April 4, 2008, Rule 9B-3.0475, as amended to

937incorporate by reference the Revised Manual, took effect. See

946Fla. Admin. Code R. 9B-3.0475 (2008).

95211. On May 16, 2008, DEP posted notice of its intent to

964reject all bids received in response to the ITB. (Bookhardt's

974protest, which remained pending, had never been referred to DOAH

984for a formal hearing.) Spinella timely protested the

992Department's decision to reject all bids.

99812. In an email sent to Spinella on July 22, 2008, DEP's

1010counsel explained the rationale behind the decision:

1017The reason the Department rejected all bids

1024follows. When the Department posted the

1030notice of intent to award the contract to

1038Spinella Enterprises, Inc., the second low

1044bidder (Bookhardt Roofing) protested the

1049intent to award. The second low bidder's

1056basis for protesting the intended award was

1063that Addendum 4 directed bidders to ignore

1070certain rules of the Construction Industry

1076Licensing Board [ sic ], which had become

1084effective after the bid opening, which was

1091not in accordance with the law. As a result,

1100this may have caused confusion and the

1107Department had no assurance that bidders were

1114bidding the project correctly. In addition,

1120the statement in Addendum 4 that the

1127Department would add the required moisture

1133barrier afterward by change order set up a

1141situation where bidders had no idea how much

1149the Department would be willing to pay for

1157the change order. Further, the moisture

1163barrier was not the only thing required by

1171the new rules. Potential bidders may not

1178have bid due to these uncertainties. The

1185Department agreed with Bookhardt's assertions

1190and rejected all bids . . . .

119813. Notwithstanding Spinella's protest, the Department

1204issued a second invitation to bid on the project in question. As

1216of the final hearing, the bids received in response to this

1227second solicitation were scheduled to be opened on August 12,

12372008.

1238Ultimate Factual Determinations

124114. The Department's decision to reject all bids is

1250premised, ultimately, on the notion that the Directive told

1259prospective bidders to ignore an applicable rule in preparing

1268their respective bids. 5 If this were true, then the Directive

1279could have been a source of potential confusion, as the

1289Department argues, because a prudent bidder might reasonably

1297hesitate to quote a price based on (possibly) legally deficient

1307specifications.

130815. The Directive, however, did not instruct bidders to

1317ignore an applicable, existing rule. Rather, under any

1325reasonable interpretation, it instructed bidders to ignore a

1333proposed rule and follow existing law. Such an instruction was

1343neither confusing nor inappropriate.

134716. To be sure, the first sentence of the Directive——at

1357least when read literally——misstated a fact. It did so by

1367expressing an underlying assumption, i.e. that Rule 9B-3.0475

1375recently had been changed, which was incorrect. In fact, as of

1386February 5, 2008, the Rule was exactly the same as it had always

1399been. (It would remain that way for the next two months, until

1411April 6, 2008). 6 DEP's misstatement about the Rule might,

1421conceivably, have confused a potential bidder, at least

1429momentarily. But DEP did not factor the potential for such

1439confusion into its decision to reject all bids, and no evidence

1450of any confusion in this regard was offered at hearing. 7

146117. More important is that the unambiguous thrust of the

1471Directive was to tell bidders to rely upon the "not recently

1482changed" Rule 9B-3.0475, which could only have meant Florida

1491Administrative Code Rule 9B-3.0475 (2007) as originally adopted,

1499because that was the one and only version of the Rule which, to

1512that point, had ever existed. Thus, even if the Department were

1523operating under the mistaken belief, when it issued the Addendum,

1533that Rule 9B-3.0475 recently had been amended; and even if, as a

1545result, DEP thought it was telling prospective bidders to ignore

1555an applicable , existing rule, DEP nevertheless made clear its

1564intention that prospective bidders follow the original Rule 9B-

15733.0475, which was in fact the operative Rule at the time, whether

1585or not DEP knew it.

