16-002567 M And B Lawn Maintenance Service, Inc. vs. Department Of Transportation
 Status: Closed
Recommended Order on Monday, December 5, 2016.


View Dockets  
Summary: Petitioner's conduct in not signing or providing documents concerning mowing contracts awarded by DOT, did not justify finding Petitioner non-responsible, particularly in light of DOT's discontinuation of payments on another contract with Petitioner.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8M AND B LAWN MAINTENANCE

13SERVICE, INC.,

15Petitioner,

16vs. Case No. 16 - 2567

22DEPARTMENT OF TRANSPORTATION,

25Respondent.

26_______________________________/

27RECOMMENDED ORDER

29This case was heard before Administrative Law Judge

37Robert L. Kilbride, of the Division of Administrative Hearings

46( " DOAH " ) , via video teleconference on September 15, 2016, in

57Lauderdale Lakes and Tallahassee, Florida.

62APPEARANCES

63For Petitioner: Paul J. Kneski, Es quire

70Paul J. Kneski, P.A.

74Suite 110

76333 Northwest 70th Avenue

80Plantation, Florida 33317

83For Respondent: Kimberly Clark Menchion, Esquire

89Department of Transportation

92Mail Station 58

95605 Suwannee Street

98Tallahassee, Florida 32399

101STATEMENT OF THE ISSUE

105Whether Petitioner ' s conduct, omissions or actions in

114failing to execute and provide required documentation regarding

122roadway maintenance contracts awarded by Respondent, warrants a

130finding that Petitioner is " non - responsible " for a two - year

142period and prohibited from contracting with the state for that

152period of time.

155PRELIMINARY STATEMENT

157On March 28, 2016, Respondent, Department of Transportation

165( " D epartment " ), took written action to declare Petitioner , M

176and B Lawn Maintenance Service, Inc. ( " M&B " ) , a non - responsible

189contractor for a two - year period pursuant to section 337.16 ,

200Florida Statutes.

202This intended action wo uld prohibit M&B from bidding on any

213state maintenance contracts for the debarred period of time.

222Likewise, a declaration of non - responsibility would prohibit M&B

232from being a supplier, subcontractor, or prime contractor on any

242Department projects for the specified period of time.

250Taking exception to this determination, M&B timely requested

258a hearing pursuant to sections 120.569 and 120.57(1), Florida

267Statutes , and the matter was referred to D OAH .

277The final hearing was held on September 15, 201 6 . M&B

289pres ented the testimony of Jonathan McIntyre and submitted

298Exhibits 1 through 6, which were admitted into evidence pursuant

308to the parties ' stipulation.

313The Department offered the testimony of Michael E.

321Sprayberry and Alan Autry and offered Exhibits 1 through 4 8 ,

332which were admitted into evidence pursuant to the parties '

342stipulation.

343The Transcript was filed with DOAH on October 19, 2016. The

354parties were granted an extension of time to file their proposed

365recommended orders .

368Both parties ' p roposed r ecommende d o rders were then timely

381filed and considered by the undersigned in preparing this

390Recommended Order.

392References to Florida Statutes are to the 2015 version,

401unless otherwise indicated.

404FINDING S OF FACT

408The undersigned makes the following findings of rele vant and

418material facts:

4201 . M&B bid on Department Contract E7J12 let on October 9,

4322013.

4332 . M&B bid on Department Contract E1N43 let on January 16,

4452014.

4463 . M&B bid on Department Contract E3082 let on August 13,

4582015.

4594 . M&B bid on Department Contracts E6K44, E6K45, E6K46, and

470E6K51 let on January 28, 2016.

4765 . M&B bid on Department Contract E4R75 let on February 5,

4882016.

4896 . M&B does not have a certificate of qualification from

500the Department, nor is it required to have one.

5097 . The Department is the s tate agency responsible for

520coordinating the planning of a safe and efficient state

529transportation system. To accomplish that, the Department relies

537on qualified contractors to provide roadway mowing and other

546landscap ing maintenance services in order to meet Florida ' s

557transportation needs.

5598 . Jonathan McIntyre owns and operates M&B, a company that

570provides mowing and landscaping maintenance services for the

578Department. The company was previously owned by his father.

