12-002870BID Commercial Industrial Corporation vs. Department Of Transportation
 Status: Closed
Recommended Order on Tuesday, November 20, 2012.


View Dockets  
Summary: Petitioner did not prove that contract award to another bidder was contrary to statute, rule, policy, or RFP specifications. By failing to meet RFP's pre-qualification requirements, Petitioner's proposal was non-responsive.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8COMMERCIAL INDUSTRIAL )

11CORPORATION , )

13)

14Petitioner , )

16)

17vs. ) Case No. 12 - 2870BID

24)

25DEPARTMENT OF TRANSPORTATION , )

29)

30Respondent . )

33)

34RECOMMENDED ORD ER

37Pursuant to notice, the final hearing was held in this case

48on September 28, 2012, in Tallahassee, Florida, before

56Administrative Law Judge Elizabeth W. McArthur of the Division of

66Administrative Hearings.

68APPEARANCES

69For Petitioner: Commercial Indust rial Corporation, pro se,

77b y its designated representative,

82Jay T. Blankenfeld, Vice - President

8811810 Northwest 115th Avenue

92Reddick, Florida 32686

95For Respondent: C. Denise Johnson, Esquire

101Department of Transportation

104Haydon Burns Building, Mail Station 58

110605 Suwannee Street

113Tallahassee, Florida 32399

116STATEMENT OF THE ISSUE

120The issue in this case is whether Respondent ' s intended

131decision to award a contract, challenged by Petitioner, is

140contrary to Responde nt ' s governing statutes, rules, policies, or

151the proposal specifications.

154PRELIMINARY STATEMENT

156The Department of Transportation (Department or Respondent)

163issued a request for proposals (RFP) for a " low bid design - build "

176project for the Daytona Avenue bri dge replacement in Volusia

186County, designated as procurement contract n o. E5R63 (the

195Project). On July 2, 2012, the Department posted notice of its

206intended decision to award a contract for the Project to Gregori

217Construction & Engineering, Inc (Gregori). A competing proposal

225submitted by Commercial Industrial Corporation (Commercial or

232Petitioner) was declared non - responsive.

238On July 3, 2012, Commercial timely filed a notice of protest

249pursuant to section 120.57(3), Florida Statutes (2012). 1/ On

258July 10 , 2012, Commercial timely filed a formal written protest,

268specifying the reasons for its challenge to the Department ' s

279decisions. Commercial protested the decision to declare its

287proposal non - responsive due to non - compliance with certain

298pre - qualification requirements, because Commercial asserted that

306this was a " minor informality " that the Department could have

316waived. Commercial also protested the contract award to Gregori.

325Commercial contended that the proposals of Gregori and a third

335bidder should ha ve been deemed non - responsive because the prices

347bid by these two bidders were higher than the " advertised not to

359exceed budget amount. "

362Following an unsuccessful attempted resolution meeting

368pursuant to section 120.57(3)(d)1., the Department referred

375Comm ercial ' s protest to the Division of Administrative Hearings .

387The final hearing was scheduled, and an O rder of P re - H earing

402I nstructions was entered to establish expedited pre - hearing

412procedures, including shortened discovery deadlines, necessitated

418by the accelerated statutory time - frames for bid protest

428proceedings.

429The Department served interrogatories and requests for

436admissions on Commercial. Pursuant to the expedited discovery

444schedule, Commercial was required to serve its responses and

453objections by delivery to the Department no later than

462September 19, 2012. This deadline was not met. The Department

472notified Commercial that its discovery responses were past due

481and allowed Commercial until noon on September 21, 2012, to

491respond. Commercial served answers to the Department ' s

500interrogatories by the extended deadline; however, Commercial did

508not serve written responses or objections to the requests for

518admissions.

519On September 24, 2012, the Department filed a motion to deem

530admitted the matters on whi ch admissions were requested. A

540telephonic motion hearing was conducted. Commercial was self -

549represented by its designated corporate representative, Jay T.