159018. Indeed, as any reasonable potential bidder knew or

1599should have known at the time of the Addendum, (a) the Commission

1611recently had approved the Revised Manual, but the contents

1620thereof would not have the force and effect of law unless and

1632until the Revised Manual were adopted as a rule, which had not

1644yet happened; (b) the Commission had initiated rulemaking to

1653amend Rule 9B-3.0475 so as to adopt the Revised Manual as a rule,

1666but the process was pending, not complete ; (c) Rule 9B-3.0475 had

1677not been amended, ever; and, therefore, (d) the Manual still had

1688the force and effect of law. See endnote 6. The Directive

1699obviously could not alter or affect these objective facts.

170819. At bottom, then, a reasonable bidder, reviewing the

1717Directive, would (or should) have concluded either (a) that the

"1727recent change" which DEP had in mind was the Commission's

1737approval of the Revised Manual (or the subsequent announcement of

1747the proposed amendment to Rule 9B-3.0475) or (b) that DEP

1757mistakenly believed the Rule had been changed, even though it had

1768not been. Either way, a reasonable bidder would (or should) have

1779known that the Department wanted bidders to prepare their

1788respective bids based not on the Revised Manual, but the Manual.

1799In other words, regardless of what DEP subjectively thought was

1809the existing law, DEP clearly intended (and unambiguously

1817expressed its intent) that bidders follow what was, in fact,

1827existing law. This could not have confused a reasonable bidder

1837because, absent an instruction to exceed the minimum required

1846legal standards (which the Directive was not), a reasonable

1855bidder would have followed existing law in preparing its bid,

1865just as the Directive required.

187020. Once it is determined that the Directive did not, in

1881fact, instruct bidders to ignore an applicable, existing law, but

1891rather told them to rely upon the applicable, existing law

1901(notwithstanding that such law might change in the foreseeable

1910future), the logic underlying the Department's decision to reject

1919all bids unravels. Simply put, there is no genuine basis in

1930logic or fact for concluding that the Addendum caused confusion.

194021. The other grounds that DEP has put forward do not hold

1952water either. Contrary to the Department's contention, the

1960possibility that a Change Order would be necessary if an

"1970additional water barrier" were required could not possibly have

1979confused potential bidders or caused them to be uncertain about

1989how much money the Department would be willing to pay for such

2001extra work. This is because Article 27 of the Construction

2011Contract prescribes the procedure for entering into a Change

2020Order, and it specifies the method for determining the price of

2031any extra work. See ITB at 102-05.

203822. The fact that the proposed amendment to Rule 9B-3.0475,

2048if it were to be adopted and become applicable to the instant

2060project, might require other additional work, besides a water

2069barrier, likewise could not reasonably have caused potential

2077bidders to refrain from bidding, for the same reason: The

2087Construction Contract contains explicit provisions which deal

2094with the contingency of extra work or changes in the work. Id.

210623. In sum, DEP's intended decision to reject all bids

2116cannot be justified by any analysis that a reasonable person

2126would use to reach a decision of similar importance. It is,

2137therefore, arbitrary.

2139CONCLUSIONS OF LAW

214224. DOAH has personal and subject matter jurisdiction in

2151this proceeding pursuant to Sections 120.569 and 120.57(1),

2159Florida Statutes, and the parties have standing.

216625. Section 120.57(3)(f), Florida Statutes, provides that

2173in a proceeding brought to protest the intended rejection of all

2184competitive proposals, the standard of review shall be whether

2193the proposed agency action is "illegal, arbitrary, dishonest or

2202fraudulent." This standard derives from Department of Transp. v.

2211Groves-Watkins Constructors , 530 So. 2d 912, 914 (Fla. 1988), a

2221case in which the Florida Supreme Court held that the

2231administrative law judge's "sole responsibility [in reviewing a

2239decision to reject all bids] is to ascertain whether the agency

2250acted fraudulently, arbitrarily, illegally or dishonestly." (The

2257parties here stipulated that the Department had not acted

2266fraudulently, illegally, or dishonestly, leaving only the

2273question of whether the Department's intended decision is

2281arbitrary.)

228226. The burden of proof rests with the party opposing the

2293proposed agency action. See State Contracting and Engineering

2301Corp. v. Department of Transp. , 709 So. 2d 607, 609 (Fla. 1st DCA

23141998). As the protesting party, Spinella must sustain its burden

2324of proof by a preponderance of the evidence. Department of

2334Transp. v. J.W.C. Co., Inc ., 396 So. 2d 778, 787 (Fla. 1st DCA

23481981).

