FirstDigital Telecom, LLC v. Procurement Policy Board

2015 UT App 47, 345 P.3d 767, 781 Utah Adv. Rep. 12, 2015 Utah App. LEXIS 46, 2015 WL 798101
CourtCourt of Appeals of Utah
DecidedFebruary 26, 2015
Docket20130899-CA
StatusPublished
Cited by2 cases

This text of 2015 UT App 47 (FirstDigital Telecom, LLC v. Procurement Policy Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FirstDigital Telecom, LLC v. Procurement Policy Board, 2015 UT App 47, 345 P.3d 767, 781 Utah Adv. Rep. 12, 2015 Utah App. LEXIS 46, 2015 WL 798101 (Utah Ct. App. 2015).

Opinion

Memorandum Decision

TOOMEY, Judge:

T1 FirstDigital Telecom, LLC petitions from the decision of the Procurement Policy Board dismissing its appeal for failing to submit a timely bond. We allow the Procurement Policy Board's decision to stand.

T2 On June 21, 2018, the Utah Board of Regents (the Board) issued a request for proposals (RFP) for telecommunications services. The RFP included a summary of the services sought and a description of the seor-ing evaluation criteria for proposals. First-Digital, through President and Chief Executive Officer Wesley McDougal, submitted a proposal in July 2018.

13 Although FirstDigital was one of two finalists, on August 12 the Board notified FirstDigital that it was awarding the contract to Integra. On August 14, McDougal contacted the Board employees Bob McRae and Bryce Jex by email, the subject of which was identified as "Proposed meeting to discuss." McDougal stated, "We configured our proposal based on your current set up and usage. We are not sure you or other competitors fully understood the services you are receiving," and complained that the Board did not correctly compare certain technical areas in evaluating the proposals. Finally, McDougal proposed to meet with McRae and Jex to discuss the evaluation comparisons.

T4 After this meeting, McDougal on August 30 emailed the Board representative Richard Davis to reiterate flaws McDougal perceived in the proposal evaluations. McDougal stated, "[We are weighing whether we will file a formal protest to the bid." He added, "[Wle don't believe, among other things, that our network architecture, service nor pricing were evaluated correctly," and suggested the Board "throw out this RFP and allow all carriers to put forth a new proposal and compete on like solutions."

¶ 5 On September 6, 2013, McDougal again emailed McRae and Davis, this time stating that FirstDigital "ha[d] been forced to examine formal protest provisions contained in the state procurement code." He stated, "As we have examined those provisions, it has become clear that the email ... on August 14, 2018, constitutes a formal protest in accordance with [Utah. Code section] 63G-6a-1602." FirstDigital requested a formal written decision in response to the August 14 email, which it optimistically characterized as the "Protest."

*768 T6 On September 18, 2018, McRae, acting in his capacity as the Board Protest Officer, responded to the September 6 email, dismissing FirstDigital's protest as untimely. McRae stated, "You were informed of the Board's decision on $/12/2018. As a result, your protest should have been made by 8/19/2018."

17 He also disputed McDougal's characterization of the August 14 email as a protest because the subject line merely stated "[plro-posed meeting to discuss" and "nowhere in the email was there a statement indicating a protest was being made." McRae pointed out that in a conversation with Davis on August 29, and in McDougal's August 30 email to Davis, McDougal mentioned that FirstDigital was still considering filing a protest, and therefore "your &/14/18 email did not initiate the protest process." McRae added, "Even if [FirstDigital's] protest had been timely, it failed to establish sufficient grounds for reversing the Board's decision."

T8 FirstDigital filed an appeal with the chair of the Procurement Policy Board on September 25, 2018. Chair Lois Wiesemann dismissed the appeal on September 27, 2018, because FirstDigital had not paid a security deposit or posted a bond with the Protest Officer. In response, FirstDigital promptly delivered $500 to the Utah Higher Education Assistance Authority (UHEAA). Wiesem-ann instructed UHEAA to return the $500 check to FirstDigital because the appeal was dismissed and would not be considered.

T9 FirstDigital again emailed Wiesemann on September 30, asking her to reconsider her decision to dismiss FirstDigital's appeal. In an exchange of emails, the Attorney General's office responded to FirstDigital's request for reconsideration, "[Wle do not see how [Wiesemann] can alter the decision to dismiss" because the clear language of the statute requires that failure to submit a deposit or bond with the appeal will result in a dismissal. The Attorney General's office also specified that "the amount to use in the [security deposit or bond] calculation is $305,000." FirstDigital then filed a security deposit of $15,250 with UHEAA, which was later returned as untimely. FirstDigital appeals.

1 10 FirstDigital argues Wiesemann erred in dismissing its appeal because it substantially complied with the statute when it sent a written appeal to the Procurement Policy Board on September 25, 2013, then paid $500 on September 27 and $15,250 on October 2. 1 Specifically, FirstDigital argues the Procurement Policy Board's decision to dismiss the appeal was arbitrary and capricious because FirstDigital substantially complied by providing a security deposit when it became aware of the correct amount-5% of Integra's proposed contract. It also argues that McRae had an obligation to inform FirstDigital of the deposit amount when he informed it of the right to review. We do not address whether the statute requires strict or substantial compliance, because FirstDigital did not even substantially comply with the statute. Accordingly, we conclude the Procurement Policy Board did not err when it dismissed FirstDigital's appeal.

1 11 To appeal a Protest Officer's dismissal, FirstDigital was required to submit an appeal to the Procurement Policy Board within seven days of the Protest Officer's decision. See Utah Code Ann. § 63G-6a-1702(2)(a) (LexisNexis Supp.20183). The Utah Code also requires that "at the time that the appeal is filed," anyone who files an appeal with the Procurement Policy Board shall "pay a security deposit or post a bond with the protest officer in an amount that is the greater" of $1,000 or 5% of the lowest eost proposed in response to the RFP. 2 See *769 id. § 68G-6a-1708(1). Moreover, "[The chair of the [Procurement Policy Board] shall dismiss a protest filed under Section 68G-62-1702 if the actual or prospective bidder, of-feror, or contractor fails to timely pay the security deposit or post the bond required under Subsection (1)." Id. § 683G-62-1703(8). We "may not overturn a finding or decision of the [Procurement Policy Board], unless the finding or decision is arbitrary and eapricious or clearly erroneous." Id. § 68G-6a-1802(8)(c).

1 12 Although FirstDigital filed the appeal , within the seven-day limit, it did not submit the security deposit at the time of the appeal, as required by the statute. Instead, it paid $500 two days after the seven-day period for appeal had lapsed, then paid the correct amount of $15,250 a week later. As Wiesem-ann informed FirstDigital, "No security deposit or bond was received by Mr. McRae at the time FirstDigital filed the appeal." The clear language of the statute required Wies-emann to dismiss the appeal for FirstDigi-tal's failure to submit a timely deposit or bond. See id. § 63G-62a-1708(8).

1 13 FirstDigital's $500 deposit was significantly less than the amount required by the statute. See id. § 63G-6a-1703(1).

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Bluebook (online)
2015 UT App 47, 345 P.3d 767, 781 Utah Adv. Rep. 12, 2015 Utah App. LEXIS 46, 2015 WL 798101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/firstdigital-telecom-llc-v-procurement-policy-board-utahctapp-2015.