557Blankenfeld, v ice - p resident. Mr. Blankenfeld acknowledged that

567Commercial had received the reques ts for admissions. Although he

577apologized for not responding by the due date or by the extended

589due date, he offered no excuse to justify that omission. By

600O rder entered September 25, 2012, the Department ' s motion was

612granted, and the 19 paragraphs on wh ich admissions were requested

623were deemed admitted for purposes of this proceeding. 2/

632The parties filed a joint pre - hearing stipulation on

642September 27, 2012, in which they stipulated that the 19

652paragraphs in the Department ' s requests for admissions were

" 662admitted facts. " These admitted facts are incorporated in the

671findings of fact below. Notwithstanding the admitted facts,

679Commercial stated as its position that it considers its failure

689to meet the pre - qualification requirements to be a " minor

700informali ty, " considering the experience of the person who was

710not pre - qualified. Commercial also reiterated its position that

720the other two bidders should have been disqualified for their

730prices " exceeding the maximum budget amount. " In addition,

738Commercial asse rted a new position, contending that Gregori ' s

749proposal should have been disqualified for another reason besides

758the price. The Department objected to Commercial ' s attempt to

769inject a new issue, not pled in the formal written protest.

780At the outset of the final hearing, Commercial withdrew the

790new position it had attempted to raise in the joint pre - hearing

803stipulation. The parties offered Joint Exhibits 1 and 2, which

813were admitted in evidence. Petitioner presented the testimony of

822Mr. Blankenfeld, who w as allowed to testify in narrative form.

833Petitioner also was permitted to present testimony of the

842Department ' s representative, Alan Hyman, P.E., director of

851T ransportation O perations for the Department ' s District 5.

862Petitioner was permitted to offer Resp ondent ' s Exhibits 2 and

8746A through 6E, 3/ which were admitted in evidence.

883Respondent presented the testimony of Mr. Hyman and Michelle

892Sloan, procurement services manager s for District 5. Respondent

901did not offer any additional exhibits besides the two jo int

912exhibits and the two Respondent ' s Exhibits that were offered by

924Petitioner and admitted.

927The evidentiary record was closed at the end of the final

938hearing. The one - volume Transcript of the final hearing was

949filed on October 23, 2012. The parties time ly filed their

960Proposed Recommended Orders (PROs) by the deadline of November 2,

9702012. To the extent the PROs are based on the evidentiary record

982made at the final hearing, they have been considered in the

993preparation of this Recommended Order. 4/

999FINDING S OF FACT

1003Admitted Facts Per Joint Pre - Hearing Stipulation

10111. The Department advertised for proposals and bids for the

1021Project under procurement contract number E5R63.

10272. Commercial was a bidder on the Department ' s contract

1038E5R63 for the Project.

10423. Comm ercial reviewed the Department ' s advertisement for

1052proposals and bids for the Project.

10584. The Project consists of replacing the existing Daytona

1067Avenue Bridge (Bridge No.: 795502).

10725. The Project was advertised as a low bid design - build

1084Project.

10856. Comm ercial did not file a challenge to the

1095specifications for the Project.

10997. The advertisement for the Project included pre -

1108qualification requirements for design professionals and pre -

1116qualification work class requirements for the contractor.

11238. The adverti sement for the Project included requirements

1132for design professional services 8.1 and 8.2, Florida

1140Administrative Code Rule Chapter 14 - 75. 5/

11489. The bids and technical proposals for the Project were

1158due at the Department ' s District 5 offices by no later th an

11722:30 p.m., on June 18, 2012.

117810. Commercial submitted a technical proposal for the

1186Project in response to the advertisement for procurement E5R63.

119511. Commercial submitted a bid price for procurement E5R63.

120412. The technical proposal submitted by Com mercial for

1213procurement E5R63 did not contain a firm or individual

1222pre - qualified by the Department to perform work types 8.1 and

12348.2.

123513. District 5 representatives contacted Commercial and

1242sought to clarify who had been identified in Commercial ' s

1253technic al proposal to meet the pre - qualification requirements for

1264work types 8.1 and 8.2.

126914. Andrus Gaudet was identified in response to the inquiry

1279regarding who would satisfy work type 8.1 and 8.2 pre -

1290qualification requirements.

129215. As of June 18, 2012, Andr us Gaudet had not been pre -

1306qualified by the Department in work types 8.1 and 8.2 under rule

1318chapter 14 - 75.

132216. The Department determined that Commercial was non -

1331responsive based on its failure to include a firm or an

1342individual possessing the pre - qualific ation requirements in work

1352types 8.1 and 8.2 as advertised in the procurement solicitation.