5879. The company has been a contractor for the Department for

598over 30 years and has adequately performed many mowing and

608landscap ing maintenance contracts for the state. " One hundred

617percent " of M&B ' s business is derived from mowing and landscaping

629maintenance contacts with the Department, an d the state is its

640exclusive client.

64210 . During the hearing, Alan Autry, m anager of Contract

653Administration for the Department, provided an overview of the

662bidding process. The bidding process begins with a bid

671solicitation notice which is also known as the advertisement.

680The solicitation outlines the requirements for bidders and

688includes project specific information. It also establishes when

696bids will be received. Resp. Ex. 46 .

70411 . The next step in the bidding process is for the

716Department to receive and open bids on the date and time

727identified in the solicitation. Depending upon the nature of the

737bid, a technical review is done.

7431 2 . Once the contract is awarded, the vendor is notified

755and sent an award letter along with the contract and other

766pert inent documents for execution. The award letter identifies

775the date for which the signed contract along with other documents

786are to be returned to the Department for review to ensure

797conformance with the solicitation and specifications.

803Subsequently, the Department has a specific timeframe to execute

812and enter into the agreement.

81713 . After being awarded several maintenance contracts as

826the low bidder, the Department issued a Notice of Intent to

837Declare Non - responsible ( " Notice " ) to M&B on March 28, 2016 ,

850concerning its failure to " execute " eight contracts that had been

860awarded. 1/

86214. A noteworthy document that must be returned to the

872Department, along with the signed contract, is a payment

881performance bond, also known as a contract bond (a document that

892is signed by or executed by the vendor, and the vendor ' s surety).

906Other documents that must be promptly returned include a contract

916affidavit and insurance confirmation, such as policies and

924certificates as required by the contract specifications or

" 932spec s. " Resp. Ex. 46 Î 48.

9391 5 . According to contract specifications 3 - 6 and 3 - 7, if

954the Department does not receive the executed documents from the

964vendor within ten days, excluding weekends and holidays, the

973D epartment may annul the contract, award it to anot her vendor, or

986perform the work by other means. Resp. Ex. 47 .

9961 6 . The solicitations for the contracts in this case

1007expressly incorporated contract specifications 3 - 6 and 3 - 7.

1018Resp. Ex s . 1, 5, 10, 16, 22, 28, 35 , 40.

10301 7 . The contracts at issue in this c ase are considered " low

1044bid " contracts, meaning that the award of these contracts is made

1055to the vendor that submits the lowest cost bid in response to the

1068solicitation, without further inquiry or analysis. R esp . Ex. 48.

10791 8 . Concerning Department C ontrac t E7J12, M&B was the

1091initial lowest bidder. The Department awarded the contract to

1100M&B; however, M&B failed to return a signed contract form,

1110contract bond, contract affidavit, and/or sufficient insurance

1117documentation within the ten - day time period. Res p. Ex s . 3, 4,

11324b.

113319 . Concerning Department C ontracts E1N43, E3082, E6K46,

1142and E4R75, M&B was also the initial lowest bidder. The

1152Department awarded the contracts to M&B; however, M&B failed to

1162return a signed contract form and required documents within the

1172allotted time period. Resp. Ex s . 7 Î 9 , 12 - 15 , 30 - 33 , 42 Î 4 5.

119220 . Concerning Department C ontracts E6K44, E6K45, and

1201E6K51, M & B was not the initial lowest bidder according to

1213preliminary bid tabulations. However, the initial lowest bidder

1221(another compa ny) was found to be non - responsive , and M&B

1233subsequently became the lowest bidder and was awarded those

1242contracts as well. However, M&B also failed to return the

1252executed contract and accompanying documents to the Department

1260within the ten - day period. Re sp. Ex s . 18 - 21 , 24 - 27 , 36 Î 39.

12802 1. There was no dispute regarding the calculation of the

1291ten - day timeframe for M&B to sign the contract(s) and return the

1304required contract documents.

130722 . McIntyre admitted during testimony to never signing

1316these contracts or obtaining bond approval " certificates " in a

1325timely fashion for the subject contracts.

