City of Fort Wayne v. Pierce Manufacturing, Inc.

853 N.E.2d 508, 2006 Ind. App. LEXIS 1801, 2006 WL 2530620
CourtIndiana Court of Appeals
DecidedSeptember 5, 2006
Docket90A02-0512-CV-1155
StatusPublished
Cited by11 cases

This text of 853 N.E.2d 508 (City of Fort Wayne v. Pierce Manufacturing, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Fort Wayne v. Pierce Manufacturing, Inc., 853 N.E.2d 508, 2006 Ind. App. LEXIS 1801, 2006 WL 2530620 (Ind. Ct. App. 2006).

Opinion

OPINION

SHARPNACK, Judge.

The City of Fort Wayne (“City”) appeals the trial court’s grant of a motion for summary judgment filed by Pierce Manufacturing, Inc., (“Pierce”) and the trial court’s denial of a motion to dismiss and a motion for summary judgment filed by the City. The City raises two issues, one of which we find dispositive and restate as whether the trial court erred by denying the City’s motion to dismiss based upon Pierce’s lack of standing to contest the City’s award of a contract to another bidder. 1 We reverse. 2

*510 The relevant facts follow. In 2004, the City wanted to purchase fourteen fire trucks and decided to award the contract through the use of a request for proposal (“RFP”). The RFP was issued on March 14, 2004, and provided, in part:

Section 4.0 Evaluation

4.1 The following criteria will be evaluated when reviewing the proposals:

a. Technical Criteria: Proposals will be evaluated according to completeness, content, degree to which matches the specifications, etc.

b. Past Experience. Proposals will be evaluated according to completeness, content, and evidence of reliability with other Governmental entities.

c. Financial Criteria: All relevant cost factors and possible financing for this proposal.

Appellant’s Appendix at 81.

Although three proposals were submitted, one was deemed not responsive. The remaining two responsive bids were made by Pierce and American LaFrance Corporation (“ALF”). Pierce and ALF were then invited to attend in-person negotiations at the City’s offices in Fort Wayne. Prior to the negotiations, the City prepared a detailed matrix to evaluate the bids. The matrix contained eleven factors and the relative weight to be accorded to each factor in evaluating the bids. The factors and their relative weights were as follows:

Adherence to Specs Cost Warranty Delivery OEM P/N Disclosure Pre-Positioned Spare Parts Technical Support Training End User Experience References Litigation and Financial Issues Total 100% h- 1 1 — 1 DO tO coMOocncncRcnwot^o

Id. at 82. However, the bidders were not provided with this matrix prior to the negotiations.

Although the RFP called for independent front suspension systems in the fire trucks, the City allowed ALF to substitute an air ride system as a functional equivalent. Additionally, at the start of the negotiations, Pierce’s bid was approximately $344,685 lower than ALF’s price. A City representative then told ALF that its price was “not competitive” or that its price was “[n]ot competitive with the target pricing” prepared by the City. Appellee’s Appendix at 36; Appellant’s Appendix at 68. No such, statement was made to Pierce. In the next round of negotiations, ALF reduced its price by more than $344,635. After the negotiations, the matrix resulted in a score of 43.3 points to ALF out of a possible score of 50 points and a score of 42.4 points to Pierce. The City awarded the contract to ALF. '

Pierce filed a complaint against the City and alleged that the City violated the Public Purchasing Act, Ind.Code §§ 5-22. Specifically, Pierce alleged that the City violated: (1) Ind.Code § 5-22-9-2 by failing to include a statement concerning the *511 relative importance of price and other evaluative factors in the RFP; (2) Ind. Code § 5-22-9-7 by taking into consideration factors not specified in the RFP; (3) Ind.Code § 5-22-9-10 by using factors and criteria in its evaluations other than those specified in the RFP; and (4) Ind. Code § 5-22-9-9 by failing to accord Pierce “fair and equal treatment with respect to any opportunity for discussion and revision of proposals.” Appellant’s Appendix at 9. Pierce asked that the award of the contract to ALF be set aside and that the City be compelled to reissue a lawful RFP and comply with the statutory procedures.

Pierce filed a motion for summary judgment, and the City filed a motion to dismiss for lack of subject matter jurisdiction and a cross motion for summary judgment. After a hearing, the trial court entered an order denying the City’s motion to dismiss, granting Pierce’s motion for summary judgment, and denying the City’s motion for summary judgment. The trial court ordered that the City’s “determination to award the Contract, pursuant to Request for Proposal #2073, to [ALF], is hereby SET ASIDE” and remanded the case to the City “with instructions to conduct further proceedings in strict conformity with Indiana statute.” Appellant’s Appendix at 4.

The issue is whether the trial court abused its discretion by denying the City’s motion to dismiss based upon Pierce’s lack of standing to contest the City’s award of a contract to another bidder. Although the City apparently filed its motion to dismiss under Ind. Trial Rule 12(B)(1) for lack of subject matter jurisdiction, motions to dismiss for lack of standing are properly brought under Ind. Trial Rule 12(B)(6) for failure to state a claim. Huffman v. Office of Envtl. Adjudication, 811 N.E.2d 806, 813 (Ind.2004). Therefore, we will determine whether the trial court’s denial of the City’s motion to dismiss is sustainable under that rule. When reviewing a ruling on an Ind. Trial Rule 12(B)(6) motion, we must take as true all allegations upon the face of the complaint. Id. at 814. We may dismiss only if the plaintiff would not be entitled to recover under any set of facts admissible under the allegations of the complaint. Id. Upon review, we view the pleadings in a light most favorable to the nonmoving party and draw every reasonable inference in favor of that party. Id.

The City argues that the trial court should have granted its motion to dismiss because an unsuccessful bidder lacks standing to sue based upon 100 years of Indiana jurisprudence. On the other hand, Pierce argues that the trial court properly denied the City’s motion to dismiss based upon the language of the Public Purchasing Act, Ind.Code § 5-22.

Resolution of this issue requires that we interpret the Public Purchasing Act. When interpreting a statute, we independently review a statute’s meaning and apply it to the facts of the case under review. Bolin v. Wingert, 764 N.E.2d 201, 204 (Ind.2002).

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853 N.E.2d 508, 2006 Ind. App. LEXIS 1801, 2006 WL 2530620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-fort-wayne-v-pierce-manufacturing-inc-indctapp-2006.