Consultech of Jacksonville, Inc. v. DOH

876 So. 2d 731, 2004 WL 1562337
CourtDistrict Court of Appeal of Florida
DecidedJuly 14, 2004
Docket1D03-2764
StatusPublished
Cited by4 cases

This text of 876 So. 2d 731 (Consultech of Jacksonville, Inc. v. DOH) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consultech of Jacksonville, Inc. v. DOH, 876 So. 2d 731, 2004 WL 1562337 (Fla. Ct. App. 2004).

Opinion

876 So.2d 731 (2004)

CONSULTECH OF JACKSONVILLE, INC., Appellant,
v.
DEPARTMENT OF HEALTH, Appellee.

No. 1D03-2764.

District Court of Appeal of Florida, First District.

July 14, 2004.

*732 Albert E. Ford, II, of Webb, Wells & Williams, P.A., Altamonte Springs, for appellant.

Gary L. Asbell, Assistant General Counsel, Department of Health; and Timothy G. Schoenwalder, of Hopping, Green & Sams, P.A., Tallahassee, for appellee.

PER CURIAM.

Appellant, Consultech of Jacksonville, Inc. (Consultech) appeals a final order of the appellee, State Department of Health (DOH) which adopted the findings of fact, conclusions of law, and recommendations of the Administrative Law Judge (ALJ), rejecting Consultech's bid protest proceeding and approving the award of a contract to appellee, Information Systems of Florida, Inc. (ISF), intervenors below. DOH also approved the ALJ's award of attorney's fees to ISF as a sanction for failure of Consultech's corporate representatives to appear for depositions scheduled by ISF.

We affirm the final order in all respects. In addition, we grant ISF's motion for appellate attorney's fees and costs against Consultech, finding ISF entitled to fees and costs under section 120.595(5), Florida Statutes, and remand to the ALJ for determination of a reasonable amount.

THE PROCEEDINGS BELOW

In October 2002 DOH issued its request for proposal (RFP) to secure proposals for the design, implementation, and maintenance of a new system for tracking continuing education units (CEU's), which are required to be earned by more than 470,000 healthcare professionals regulated by DOH. Only two companies, Consultech and ISF, submitted proposals. Pursuant to the specifications set forth in the RFP, both proposals were evaluated by a panel of DOH employees. Under the evaluation criteria contained in the RFP, Consultech's proposal received a combined total of 298 points out of a possible 650 points, as compared to ISF's score of 573.5 points.

Based upon the scoring of the review panel, DOH issued its notice of intent to award the contract for the CEU tracking system to ISF. Consultech timely submitted to DOH a formal protest to the bid award, followed later by an amended protest and petition to DOH. In its petition, Consultech mainly focused upon DOH's scoring of selected portions of the competing proposals of ISF and Consultech and also argued that DOH's notice of intent to award the contract to ISF contravened section 456.003(5), Florida Statutes, because neither the ALJ nor DOH properly weighed the element of cost.[1] ISF was allowed to intervene in the proceedings.

Upon referral to the Department of Administrative Hearings, the bid protest was assigned to an ALJ for final hearing. At the conclusion of the hearing the ALJ issued a recommended order, finding that *733 DOH's notice of intent to award the contract to ISF was not clearly erroneous, contrary to competition, arbitrary, or capricious, and recommending that Consultech's bid protest be rejected. The ALJ also ordered Consultech to pay attorney's fees to ISF in the amount of $1,250 for the services of ISF's attorney incurred in connection with Consultech's failure to attend a scheduled deposition.[2]

DOH adopted the ALJ's findings of fact, conclusions of law, and recommendations, and issued a final order rejecting Consultech's bid protest and expressly declining to overrule the ALJ's award of attorney's fees to ISF.

ISSUES ON APPEAL

The grounds for reversal argued by appellant may be summarized as follows:

(1) whether DOH's failure to give greater deference to the "Financial Specifications" portion of the RFP violates section 456.003(5), Florida statutes;[3]

(2) whether Consultech is entitled to the award due to the superior quality of its staff as well as its lower cost estimate for the development, maintenance, and operation of the CEU system;

(3) whether the ALJ's award of attorney's fees to ISF for Consultech's failure to attend depositions was an abuse of discretion.

We find no merit in any of these contentions.

DISCUSSION OF ISSUES.

We first consider appellant's contentions with regard to section 456.003(5), Florida Statutes.[4] At the outset, we find that appellant's arguments are based simply upon its disagreement with DOH's interpretation of the statute. According to appellant, the term "expenditures" as used in the statute encompasses costs and fees paid by healthcare providers utilizing the CEU system to be developed by the successful bidder pursuant to the RFP. DOH, on the other hand, has interpreted the term "expenditures" to mean funds that will be paid out by DOH or one of its boards within its jurisdiction and control. This interpretation is clearly stated in the ALJ's recommended order (adopted in full by DOH's final order) as follows:

Finally, section 456.003(5), Florida Statutes, on its face, is inapplicable to an evaluation of ISF's proposal or DOH's proposed award of the contract to ISF, because ISF's proposal does not involve any DOH `expenditures' for `licensure costs.'

The import of this conclusion of law is amplified by the ALJ's further finding that

*734 because no agency funds are involved in an award to ISF, Consultech has failed to affirmatively demonstrate that DOH's intent to award to ISF in any way offended section 456.003(5), Florida Statutes, which requires DOH to promulgate policies which are cost-effective.

We find this issue is governed by established case law and must be resolved against appellant. See Fla. Dep't of Ins. & Treasurer v. Bankers Ins. Co., 694 So.2d 70 (Fla. 1st DCA 1997) (finding that an agency's interpretation of a statute it administers is entitled to deference); Dep't of Natural Res. v. Wingfield Dev. Co., 581 So.2d 193 (Fla. 1st DCA 1991) (finding that only upon a determination that an agency's interpretation is clearly erroneous will such an interpretation be overturned on appeal). We reject appellant's contention that DOH's interpretation of section 456.003(5) is clearly erroneous.

A further bar to appellant's attempt to inject the cost issue into this proceeding is its failure to timely protest the provisions of the RFP with respect to the financial aspects of the project. Because Consultech failed to file a protest to the terms and conditions of the RFP as required by section 120.57(3), Florida Statutes, its belated attempt to challenge the award to ISF on this basis must fail.[5]

Significantly, in her Recommended Order the ALJ found, among other things, that Consultech's arguments with respect to price "are predicated, at best, upon conjecture and speculation...."; that Consultech did not prove that its price proposal "would be accurate in practice, or that ISF's price proposal was inaccurate...."; and that even assuming that Consultech's price proposal "was demonstrably less expensive" for all licensed health care professionals, making price/cost "the sole criterion" would convert the RFP into a "de facto invitation to bid, wherein price would become the determining factor...." Appellant does not — nor could it reasonably — contend that DOH's request was an invitation to bid, rather than a request for proposal. As appellant is aware, having cited this court's decision in System Development Corp. v. Dep't of Health & Rehabilitative Servs., 423 So.2d 433 (Fla. 1st DCA 1982),

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876 So. 2d 731, 2004 WL 1562337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consultech-of-jacksonville-inc-v-doh-fladistctapp-2004.