234927. In Scientific Games, Inc. v. Dittler Brothers, Inc .,

2359586 So. 2d 1128, 1131 (Fla. 1st DCA 1991), the First District

2371Court of Appeal described the deference to be accorded an agency

2382in connection with a competitive procurement:

2388The Hearing Officer need not, in effect,

2395second guess the members of the evaluation

2402committee to determine whether he and/or

2408other reasonable and well-informed persons

2413might have reached a contrary result.

2419Rather, a "public body has wide discretion "

2426in the bidding process and "its discretion,

2433when based on an honest exercise" of the

2441discretion, should not be overturned "even if

2448it may appear erroneous and even if reasonable persons

2457may disagree."

2459(Citations omitted; emphasis in original).

246428. In Gulf Real Props., Inc. v. Department of Health and

2475Rehabilitative Servs. , 687 So. 2d 1336, 1338 (Fla. 1st DCA 1997),

2486the court upheld an agency's intended rejection of all bids,

2496stating that "an agency's rejection of all bids must stand,

2506absent a showing that the 'purpose or effect of the rejection is

2518to defeat the object and integrity of competitive bidding.'"

252729. An arbitrary decision is one that is not supported by

2538facts or logic, or is despotic. Agrico Chemical Co. v.

2548Department of Environmental Regulation , 365 So. 2d 759, 763 (Fla.

25581st DCA 1978). Under the arbitrary and capricious standard, "an

2568agency is to be subjected only to the most rudimentary command of

2580rationality. The reviewing court is not authorized to examine

2589whether the agency's empirical conclusions have support in

2597substantial evidence." Adam Smith Enterprises, Inc. v. State

2605Dep't of Environmental Regulation , 553 So. 2d 1260, 1273 (Fla.

26151st DCA 1989). Still,

2619the reviewing court must consider whether the

2626agency: (1) has considered all relevant

2632factors; (2) has given actual, good faith

2639consideration to those factors; and (3) has

2646used reason rather than whim to progress from

2654consideration of each of these factors to its

2662final decision.

2664Id.

266530. The second district has supplied the following test for

2675determining whether a decision was arbitrary: "If an

2683administrative decision is justifiable under any analysis that a

2692reasonable person would use to reach a decision of similar

2702importance, it would seem that the decision is neither arbitrary

2712nor capricious." Dravo Basic Materials Co., Inc. v. State Dep't

2722of Transportation , 602 So. 2d 632, 634 n.3 (Fla. 2d DCA 1992).

2734As the court observed, this "is usually a fact-intensive

2743determination." Id. at 634.

274731. To summarize, in reviewing an agency's intended

2755decision to reject all bids, the administrative law judge must

2765give substantial deference to the agency's determination, owing

2773to its wide discretion in procurement matters. There is an

2783appreciable difference, however, between according the respect

2790that deference entails and affixing the rubber stamp.

279832. As set forth in the preceding Findings of Fact, the

2809undersigned has determined as matter of ultimate fact that the

2819Department's intended decision is arbitrary. The rationale

2826behind this fact-intensive determination was given above. To the

2835extent any of the findings of fact herein are deemed to be legal

2848conclusions, such findings are hereby incorporated by reference

2856as if set forth in this Conclusions of Law section of the

2868Recommended Order and adopted as legal conclusions.

287533. The facts of this case call to mind Caber Systems, Inc.

2887v. Department of General Services , 530 So. 2d 325 (Fla. 1st DCA

28991988). In Caber , as here, the agency decided to reject all bids

2911after a disappointed bidder had protested the intended award.

2920Unlike this case, however, in Caber the administrative law judge

2930found, as a matter of fact, that the invitation to bid was

"2942seriously flawed in several respects." Id. at 331. Indeed, the

2952bid specifications were so ambiguous, a finding of fact was made

2963that the invitation to bid had failed clearly to reflect either

2974the agency's or anyone else's intent. Id. The court held that,

2985in view of the hopelessly ambiguous specifications, the agency's

2994rejection of all bids was neither arbitrary nor capricious, even

3004though the decision to pull the plug on the procurement had been

3016made while the first protest remained pending. Id. at 336.

