CHAMPION PAINTING SPECIALTY SERVICES CORP. v. DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY

CourtDistrict Court, D. New Jersey
DecidedFebruary 28, 2023
Docket1:21-cv-10146
StatusUnknown

This text of CHAMPION PAINTING SPECIALTY SERVICES CORP. v. DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY (CHAMPION PAINTING SPECIALTY SERVICES CORP. v. DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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CHAMPION PAINTING SPECIALTY SERVICES CORP. v. DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY, (D.N.J. 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

CHAMPION PAINTING SPECIALTY 1:21-cv-10146-NLH-SAK SERVICES CORP. OPINION Plaintiff,

v.

DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY

Defendant.

Appearances: MICHAEL A. FERRARA, JR. THE FERRARA LAW FIRM 601 LONGWOOD AVE. CHERRY HILL, N.J. 08002

RICHARD H. MAURER FLAMM WALTON HEIMBACH COMMERCE CENTER 5050 W TILGHMAN ST., STE 410 ALLENTOWN, PA.

On behalf of Plaintiff

CHRISTOPHER R. GIBSON WILLIAM J. O'KANE, JR. WILLIAM L. RYAN ARCHER & GREINER, P.C. 1025 LAUREL OAK RD. VOORHEES, N.J. 08043

On behalf of Defendant HILLMAN, District Judge Pending before the Court are Plaintiff Champion Painting Specialty Services Corp.’s (“Champion”) motion for a preliminary injunction, (ECF 20), and appeal of a magistrate judge’s

decision, (ECF 91), and Defendant Delaware River Port Authority of the Commonwealth of Pennsylvania and the State of New Jersey’s (“DRPA”) motion for summary judgment, (ECF 87). For the reasons expressed below, the Court will affirm the magistrate judge’s decision and deny the appeal, grant DRPA’s motion for summary judgment, and deny Champion’s motion for a preliminary injunction as moot. I. Background Champion is a Florida corporation with a principal place of business in Fort Lauderdale, Florida that specializes in the rigging, blasting, and painting of large bridges and other structures. (ECF 18 at ¶¶ 3-4). DRPA is a public entity

principally based in Camden, New Jersey, created as an interstate compact, and authorized by Congress that develops and maintains bridges and port facilities between New Jersey and Pennsylvania. (Id. at ¶ 5). Corcon, Inc. (“Corcon”) is an Ohio corporation with a principal place of business in Lowellville, Ohio. (Id. at ¶ 8). This dispute arises out of the competitive bidding process for DRPA Contract No. CB-32-2016 Commodore Barry Bridge Painting - Phase 3, the first two phases of which were performed by Corcon. (Id. at ¶¶ 1, 8).1 On or about January 15, 2020, DRPA advertised a Request for Contractor Qualifications (“RFQ”) for

Phase 3 on its procurement tool, Ariba, and contractors registered and opted in to participate and receive related information. (Id. at ¶¶ 13-14). The RFQ included a qualification that read “[c]ompletion or substantial completion as a prime or general contractor of at least three (3) contracts that included the painting of long-span cantilevered truss structures within a tightly constrained and highly utilized facility, where the structure remains operational.” (Id. at ¶ 15). On February 14, 2020, DRPA’s Contracting Officer, Amy Ash, provided clarifications to all those registered through Ariba, including to a question that asked “[i]s a contractor permitted to use subcontractors on their team to meet the experience

requirements in Section IV, Item No. (A)(1),” to which Ash responded that subcontractors could be used to meet the experience requirement. (Id. at ¶ 16). DRPA discontinued the RFQ process2 and, on September 15,

1 Champion notes that Phase 2 of the project also led to a legal dispute after the apparent low bidder was not awarded the contract. (ECF 18 at ¶ 7); see also Alpha Painting & Constr. Co. Inc. v. Del. River Port Auth., 853 F.3d 671 (3d Cir. 2017); Alpha Painting & Constr. Co. Inc. v. Del. River Port Auth., 208 F. Supp. 3d 607 (D.N.J. Sept. 23, 2016).

2 The record shows that two RFQs were issued, (ECF 1-25; ECF 1- 2020, published an Invitation for Bids (“IFB”) for Phase 3 that included an experience requirement for work on “long span bridges” that differed from the RFQ process. (Id. at ¶¶ 18-19).

