IMC Construction v. The Port of Philadelphia a/k/a PhilaPort -516 C.D. 2020

CourtCommonwealth Court of Pennsylvania
DecidedDecember 4, 2020
Docket516 C.D. 2020
StatusUnpublished

This text of IMC Construction v. The Port of Philadelphia a/k/a PhilaPort -516 C.D. 2020 (IMC Construction v. The Port of Philadelphia a/k/a PhilaPort -516 C.D. 2020) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
IMC Construction v. The Port of Philadelphia a/k/a PhilaPort -516 C.D. 2020, (Pa. Ct. App. 2020).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

IMC Construction, : Petitioner : : v. : : The Port of Philadelphia a/k/a : PhilaPort, : No. 516 C.D. 2020 Respondent : Argued: November 9, 2020

BEFORE: HONORABLE RENÉE COHN JUBELIRER, Judge HONORABLE ANNE E. COVEY, Judge (P.) HONORABLE BONNIE BRIGANCE LEADBETTER, Senior Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE COVEY FILED: December 4, 2020

IMC Construction (IMC) petitions this Court for review of The Port of Philadelphia a/k/a PhilaPort’s (PhilaPort)1 May 19, 2020 Final Determination denying IMC’s bid protest (Protest) relating to PhilaPort’s rejection of IMC’s bid on PhilaPort Project No. 20-028.1 - Construction of PhilaPort Distribution Center New Dry Warehouse (Project). The issue before this Court is whether PhilaPort erred by denying IMC’s Protest on the basis that IMC’s bid was non-responsive.2 Upon review, we affirm.

1 PhilaPort was formerly known as the Philadelphia Regional Port Authority. PhilaPort was established pursuant to Section 4 of the Philadelphia Regional Port Authority Act (Act), Act of July 10, 1989, P.L. 291, 55 P.S. § 697.4. It is “a public authority and instrumentality of the Commonwealth[, which] shall exercise the powers of the Commonwealth as an agency of the Commonwealth.” Id. 2 IMC raises three issues in its Statement of the Questions Involved: (1) whether PhilaPort erred by denying IMC’s Protest because its bid was non-responsive; (2) whether PhilaPort’s rejection of IMC’s bid was arbitrary and capricious and/or an abuse of discretion; and (3) whether, in the alternative, PhilaPort’s rejection of IMC’s bid was exclusionary, anti-competitive, and contrary to law and, therefore, if awarded to any company other than IMC, the contract for the Project (Contract) Background On January 3, 2020, PhilaPort issued an invitation for bids (IFB) for the Project, then identified as PhilaPort Project No. 19-131.1 (Project No. 19-131.1 IFB).3 However, on February 21, 2020, PhilaPort cancelled Project No. 19-131.1 IFB.4 Thereafter, PhilaPort issued a new IFB for the Project, which is the subject of this appeal.5 “The [IFB’s] Bidding Documents consist[ed] of the . . . Instructions to Bidders, the Bid Form, . . . submissions related to PhilaPort’s Diversity Inclusion Policy and Plan [(Diversity Plan)], . . . and forms and submittals required by the . . . Bidding or Contract Documents to be submitted with the Bid.” See Reproduced Record (R.R.) at 8a; see also R.R. at 1a-239a. The General Conditions of PhilaPort Construction Contracts (General Conditions) contained the terms of the proposed Contract between PhilaPort and the successful bidder.6 See R.R. at 138a-208a.