13312 3 . In enforcement actions like this, the Department

1341considers several factors to determine the appropriate length of

1350time to declare a contractor non - responsible. T he Department

1361considers the severity of the situation and makes an evaluation

1371on a case - by - case basis .

138024. Maintaining the integrity of the bidding process is

1389also a focus of concern. Typically, the Department will impose

1399six months to a year of non - resp onsibility per incident. Resp.

1412Ex. 48.

14142 5 . Throughout all the evidence and testimony presented, it

1425was clear to the undersigned that a lack of contract work

1436performance or anticipated work performance by M&B was not the

1446ground(s) for finding M&B " non - res ponsible. " Rather, it was

1457M&B ' s failure to (1) sign the subject contracts and (2) provide

1470required supporting documents that formed the basis for finding

1479M&B non - responsible.

148326 . Despite his candid testimony that he did not sign or

1495timely provide the sup porting documents, M&B raised several

1504defenses claiming there was not sufficient cause to hold M&B

" 1514non - responsible. "

151727. McIntyre explained that a series of events with the

1527Department regarding another maintenance contract prevented him

1534from complying wi th the bonding requirement. He argued that

1544other conduct of the Department, inextricably intertwined with

1552these contracts, belies any finding that M&B was at fault, or

1563non - responsible. 2/

15672 8 . More specifically, M&B asserted that the failure on

1578the part of M&B to " execute " the 2016 contracts cited in the

1590Department ' s Notice was caused by the Department ' s failure

1602to timely pay M&B for five months of work which M&B had

1614completed for the Department on a prior contract , Department

1623C ontract E4Q26.

162629 . Stated di fferently, M&B argued that it did not obtain

1638required performance bonds on the subject contracts let in 2016

1648because M&B did not have the funds needed to pay the performance

1660bonds on those contracts. This in turn was due to the

1671Department ' s failure to pay M&B for five months of work it had

1685completed for the Department on a prior contract, Department

1694Contract E4Q26. 3/

169730 . As a part of this defense, evidence was presented that

1709on March 8, 2016 , M&B, through its counsel, sent a letter to the

1722Department deman ding payment that was overdue on Department

1731C ontract E4Q26 . Pet. Ex. 1. This included a claim for payment

1744for five months of work M&B had already completed for the

1755Department.

175631 . A fter M&B retained counsel and demanded payment , the

1767Department, on March 28, 2016, mailed notice to M&B that the

1778Department was declaring M&B " non - responsible . "

178632 . McIntyre testified that when M&B bid on the subject

1797contracts in 2016 , he anticipated that the Department would have

1807timely and regularly paid it the monies the D epartment owed it on

1820Department C ontract E4Q26. The undersigned finds that b ased on

1831his longstanding relationship with the Department and its

1839practice of paying M&B each month on Department C ontract E4Q26,

1850this reliance was not unreasonable.

185533 . By all a ccounts and the reasonable inferences drawn

1866from the evidence and testimony of McIntyre, M&B would have been

1877in a solvent financial position to post performance bonds on the

1888subject contracts let in 2016, but for the fact that the

1899Department had delayed mo nthly payments for work M&B had

1909performed on Department C ontract E4Q26. There was no persuasive

1919or credible evidence presented to dispute this.

192634. Likewise, there was no persuasive evidence presented to

1935show or suggest that there were any performance is sues related to

1947Department C ontract E4Q26 which would have justified a material

1957or significant offset or deduction of what was due to M&B on that

1970contract.

197135 . When Autry was reviewing the file and evaluating the

1982enforcement options available to the Depar tment, he was not aware

1993that counsel for M&B had already written the Department and

2003asserted that M&B had not been paid for five months of work M&B

2016had performed on a prior contract, Department Contract E4Q26.

202536. The Department ' s ongoing monthly payment for work M&B

2036had completed on Department C ontract E4Q26 was interrupted and

2046significantly delayed because of problematic language in the

2054E4Q26 contract prepared by the Department. More specifically,

2062the Department had been paying M&B for work on Departmen t

2073Contract E4Q26 on a monthly basis, for seven months. At some

2084point, the Department was audited by the D epartment of Financial

2095Services and learned that monthly payments were not permitted

2104under that contract ' s language, as written.

