Alaka'i Na Keiki, Inc. v. Matayoshi

277 P.3d 988, 127 Haw. 263
Hawaii Supreme Court·Decided May 11, 2012·No. SCWC-29742·Published·Cited by 33 cases

Opinions

Opinion of the Court by

ACOBA, J.

We hold that decisions of administrative officers of the State of Hawai'i Department of Education (the DOE), headed by Respondent/Defendant-Appellant Kathryn Matayo-shi, (Respondent),2 to reject the proposal of Petitioner/Plaintiff-Appellant Alaka'i Na Keiki, Inc. (Petitioner) that responded to a request for proposals (RFP) to provide health and human services under contracts pursuant to Hawaii Revised Statutes (HRS) chapter 103F, are subject to judicial review under the circumstances of this ease. In so holding, we conclude first that, as construed, HRS chapter 103F is not unconstitutional for violating the doctrine of separation of powers as Petitioner contends, because although the DOE, in interpreting and applying provisions of HRS chapter 103F and in deciding disputes to which it is a party, exercises aspects of the judicial power, its decisions are subject to judicial review under the declaratory judg[267] ment statute, HRS § 632-1 (1993). Second, we conclude that Petitioner’s request for a declaratory judgment is moot to the extent the subject contracts have been awarded and their terms expired. Third, we conclude that Petitioner’s claim for alleged negligence by the DOE in evaluating Petitioner’s proposal and in deciding the dispute with Petitioner is barred under HRS chapter 662, the State Tort Liability Act (STLA), because the DOE’s conduct herein is not analogous to “a recognized claim for relief against a private person.” Kaho'ohanohano v. State, 117 Hawai'i 262, 282, 178 P.3d 538, 558 (2008). Fourth, we conclude that Petitioner’s claim for injunctive relief, premised on the DOE’s alleged faulty administration of the contract process, is moot inasmuch as we interpret such process in HRS chapter 103F as subject to judicial review.

Accordingly, we vacate the June 16, 2011 judgment filed herein by the Intermediate Court of Appeals (ICA)3 and the March 4, 2009 judgment of the circuit court of the first circuit (the court).4 We remand this case to the court, with instructions, in respect to the claims in Petitioner’s second amended complaint, to enter judgment (1) denying the relief sought in Counts I, II and IV as moot and (2) in favor of Respondent on Count III.

I.

A.

In October 2004, the DOE, as the purchasing agency, issued an RFP “to solicit private providers to provide intensive instructional support service to eligible students[.]” Services would address the students’ educational, behavioral and therapeutic needs. The contract term ran from July 1, 2005, to June 30, 2006. Evaluation of proposals was to be conducted in three phases. First, the proposal would be reviewed to ensure proposal requirements were met. Second, the applicant would be evaluated, and third, a recommendation of whether to grant an award would be made.

The RFP established weighted evaluation criteria to determine which proposals would qualify for contracts with the DOE. “[I]n order to be eligible for the contract award,” the proposal had to “receive a score of 70 points or better[.]” The RFP explained that “[a]ny applicant may file a protest ... against the awarding of the eontract[.]” Only the following matters could be protested: “A state purchasing agency’s failure to follow procedures established by [HRS] chapter 103F[,]” “[a] state purchasing agency’s failure to follow any rules established by [HRS c]hapter 103F[,]” or “[a] state purchasing agency’s failure to follow any procedure, requirement or evaluation criterion in a request for proposals issued by the state purchasing agency.”

In January 2005, Petitioner submitted its proposal. On March 31, 2005, Andrell Aoki, a “Fiscal Specialist,” notified the applicants that a list of qualified providers had been selected. Petitioner was informed that its proposal was rejected because the DOE determined that it “failed to meet the minimum score of 70 to be entered into the pool of providers.” Petitioner received 51.2 points out of 100 possible points.

On April 5, 2005, Petitioner filed a notice of protest stating that the DOE failed to apply proposal evaluation criteria fairly and competently, thereby violating HRS § 103F-402(b) (Supp.2004),5 and Hawai‘i Administra[268] tive Rules (HAR) § 3-143-205(e)6 & (f)7 (2004). Petitioner also complained that the RFP failed to explain any criterion for the consideration of multiple award contracts, violating HAR § 3-143-206(d),8 and that the DOE, as the purchasing agency, failed to follow RFP procedures and requirements because the DOE made factual errors and drew inaccurate inferences in evaluating the proposal, which “materially prejudiced” Petitioner.

On April 29, 2005, the DOE informed Petitioner that all awards had been “rescinded” and that all proposals were to be rescored due to “concerns” raised in one or more pending protests.

On May 12, 2005, the DOE informed Petitioner that its proposal had been rescored, but that Petitioner had not been selected. Petitioner’s score increased 14 points, to 65.2 points, but was still 4.8 points short of the 70-point score necessary to be included in the qualified pool of providers.

B.

On May 18, 2005, Petitioner filed an amended Notice of Protest,9 stating that the DOE “failed to promulgate and apply evaluation criteria fairly and competently.” According to Petitioner, the DOE did not adhere to RFP procedures and requirements established by statute,10 rule,11 and the [269] RFP12 by making factual errors and drawing inaccurate references in evaluating and re-scoring the proposal.

On May 31, 2005, a protest scheduling order was issued, setting forth the time for Petitioner to file its written protest and for the purchasing agency to respond. Pursuant to HAR § 3-148-502 (2005),13 each party to the protest was entitled to ask the opposing party for records and information. The scheduling order also established deadlines for clarification requested by either party. The contract award was suspended during the protest.

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Alaka'i Na Keiki, Inc. v. Matayoshi, 277 P.3d 988, 127 Haw. 263 (haw 2012).

277 P.3d 988 (Alaka'i Na Keiki, Inc. v. Matayoshi) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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