ASEC Corp.-Holden Engineering v. Massachusetts Highway Department

4 Mass. L. Rptr. 604
CourtMassachusetts Superior Court
DecidedNovember 6, 1995
DocketNo. 955618
StatusPublished

This text of 4 Mass. L. Rptr. 604 (ASEC Corp.-Holden Engineering v. Massachusetts Highway Department) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASEC Corp.-Holden Engineering v. Massachusetts Highway Department, 4 Mass. L. Rptr. 604 (Mass. Ct. App. 1995).

Opinion

Plaintiff ASEC (a joint venture organized for the purpose of bidding on contracts associated with the Central Artery-Tunnel Project), seeks an injunction prohibiting the Massachusetts Highway Department from awarding a contract to the purported low bidder, CAB Garafolo C.T. Male, Inc. (“CAB”), on the grounds that CAB’s bid documents were falsified.1 This matter was scheduled originally for a hearing on plaintiffs Motion for a Preliminary Injunction but, after testimony was received, was converted, by agreement of all counsel, into a final hearing on the merits.

Based upon all of the credible evidence, the Court makes the following findings, rulings and order for judgment.

In the instant case, Massachusetts Highway Department (“MHD”) sought bids for survey work2 at the Central Artexy Project and bids were submitted in mid-August, 1995. CAB was low bidder at $7,086,332 and ASEC Corporation/Holden Engineering (“ASEC”) was the second low bidder at $7,307,818, a difference of approximately 3%. Although the bids are designed to be reliable estimates, final payment under an awarded contract is to be based upon the amount of time and equipment expended, as finally certified by the contractor who was awarded the bid.

Pursuant to MHD’s usual procedures, a number of notarized documents, including “Form C’s,” were required to be submitted as a part of the bid package. Form C’s are forms which are to be signed under oath before a notary by sub-contractors who certify that they are ready, willing and able to perform services for the bidder under the terms of the proposed contract, if the bid is approved by MHD.

In the instant bid package, CAB filed nine Form C’s, of which at least three contained forged signatures of the proposed survey party chiefs. When ASEC learned that two of the nine Form C’s submitted with CAB’s bid, those of James Noone and Michael Twohig, were not actually signed by Messrs. Twohig and Noone, but [605]*605had been forged, ASEC filed a bid protest. When confronted by Twohig and Noone at a hearing conducted by the Fair Labor and Business Practice Division of the Attorney General’s Office, Larry Shetler, a principal of CAB, admitted he had signed Twohig and Noone’s names.

At the agency hearing, Shetler also admitted that none of CAB’s bid documents were legally notarized, but, rather, after being signed, had been given to someone to be taken to a notary whose identity was unknown to him. At the trial, however, Shetler admitted that the signed documents were delivered to one of CAB’s employees to be delivered to a notary who is the employee’s sister-in-law.

At the agency hearing, Shetler claimed that Noone and Twohig had authorized him to sign their names, but this was denied by Noone and Twohig at the agency hearing. CAB also claimed that ASEC had itself forged signatures in its bid, which was immediately refuted by the testimony of the two people involved.

MHD initially took the position, in a letter dated September 11, 1995, that if Twohig or Noone were shown to have not signed their respective Form C’s, CAB’s bid would be rejected for violating the certification requirement that the bid was bona fide. After the conclusion of the second day of the agency hearings, however, wherein it was established that Shetler had signed Twohig and Noone’s names, and that none of CAB’s bid documents were legally notarized, MHD reversed itself, taking the position Shetler signed Twohig and Noone’s names believing he was authorized to do so based upon past practice and, alternatively, that only two Form C’s were invalidated, leaving CAB with seven, rather than the required eight required3 which was a minor deviation which could be waived by MHD. It recommended an award to CAB.

At the trial, however, Shetler admitted that he had also signed a third Form C, that of Philips, without prior authorization and admitted that these three forms were the entirety of those forms for which he had been responsible, so that he could not vouch for the genuineness of any of the other Form C signatures (which had been procured or signed by CAB’s joint venturer, Garafolo). He admitted, moreover, that none of the Form C’s were actually signed before a notary public, but that all had been sent, as a package, to be notarized by an absent notary, who was a relative of a CAB employee.

An intent to deceive, moreover, is shown by the fact that the writing used by Shetler to sign the three forged names is markedly dissimilar, indicating an attempt to disguise the fact that a single individual had signed these three Form C’s.

At the trial, in addition to denying that they had ever authorized Shetler to sign their names, Twohig and Noone indicated they would not have signed the Form C’s on this bid even had they been asked, and testified that they had previously requested that Shetler desist from marling out even unsigned resumes containing their names, in connection with any CAB bid documents, as had been authorized at one time (in 1994).

The Court notes that the falsification of the signatures of Twohig, Noone and Phillips on the Form C’s also rendered fraudulent the “Registration Form B’s” contained in the bid package, wherein one Henry Stanley certified under oath that he would be responsible for survey parties under the direction of Phillips and Noone, and one Samuel A. White, Jr., certified under oath that he would be responsible for a survey party under the direction of Twohig. In short, not only three of the nine Form C’s but two of the three notarized Form B certification were shown to be false and misleading.

Massachusetts law requires that “any contract of the construction ... of any public work ... by the commonwealth . . . shall be awarded to the lowest responsible bidder on the basis of competitive bids publicly opened.” G.L.c. 30, §39M(a) (1994). “The term ‘lowest responsible bidder’ shall mean the bidder whose bid is the lowest of those bidders possessing the skill, abilfiy, and integrity necessary for faithful performance of the work . . .” G.L.c. 30, §39M(b) (1994). An awarding authority may reject any and all bids, if it is in the public interest to do so. G.L.c. 30, §39M(b) (1994). The statute requires the bidder to certify “under penalties of perjury that (the) bid is in all respects bona fide, fair and made without collusion or fraud with any other person.” Id.

The legislature enacted the bidding statutes “to establish an open and honest procedure for competition for public contracts,” Modern Continental Constr. Co. v. Lowell, 391 Mass. 829, 840 (1984), “to prevent favoritism, to secure honest bidding methods of letting contracts in the public interest, to obtain the most favorable price, and to treat all persons equally.” Phipps Products Corp. v. Massachusetts Bay Transportation Auth., 387 Mass. 687, 691-92 (1982). To ensure that these goals are met, these statutes are to be strictly construed. Modern Continental, 391 Mass. at 840.

Courts have distinguished matters of substance and matters of formality. Id. at 840. Whether a deviation is considered one of substance or a minor technicality depends on whether invalidation is necessary to fulfill the legislative purpose, Phipps 387 Mass. at 692.

If a bid violates a statutory requirement in matters of substance4 the bid must be rejected by the awarding authority. Gil-Bern Constr. Co. v. Brockton, 353 Mass. 503, 505-06 (1968).

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Bluebook (online)
4 Mass. L. Rptr. 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asec-corp-holden-engineering-v-massachusetts-highway-department-masssuperct-1995.