GTECH v. State Dept. of Lottery

737 So. 2d 615, 1999 WL 516154
CourtDistrict Court of Appeal of Florida
DecidedJuly 22, 1999
Docket98-1155
StatusPublished
Cited by3 cases

This text of 737 So. 2d 615 (GTECH v. State Dept. of Lottery) 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
GTECH v. State Dept. of Lottery, 737 So. 2d 615, 1999 WL 516154 (Fla. Ct. App. 1999).

Opinion

737 So.2d 615 (1999)

GTECH CORPORATION, Appellant,
v.
STATE of Florida DEPARTMENT OF the LOTTERY and Automated Wagering International, Inc, Appellees.

No. 98-1155.

District Court of Appeal of Florida, First District.

July 22, 1999.

*616 Thomas Panza, Mark A. Emanuele and Deborah Susan Platz of Panza, Maurer, Maynard & Neel, Tallahassee, and John K. Aurell, John R. Beranek and Martin B. Sipple of Ausley & McMullen, Tallahassee, for Appellant.

Robert A. Butterworth, Attorney General and Amelia L. Beisner, Assistant Attorney General, Office of the Attorney General, Tallahassee, for Appellee State of Florida, Department of the Lottery.

Martha Harrell Chumbler, Michael P. Donaldson and Michael Carlson of Carlton, Fields, Ward, Emmanuel, Smith & Cutler, Tallahassee, for Appellee Automated Wagering International, Inc.

PADOVANO, J.

This is an appeal from a final administrative order by the Department of the Lottery awarding a state contract to Automated Wagering International, Inc., and dismissing a bid protest by GTECH Corporation. Among other points on appeal, GTECH contends that the Department erred in referring the contract proposals *617 back to the same evaluation committee for reconsideration after the committee members had testified in a bid protest hearing. Because we conclude that this remedy did not violate the constitutional or statutory rights of the parties, we affirm the final order.

I.

The parties were competing for a lucrative contract to provide computerized gaming systems and related services for the Florida Lottery. The Department published a formal request for proposals on September 29, 1995, and Automated Wagering and GTECH were the only providers who responded. As required for a contract of this amount, the Secretary of the Lottery appointed a committee to evaluate the proposals and rank them in order of preference. The committee consisted of six members, three of whom were lottery employees.

The Department granted the committee considerable discretion to select the provider. According to the procedure outlined in the request for proposals, the Department was required to award the contract to the most qualified respondent, as determined by the committee. The Secretary of the Lottery retained the authority to reject the committee's decision, but only if she found that the entire process was not the best method of obtaining the desired gaming system and services.

Each responsive bid was evaluated by a numerical scoring system based on a total score of one hundred points. Twenty points were available on a mathematical formula keyed to the price of the bid, and the remaining eighty points were to be scored by the evaluation committee. As provided in the request for proposals, the committee scored specific aspects of the responses including the respondents' experience in lottery operations, the technical specifications of the proposed systems, the operational and security features of the systems, and the marketing features. As a part of the evaluation, the committee also conducted on-site visits to allow the respondents to demonstrate their systems.

When the evaluations were completed, the committee announced that Automated Wagering was the more qualified respondent. The totals were close, but Automated Wagering received a higher score on the parts of the responses that were evaluated by the committee. Automated Wagering also had a higher number of points based on the price of the contract, because it had submitted the lower of the two bids. The Department accepted the committee's recommendation and served notice on October 31, 1996, of its intent to award the contract to Automated Wagering. GTECH timely filed a bid protest on November 5, 1996, and Automated Wagering was granted leave to intervene in the proceeding.

The administrative law judge then conducted a formal hearing which lasted approximately three weeks. GTECH presented testimony and other evidence in an effort to show that the committee members made certain material errors in evaluating the responses. Some of the committee members were also called to testify at the hearing. One committee member, an employee of the lottery, gave expert opinion testimony in support of the decision to award the contract to Automated Wagering. Another was reluctant to testify, and she was declared a hostile witness. Generally, as a consequence of the bid protest, the committee members were forced to explain their decision to the administrative law judge.

When the hearing was concluded, the administrative law judge rejected most of the allegations in the bid protest. However, the judge did find that certain aspects of the evaluation and scoring failed to comply with the Department's request for proposals. Based on this finding, the judge entered an order on May 5, 1997, recommending that the evaluation committee reconvene to evaluate and score specific aspects of the two proposals in a manner *618 that complied with the request for proposals. Additionally, the judge recommended that Automated Wagering be required to resubmit one subsection of its proposal, relating to personnel to be utilized on the contract, and that the committee then evaluate and score the resubmitted information.

The Department entered an order on June 4, 1997, adopting the administrative law judge's findings of fact and conclusions of law. Although this order is styled as a final order, the effect of the Department's decision was to approve of the judge's recommendation that the case be sent back to the committee for further evaluation. GTECH appealed the order to this court, but the appeal was dismissed involuntarily. Because the order did not fully dispose of the proceeding before the agency, it was not a final order and it was not, therefore, subject to review by appeal.

The evaluation committee convened once again to reconsider the proposals as directed by the Department. When the proposals were evaluated for the second time, Automated Wagering remained the high scorer. Once again, the Department issued a notice that it was awarding the contract to Automated Wagering. GTECH filed a protest as to this second notice, and the case was transferred back to the Division of Administrative Hearings. The same administrative law judge was assigned and Automated Wagering was, once again, allowed to intervene.

Before the second formal hearing, the administrative law judge advised counsel that he wished to limit the scope of the hearing to prevent retrial of the issues already decided in the first bid protest. The parties were allowed to present evidence and argument on the rescoring and other matters occurring after the first hearing. Additionally, the judge allowed the parties to question the committee members to determine whether the positions they took in the first bid protest caused them to become biased.

When this hearing was concluded, the administrative law judge found that the reconvened evaluation had been conducted properly under the directions given in the first order and that, aside from minor errors not affecting the outcome of the scoring, the evaluation committee's scoring complied with the requirements of the law. The judge also found that the controversy raised in the original bid protest proceeding did not prevent the committee members from fairly considering the proposals according to the Department's first order. The judge specially found that there was no evidence of bias on the part of any committee member.

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Bluebook (online)
737 So. 2d 615, 1999 WL 516154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gtech-v-state-dept-of-lottery-fladistctapp-1999.