would be void as a matter of law. See IMC Br. at 4. Because these issues are subsumed in whether PhilaPort erred by denying IMC’s Protest because it was non-responsive, they will be addressed therein. 3 IMC claims that it was the lowest responsive and responsible bidder on Project No. 19-131.1 IFB. See IMC Br. at 7. 4 According to IMC: “Subsequent to PhilaPort’s final determination of IMC’s [Protest], PhilaPort disclosed, in a belated response to [a] [R]ight-to-[K]now [Law, Act of February 14, 2008, P.L. 6, 65 P.S. §§ 67.101-67.3104,] request submitted by IMC, that it had rejected all bids on Project No. 19-131.1 [IFB] because of, inter alia, bid irregularities relating to self-performance and diversity requirements.” IMC Br. at 8 n.1 (italics added). 5 The parties represent that PhilaPort posted/reissued the IFB for the Project on March 16, 2020. See IMC Br. at 8 and Ex. A (Final Det.) at 1; see also PhilaPort Br. at 5. However, the IFB could not have been posted/reissued on March 16, 2020, since that was the date the Mandatory Pre- Bid Meeting was scheduled to be conducted. See Reproduced Record (R.R.) at 1a. Moreover, PhilaPort issued Addendum No. 1 on March 12, 2020 (cancelling the March 16, 2020 Mandatory Pre- Bid Meeting because of the COVID-19 pandemic). See R.R. at 240a. Thus, the IFB had to have been posted/reissued before March 12, 2020. It is not clear in this record on what date the Project was actually posted/reissued. 6 The Instructions to Bidders were included in IFB Part 1. See R.R. at 4a-50a. The Bid Form was included in IFB Part 2. See R.R. at 52a-66a. IFB Part 3 included the General Conditions. See R.R. at 138a-208a. IFB Part 3 also contained PhilaPort’s Diversity Plan, which included the 20% minimum participation levels applicable to the Project. See R.R. at 213a-238a. 2 Section II.E.2 of the General Conditions (Subcontracts) specified: “The Contractor shall perform at least twenty percent (20%) of the total amount of the Work with the Contractor’s own organization based upon the Contract Sum.” R.R. at 149a. Section II.A.vii of the Bid Form (Bidder Responsiveness Section) also contained the following bidder certification: “That the [b]idder shall perform on the site and with [its] own organization at least 20[%] of the total amount of Work to be performed under this [C]ontract.” R.R. at 57a. Section 1 of the Instructions to Bidders (Work to be Performed) stated: “The Work to be performed is described in the Contract Documents . . . .” R.R. at 8a. “Work” was defined in Section I.A of the General Conditions (Definitions) as “the subject matter of the Contract, i.e., the labor or service to be performed and/or the material and/or equipment to be supplied, delivered and/or installed . . . .” R.R. at 147a; see also R.R. at 147a-155a. In addition, Section 29 of the Instructions to Bidders (Diversity Plan) specified that “[b]idders must comply with the requirements of the [Diversity] Plan to be eligible for the award of the Contract[.]”7 R.R. at 32a-33a. Section II of the Diversity Plan (Policy Statement) reflected:

It is the policy of [PhilaPort] to promote opportunities for full participation by Minority-owned [business enterprises (MBEs)], Women-owned [business enterprises (WBEs)], Veteran-owned or Service-Disabled-Veteran-owned and [Lesbian, Gay, Bisexual or Transgender (]LGBT[)]-owned small businesses, hereafter collectively referred to as disadvantaged business enterprises [(DBEs) or Historically Underutilized Business Enterprises (]HUBs[)] in all project[- ]related construction contracts to the greatest extent feasible and to do so by insuring that all Prime Contractors do not discriminate in the solicitation, award and administration of construction subcontracts on [PhilaPort’s] projects.

7 PhilaPort’s Diversity Plan was included in IFB Part 3. See R.R. at 213a-238a. 3 R.R. at 215a; see also R.R. at 216a. Section V.A of the Diversity Plan stated:

[PhilaPort] will establish minimum participation levels (MPLs) for the HUBs on a project-by-project basis. The MPLs will be established for each prime bid to be used solely as a guide in determining Prime Bidder responsibility. MPLs are applied to each bid category. The MPLs will vary based on the market availability of subcontracting opportunities for HUB’s, on a project-by-project basis.

R.R. at 219a. Section VI.B.1.a of the Diversity Plan (Participation Level) further required:

All contracts awarded for construction will have a minimum HUB participation level set by the Director of Procurement, but in no event shall it be less than 20% of the contract value. The participation for each award must include at least 2 of the categories that are identified as HUB with no less than 5% participation for every category being included.

R.R. at 222a (emphasis omitted). Accordingly, bidders are mandated to include DBE Solicitation and Commitment Statements with their bids showing their efforts to solicit HUB contractors, and written confirmations of the intent to use the identified contractors if awarded the Contract.8 See R.R. at 219a, 225a, 229a-234a.

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IMC Construction v. The Port of Philadelphia a/k/a PhilaPort -516 C.D. 2020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imc-construction-v-the-port-of-philadelphia-aka-philaport-516-cd-2020-pacommwct-2020.