211237. In a legitimate and good faith effort to correct the

2123payment delay, the Department drafted and requested that M&B sign

2133a supplemental contract that it felt would have corrected the

2143payment delay. As it turned out, when it submitted the

2153supplemental contract to M&B, nearl y all 12 months of the work

2165under Department C ontract E4Q26 had been completed, and only a

2176few weeks remained on that contract.

218238. McIntyre, not being particularly skilled at

2189understanding supplemental contracts, was skeptical and concerned

2196that signing a supplemental contract could jeopardize his ability

2205to insist on getting all the money he was due on Department

2217Contract E4Q26.

221939. While McIntyre grappled with how to respond to the

2229supplemental contract proffered by the Department, Michael E.

2237Sprayberr y was aware and mulling over the March 8, 2016 , letter

2249from M&B ' s counsel demanding that the Department pay M&B

2260$66,666.65 owed for the five months of work it had completed.

227240. In M&B ' s counsel ' s March 8, 2016 , letter to the

2286Department, which attached M& B ' s Invoice No. 8 for $66,666.65, he

2300asked for an explanation as to why payment was not being made to

2313M&B and why the Department was asking M&B to sign a supplemental

2325contract when the contract had been completed by M&B.

233441. The Department failed to provi de an y detailed

2344explanation before issuing its Notice on March 28, 2016 .

235442 . Other important events are worth noting. Prior to

2364issuance of the Notice declaring it non - responsible, M&B had

2375obtained four necessary Bond Approval Advisories dated March 10

2384an d 14, 2016, which verified that all the subject contract bonds

2396were pre - approved by the insurer and were ready to be issued

2409pending receipt of the premium payment s. P et. C omposite Ex . 4. 4/

242443 . Payment to M&B on Department C ontract E4Q26 in the

2436amount of $48,102.65 finally came from the Department on May 16,

24482016. Pet . Ex. 5. 5/

245444 . Sprayberry acknowledged that the Department quit paying

2463M&B after the seventh month on Department C ontract E4Q26, which

2474was a 12 - month contract. Sprayberry testified that the

2484Department was " very surprised " when the Department of Financial

2493Services directed the Department to discontinue paying M&B

2501because of the language of the contract entitling M&B to be paid

2513monthly. 6/

251545 . Sprayberry forthrightly acknowledged that M&B shou ld

2524have been paid on contract #E4Q26 and that he had difficulty

2535understanding the language of the contract which prompted the

2544Department of Financial Services to suddenly direct the

2552Department to stop paying M&B on a monthly basis. See generally

2563Pet. Ex. 6.

256646 . Sprayberry also acknowledged that the " snafu " the

2575parties experienced with the payment provisions of Department

2583C ontract E4Q26 was, indeed, " a problem " that " we need to get

2595solved. "

259647. Insofar as the interruption in monthly payments under

2605Departm ent C ontract E4Q26 was concerned, Sprayberry went on to

2616add that the Department was " very surprised " by the audit

2626response by the Department of Financial Services and " didn ' t

2637count on that . " He went on to explain that the Department was

2650also certain that " McIntyre didn ' t count on that " (meaning the

2662abrupt discontinuation in monthly payments) .

266848 . Once M&B was paid the monies that the Department owed

2680on Department C ontract E4Q26, M&B was awarded two additional

2690Department contracts for which it timely retur ned all required

2700documents and the performance bonds.

2705CONCLUSIONS OF LAW

270849 . DOAH has jurisdiction over the parties and subject

2718matter of this proceeding. §§ 120.569 and 120.57(1), Fla. Stat.

2728(201 6 ).

273150 . Proceedings conducted by DOAH are " de novo " in na ture.

2743§ 120.57(1)(k), Fla. Stat. A hearing before DOAH is intended to

2754assist in formulating final agency action, not to review and

2764approve action taken earlier and preliminarily by the agency.

2773Fla. Dep ' t of Transp. v. J.W.C. Co. , 396 So. 2d 778 (Fla. 1s t DCA

27901981).

279151 . As the party asserting the affirmative of the issue

2802(seeking to designate the contractor as " non - responsible " for a

2813two - year period), the Department bears the burden of pro of.