Question 2 of Section SP. 33 – Contractor’s Qualifications (“SP. 33”) read “[h]as Contractor completed (as a prime or general contractor) at least three (3) contracts that include blast cleaning and painting of long span bridges over navigable waterways?” (Id. at ¶ 20).3 Corcon allegedly researched Champion’s prior bridge-painting contracts for the purpose of lodging a successful bid protest if Champion submitted the lowest bid. (Id.). Bids were opened on November 19, 2020 and four bids were received, including Corcon at $94,635,451 – one percent less than DRPA’s engineering estimate – and Champion, the lowest, at $91,184,762.15. (Id. at ¶¶ 18, 22-23).

Pursuant to Section A.15.1.2 of the IFB, bid protests were

26), and withdrawn purportedly for lack of sufficient pools of qualified contractors, (ECF 87-3 at ¶ 9, 11). Champion has challenged the reasoning given for the withdrawals, claiming that the prequalification standards of RFQ-1 were prohibitively restrictive. (ECF 96-1 at ¶ 9, 11).

3 In its opposition to summary judgment, Champion argues that the IFB otherwise contemplated the use of subcontractors to meet qualification requirements with a question in a separate portion that asked “[d]oes the firm have all technical qualifications and resources, including equipment, personnel and financial resources, to perform the referenced contract, or will it obtain same through the use of qualified, responsible subcontractors?” (ECF 96 at 12, 33-34; see also ECF 18-4 at 21). to be filed within seven days of the date in which the protestor knew or should have known of the alleged irregularity. (Id. at ¶ 28). David Hatherhill of Corcon emailed DRPA’s chief

engineer, Michael Venuto, on December 4, 2020 alleging that Champion failed to satisfy SP. 33’s experience requirement. (Id. at ¶ 25). Hatherhill’s email violated the IFB’s point-of- contact rule requiring that all communications regarding Phase 3 be directed to Ash. (Id. at ¶ 26). The rule stated, in part, that “[a]ny violation of this condition may be cause for the DRPA to reject the offending Bid or rescind the contract award.” (Id.). Ash sent a letter to Champion on December 7, 2020 requesting additional information showing compliance with SP. 33 and, on December 15, 2020, a qualifications hearing was held. (Id. at ¶¶ 27-28). Corcon sent a letter purporting to be a formal notice of

bid protest on December 23, 2020, again citing Question 2 of SP. 33. (Id. at ¶ 29). Despite the apparent untimeliness of the protest and the earlier email’s violation of the point-of- contact rule, DRPA’s Operations and Maintenance Committee (“O&M”), decided to stay the awarding of the contract to Champion in light of the protest letter. (Id. at ¶ 30). O&M sought evaluations of Champion’s qualifications from Venuto and an independent consultant, AECOM. (Id. at ¶ 31). AECOM sent a letter to Venuto on January 26, 2021 confirming Champion’s qualifications and Venuto likewise concluded that Champion was qualified. (Id. at ¶¶ 32-33).4 DRPA’s general counsel thereafter sent a letter to Corcon’s counsel on February 10,

2021 stating that the bid protest was both untimely and unsuccessful on the merits. (Id. at ¶ 34). Corcon appealed. (Id. at ¶ 36). O&M met virtually on April 1, 2021 to consider Corcon’s bid protest appeal and adjourned to executive session – which was unrecorded and for which notes were not kept. (Id. at ¶ 38). Following executive session, O&M decided to reject all bids. (Id.). O&M followed with an April 5, 2021 memorandum stating that the reason for its decision was to avoid confusion as to necessary qualifications, not only between Champion and Corcon, but also potential bidders who may have otherwise participated. (Id. at ¶ 39). Champion alleges that this decision was

arbitrary and capricious because (a) any reasonable interpretation of the IFB would read into the provisions that serving as a “prime painting contractor” would satisfy relevant

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CHAMPION PAINTING SPECIALTY SERVICES CORP. v. DELAWARE RIVER PORT AUTHORITY OF THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF NEW JERSEY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champion-painting-specialty-services-corp-v-delaware-river-port-authority-njd-2023.