136217. The advertisement states on page one that " all

1371qualification requirements must be met prior to the Response

1380Deadline. "

138118. The Department sent a letter to Com mercial that informs

1392all responding firms that in order to be considered for the

1403award, the team must be pre - qualified in the areas in the

1416advertisement.

141719. Commercial could not be considered for award of this

1427contract since it did not comply with the pr e - qualification

1439requirements.

1440Additional Findings of Fact

144420. The Department ' s advertisement summarized the key terms

1454for the Project, which included the following:

1461NOT TO EXCEED BUDGET AMOUNT OR MAXIMUM

1468BUDGET AMOUNT OR BUDGET AMOUNT*: $798,000

1475* Actu al commitment and final execution of

1483this contract is contingent upon an approved

1490legislative budget and availability of funds

1496ESTIMATED CONTRACT TIME: 300 Contract Days

1502SELECTION PROCEDURE: Low Bid Design - Build

1509RESPONSE REQUESTED: Fax Or der Form

1515STIPEND AMOUNT: No Stipend

1519PREQUALIFICATION REQUIREMENTS:

15211) CONTRACTOR - WORK CLASS REQUIREMENTS

1527Minor Bridges

15292) DESIGN - PROFESSIONAL SERVICES WORK TYPE

1536REQUIREMENTS

1537Major: 4.1.2 - Minor Bridge Design

1543Mino r: 3.1 -- Minor Highway Design

15504.1.1 -- Miscellaneous Structure

15547.1 -- Signing, Pavement Marking

1559and Channelization

15618.1 -- Control Surveying

15658.2 -- Design, Right of Way, and

1572Construct ion Surveying

15759.1 -- Soil Exploration

15799.2 -- Geotechnical Classification

1583Lab Testing

15859.3 -- Highway Materials Testing

15909.4.1 -- Standard Foundation

1594Studies

1595TECHNICAL QUESTIONS SHO ULD BE ADDRESSED TO:

1602http://www2.dot.state.fl.us/construction/bid

1603questionmain.asp .

160521. The selection procedure for a low bid design - build

1616p roject is that the Department ' s technical review committee

1627starts with the lowest price bidder and reviews that bid der ' s

1640technical proposal to determine if it meets the technical

1649requirements or if it is non - responsive. If the lowest bidder ' s

1663technical proposal is deemed non - responsive, the technical review

1673committee proceeds to review the technical proposal of the ne xt

1684lowest bidder. The technical proposals of other bidders are not

1694reviewed at all for responsiveness unless and until the committee

1704deems the lowest bidder ' s proposal non - responsive. The technical

1716review committee prepares its recommendations as to the

1724responsiveness of the proposals reviewed and identifies which

1732bidder, if any, should be deemed the lowest responsive bidder.

1742The technical review committee recommendations are then submitted

1750to the selection committee, which makes the final decision that

1760is posted as the Department ' s intended decision.

176922. Commercial submitted the lowest bid for the Project in

1779the amount of $780,000. Therefore, the technical review

1788committee began with a review of Commercial ' s technical proposal.

1799After that review, the technical review committee made the

1808following recommendation:

1810The Technical submitted by [Commercial] was

1816reviewed and is recommended as non -

1823responsive. [Commercial] did not identify

1828how the advertised prequalification

1832requirement on 8.1 - - Control Surveyin g

1840and 8.2 - - Design, Right of Way, and

1849Construction Surveying would be met within

1855their Technical.

185723. The technical review committee proceeded to the next

1866lowest bidder, Gregori, with a bid price of $817,500. Gregori ' s

1879technical proposal was reviewed and found to meet the technical

1889requirements for the Project. The technical review committee

1897recommended that Gregori be deemed the lowest responsive bidder.

190624. The decision to award the contract to Gregori was made

1917by the selection committee, which agreed with the technical

1926review committee ' s recommendations. Before making that

1934decision, the selection committee considered whether Gregori ' s

1943bid price was reasonable. The selection committee made the

1952judgment that Gregori ' s bid price, which exceeded the eng ineer ' s

1966estimate used to establish the budget amount by a relatively

1976small percentage, was reasonable.