2825J.W.C . Co. , supra , and Balino v. Dep't of HRS , 348 So. 2d 349

2839(Fla. 1st DCA 1977).

284352. In preparing a recommended order, it is the evidence

2853presented at the hearing upon which the A dministrative L aw J udge

2866should rely. As a result, he or she may consider facts and

2878circumstances not previously considered by the agen cy. See J.D.

2888v. Fla. Dep ' t of Child. & Fams. , 114 So. 3d 1127, 1132 (Fla. 1st

2904DCA 2013), citing with approval Couch Const. Co. v. Dep ' t of

2917Transp. , 361 So. 2d 172 (Fla. 1st DCA 1978). See also Caber

2929Sys . , Inc. v. Dep ' t of Gen. Servs. , 530 So. 2d 325, 334 (Fla. 1st

2946DCA 1988).

294853. Within the context of c hapter 337 and its related state

2960contracting rules and provisions, the discretion reposed in the

2969Department to suspend the ability of contractor s to bid on state

2981projects " for cause " has been characterized as being in the

2991nature of " drastic authority and responsibility " involving an

2999important matter and has likewise been described as " highly penal

3009in nature . " White Constr. Co. v. Div . of Admin . , State Dep ' t of

3026Transp. , 281 So. 2d 194, 197 (Fla. 1973). 7/

303554. In a similar vein , the right to engage in business is

3047an important right and interference with that right is a serious

3058matter and should only be done in strict compliance with law.

3069Id.

307055 . Additionally, w hen suspending a malfeasant contractor ' s

3081right t o bid on public contracts, the First District Court of

3093Appeal approved the determination by an Administrative Law Judge

3102that there must be a showing of fault by the contractor to

3114support a suspension of its certificate of qualification. See

3123generally Whit e Constr. Co. v. State, Dep ' t of Transp. , 535 So.

31372d 684 (Fla. 1st DCA 1988). 8 /

314556. Since several statutes and rules are implicated in this

3155case, a brief overview is useful.

31615 7 . Section 337.16(2), which serves as the foundation of

3172the Department ' s positi on , states:

3179For reasons other than delinquency in

3185progress, the department, for good cause, may

3192determine any contractor not having a

3198certificate of qualification non - responsible

3204for a specified period of time or may deny,

3213suspend, or revoke any certificat e of

3220qualification. [ 9 /]

322458 . Florida Administrative Code Rule 14 - 22.0141, which more

3235fully implements the statu t e, states:

3242(1) Contractors who do not possess a

3249Certificate of Qualification shall be

3254determined non - responsible if the Department

3261determines that good cause exists. Good

3267cause shall exist when any one of the

3275circumstances specified in subsection 14 -

328122.012(1), F.A.C., occurs.

3284(2) Determination of Contractor Non -

3290Responsibility. The Contractor will be

3295determined to be non - responsible based upo n

3304good cause as set forth in subsection 14 -

331322.012(1), F.A.C., for a specific period of

3320time based on the factors specified in

3327subsection 14 - 22.012(5), F.A.C.

3332(a) This rule does not limit the

3339Department ' s ability to reject a bid or

3348cancel an award for a p articular contract

3356based upon the contractor being non -

3363responsible.

3364(b) A determination of non - responsibility

3371shall prohibit a contractor from bidding,

3377subcontracting, or acting as a material

3383supplier on any Department contracts or

3389projects during the pe riod of non -

3397responsibility.

3398(c) If a contractor is declared non -

3406responsible and the contractor receives an

3412additional determination of non -

3417responsibility, the time periods shall run

3423consecutively.

342459 . Relevant provisions of r ule 14 - 22.012 state:

3435As pro vided in Section 337.16(2), F.S., the

3443Department, for good cause, may deny,

3449suspend, or revoke a contractor ' s Certificate

3457of Qualification. A suspension, revocation,

3462or denial for good cause pursuant to this

3470rule shall prohibit the contractor from

3476bidding on any Department construction

3481contract for which qualification is required

3487by Section 337.14, F.S., shall constitute a

3494determination of non - responsibility to bid on

3502any other Department construction or

3507maintenance contract, and shall prohibit the

3513contrac tor from acting as a material supplier

3521or subcontractor on any Department contract

3527or project during the period of suspension,

3534revocation, or denial Good cause shall

3540include the following:

3543* * *

3546(f) The contractor failed to comply with

3553contract or warranty requirements, or failed

3559to follow Department direction in the

3565performance of a contract.

