Engineering Management Services, Inc. v. Maryland State Highway Administration

825 A.2d 966, 375 Md. 211, 2003 Md. LEXIS 318
CourtCourt of Appeals of Maryland
DecidedJune 11, 2003
Docket71, Sept. Term, 2002
StatusPublished
Cited by47 cases

This text of 825 A.2d 966 (Engineering Management Services, Inc. v. Maryland State Highway Administration) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engineering Management Services, Inc. v. Maryland State Highway Administration, 825 A.2d 966, 375 Md. 211, 2003 Md. LEXIS 318 (Md. 2003).

Opinion

HARRELL, J.

I.

State procurement contracts are subject to an exclusive, statutorily-prescribed procedure for resolving disputes. The procedure consists of four parts. 1 First, the dispute must be submitted to the agency procurement officer for attempted resolution. 2 Second, the agency head may approve, disapprove, or modify the procurement officer’s decision. 3 Third, the decision of the agency head may be appealed to the Maryland State Board of Contract Appeals (“MSBCA”). 4 *216 Fourth, the MSBCA’s decision is subject to judicial review under the contested case provisions of the Maryland Administrative Procedure Act. 5

The present case, being the fruit of the foregoing dispute resolution process, arises from a dispute between Engineering Management Services, Inc. (“EMS”) and the Maryland State Highway Administration (“SHA”) over a contract for the removal of lead paint and the repainting of five bridges in Baltimore and Howard Counties. The dispute revolved around EMS’s claim for additional funds to comply with changes in the Federal Occupational Safety and Health Administration (“OSHA”) regulations relating to lead exposure of abatement workers which had not been taken into account expressly during the bid and award process. For purposes of EMS’s appeal to the MSBCA, the “final decision of the unit” 6 denying EMS’s claims occurred on 28 June 1999. EMS timely appealed that final decision to the MSBCA on 27 July 1999.

The SHA filed a “Motion for Summary Disposition,” asserting that EMS’s notice of claim was untimely. The MSBCA held a hearing at which EMS and SHA presented their respective positions concerning summary disposition. The MSBCA granted SHA’s motion on 9 February 2000, and dismissed EMS’s appeal, construing against EMS the 30-day “notice [to the procuring unit] of claim” provision of COMAR 21.10.04.02(A) & (C) 7 as an absolute condition precedent to the *217 MSBCA’s jurisdiction to review the final decision of the procuring unit. EMS timely petitioned the Circuit Court for Baltimore City for judicial review of the dismissal.

The Circuit Court reversed the Board’s decision and remanded the case, ordering the MSBCA to conduct a hearing on the merits of EMS’s claim. The SHA appealed to the Court of Special Appeals. In what ultimately became a reported decision, the Court of Special Appeals reversed the Circuit Court’s judgment. Maryland State Highway Administration v. Engineering Management Services, Inc., 147 Md.App. 132, 807 A.2d 1131 (2002). EMS filed a petition for a writ of certiorari in this Court which we granted. Engineering v. State Highway, 371 Md. 264, 808 A.2d 808 (2002). In so doing, however, we added a third question to the two presented in EMS’s petition.

II.

The three questions for review are:

“1. Did the Board err in construing the 30-day ‘notice of claim’ provision of COMAR 21.10.04.02 as an absolute condition precedent to the Board’s jurisdiction to review the final decision of a procuring unit?
“2. Did the Board, using an unwritten ‘summary disposition’ procedure, err in dismissing EMS’s appeal based on an allegedly untimely “notice of claim” to the SHA’s procurement office, where the undisputed record evidence established that the SHA had actual notice of the facts and circumstances giving rise to EMS’s claim, the SHA’s denial of EMS’s claim was not based on lack of timely notice, EMS’s affidavit regarding timeliness was unrebutted, and there is no record evidence of any prejudice to the SHA by timeliness of the notice EMS provided?
“3. Whether, in a contested case involving a claim against a government entity, Maryland Code (1984, 1999 Repl. *218 Vol.), Section 10-210(6) of the State Government Article, authorizes an agency to reject the claim by summary disposition.”

III.

In March 1998, the SHA issued invitations for bids for the removal of lead-based paint and the repainting of five bridges over 1-95 in Baltimore and Howard Counties. The Contract Special Provisions required compliance with the U.S. Environmental • Protection Agency (“EPA”) National Ambient Air Quality Standards. The relevant extant standard, embodied in 40 C.F.R. Part 50, included a general permissible exposure limit for workers of 150 micrograms of particulate matter per cubic meter. Contract General Provision GP-7.01 required the contractor to “comply with all Federal, State, and local laws, regulations and ordinances applicable to its activities and obligations under this contract.” General Provision GP-7.05 additionally subjected the contractor to 29 C.F.R. § 1926, containing federal OSHA regulations, “as revised from time to time.”

By letter dated 13 April 1993, the SHA notified EMS that, at bid opening, EMS was the apparent lowest competitive bidder. The SHA issued a Notice of Award to EMS on 21 May 1993. During the time between the bid opening and the Notice of Award, OSHA added a new subsection to 29 C.F.R. § 1926. The new regulations, 29 C.F.R. § 1926.62, were published in the Federal Register on 4 May 1993, with an effective date of 3 June 1993. “Lead Exposure in Construction,” 58 Fed.Reg. 26,627 (4 May 1993). The pertinent new regulation imposed a maximum permissible exposure limit for lead inhalation, applicable to construction workers, of 50 micrograms per cubic meter and required protections such as protective clothing and equipment and special hygiene facilities and practices not previously mandated by other regulations. 8

*219 On 26 July 1993, SHA issued a Notice to Proceed to EMS. EMS began performance of the Contract on 30 September 1993. The record indicates that EMS began experiencing difficulties with equipment it had procured to perform the contract, resulting in some impatience on the SHA’s part. In a letter dated 12 January 1994, EMS attempted to explain its difficulties with the equipment in terms of attempting to meet the EPA requirements, and requested an extension of time to complete the work. On 28 March 1994, the Maryland Occupational Safety and Health Unit (MOSH) of the Division of Labor and Industry adopted for state regulatory purposes the more protective federal OSHA standard in 29 C.F.R. § 1926.62. 9

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Bluebook (online)
825 A.2d 966, 375 Md. 211, 2003 Md. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engineering-management-services-inc-v-maryland-state-highway-md-2003.