Intercontinental Properties v. DHRS

606 So. 2d 380, 1992 WL 212037
CourtDistrict Court of Appeal of Florida
DecidedSeptember 1, 1992
Docket91-873
StatusPublished
Cited by6 cases

This text of 606 So. 2d 380 (Intercontinental Properties v. DHRS) 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
Intercontinental Properties v. DHRS, 606 So. 2d 380, 1992 WL 212037 (Fla. Ct. App. 1992).

Opinion

606 So.2d 380 (1992)

INTERCONTINENTAL PROPERTIES, INC., Appellant,
v.
STATE of Florida DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, and Coliseum Lanes, Inc., Appellees.

No. 91-873.

District Court of Appeal of Florida, Third District.

September 1, 1992.

Sweetapple, Broeker and Varkas and Robert Sweetapple, Boca Raton, for appellant.

*381 Morton Laitner, Miami, for appellees.

Before SCHWARTZ, C.J., and NESBITT and COPE, JJ.

COPE, Judge.

Intercontinental Properties, Inc. appeals an order by the Florida Department of Health and Rehabilitative Services (HRS) rejecting Intercontinental's bid to lease office space to HRS. We affirm.

I

HRS was in need of 29,600 square feet of office space. It issued an Invitation to Bid for a nine-year lease with options to renew. When the bids were opened, Coliseum Lanes, Inc., was the low bidder and was awarded the contract. The high bidder, Intercontinental Properties, Inc., filed a protest, saying that the low bidder's bid was unresponsive.[1] An administrative hearing officer conducted an evidentiary proceeding and concluded that both bids were unresponsive. The hearing officer recommended that both bids be rejected and HRS did so. The high bidder has appealed.

Shortly after HRS rejected both bids, the low bidder (Coliseum) dropped out and rented its building to other tenants. The practical issue now remaining is whether the Department erred in rejecting the Intercontinental bid.

II

Under the Administrative Procedure Act, this court's role in reviewing administrative action is a limited one. "If the agency's action depends on any fact found by the agency in a proceeding meeting the requirements of s. 120.57, the court shall not substitute its judgment for that of the agency as to the weight of the evidence on any disputed finding of fact. The court shall, however, set aside agency action or remand the case to the agency if it finds that the agency's action depends on any finding of fact that is not supported by competent substantial evidence in the record." § 120.68(10), Fla. Stat. (1989); see also Koehler v. Florida Real Estate Commission, 390 So.2d 711, 712-13 (Fla. 1980)

III

In this case it is essential to understand what is a "responsive" bid, as opposed to the "lowest and best" bid.

Under the Invitation to Bid, "responsive" refers only to matters of form. A responsive bid means that a bid is submitted on the correct forms, and contains all required information, signatures, and notarizations. (R. 203).

Upon opening, each bid was reviewed for responsiveness. Each responsive (technically complete) bid was then forwarded to a bid evaluation committee in order to obtain a recommendation for which bid should be accepted. (R. 203-04).[2]

Under the Invitation to Bid, the award was to be made to the "Lowest and Best Bid," i.e., the lowest cost and best quality. (R. 198). "`Lowest' refers to least present value cost over term of the lease and options, while `best' refers to results of total evaluation score." (R. 198). The evaluation score was obtained from a numerical scale set forth in the Invitation to Bid. Thus, both cost and quality of the facility were to be rated in deciding which would be the successful bid.

In the present case Coliseum was much better on both criteria. Coliseum's bid was $1,200,000 lower than that of Intercontinental. When rated on the numerical scale, Coliseum received 923 points out of a possible 1,000, while Intercontinental received 653. The evaluative comments about Intercontinental's bid were uniformly negative:

— Not conducive for ES business.
— Not safe for client and staff.
— History of poor maintenance.
— Not recommended as a Service Center.
*382 — Owner will charge clients for parking.
— Office space offered on multiple floors.
.....
Major obstacles.
1. At present, there is no provision for space at the ground floor. This is critical since FS issuance will be there. Bidder stated that she could make arrangements with Miami Community College to negotiate for space in the ground floor.
2. Building owner emphatically stated that she would not provide for free parking to our clients. To charge our indigent client population for parking to pick up their checks or receive our services was found to be at least immoral, if not insensitive, by the leasing group. With that in mind, parking for our clients becomes an issue of grave proportions. There is no free parking in the vicinity of this building.
3. The installation of FLORIDA equipment will be severely hampered, if not more expensive, since the HRS sites are not located on adjacent floors.
4. Metro-Dade Code violations. Under separate cover, the code violations of this building have been highlighted. This building must be up-to-code, prior to HRS locating a major service center here.

R. 191-92. HRS personnel testified that Intercontinental was clearly unsuitable for HRS' needs.

By contrast the comments on the low bidder, Coliseum, were all positive and did not have the drawbacks identified for the Intercontinental building. The only negative factor was a need to negotiate regarding priority on move-in since the building was undergoing renovation. (R. 192).

Since Coliseum was the low bidder and also offered the much better facility, HRS awarded the bid to Coliseum. HRS treated both the Coliseum bid and the Intercontinental bid as having passed muster for "technical responsiveness" as defined in the invitation for bids, but found Coliseum to have submitted the "lowest and best bid."

IV

The initial question considered below was whether the bidders had submitted adequate proof of authority to enter into the state lease. The hearing officer heard testimony from the Department of General Services' Property Management Chief, who explained that the State has, in the past, experienced circumstances in which a bid would be submitted by a person purportedly acting on behalf of the owner, when in fact the agent had no authority to submit the bid. Upon acceptance of the low bid, the State was then unable to conclude the transaction because the property owner was not bound by the bid submission.

Consequently, the Invitation to Bid requires bidders to submit documentation reflecting their authority. The Invitation to Bid spelled out the nature of the documentation which was required. As applied to the present case, the Invitation to Bid stated, "If the Bid Submittal is signed by an Agent, written evidence from the owner of record of his/her authority must accompany the proposal." (R. 202) (emphasis in original).

Intercontinental's protest contended that Coliseum's low bid was unresponsive, because it was signed by an agent without attaching proof of the agent's authority to act on behalf of the property owner. Intercontinental affirmatively asserted that its own bid was responsive and it pled that "Intercontinental Properties, Inc. was the lowest and best responsive bidder and was entitled to the award of the bid pursuant to applicable law." (R. 17).

Coliseum intervened, contending that its low bid was responsive and that if the bid was not responsive, any deviation was a minor irregularity which would not eliminate it from consideration for the contract award.

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Bluebook (online)
606 So. 2d 380, 1992 WL 212037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intercontinental-properties-v-dhrs-fladistctapp-1992.