Irby-Northface v. Commonwealth Electric Co.

664 P.2d 557, 1983 Alas. LEXIS 436
CourtAlaska Supreme Court
DecidedApril 29, 1983
Docket7632, 7649
StatusPublished
Cited by3 cases

This text of 664 P.2d 557 (Irby-Northface v. Commonwealth Electric Co.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Irby-Northface v. Commonwealth Electric Co., 664 P.2d 557, 1983 Alas. LEXIS 436 (Ala. 1983).

Opinions

OPINION

Before BURKE, C.J., RABINOWITZ, MATTHEWS and COMPTON, JJ., and DIMOND, Senior Justice.*

COMPTON, Justice.

The single issue that must be addressed to resolve this appeal and cross-appeal is whether a joint venture qualifies as an Alaska bidder under the Alaska bidder preference statute, AS 37.05.230, when only one of its venturers would individually qualify as an Alaska bidder. For the reasons set forth below, we conclude that such a joint venture does qualify.

I. FACTUAL AND PROCEDURAL BACKGROUND

On October 25, 1982, the Alaska Power Authority (“APA”) issued invitations to bid on Transmission Line Construction Contract # 1 for the Anchorage-Fairbanks Intertie. The bids received by the APA that are at issue in this case were as follows:

Irby-Northface $ 28,437,328.00
Susitna $ 28,931,030.00
Commonwealth (original) $ 30,877,773.00
Commonwealth (amended) $ 28,777,773.00

The Alaska bidder preference statute, AS 37.05.230, specifies that state contracts for construction projects must be awarded to the “lowest responsible bidder,” with the exception that “a bid shall be awarded to an Alaska bidder if his bid is not more than five per cent higher than the lowest nonresident” bid. AS 37.05.230(5) defines an Alaska bidder as a person who:

(A) holds a current Alaska business license,
(B) submits a bid for goods or services under the name as appearing on his current Alaska business license, [and]
(C) has maintained a place of business within the state for a period of six months immediately preceding the date of his bid.

Irby-Northface is a joint venture entered into by Irby Construction Co. and North-face Construction, Inc. It does not have an Alaska business license and did not maintain a place of business within the state for the six months preceding its bid submission. Northface, however, has been a licensed general contracting business in Alaska since 1977. Irby, on the other hand, is not licensed to conduct business in Alaska. It specializes in the construction of electrical transmission line systems and has built such systems in over thirty-nine states.

Susitna is a joint venture entered into by Harrison Western Corp. and Newbery Alaska, Inc. The joint venture obtained an Alaska business license before bidding on this contract. The joint venture did not, however, maintain a place of business in the state for the six months preceding its bid. Nonetheless, both corporations were licensed in Alaska and had maintained a place of business in Alaska for the six [559]*559months preceding the submission of their joint bid.

The Commonwealth Electric Corp. is licensed to do business in Alaska and maintained a place of business in the state for the six months preceding its bid. Accordingly, it is the only indisputably qualified “Alaska bidder” under the statute, although it does not conduct its business exclusively in this state.

Before Irby-Northface prepared its bid, it received assurance from the APA that it qualified as an Alaska bidder on the basis that Northface individually qualified. On February 16, 1983, the sealed bids were opened and the APA subsequently issued a notice of intent to award the contract to Irby-Northface, the apparent low bidder. Susitna then commenced this action in the superior court, challenging the intended award. It argued that Irby-Northface does not qualify as an Alaska bidder because the joint venture does not have an Alaska business license and did not maintain a place of business in the state for the six months preceding its bid. Furthermore, the joint venture is composed of two businesses, one of which could not qualify individually as an Alaska bidder. Susitna contended that it qualifies as an Alaska bidder, even though its joint venture did not maintain a place of business in the state for the six months preceding its bid, because each of its two venturers would individually qualify as an Alaska bidder. Finally, Susitna argued that Commonwealth’s bid amendment was made improperly and was therefore ineffective. Susitna’s bid was lower than Commonwealth’s initial bid and was within five percent of Irby-Northface’s bid; Susit-na therefore concluded that the contract should be awarded to it.

Commonwealth joined in Susitna’s suit. It agreed with Susitna that Irby-Northface should not be treated as an Alaska bidder. It argued, however, that its bid amendment was proper and effective. Its amended bid was lower than Susitna’s bid and it therefore concluded that the contract should be awarded to it.

Irby-Northface responded with several arguments. The only one relevant to this appeal is the argument that Irby-Northface does qualify as an Alaska bidder under the statute.

The parties stipulated to the facts and agreed that there are no material issues of fact precluding the court from resolving the case on summary judgment. The parties also waived any further appeal rights from the administrative decision of the APA so that the superior court’s judgment would be binding.

The superior court rejected all of Irby-Northface’s arguments and agreed with Susitna and Commonwealth that Irby-Northface should be treated as a nonresident bidder. It therefore concluded that it would be an abuse of discretion for the APA to award the contract to Irby-North-face because the bid of Susitna and the amended bid of Commonwealth were within five percent of Irby-Northface’s bid. The court further concluded that Commonwealth’s bid amendment was proper and effective. Commonwealth’s amended bid was lower than Susitna’s bid and the court therefore ruled that Commonwealth was the lowest Alaska bidder.

Irby-Northface appeals from the superior court’s judgment, repeating the arguments it made on the motion for summary judgment. Susitna cross-appeals, contending that the superior court was correct in ruling that Irby-Northface is a nonresident bidder, but erred in ruling that Commonwealth’s bid amendment was proper. Commonwealth and the APA argue in response that the superior court’s judgment was proper in all respects. The APA, however, has expressly declined to take any position before this court on the proper meaning of the term “Alaska bidder.”

As explained below, we disagree with the superior court’s ultimate conclusion. We hold that the APA’s determination was correct: Irby-Northface qualifies as an Alaska bidder under the statute. It submitted the lowest bid and it therefore should be awarded the contract. We accordingly find it unnecessary to address the other argu[560]*560ments raised by the parties because they cannot affect the outcome of the case.

II. DISCUSSION

Commonwealth contends that, in order for a joint venture to qualify as an Alaska bidder, the joint venture itself must fulfill the requirements enumerated in AS 37.05.-230(5), which are: (1) hold a current Alaska business license, (2) submit its bid under the name appearing on the license, and (3) have maintained a place of business within the state for a period of six months immediately preceding the submission of its bid. Sus-itna contends that a joint venture may alternatively qualify as an Alaska bidder if each of the venturers would individually qualify.

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Irby-Northface v. Commonwealth Electric Co.
664 P.2d 557 (Alaska Supreme Court, 1983)

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Bluebook (online)
664 P.2d 557, 1983 Alas. LEXIS 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irby-northface-v-commonwealth-electric-co-alaska-1983.