198025. Funds for contracts must be provided for in the Work

1991Program. When an RFP is issued, the Department sets aside funds

2002in the Work Program in the est imated budget amount. Therefore,

2013in order for the selection committee to award a contract for a

2025bid price that exceeds the estimated budget amount, the

2034selection committee must get approval to fund the excess amount

2044in the Work Program. In this case, the selection committee

2054obtained approval to add $20,500 -- the amount by which Gregori ' s

2068bid price exceeded the advertised budget amount -- to the Work

2079Program.

208026. Commercial did not contend or attempt to prove that

2090Gregori ' s bid price was unreasonable. Inst ead, Commercial ' s

2102challenge to the intended contract award was that the Department

2112was required to reject the bid as non - responsive , because the

2124bid price exceeded what Commercial referred to as the

" 2133advertised not to exceed budget amount. " Thus, Commerci al ' s

2144challenge hinges on its characterization of the advertisement as

2153specifying a " not to exceed budget amount. " However, the actual

2163language in the advertisement was: " NOT TO EXCEED BUDGET AMOUNT

2173OR MAXIMUM AMOUNT OR BUDGET AMOUNT*: $798,000. " Commer cial was

2184unable to point to any statute, rule, or RFP specification that

2195narrowed the quoted language or that required the Department to

2205deem a proposal non - responsive solely because the bid price is

2217higher than the advertised budget amount. Without more, the

2226dollar amount identified in the advertisement cannot be

2234considered a " not to exceed budget amount. " Instead, the amount

2244was either a " not to exceed budget amount, " or a " maximum

2255amount, " or simply a " budget amount. "

226127. Commercial unsuccessfully att empted to prove that the

2270Department ' s prior practice was to declare non - responsive any

2282bids over the advertised budget amounts. To support its

2291position, Commercial relied on the Department ' s prior practice

2301in connection with an earlier solicitation for th e same bridge

2312replacement project, designated contract no. E5R48 (project

2319E5R48), which resulted in a Department decision to reject all

2329bids and re - advertise.

233428. The evidence established that the advertisement for

2342project E5R48 set forth a " NOT TO EXCE ED BUDGET AMOUNT OR

2354MAXIMUM BUDGET AMOUNT OR BUDGET AMOUNT " of $650,000. The

2364advertisement specified the same " PREQUALIFICATION REQUIREMENTS "

2370in the same work type categories as did the advertisement for

2381the Project at issue here.

238629. Potential bidders were given the opportunity to review

2395the RFP and submit questions to the Department. The questions

2405and answers were posted. One question/answer provided as

2413follows:

2414[Question:] The advertisement makes mention

2419of a Maximum Budget for the project. The

2427R FP is silent as to a Maximum Allowable Bid

2437for the project. Is the budget estimate

2444provided in the Advertisement a maximum bid

2451price and will our bid be non - responsive if

2461it is over that amount?

2466[Answer:] No.

246830. Technical proposals and bids were subm itted by two

2478bidders in response to the solicitation for project E5R48.

2487Following the same selection procedure as for the Project at

2497issue in this case, the technical review committee first

2506reviewed the technical proposal of the bidder with the lower

2516bid, which was in the amount of $798,000. The technical review

2528committee recommended as follows regarding the lower bidder:

2536The Technical submitted by United

2541Infrastructure Group was reviewed and is

2547recommended as non - responsive. United

2553Infrastructure Group did not identify how

2559the advertised prequalification requirement

2563on 9.3 - - Highway Materials Testing would be

2572met within their Technical.

257631. The technical review committee for project E5R48 did

2585not also recommend that the United Infrastructure Group ' s

2595pro posal be declared non - responsive for the additional reason

2606that its bid of $798,000 exceeded the advertised budget amount

2617of $650,000.

262032. The technical review committee for project E5R48 then

2629considered the other bidder ' s proposal, with a bid price of

2641$1 ,100,000. However, it did not proceed to review that bidder ' s

2655technical proposal for compliance with technical requirements,

2662for the following reason:

2666The Technical submitted by Superior

2671Construction Company has not been reviewed.

2677The bid submitted by Su perior Construction

2684Company is 69% over the Department ' s

2692advertised Budget Amount.

2695The Technical Review Committee recommends

2700rejecting all bids and readvertising this

2706project.