302634. In the instant case, the Addendum was not confusing,

3036ambiguous, or fatally flawed. Rather, although the Directive, as

3045written, incorrectly suggested that there had been a recent

3054change in Rule 9B-3.0475 (when in fact there recently had been

3065published only a proposed amendment to the Rule), it nevertheless

3075clearly and plainly stated DEP's intent that bidders follow the

3085applicable, existing law. Caber , therefore, is distinguishable

3092on this basis and hence inapposite. 8

309935. One final issue remains to be discussed. At hearing,

3109DEP admitted that, notwithstanding Spinella's timely bid protest,

3117it already effectively had implemented its intended decision to

3126reject all bids by issuing another invitation to bid on the very

3138project at stake in this case; indeed, as of the final hearing,

3150bids submitted in response to the second solicitation were

3159expected to be opened within a matter of days. No evidence was

3171presented to establish that, before taking this action, the

3180agency head had set forth in writing particular facts and

3190circumstances demonstrating that the failure to proceed at once

3199with this procurement would present an immediate and serious

3208danger to the public. By pressing ahead with its efforts to let

3220the contract in question, DEP violated Section 120.57(3)(c),

3228Florida Statutes. 9

323136. As Spinella argued at hearing, the Department's actions

3240threaten to make unavailable the administrative relief to which

3249Spinella otherwise would be entitled if his protest were

3258successful, namely final agency action awarding Spinella the

3266subject contract. The unavailability of administrative relief

3273would not make this case moot, however, because there are

3283judicial remedies available, such as injunctive or other

3291equitable relief, reliance damages, and the recovery of protest

3300costs, to rectify the losses caused by DEP's wrongful denial of

3311Spinella's bid. See Miami-Dade County Sch. Bd. v. J. Ruiz School

3322Bus Serv., Inc. , 874 So. 2d 59 (Fla. 3d DCA 2004).

3333RECOMMENDATION

3334Based on the foregoing Findings of Fact and Conclusions of

3344Law, it is RECOMMENDED that the Department enter a final order

3355finding that its decision to reject all bids was arbitrary.

3365Because the Department elected not to comply with the statutory

3375directive to abate this procurement pending the outcome of

3384Spinella's protest, with the result that the contract at issue

3394possibly has been awarded already to another bidder; and because

3404the choice of remedies for invalid procurement actions is

3413ultimately within the agency's discretion, the undersigned

3420declines to make a recommendation regarding the means by which

3430DEP should rectify the harm to Spinella, but he urges that other

3442appropriate relief be granted if Spinella cannot be awarded the

3452contact.

3453DONE AND ENTERED this 2nd day of October, 2008, in

3463Tallahassee, Leon County, Florida.

3467___________________________________

3468JOHN G. VAN LANINGHAM

3472Administrative Law Judge

3475Division of Administrative Hearings

3479The DeSoto Building

34821230 Apalachee Parkway

3485Tallahassee, Florida 32399-3060

3488(850) 488-9675 SUNCOM 278-9675

3492Fax Filing (850) 921-6847

3496www.doah.state.fl.us

3497Filed with the Clerk of the

3503Division of Administrative Hearings

3507this 2nd day of October, 2008.

3513ENDNOTES

35141 / In pertinent part, the statute provides as follows:

3524[T]he Florida Building Commission shall

3529develop and adopt . . . measures [to

3537incorporate recognized mitigation techniques

3541for lessening the destructive effects of

3547hurricanes on site-built, single-family

3551residential structures constructed before the

3556implementation of the Florida Building Code]

3562by October 1, 2007, by rule separate from the

3571Florida Building Code, which take immediate

3577effect and shall incorporate such

3582requirements into the next edition of the

3589Florida Building Code.

3592§ 553.844(3), Fla. Stat.

35962 / Florida Administrative Code Rule 9B-3.0475 (2007) provided as

3606follows:

3607The 2007 Manual of Hurricane Mitigation

3613Retrofits for Existing Site-Built Single

3618Family Residential Structures is hereby

3623adopted by reference. The manual provides

3629requirements for construction in addition to

3635those contained in the Florida Building Code

3642as adopted by Rule 9B-3.047, F.A.C., that

3649shall be enforced as provided in the manual

3657and as required by Section 553.844, F.S. A

3665copy of the manual may be obtained from the

3674Florida Building Commission’s website,

3678www.floridabuilding.org. If any person

3682encounters any difficulty utilizing the

3687website, assistance is available by calling

3693the Codes and Standards Unit at (850)487-

37001824.

