McKnight Construction Co. v. Perry

888 F. Supp. 1186, 1995 U.S. Dist. LEXIS 8323, 1995 WL 361790
CourtDistrict Court, S.D. Georgia
DecidedJune 9, 1995
DocketCiv. A. No. CV194-188
StatusPublished
Cited by2 cases

This text of 888 F. Supp. 1186 (McKnight Construction Co. v. Perry) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKnight Construction Co. v. Perry, 888 F. Supp. 1186, 1995 U.S. Dist. LEXIS 8323, 1995 WL 361790 (S.D. Ga. 1995).

Opinion

ORDER

BOWEN, District Judge.

The above-captioned case is before the court on motions for summary judgment filed [1187]*1187by Plaintiff and the Federal Defendants.1 In this lawsuit, McKnight Construction Company, Inc. (MeKnight Construction) seeks a declaratory judgment and a permanent injunction barring the Federal Defendants from implementing and administering a federal construction contract awarded by the U.S. Army Corps of Engineers, Savannah, Georgia District (hereafter “the Corps”) to Conner Bros. Construction Co., Inc. (Conner Brothers). By Order dated December 28, 1994, the Court granted preliminary injunctive relief pending final resolution on the merits. McKnight Construction Company, Inc. v. William J. Perry, et al., 888 F.Supp. 1178 (S.D.Ga.1994).

The parties agree that the case is ripe for summary resolution. (Joint Statement Regarding Disposition.) Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c); see generally Anderson v. Radisson Hotel Corp., 834 F.Supp. 1364, 1367-68 (S.D.Ga.1993) (reviewing the standards for granting summary judgment). The Court has carefully reviewed the portions of the administrative record referenced by the parties.

The facts presented in the Court’s December 23, 1994, Order, supra, 888 F.Supp. at 1180-81, are incorporated herein as if stated verbatim and supplemented as follows. Bids were opened on June 20, 1994. MeKnight Construction was the apparent low bidder by $119,000. A copy of the bid abstract is attached to this Order.2 Shortly after bid opening, Conner Brothers discovered that Plaintiffs bid was materially unbalanced, see 48 C.F.R. § 15.814, due to its misallocation of bid line items one, two, four and five. Conner Brothers, who was the next lowest bidder, promptly informed the Corps of MeKnight Construction’s mistake by letters dated June 21 and 22, 1994. The June 22 letter indicated that Conner Brothers intended to protest if MeKnight Construction’s bid was not rejected as nonresponsive. That same day, June 22, MeKnight Construction, having realized the mistake, telephoned the Corps to advise it of the mistake. By letter dated June 23, 1994, counsel for MeKnight Construction requested that the Corps permit correction of the mistake. On June 24, 1994, counsel for MeKnight Construction faxed a similar letter to the Corps and included William Davis McKnight’s personal affidavit. Mr. McKnight’s affidavit thoroughly explains how the mistake occurred and clarifies his intended allocation of prices among the bid line items in question. (Admin.Rec., Vol. I, Exh. 3, Tab E-7; 888 F.Supp. at 1180-81 n. 4.) Along with the June 24 letter, counsel forwarded to the Corps Mr. McKnight’s bid work papers. As indicated in the December 23, 1994, Order, there is no dispute that the bid work papers do not identify bid items, buddings, subcontractor pricing, or other aspects of the project by which McKnight’s intended allocation of bid line items could be ascertained.

Defendant Robert C. Hoffman, the Corps’ contracting officer, submitted MeKnight Construction’s request to correct and bid work papers to the Corps’ cost engineering branch for its review and recommendation. (Transcript of the Dec. 12,1994, hearing, hereafter “TR,” at 42.) The engineering branch concluded that MeKnight Construction’s intended bid could not be determined because the “bid work papers ... didn’t relate to the line items at all in any fashion.” (Testimony of Hoffman, TR at 42.) Hoffman reported to the Corps’ Division Commander that McKnight’s affidavit

does not explain how the bidder calculated the amounts allegedly intended for the bid items, other than on “years of experience in the construction industry” as well as [1188]*1188pricing received for subcontracting, materials and labor to be furnished by McKnight. The statement attributes the mistake to what amounts to a error [sic] in entering bid item amounts onto the bid form in the last minute rush to submit a bid before opening. The working papers do not clarify the bid item allocation since the amounts for individual bid items are not broken down therein. No quotations from subcontractors or suppliers were included in these working papers.

(Admin. Rec., Vol I, Exh. 3, Tab A, pp. 4-5.) Hoffman thus recommended that McKnight Construction’s request to correct be denied. Id. Counsel for the Division Commander agreed that the request should be denied because “the bidder has provided no independent proof [of his intended bid], except for the unsupported statements in his affidavit----” (Admin. Rec., Vol. I, Exh. 3, Tab D, p. 3.) The Division Commander concurred and denied Plaintiffs request to correct. (Admin.Rec., Vol. I., Exh. 3, Tab D.) This lawsuit ensued after the Comptroller General denied McKnight Construction’s protest.

Judicial review of the Corps’ decision is authorized by 5 U.S.C. § 701, et seq. Section 706 defines the scope of judicial review.3 The Court previously addressed the scope of review under § 706. (888 F.Supp. at 1181-82.) The Defendants seize upon the language “arbitrary” and “capricious” found in § 706(2)(A) and “no rational basis” found in cases interpreting and applying § 706, e.g., Kinnett Dairies, Inc. v. Farrow, 580 F.2d 1260, 1271 (5th Cir.1978), in support of their argument that Plaintiffs inability to corroborate McKnight’s affidavit with his bid work papers supplied a rational basis for the Corps’ decision. The fervor with which this argument has been advanced4 compels the following added observations regarding § 706.

Executive agencies delegated responsibility for awarding and administering government contracts occupy the best position to resolve procurement disputes. A civil action pursuant to 5 U.S.C. § 701, et seq. charges the district court with a duty to provide independent judicial review of the agency’s decision-making process, however. Section 706 indeed circumscribes the scope of judicial review, including ways not mentioned by the Defendants. (See note 3, supra.) As previously indicated, the limited scope of judicial review effects an exacting burden upon a disappointed bidder seeking a judicial remedy. (888 F.Supp. at 1182.) That burden is not insurmountable, nor is it as onerous as the tenor of Defendants’ arguments implies. Section 706(2)(A)’s use of the terms “arbitrary” and “capricious” and the courts’ use of “no rational basis” (or “no reasonable basis”) are not intended to reduce judicial review under § 706 to a hollow formality. These terms narrow the parameters of judicial review to ensure that in providing the critical and probing examination called for by the [1189]*1189unequivocal language of the statute,5

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Related

McKnight Construction Co. v. Department of Defense
85 F.3d 565 (Eleventh Circuit, 1996)

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Bluebook (online)
888 F. Supp. 1186, 1995 U.S. Dist. LEXIS 8323, 1995 WL 361790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcknight-construction-co-v-perry-gasd-1995.