270733. The selection committee for project E5R48 agreed with

2716the technical revi ew committee ' s recommendations and made the

2727decision to reject all bids and re - advertise. The Department ' s

2740representative at the final hearing, who served on the selection

2750committees for both bid solicitation rounds for the Daytona

2759Avenue bridge replaceme nt project , confirmed that the selection

2768committee ' s decision to reject all bids for project E5R48 was

2780not based on a determination that the two bids were " non -

2792responsive " because the bid prices were higher than the

2801advertised budget amount. Instead, the lower bidder for project

2810E5R48 was deemed non - responsive for the same reason that

2821Commercial was deemed non - responsive in this case (non -

2832compliance with all pre - qualification requirements as of the

2842response due date); and the only other bidder proposed a p rice

2854that was found to be unreasonably high.

286134. The Department has the discretion to award contracts

2870when the amounts bid are higher than the advertised budget

2880amounts, absent an RFP specification to the contrary. In

2889deciding whether to exercise th at discretion, one factor the

2899Department considers is the magnitude by which the bid price

2909exceeds the advertised budget amount. For project E5R48, after

2918the low bidder was found non - responsive, the only other bid was

2931so much higher than the advertised bu dget that the Department

2942reasonably exercised its discretion to reject all bids and

2951re - advertise.

295435. When bids come in much higher than estimated for a

2965project, the Department will go back to review the engineer ' s

2977estimate from which the budgeted amount was derived to determine

2987if something needs to be changed in a re - advertisement, such as

3000clarification of the project terms, increase in the budget

3009amount, or both. In this case, the Department clarified the

3019P roject terms and increased its budget amount in the

3029re - advertisement of the Project (but not nearly to the level of

3042the very high bid that the Department refused to consider).

305236. The Department ' s exercise of discretion in the prior

3063solicitation round to not consider a bid exceeding the budgeted

3073am ount by 69 percent does not dictate that the Department reject

3085Gregori ' s bid as non - responsive. Instead, the Department ' s

3098prior practice was shown to be entirely consistent with the

3108Department ' s exercise of discretion in this case to consider

3119Gregori ' s bi d that was only three percent higher than the

3132advertised budget amount.

313537. Petitioner failed to prove any Department 's prior

3144practice of rejecting bids as non - responsive when they exceed

3155the advertised budget amount. The evidence showed otherwise.

316338. The evidence regarding project E5R48 also demonstrated

3171that the Department ' s prior practice has been to reject proposals

3183as non - responsive for failure to meet the advertised

3193pre - qualification requirements as of the response submission

3202deadline. That pri or practice is consistent with the

3211Department ' s decision to deem Commercial ' s proposal non -

3223responsive because the proposal failed to satisfy all of the

3233advertised pre - qualification requirements as of the response

3242submission deadline of June 18, 2012.

3248CONCL USIONS OF LAW

325239. The Division of Administrative Hearings has

3259jurisdiction over the parties and the subject matter of this

3269proceeding. §§ 120.569 and 120.57(3), Fla. Stat.

327640. Commercial's protest to the Department's proposed

3283contract award is governed by section 120.57(3)(f), which

3291provides as follows:

3294Unless otherwise provided by statute, the

3300burden of proof shall rest with the party

3308protesting the proposed agency action. In a

3315competitive - procurement protest, other than

3321a rejection of all bids, propos als, or

3329replies, the administrative law judge shall

3335conduct a de novo proceeding to determine

3342whether the agency's proposed action is

3348contrary to the agency's governing statutes,

3354the agency's rules or policies, or the

3361solicitation specifications. The stan dard

3366of proof for such proceedings shall be

3373whether the proposed agency action was

3379clearly erroneous, contrary to competition,

3384arbitrary, or capricious.

338741. The court in Colbert v. Dep artment of Health , 890

3398So. 2d 1165, 1166 (Fla. 1st DCA 2004), defined the clearly

3409erroneous standard to mean that "the interpretation will be

3418upheld if the agency's construction falls within the permissible

3427range of interpretations. If however, the agency's

3434interpretation conflicts with the plain and ordinary intent of

3443the law, judicial deference need not be given to it." (Citations

3454omitted.)

345542. An agency action is "contrary to competition" if it

3465unreasonably interferes with the purposes of competitive

3472procurement, which has been described in Wester v. Belote , 138

3482So. 7 21, 723 - 724 (Fla. 1931), as protecting the public against

3495collusive contracts and to secure fair competition upon equal

3504terms to all bidders.