37013 / The undersigned has taken official recognition of the public

3712announcement which appeared in the Florida Administrative Weekly .

37214 / The undersigned has taken official recognition of the public

3732notice which appeared in the Florida Administrative Weekly .

37415 / In her email of July 22, 2008, DEP's counsel asserted that

3754the Directive had instructed "bidders to ignore certain rules

3763. . . which had become effective after the bid opening, which was

3776not in accordance with the law." This statement implies that the

"3787certain rules" which were to be ignored were applicable rules

3797because, logically, there would be nothing problematic about

3805instructing bidders to ignore inapplicable rules. Yet, while the

3814statement acknowledges that the "certain rules" in question took

3823effect after the bid opening , it avoids mentioning that the

3833subject rules were, for that reason, not in effect (and thus not

3845applicable) at the time the Addendum was issued. The statement

3855thus seems designed to leave the impression that the Directive

3865referred to an applicable rule, even as it hints that such was

3877not the case.

3880Regardless, the Department's position makes sense only if

3888the Directive is understood as an instruction to ignore an

3898applicable, existing law. This is because, first, the Directive

3907actually told bidders (in so many words) to ignore the "recent

3918change in Rule 9B-3.0475"——language which suggested that the

"3927recent change" was already in effect. Second, if the Department

3937had meant merely to instruct bidders, through the Directive, to

3947ignore the recently proposed (but currently ineffective)

3954amendment to Rule 9B-3.0475, such an instruction would have been

3964fully in accord with the law, and should not have been confusing

3976to any reasonable bidder, even if the Department believed that

3986the proposed amendment likely would become effective after the

3995bid opening. (It is, of course, easy to imagine scenarios in

4006which compliance with a proposed amendment to the building code

4016would be impermissible. Suppose, for example, the Revised Manual

4025promised to relax certain standards found in the Manual. In that

4036event, builders would continue to be required to meet the more

4047stringent standards contained in the Manual until such time as

4057the Revised Manual were adopted as a rule.) Therefore, the

4067Department needs for the Directive to be understood as an

4077instruction to ignore applicable , existing law if its rationale

4086for rejecting all bids is to be deemed coherent.

40956 / The law in this regard is clear and unambiguous. Section

4107120.54(1)(i)1., Fla. Stat. (2008), states:

4112A rule may incorporate material by reference

4119but only as the material exists on the date

4128the rule is adopted. For purposes of the

4136rule, changes in the material are not

4143effective unless the rule is amended to

4150incorporate the changes.

4153(Emphasis added.)

41557 / It is debatable, moreover, whether such confusion would have

4166been reasonable. Article 16 of the Construction Contract

4174required a bidder to represent that it was "fully informed with

4185regard to all applicable local, state, and federal laws,

4194ordinances, rules, regulations, and codes (the 'Laws') governing

4202the Work . . . ." See ITB at 90. Any bidder who made this

4217representation in good faith would have known that Rule 9B-3.0475

4227had not been "recently changed" as of February 5, 2008.

42378 / Because Caber is inapposite, the undersigned need not decide

4248here whether Caber should be revisited in light of subsequent

4258statutory changes. Of particular interest, however, is that,

4266some two years after Caber was decided, it became necessary to

4277bring a specifications protest within 72 hours after receipt of

4287the invitation to bid——or be deemed to have waived the right to

4299do so. Legislation enacted in 1990 inserted the following

4308a protest of the specifications contained in an invitation to bid

4319or in a request for proposals, the notice of protest shall be

4331filed in writing within 72 hours after the receipt of notice of

4343the project plans and specifications or intended project plans

4352and specifications in an invitation to bid or request for

4362proposals, and the formal written protest shall be filed within

437210 days after the date the notice of protest is filed." Ch. 90-

4385302, Laws of Fla. This particular provision, which despite

4394undergoing some revisions over the years retains the same basic

4404meaning, is currently found in § 120.57(3)(b), Fla. Stat.