3569(g) The contractor failed to timely furnish

3576all contract documents required by the

3582contract specifications, special provisions,

3586or by any state or feder al statutes or

3595regulations. If the contractor fails to

3601furnish any of the subject contract documents

3608by the expiration of the period of

3615suspension, revocation, or denial set forth

3621above, the contractor ' s Certificate of

3628Qualification shall remain suspended ,

3632revoked, or denied until the documents are

3639furnished.

36406 0 . Insofar as the arguments raised by M&B a re concerned,

3653there is a body of jurisprudence addressing defenses and excuses

3663for the nonperformance of the specific terms of a contract. 10 /

3675This body o f law indirectly speaks to the "good cause" finding

3687required by chapter 337 that is needed to invoke the

3697discretionary decision to find a contractor "non - responsible."

37066 1 . The Restatement of Contracts, s ection 261 , provides:

3717§ 261 Discharge by Supervening

3722Impracticability. Where, after a contract is

3728made, a party ' s performance is made

3736impracticable without his fault by the

3742occurrence of an event the non - occurrence of

3751which was a basic assumption on which the

3759contract was made, his duty to render that

3767perf ormance is discharged, unless the

3773language or the circumstances indicate the

3779contrary.

3780See generally , Leon Cnty . v. Gluesenkamp , 873 So. 2d 460,463

3792(Fla. 1st DCA 2004) , and J.C. Gibson Plastering Co. v. XL

3803Specialty Ins. Co. , 521 F. Supp. 2d 1326 (M.D. Fl a. 2007) , both

3816applying the Restatement of Contracts, section 261. The same

3825restatement of the law is adopted and can be found at 11 Fl orid a

3840Jur isprudence 2d Contracts s ection 263 , note 11 .

38506 2 . In this case , there was ample and compelling proof that

3863McIn tyre anticipated the continuation of monthly payments by the

3873Department, and it was at no fault of his own that he was unable

3887to promptly pay for the performance bonds due to the state ' s

3900abrupt and unexpected discontinuation of monthly payments on

3908Departme nt C ontract E4Q26.

39136 3 . This expectation on his part was reasonable and

3924justified based on the past course of dealings and custom and

3935usage between the parties involving several months of

3943uninterrupted monthly payments.

39466 4 . To that point, a general princi ple of law is

3959instructive. In Carr v. Stockton , 84 Fla. 69, 92 So. 814 (Fla.

39711922), the Florida Supreme Court held that custom or trade usage

3982is implied to be a part of a written contract, and a contract

3995should be interpreted in light of the custom or usa ge (course of

4008dealings) between the parties. See also 11 Fla . Jur . 2d

4020Contracts § 167. This principle of law is still followed and is

4032well entrenched in Florida ' s jurisprudence concerning contracts.

40416 5 . A reasonable conclusion to draw from the unique fa cts

4054of this case, based on the long course of dealings between the

4066parties, is that M&B had valid and compelling reasons for failing

4077to promptly execute the contracts.

40826 6 . At no fault of its own, payment was abruptly

4094discontinued by the state frustrating and preventing M&B from

4103securing the performance bond certificates, as it had regularly

4112done in prior cases.

41166 7 . Answers from the Department were not forthcoming to its

4128counsel ' s letter requesting an explanation for the abrupt

4138discontinuation of monthly p ayments.

414368 . Even the Department and its staff were confused and

4154very surprised by the Department of Financial Services ' audit

4164response, not to mention the confusion in the mind of McIntyre.

417569 . Based on the more persuasive and credible evidence, the

4186und ersigned concludes that had monthly payments on Department

4195C ontract E4Q26 continued in early 2016, M&B would have promptly

4206secured the performance bond certificates and performed the other

4215tasks necessary to execute the contracts.

42217 0 . Despite the good fai th efforts by the parties to work

4235out the contract problem , time, logistics , and poor

4243communications prevented this , and it was not accomplished.