350843. A capricious action has been defined as an action,

"3518which is taken without thought or reason or irrationally. "

3527Agrico Chemical Co. v. Dep't of Envtl . Reg . , 365 So . 2d 759, 763

3543(Fla. 1st DCA 1978), cert. denied , 376 So. 2d 74 (Fla. 1979).

"3555An arbitrary decision is one that is not supported by facts or

3567logic[.]" Id. The inquiry to be made in determining whether an

3578agency has acted in an arbitrary or capricious manner involves

3588consideration of "whether the agency: (1) has considered all

3597relevant factors; (2) has given actual, good faith consideration

3606to those factors; and (3) has used reason rather than whim to

3618progress from consideration of these factors to its final

3627decision." Adam Smith Enter prises v. Dep't of Env t l . Reg . , 553

3642So. 2d 1260, 1273 (Fla. 1st DCA 1989). The standard has also

3654been formulated by the court in Dravo Basic Materials Co. v.

3665Dep't of Tr ansp. , 602 So. 2d 632, 634 n.3 (Fla. 2d DCA 1992) , as

3680follows: "If an administrative decision is justifiable under any

3689analysis that a reasonable person would use to reach a decision

3700of similar importance, it would seem that the decision is neither

3711arbitr ary nor capricious."

371544. Although competitive - procurement protest proceedings

3722are described in section 120.57(3)(f) as de novo, courts

3731acknowledge that a different kind of de novo is contemplated than

3742for other substantial - interest proceedings under sec tion 120.57.

3752Competitive - procurement protest hearings are a "form of

3761intra - agency review[,]" in which the object is to evaluate the

3774action taken by the agency. State Contracting and Eng ' g Corp. v.

3787Dep't of Transp. , 709 So. 2d 607, 609 (Fla. 1st DCA 1998) .

380045. Applying these standards to this case, Commercial has

3809failed to meet its burden of proving that the Department's

3819intended contract award to Gregori is clearly erroneous,

3827arbitrary, capricious, or contrary to competition. Commercial

3834failed to demons trate that the Department's intended contract

3843award to Gregori is contrary to any statute, rule, policy, or RFP

3855specification.

385646. Commercial's protest hinges on its erroneous

3863characterization of the Department's advertisement for the

3870Project as stating a "not to exceed budget amount." Instead, as

3881found above, the advertisement set forth an amount that was

3891described in the alternative as either a "not to exceed budget

3902amount," or a "maximum amount," or simply a "budget amount."

391247. Commercial argued th at the Department had to treat the

3923budget amount in this RFP the same way it treated the budget

3935amount in the prior RFP issued for this same project for which

3947the Department decided not to award a contract. Commercial's

3956argument is the death knell to its protest. In the course of

3968that prior solicitation, the Department made clear in responding

3977to questions by the bidders that the advertised budget amount was

3988not a maximum amount and that bids exceeding the budgeted amount

3999would not be disqualified as non - responsive.

400748. The Department's witnesses reasonably explained that

4014while a proposed price exceeding the budgeted amount is not

4024automatically deemed non - responsive, the Department may conclude

4033that the degree to which the budgeted amount is exceeded is s o

4046high that the Department is unwilling to award the contract.

4056That is what happened in the prior solicitation round for this

4067Project: the only responsive bidder proposed a price that was

4077nearly twice as much as the budgeted amount.

408549. Contrary to Comm ercial's argument, the Department's

4093decision challenged here is entirely consistent with its actions

4102in connection with the prior RFP. Just as the Department

4112responded to a bidder's question then, the fact that Gregori's

4122bid price was higher than the budg eted amount did not mean that

4135Gregori's bid was non - responsive. Instead, it only meant that

4146the Department would take a closer look at the proposal compared

4157to its own budget estimate to determine whether the higher price

4168was reasonable. The Department r easonably exercised its

4176discretion to determine that Gregori's bid was reasonable, even

4185though it was higher than the budget amount. Commercial

4194presented no evidence to suggest that the Department's exercise

4203of discretion was arbitrary, capricious, clearl y erroneous, or

4212contrary to competition. Instead, Commercial's sole contention

4219was that the advertised amount had to be treated as a "not to

4232exceed" or "maximum" b id amount. This argument is rejected.