4413Given the requirement that specifications be protested

4420immediately——which was not the law at the time of Caber ——there is

4432now reason to view with some suspicion an agency's decision to

4443reject all bids on the basis of alleged problems with the

4454specifications when, as happened here, the purported deficiencies

4462have been brought to the agency's attention by the protest of a

4474disappointed bidder. The concern, of course, is that the agency

4484may have favored a preferred bidder by granting it relief on

4495grounds which the bidder, having failed to bring a timely

4505specifications protest, clearly had waived, and by doing so

4514effectively have circumvented the deadline that § 120.57(3)(b)

4522imposes.

45239 / Section 120.57(3)(c), Fla. Stat., states:

4530Upon receipt of the formal written protest

4537that has been timely filed, the agency shall

4545stop the solicitation or contract award

4551process until the subject of the protest is

4559resolved by final agency action, unless the

4566agency head sets forth in writing particular

4573facts and circumstances which require the

4579continuance of the solicitation or contract

4585award process without delay in order to avoid

4593an immediate and serious danger to the public

4601health, safety, or welfare.

4605COPIES FURNISHED :

4608Cas Spinella

4610Spinella Enterprises, Inc.

46132016 Sacramento

4615Weston, Florida 33326

4618Suzanne B. Brantley, Esquire

4622Department of Environmental Protection

4626The Douglas Building, Mail Station 35

46323900 Commonwealth Boulevard

4635Tallahassee, Florida 32399-3000

4638Michael W. Sole, Secretary

4642Department of Environmental Protection

4646The Douglas Building

46493900 Commonwealth Boulevard

4652Tallahassee, Florida 32399-3000

4655Tom Beason, General Counsel

4659Department of Environmental Protection

4663The Douglas Building, Mail Station 35

46693900 Commonwealth Boulevard

4672Tallahassee, Florida 32399-3000

4675Lea Crandall, Agency Clerk

4679Department of Environmental Protection

46833900 Commonwealth Boulevard

4686Mail Station 35

4689Tallahassee, Florida 32399-3000

4692NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

4698All parties have the right to submit written exceptions within 10

4709days from the date of this Recommended Order. Any exceptions to

4720this Recommended Order should be filed with the agency that will

4731issue the Final Order in this case.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 11/04/2008
Proceedings: Respondent`s Exceptions to Recommended Order filed.
PDF:
Date: 11/04/2008
Proceedings: Final Order filed.
PDF:
Date: 11/03/2008
Proceedings: Agency Final Order
PDF:
Date: 10/02/2008
Proceedings: Recommended Order
PDF:
Date: 10/02/2008
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 10/02/2008
Proceedings: Recommended Order (hearing held August 7, 2008). CASE CLOSED.
PDF:
Date: 09/15/2008
Proceedings: Respondent`s Proposed Recommended Order filed.
PDF:
Date: 09/04/2008
Proceedings: Notice of Filing Transcript.
Date: 09/04/2008
Proceedings: Transcript of Proceedings filed.
Date: 08/07/2008
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 08/05/2008
Proceedings: Prehearing Stipulation filed.
PDF:
Date: 08/05/2008
Proceedings: Prehearing Stipulation filed.
PDF:
Date: 07/15/2008
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 07/15/2008
Proceedings: Notice of Hearing by Video Teleconference (hearing set for August 7, 2008; 9:00 a.m.; Lauderdale Lakes and Tallahassee, FL).
PDF:
Date: 07/14/2008
Proceedings: Protest Petition filed.
PDF:
Date: 07/14/2008
Proceedings: Request for Assignment of Administrative Law Judge and Notice of Preservation of Record filed.
PDF:
Date: 07/14/2008
Proceedings: Agency referral filed.

Case Information

Judge:
JOHN G. VAN LANINGHAM
Date Filed:
07/14/2008
Date Assignment:
07/14/2008
Last Docket Entry:
11/04/2008
Location:
Lauderdale Lakes, Florida
District:
Southern
Agency:
ADOPTED IN TOTO
Suffix:
BID
 

Counsels

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Related Florida Statute(s) (3):

Related Florida Rule(s) (2):