GOVERNMENT COMPUTER SALES v. State

720 So. 2d 53
CourtLouisiana Court of Appeal
DecidedSeptember 25, 1998
DocketCA 98 0224
StatusPublished
Cited by5 cases

This text of 720 So. 2d 53 (GOVERNMENT COMPUTER SALES v. State) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GOVERNMENT COMPUTER SALES v. State, 720 So. 2d 53 (La. Ct. App. 1998).

Opinion

720 So.2d 53 (1998)

GOVERNMENT COMPUTER SALES, INC.
v.
STATE of Louisiana, Through DIVISION OF ADMINISTRATION, Office of State Purchasing and Mark C. Drennen, Commissioner of Administration.

No. CA 98 0224.

Court of Appeal of Louisiana, First Circuit.

September 25, 1998.

*54 George J. Grazioso, Baton Rouge, for Defendants/Appellants State, et al.

Michelle Finnegan, Baton Rouge, for State, Division of Administrative Law.

Charles L. Patin, Jr., Baton Rouge, for Plaintiff/Appellee Government Computer Sales, Inc.

Nannette V. Jolivette, Lafayette, for Intervenor Logicom Systems, Inc.

Before FOIL, WHIPPLE and KUHN, JJ.

WHIPPLE, J.

The issue presented in this appeal is whether an unsuccessful bidder on a state contract is entitled to a hearing before the Division of Administrative Law for consideration of its protest of the award of the state contract to the lowest bidder. The trial court held that such a hearing was required by law and ordered the administrative record of the matter before us forwarded to the Division of Administrative Law for a hearing.

*55 For the following reasons, we reverse that portion of the judgment and remand.

FACTS AND PROCEDURAL HISTORY

The Office of State Purchasing issued an invitation for bids for the Gateway Brand Name Microcomputer Contract, Solicitation No. 2049801, Contract No. 403189, to which both Government Computer Sales, Inc. (GCSI) and Logicom Systems, Inc. (Logicom) submitted bids. Logicom submitted the lowest bid, and GCSI submitted the second lowest bid.

The Office of State Purchasing issued a notification of the award of the contract to Logicom. Pursuant to LSA-R.S. 39:1671, GCSI then filed a letter of formal protest to the award of the contract to Logicom, contending that Logicom was not a "responsive and responsible bidder." In its letter of protest, GCSI requested an administrative adjudicatory hearing pursuant to the provisions of the Division of Administrative Law Act, LSA-R.S. 49:991 et seq.

The chief procurement officer of the Office of State Purchasing subsequently informed GCSI it would not be granted a hearing before an administrative law judge. Rather, the protest would be investigated by the chief procurement officer, who would then rule on the merits of the protest.[1] The ruling of the chief procurement officer would then be subject to review by the Commissioner of Administration. After learning of the procedure that the Office of State Purchasing intended to use in ruling on its protest, GCSI filed an "Exception to Procedure," contending that it was entitled to an administrative hearing.

By letter dated October 6, 1997, the chief procurement officer denied the exception, as well as GCSI's protest on the merits. In denying the "Exception to Procedure," the chief procurement officer concluded that the relevant provisions of the Procurement Code do not require notice and a hearing in connection with resolution of a protest to the award of a contract.

GCSI then filed suit in the Nineteenth Judicial District Court, naming as defendants the State of Louisiana, through the Division of Administration, Office of State Purchasing, and Mark C. Drennen, Commissioner of Administration of the State of Louisiana, in his official capacity. In its petition, GCSI sought judicial review, in accordance with the Administrative Procedure Act (APA), of the actions of the Office of State Purchasing in refusing to afford GCSI a hearing; a stay of all administrative proceedings relating to its protest; and a declaratory judgment directing the Office of State Purchasing to assign the matter to the Division of Administrative Law for an administrative adjudicatory hearing.[2] Defendants answered the petition, alleging that because GCSI was not the lowest responsive and responsible bidder, it was not entitled to a hearing.[3]

*56 Trial was held on November 4, 1997. By judgment dated November 18, 1997, the trial court granted the declaratory relief sought by GCSI and ordered defendants to forward the entire administrative record regarding the protest to the Division of Administrative Law for an administrative adjudicatory hearing. In granting GCSI's request for declaratory relief, the trial court reasoned that the review of state agency "adjudications" are to be conducted by the Division of Administrative Law. The trial court further noted that an "adjudication" pursuant to the APA is "an agency process for the formulation of a decision," and the chief procurement officer and Commissioner of Administration were "formulating a decision" regarding the protest made by GCSI. For these reasons, the court referred the matter to the Division of Administrative Law for a hearing and decision by an administrative law judge.

Defendants appeal, assigning as error the trial court's ruling that an agency disposition of a protest to the award of a contract, filed pursuant to LSA-R.S. 39:1671, meets the statutory definition of an "adjudication" so as to require a hearing before the Division of Administrative Law.

ANALYSIS

Administrative Hearings Conducted Pursuant to The Division of Administrative Law Act and the APA

The legislature created the Division of Administrative Law by Acts 1995, No. 739, effective October 1, 1996. LSA-R.S. 49:991 et seq. The Act is applicable to all agencies of the executive branch of state government, with certain listed exceptions, and provides that the Division of Administrative Law shall conduct all adjudications for these agencies in the manner provided by the APA, including the Office of State Purchasing. LSA-R.S. 49:992(A)(2) & (D). The Act applies to the Office of State Purchasing, and it specifically authorizes the Division of Administrative Law to conduct formal administrative hearings on Procurement Code matters fitting the APA definition of "adjudication." LSA-R.S. 49:992(E). Thus, the Act transferred jurisdiction from the Office of State Purchasing to the Division of Administrative Law to conduct hearings in procurement matters where the disposition rendered constitutes an "adjudication" pursuant to the APA.

As defined in the APA, an "adjudication" is a proceeding resulting in the formulation of a decision or order. LSA-R.S. 49:951(1). A "decision" or "order" is further defined as a disposition of any agency, in any matter other than rulemaking, required by constitution or statute to be made only after notice and a hearing. LSA-R.S. 49:951(3). Therefore, unless there is some provision in the constitution or statutes requiring a hearing, an agency disposition is not a "decision" or "order" as defined by the APA. And, unless a proceeding results in a "decision" or "order," it is not an "adjudication" as defined by the APA. Parochial Employees' Retirement System of Louisiana v. Caddo Parish Commission, 95-0243, p. 4 (La.App. 1st Cir. 3/15/96); 676 So.2d 105, 107, writ denied, 96-0955 (La. 5/31/96); 673 So.2d 1031 (citing Delta Bank & Trust Company v. Lassiter, 383 So.2d 330 (La.1980)). Accordingly, if no hearing is required by constitution or statute, there is no adjudication as defined by the APA. Absent an "adjudication," the Division of Administrative Law Act is not applicable to that agency disposition, and a hearing before the Division of Administrative Law is not required. See Delta Bank & Trust Company, 383 So.2d at 333.

In sum, just as the APA does not create an independent right to a hearing before any state agency can take any action, Delta Bank & Trust Company,

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