In Re Langan Engineering

42 A.3d 240, 425 N.J. Super. 577
CourtNew Jersey Superior Court Appellate Division
DecidedMay 15, 2012
DocketA-2145-11T3
StatusPublished
Cited by7 cases

This text of 42 A.3d 240 (In Re Langan Engineering) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Langan Engineering, 42 A.3d 240, 425 N.J. Super. 577 (N.J. Ct. App. 2012).

Opinion

42 A.3d 240 (2012)
425 N.J. Super. 577

In the Matter of the Appeal of LANGAN ENGINEERING & ENVIRONMENTAL SERVICES, INC.

Docket No. A-2145-11T3

Superior Court of New Jersey, Appellate Division.

Argued April 24, 2012.
Decided May 15, 2012.

*241 Angelo J. Genova argued the cause for appellant Langan Engineering & Environmental Services, Inc. (Genova Burns Giantomasi & Webster, attorneys; Mr. Genova, of counsel; Rebecca Moll Freed, Newark, on the briefs).

Beth Leigh Mitchell, Assistant Attorney General, argued the cause for respondent Department of the Treasury, Division of Purchase and Property (Jeffrey S. Chiesa, Attorney General, attorney; Lewis A. Scheindlin, Assistant Attorney General, of counsel; Ms. Mitchell, on the brief).

Before Judges BAXTER, NUGENT and CARCHMAN.

The opinion of the court was delivered by

BAXTER, J.A.D.

Langan Engineering & Environmental Services, Inc. appeals from a final agency decision of the Department of Treasury (Treasury), Division of Purchase and Property (Division), determining that, as of the due date for bids, August 2, 2011, appellant was disqualified from being awarded State contracts because appellant had made a political contribution within the eighteen-month period preceding appellant's submission of a bid. As a result of that determination, Treasury deemed appellant disqualified from the October 5, 2011 New Jersey Schools Development Authority (SDA) procurement. We reject appellant's challenge to the final agency decision. We conclude that: 1) Treasury's ineligibility determination was correct; 2) the inclusion of contributions to legislative leadership committees in Executive Order Number 117 (EO 117) is not unconstitutional; and 3) pursuant to the governing statute, N.J.S.A. 19:44A-20.14, Treasury properly concluded that the eighteen-month look-back period commences when bids are due. We affirm.

I.

On April 7, 2010, appellant made a $500 contribution to Assembly Republican Victory 2011, a legislative leadership committee. Some fourteen months later, on June 23, 2011, SDA issued a request for proposals (RFP), seeking bids for a two-year contract for site environmental consulting services in the planning and construction of school facilities projects. Appellant submitted a bid on August 2, 2011, the date bids were due. After the bids were received, SDA evaluated each submission, ranked the bidders and negotiated uniform pricing with each of them.

The SDA Board of Directors adopted a resolution awarding the site environmental consulting contract to fifteen firms, including *242 appellant, pending "approval of all contract and related documentation" by Treasury. At SDA's request, the Division's Chapter 51[1] Unit[2] reviewed all fifteen firms for Chapter 51/EO 117 clearance. Thirteen firms were approved; appellant and another firm were rejected.

SDA's Procurement Director notified appellant that Treasury had ruled that appellant could not be awarded a contract that exceeded $17,500 in value with a State department, agency or authority, and, as a result, appellant was disqualified from the current SDA procurement. On December 1, 2011, appellant sent Treasury a detailed letter of protest, challenging Treasury's assertion that the statutory disqualification began on the date the bids were due, and then encompassing the preceding eighteen months. Appellant instead contended that the disqualification period began on the day the political contribution was made, and continued for the next eighteen months. On December 20, 2011, Treasury issued the final agency decision that is the subject of this appeal, rejecting appellant's argument. Treasury notified appellant that, in the context of a publicly advertised contract, the statutory phrase in N.J.S.A. 19:44A-20.14—"within the eighteen months immediately preceding the commencement of negotiations for the contract or agreement"—refers to the eighteen months immediately preceding the date when bids are due to the State contracting agency. Because appellant was disqualified on August 2, 2011, the date when proposals for the contract were due to SDA, appellant was not, according to Treasury, eligible for the award of the SDA contract.

Appellant appealed, and on January 25, 2012, we denied its motion for a stay of the disqualification pending appeal.

II.

The principles governing judicial review of administrative agency actions are well known. As the Court recently observed:

Although in reviewing the decision of an administrative agency, we must give deference to the agency's findings of facts, and some deference to its interpretation of statutes and regulations within its implementing and enforcing responsibility, we are in no way bound by the agency's interpretation of a statute or its determination of a strictly legal issue.
[Utley v. Bd. of Review, 194 N.J. 534, 551, 946 A.2d 1039 (2008) (internal quotation marks and citations omitted).]

As Treasury's December 20, 2011 final decision resulted from the agency's "determination of a strictly legal issue," our review is de novo. Ibid.

The relevant statute, N.J.S.A. 19:44A-20.14, provides:

The State or any of its purchasing agents or agencies or those of its independent authorities, as the case may be, shall not enter into an agreement or otherwise contract to procure from any business entity services or any material, supplies or equipment, or to acquire, sell, or lease any land or building, where the value of the transaction exceeds $17,500, if that business entity has solicited or made any contribution of money, or pledge of contribution, including in-kind contributions to a candidate committee or election fund of any candidate *243 or holder of the public office of Governor or of Lieutenant Governor, or to any State or county political party committee: (i) within the eighteen months immediately preceding the commencement of negotiations for the contract or agreement[.]
[(Emphasis added).]

The issue in this appeal is the meaning of the phrase "the commencement of negotiations for the contract or agreement." Appellant argues that, consistent with the plain meaning of Chapter 51, N.J.S.A. 19:44A-20.14, a business entity that has made a political contribution may not participate in a government contract exceeding $17,500 for eighteen months after making the contribution. For its part, Treasury contends that the statutory language in question requires disqualification if the political contribution was made within the eighteen months preceding the date that bids are due to the State contracting agency.

The meaning and application of Executive Order 117[3] and Chapter 51 are controlled by the language and intent of Chapter 51. Wilson v. City of Jersey City, 209 N.J. 558, 572, 39 A.3d 177 (2012). The parties agree that the difficulty in applying the disputed language to the present matter stems from the fact that, because not all state agencies have the authority to negotiate, not all State contracts have a "commencement of negotiations" period in the traditional sense of the term.

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Bluebook (online)
42 A.3d 240, 425 N.J. Super. 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-langan-engineering-njsuperctappdiv-2012.