C & C/Manhattan v. Government of the Virgin Islands

40 V.I. 51, 1999 V.I. LEXIS 4
CourtSupreme Court of The Virgin Islands
DecidedFebruary 12, 1999
DocketCiv. No. 876/1998
StatusPublished
Cited by3 cases

This text of 40 V.I. 51 (C & C/Manhattan v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C & C/Manhattan v. Government of the Virgin Islands, 40 V.I. 51, 1999 V.I. LEXIS 4 (virginislands 1999).

Opinion

CABRET, fudge

MEMORANDUM OPINION

C & C/Manhattan ("C & C") is a joint venture competing for the award of contracts requiring the design and construction of three Government of the Virgin Islands facilities. After the Government rejected C & C's proposals for each of the projects, C & C sued the Government and Heery International, Inc. ("Heery"), a company retained by the Government to manage its construction program. In its complaint, C & C alleges that the Government and Heery violated numerous laws governing the contract procurement process, which resulted in all three contracts being awarded to its competitor, Hyde Park/Perini ("Hyde Park"). Pending before the Court is C & C's motion for a preliminary injunction in which it requests that the Court enjoin the Government and Hyde Park from proceeding with further action on one of the contracts.1 For reasons which follow, C & C's motion is granted.

I. THE FACTS

The relevant evidence shows that in anticipation of building numerous government facilities, the Government hired Heery, a [53]*53company specializing in all phases of design and construction management, to prepare requests for proposals, assist in the evaluation of the proposals and manage, on behalf of the Government, the ultimate design and construction of the facilities. Included in the Government's building program is the construction of an addition to the Golden Grove Prison and a new jail on St. Croix ("prison project"). The process used by the Government to procure a contract for the design and construction of the prison project is at issue here.

The process started with the execution of a Memorandum of Understanding between the Government's Department of Property and Procurement ("P & P") and the Public Finance Authority ("PFA"). P & P is responsible for purchasing or contracting for supplies, materials, equipment and services on behalf of most governmental agencies. See V.I. Code Ann. tit. 31 § 232 (1)(1998). The PFA was created to aid the Government in the performance of its fiscal duties including the raising of capital for essential public projects. See V.I. Code Ann. tit. 29 § 918 (1998). The Memorandum of Understanding between these two agencies reflects that the Government has been under court order since December of 19862 to "eliminate the overcrowding of our correctional facilities and to upgrade the conditions of confinement presently existing."3 In an effort to timely remedy these problems, P & P and the PFA agreed on an expedited process to procure a single contractor to design and construct additional facilities.

As described in the Memorandum of Understanding, the process would begin with the Commissioner of P & P appointing a "Prison/Jail Projects Committee" ("Selection Committee") which would consist of the Commissioner of P & P, the Attorney General, the Director of the Bureau of Corrections, the Commissioner of Public Works, the Commissioner of Planning and Natural Resources, the Director of the Public Finance Authority and the [54]*54Special Assistant to the Governor for Capital Projects. The Selection Committee would be responsible for determining which firms were qualified to design and construct the proposed facilities, and after meeting with these firms and evaluating their proposals, select the most qualified firm and negotiate a contract with that firm.

A preliminary qualification procedure commenced with the Government advertising a request for qualifications. After reviewing the qualifications of responding firms, the Selection Committee found three firms qualified to submit proposals for the design and construction of the prison project: Plaintiff C & C, Defendant Hyde Park, and a third firm, Custom Builders/Hensel Phelps ("Custom Builders"). These qualified proposers needed some guidance to enable them to submit proposals which would meet the Government's needs. This guidance was provided by a request for proposal ("RFP") drafted by Heery's program manager, Mr. Joseph Sanches ("Sanches"), and issued to the qualified proposers by the PEA. The RFP was approximately 70 pages long and described such particulars as design and construction criteria, contractor responsibilities, the Selection Committee's evaluation process and the evaluation standards.

After completing his initial draft of the RFP, Sanches discussed its contents with various Selection Committee members and revised it to reflect the comments and suggestions he received. Specifically, correspondence in evidence indicates that on August 26, 1998, Sanches sent the RFP to the Bureau of Corrections for review and comment. In another letter from Sanches to the Attorney General, dated September 11, 1998, Sanches enclosed the RFP and requested that he be notified of any changes. After completing the final draft of the RFP, Sanches sent it to the PFA for final review and distribution. Although the Commissioner of P & P was sent copies of all this correspondence, Sanches acknowledged that he never actually discussed or reviewed the RFP with the Commissioner of P & P and did not even know P & P was responsible for procuring the contract. In fact, Sanches testified that it was his understanding that the PFA was authorized to issue the RFP on its own.

The finalized document, dated September 17, 1998, is titled "REQUEST FOR PROPOSAL TO DESIGN AND BUILD THE [55]*55GOLDEN GROVE PRISON ADDITION & NEW JAIL."4 According to the terms of the RFP, it was issued "by the Government of the Virgin Islands ... to qualified offerors to design and construct a prison facility addition and a new jail facility. . . ."5 The RFP contains information regarding technical requirements, the proposal submittal and evaluation process, evaluation criteria and the scope of work which will be required by the selected proposer, referred to in the RFP as the "Design/Builder."6 The section governing the Design/Builder's general responsibilities shows that the scope of services includes "[mjanagement and execution of [the] Design Phase" and "[mjanagement and execution of the Construction Phase."7 The Design/Builder's construction responsibilities are outlined in greater detail later in the RFP, where it specifies 16 construction related services the design/builder will be required to perform. Included in these 16 services is the actual "[construction of the Project."8 Sanches characterized the RFP as requiring design, construction management and actual construction services.

As planned, the PEA issued the RFP to the three previously qualified proposers. In order to ensure that the qualified proposers fully understood the requirements of the RFP, the document required them to attend a Pre-Proposal Conference at the Office of the Attorney General and a site visit at the Golden Grove prison facility. In addition, the RFP provided that any questions concerning the RFP or requests for additional information should be presented to the designated contact person, Mr. Amadeo Francis ("Francis"), the PFA's Director of Finance and Administration and chairman of the Selection Committee. Answers to these questions were provided to the proposers in an addendum to the RFP issued by the PEA on October 5, 1998. The addendum also contained amendments to the RFP and a revised selection schedule.

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Cite This Page — Counsel Stack

Bluebook (online)
40 V.I. 51, 1999 V.I. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-cmanhattan-v-government-of-the-virgin-islands-virginislands-1999.