424250. Commercial admitted that its lower bid could not be

4252considered because Commercial failed to meet the advertised

4260pre - qualification requirements in two work - type categories by the

4272response due date of June 18, 2012. Commercial was on notice

4283that pre - qualification was required in all advertised work

4293categ ories by the response due date. The RFP specifications

4303confirmed that "[p]roposers are required to be pre - qualified in

4314all work types required for the project. " Commercial did not

4324challenge this RFP requirement and, thus, cannot challenge the

4333pre - qualifi cation mandate now. See § 120.57(3)(b) (" With respect

4345to a protest of the terms, conditions, and specifications

4354contained in a solicitation, . . . the notice of protest shall be

4367filed in writing within 72 hours after the posting of the

4378solicitation. "); ac cord RFP Protest Rights ("any person who is

4390adversely affected by the specifications contained in this [RFP]

4399must file a notice of intent to protest in writing within

4410seventy - two hours of the receipt of this [RFP].").

442151. The Department's determination that Commercial's bid

4428was non - responsive due to its failure to meet the pre -

4441qualification requirements in all advertised work categories was

4449not shown to be contrary to any statute, rule, policy, or RFP

4461specification, nor was it shown to be clearly erroneo us,

4471arbitrary, capricious, or contrary to competition.

447752. The Department's determination that Commercial's bid

4484was non - responsive was shown to be consistent with the

4495Department's prior practice. In the prior solicitation round for

4504the Daytona Avenue b ridge replacement, pro ject E5R48, the

4514Department determined that another bidder's bid was non -

4523responsive for the same reason that Commercial's bid was deemed

4533non - responsive in this case: failure to meet pre - qualification

4545requirements in all advertised wor k categories.

4552RECOMMENDATION

4553Based on the foregoing Findings of Fact and Conclusions of

4563Law, it is RECOMMENDED that a final order be entered by

4574Respondent, Department of Transportation, dismissing the formal

4581protest of Petitioner, Commercial Industrial C orporation.

4588DONE AND ENTERED this 20th day of November , 2012 , in

4598Tallahassee, Leon County, Florida.

4602S

4603ELIZABETH W. MCARTHUR

4606Administrative Law Judge

4609Division of Administrative Hearings

4613The DeSoto Building

46161230 Apalachee P arkway

4620Tallahassee, Florida 32399 - 3060

4625(850) 488 - 9675

4629Fax Filing (850) 921 - 6847

4635www.doah.state.fl.us

4636Filed with the Clerk of the

4642Division of Administrative Hearings

4646this 20th day of November , 2012 .

4653ENDNOTE S

46551/ All statutory references are to the Flor ida Statutes (2012).

46662/ Instead of offering a reason for not timely responding to the

4678requests for admissions, Mr. Blankenfeld said that Commercial had

4687no problem with the 19 paragraphs on which admissions were

4697requested. As explained to Mr. Blankenfeld , these admissions

4705included the ultimate fact in paragraph 19 that "Commercial could

4715not be considered for award of this contract since it did not

4727comply with the pre - qualification requirements." However, the

4736admissions did not cover the subject of Commer cial's separate

4746argument that the other two bidders' proposals should have been

4756deemed non - responsive based on prices exceeding the alleged "not

4767to exceed budget amount." Therefore, the undersigned explained

4775that Commercial would be permitted to present e vidence at the

4786final hearing regarding this part of its challenge, which was not

4797resolved by the admissions.

48013/ The Transcript's exhibit index identifies Exhibits 2 and 6 as

4812Petitioner's exhibits. While these exhibits were offered by

4820Petitioner, they w ere marked and received as Respondent's

4829exhibits.

48304/ Petitioner's PRO improperly proposed a finding of fact that

4840was based on an attached document. The document attached to

4850Petitioner's PRO was not offered in evidence at the final hearing

4861and , indeed, was not even in existence as of the final hearing.

4873As made clear at the conclusion of the hearing, the evidentiary

4884record was closed, and the undersigned would only consider

4893proposed findings of fact that had evidentiary support in the

4903record. See § 120. 57(1)(j), Fla. Stat. (" Findings of fact . . .

4917shall be based exclusively on the evidence of record[.]").

4927Therefore, the document attached to Petitioner's PRO has not been

4937considered and cannot be the basis for any F inding of F act.

