16-002567
M And B Lawn Maintenance Service, Inc. vs.
Department Of Transportation
Status: Closed
Recommended Order on Monday, December 5, 2016.
Recommended Order on Monday, December 5, 2016.
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.
- Date
- Proceedings
- 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: Department's Response to Petitioner's Request for Additional Time to File the PRO 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).
- Date: 09/08/2016
- Proceedings: Respondent's Proposed Exhibits filed (exhibits not available for viewing).
- 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.
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
-
Paul J. Kneski, Esquire
Paul J. Kneski, P.A.
Suite 110
333 Northwest 70th Avenue
Plantation, FL 33317
(954) 261-0117 -
Kimberly Clark Menchion, Assistant General Counsel
Department of Transportation
Mail Station 58
605 Suwannee Street
Tallahassee, FL 32399
(850) 414-5293 -
Paul J. Kneski, Esquire
Address of Record -
Kimberly Clark Menchion, Assistant General Counsel
Address of Record