4251Regardless, under this unique set of facts and on this record ,

4262the undersigned cannot conclude that there was good cause to find

4273M&B non - responsible.

4277RECOMMENDATION

4278Based on the foregoing Findings of Fact and Conclusions of

4288Law , it is RECOMMENDED that the Department of Transportation

4297reconsider its preliminary decision and reverse its determination

4305that M&B was n on - responsible.

4312DONE AND ENTERED this 5th day of December , 2016 , in

4322Tallahassee, Leon County, Florida.

4326S

4327ROBERT L. KILBRIDE

4330Administrative Law Judge

4333Division of Administrative Hearings

4337The DeSoto Building

43401230 Apalachee P arkway

4344Tallahassee, Florida 32399 - 3060

4349(850) 488 - 9675

4353Fax Filing (850) 921 - 6847

4359www.doah.state.fl.us

4360Filed with the Clerk of the

4366Division of Administrative Hearings

4370this 5th day of December , 2016 .

4377ENDNOTE S

43791/ Failure to sign a contract and return spe cific contracts

4390documents within ten days of receiving the award letter is

4400considered by the Department to be a failure by the vendor to

" 4412execute " the contract.

44152/ This theory, and lack of good cause to support a determination

4427that it was non - responsible , was raised in the various pleadings

4439and responses M&B filed throughout the proceedings.

44463/ Although there was some dispute regarding what was owed, the

4457Department ultimately paid M&B $48,000.00 of M&B ' s invoice for

4469$66,666.65.

44714/ It is also significa nt to note that despite having the bond

4484approvals in hand, M&B had not received the payment it needed to

4496pay for the bonds. While these were not the " certificates "

4506confirm ing that the bonds were, in fact, secured, they

4516nonetheless are convincing evidence that M&B was diligently

4524attempting to get the documents it needed to be in compliance .

45365/ Unfortunately, the payment date fell more than 45 days after

4547the Notice had already been issued and was too late to forestall

4559the issuance of the Notice.

45646/ M&B h ad been paid monthly through the seventh month of that

457712 - month contract when the Department of Financial Services made

4588this decision .

45917/ While White Construction Co. involved a contractor who held

4601a certificate of qualification, this distinction is not

4609controlling . C ontractors with or without certification of

4618qualifications are both subject to similar sanctions under

4626section 337.16(2) . For instance, a finding of non - responsible

4637for a contractor without a certificate of qualification and

4646subsequent deba rment is no less penal than suspending or revoking

4657a contractor's certificate of qualification. Both are prohibited

4665from providing services on state contracts .

4672The effect upon either is "drastic" and "highly penal in nature."

4683Therefore, White Constructi on Co. is instructive in either

4692instance and bears upon either certificate d or non - certificated

4703contractors under section 337.16(2).

47078 / This legal concept remains viable since chapter 337 continues

4718to require p r oof of "good cause" for debarment .

47299 / It is significant to note that the "good cause" finding does

4742not mandate a finding of "non - responsible." Rather, by use of

4754the word "may," it gives the agency the discretion to make the

4766finding.

476710 / This analysis does not require the undersigned to interpr et

4779ambiguous provisi ons of the parties' contracts.

4786COPIES FURNISHED:

4788Paul J. Kneski, Esquire

4792Paul J. Kneski, P.A.

4796Suite 110

4798333 Northwest 70th Avenue

4802Plantation, Florida 33317

4805(eServed)

4806Kimberly Clark Menchion, Esquire

4810Department of Transportation

4813Mai l Station 58

4817605 Suwannee Street

4820Tallahassee, Florida 32399

4823(eServed)

4824Andrea Shulthiess, Clerk of

4828Agency Proceedings

4830Department of Transportation

4833Haydon Burns Building

4836605 Suwannee Street, Mail St ation 58

4843Tallahassee, Florida 32399 - 0450

4848(eServed)

4849To m Thomas, General Counsel

4854Department of Transportation

4857Haydon Burns Building

4860605 Suwannee Street, Mail S tation 58

4867Tallahassee, Florida 32399 - 0450

4872(eServed)