49505/ Rule chapter 14 - 75 is entitled , "Qualification, Selection, and

4961Performance Evaluation Requirements for Professional Consultants

4967to Perform Work for [the Department]." The work - type categories

4978are codified in rule 14 - 75.0 0 3.

4987COPIES FURNISHED:

4989Ananth Prasad, Secretary

4992Dep artment of Transportation

4996Haydon Burns Building, Mail Station 57

5002605 Suwannee Street

5005Tallahassee, Florida 32399 - 0450

5010Gerald B. Curington, General Counsel

5015Department of Transportation

5018Haydon Burns Building, Mail Station 58

5024605 Suwannee Street

5027Tallahassee , Florida 32399 - 0450

5032Deanna Hurt, Clerk of Agency Proceedings

5038Department of Transportation

5041Haydon Burns Building, Mail Station 58

5047605 Suwannee Street

5050Tallahassee, Florida 32399 - 0450

5055C. Denise Johnson, Esquire

5059Department of Transportation

5062Haydon Burns B uilding, Mail Station 58

5069605 Suwannee Street

5072Tallahassee, Florida 32399

5075Jay Tyler Blankenfeld

5078Commercial Industrial Corp oration

508211810 Northwest 115th Avenue

5086Reddick, Florida 32686

5089NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

5095All parties have the right to sub mit written exceptions within

51061 0 days from the date of this Recommended Order. Any exceptions

5118to this Recommended Order should be filed with the agency that

5129will issue the Final Order in this case.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 12/10/2012
Proceedings: Agency Final Order filed.
PDF:
Date: 12/06/2012
Proceedings: Agency Final Order
PDF:
Date: 11/28/2012
Proceedings: Transmittal letter from Claudia Llado forwarding Respondent's Exhibits, which were not admitted into evidence to Respondent.
PDF:
Date: 11/20/2012
Proceedings: Recommended Order
PDF:
Date: 11/20/2012
Proceedings: Recommended Order (hearing held September 28, 2012). CASE CLOSED.
PDF:
Date: 11/20/2012
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 11/02/2012
Proceedings: Department's Notice of Filing Proposed Recommended Order filed.
PDF:
Date: 11/02/2012
Proceedings: Commercial Industrial Corporation Proposed Recommended Order filed.
Date: 10/23/2012
Proceedings: Transcript (not available for viewing) filed.
Date: 09/28/2012
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 09/27/2012
Proceedings: Joint Pre-hearing Stipulation filed.
PDF:
Date: 09/25/2012
Proceedings: Order Deeming Matters Admitted.
Date: 09/25/2012
Proceedings: CASE STATUS: Motion Hearing Held.
PDF:
Date: 09/24/2012
Proceedings: Notice of Telephonic Motion Hearing (motion hearing set for September 25, 2012; 1:15 p.m.).
PDF:
Date: 09/24/2012
Proceedings: Motion to Declare As Admitted the Request for Admissions Propounded Upon Petitioner filed.
PDF:
Date: 09/14/2012
Proceedings: Notice of Serving Respondent, Department of Transportation's, First Set of Interrogatories to Petitioner filed.
PDF:
Date: 09/14/2012
Proceedings: Respondent's First Request for Admissions to Petitioner filed.
PDF:
Date: 08/30/2012
Proceedings: Amended Notice of Hearing (hearing set for September 28, 2012; 9:30 a.m.; Tallahassee, FL; amended as to time of hearing).
PDF:
Date: 08/30/2012
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 08/30/2012
Proceedings: Notice of Hearing (hearing set for September 28, 2012; 9:3 a.m.; Tallahassee, FL).
PDF:
Date: 08/28/2012
Proceedings: Agency referral filed.
PDF:
Date: 08/28/2012
Proceedings: Request for Administrative Hearing filed.
PDF:
Date: 08/28/2012
Proceedings: Agency action letter filed.

Case Information

Judge:
ELIZABETH W. MCARTHUR
Date Filed:
08/28/2012
Date Assignment:
08/29/2012
Last Docket Entry:
12/10/2012
Location:
Tallahassee, Florida
District:
Northern
Agency:
ADOPTED IN TOTO
Suffix:
BID
 

Counsels

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Related Florida Statute(s) (3):