4873James C. Boxold, Secretary

4877Department of Transportation

4880Haydon Burns Building

4883605 Suwannee Street, Mail St ation 5 7

4891Tallahassee, Florida 32399 - 0450

4896(eServed)

4897NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

4903All parties have the right to submit written exceptions within

491315 days from the date of this Recommended Order. Any exceptions

4924to this Recommended Order s hould be filed with the agency that

4936will issue the Final Order in this case.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 01/11/2017
Proceedings: Agency Final Order
PDF:
Date: 01/11/2017
Proceedings: Respondent's Exceptions to Recommended Order filed.
PDF:
Date: 01/11/2017
Proceedings: Agency Final Order filed.
PDF:
Date: 12/05/2016
Proceedings: Recommended Order
PDF:
Date: 12/05/2016
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 12/05/2016
Proceedings: Recommended Order (hearing held September 15, 2016). CASE CLOSED.
PDF:
Date: 11/07/2016
Proceedings: Petitioner, M&B Lawn Maintenance Service, Inc.'s Proposed Recommended Order filed.
PDF:
Date: 11/07/2016
Proceedings: Respondent's, Department of Transportation, Proposed Recommended Order filed.
PDF:
Date: 10/28/2016
Proceedings: Order Granting Extension of Time.
PDF:
Date: 10/28/2016
Proceedings: Order Granting Motion to Reopen the Record.
PDF:
Date: 10/28/2016
Proceedings: Department's Response to Petitioner's Request for Additional Time to File the PRO filed.
PDF:
Date: 10/27/2016
Proceedings: Motion for Extension of Time for M&B to Submit Its PRO filed.
PDF:
Date: 10/27/2016
Proceedings: Department's Motion to Reopen the Record filed.
Date: 10/19/2016
Proceedings: Transcript of Proceedings (not available for viewing) filed.
Date: 09/15/2016
Proceedings: CASE STATUS: Hearing Held.
Date: 09/14/2016
Proceedings: (Petitioner's) Notice of Filing Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 09/13/2016
Proceedings: Notice of Filing Proposed Exhibits filed.
Date: 09/08/2016
Proceedings: Respondent's Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 09/08/2016
Proceedings: Notice of Filing Proposed Exhibits filed.
PDF:
Date: 07/13/2016
Proceedings: Order Granting Continuance and Re-scheduling Hearing by Video Teleconference (hearing set for September 15, 2016; 9:00 a.m.; Lauderdale Lakes, FL).
PDF:
Date: 07/12/2016
Proceedings: Respondent, Florida Department of Transportation's Response to Petitioner's Emergency Motion of M&B Lawn Maintenance Service, Inc. for Continuance of Administrative Hearing filed.
PDF:
Date: 07/12/2016
Proceedings: Emergency Motion of M&B Lawn Maintenance Service, Inc. for Continuance of Administrative Hearing filed.
PDF:
Date: 07/11/2016
Proceedings: Joint Pre-hearing Stipulation filed.
PDF:
Date: 07/08/2016
Proceedings: M&B Lawn Maintenance Service, Inc.'s Prehearing Statement filed.
PDF:
Date: 07/07/2016
Proceedings: Proposed Prehearing Statement filed.
PDF:
Date: 05/13/2016
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 05/13/2016
Proceedings: Notice of Hearing by Video Teleconference (hearing set for July 14, 2016; 9:00 a.m.; Lauderdale Lakes and Tallahassee, FL).
PDF:
Date: 05/12/2016
Proceedings: Joint Response to the Court's Initial Order filed.
PDF:
Date: 05/06/2016
Proceedings: Initial Order.
PDF:
Date: 05/06/2016
Proceedings: Notice of Intent to Declare Non-responsible filed.
PDF:
Date: 05/06/2016
Proceedings: Request for Administrative Hearing filed.
PDF:
Date: 05/06/2016
Proceedings: Agency referral filed.

Case Information

Judge:
ROBERT L. KILBRIDE
Date Filed:
05/06/2016
Date Assignment:
05/06/2016
Last Docket Entry:
01/11/2017
Location:
Lauderdale Lakes, Florida
District:
Southern
Agency:
Other
 

Counsels

Related Florida Statute(s) (7):

Related Florida Rule(s) (2):