Mercedes Lighting and Electrical Supply, Inc. v. DEPT. GEN. SERV.

560 So. 2d 272, 1990 WL 43145
CourtDistrict Court of Appeal of Florida
DecidedApril 16, 1990
Docket89-244
StatusPublished
Cited by9 cases

This text of 560 So. 2d 272 (Mercedes Lighting and Electrical Supply, Inc. v. DEPT. GEN. SERV.) 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
Mercedes Lighting and Electrical Supply, Inc. v. DEPT. GEN. SERV., 560 So. 2d 272, 1990 WL 43145 (Fla. Ct. App. 1990).

Opinion

560 So.2d 272 (1990)

MERCEDES LIGHTING AND ELECTRICAL SUPPLY, INC., Appellant,
v.
STATE of Florida, DEPARTMENT OF GENERAL SERVICES and Marpan Supply Company, Inc., Appellees.

No. 89-244.

District Court of Appeal of Florida, First District.

April 16, 1990.

*273 M. Christopher Bryant of Oertel, Hoffman, Fernandez & Cole, P.A., Tallahassee, for appellant.

Susan B. Kirkland, Gen. Counsel, Dept. of General Services, Tallahassee, for appellee/Dept. of General Services.

Stephen J. Kubik, Tallahassee, for appellee/Marpan Supply Co., Inc.

SMITH, Judge.

Mercedes Lighting and Electrical Supply, Inc. appeals a final order of an administrative hearing officer awarding attorney's fees to the Department of General Services and Marpan Supply Company, Inc., as a sanction for Mercedes' filing of a frivolous bid protest. We reverse.

The Department issued an invitation to bid (ITB) on a twenty-four month contract to supply light bulbs and lamps for all state agencies. There were four bidders, including Mercedes and Marpan. Mercedes was the low bidder, but its bid was rejected because it failed to include a list of in-state service representative(s) as required in the ITB. That portion of the ITB requiring in-state service representative(s) provides:

Service
Availability of in-state representation to assist in proper application and to resolve technical problems is a requirement of this bid and the resulting contract. Bidders *274 must, therefore, include as part of the bid a list of in-state service representative(s) who will be responsible for providing these services during the term of the proposed contract. Failure to comply with this requirement will result in disqualification of bid... .
The coordination effort will be handled by the specific individual designated on the ordering instruction sheet.

The ordering instruction sheet of the ITB required designation of a product information contact, a person in the bidder's organization who could be contacted regarding any contract "which may result from this bid." Mercedes designated Victor J. LaPorta, its vice president. The ITB did not include a form to utilize in identifying in-state service representative(s).

When the Department indicated its intent to award the contract to Marpan because Mercedes' bid was nonresponsive for failure to include a list of in-state service representatives, Mercedes timely filed a protest. With its protest, Mercedes submitted its list of in-state service representatives, which included the names of some of the lamp manufacturer's sales employees. Mercedes asserted that it is the practice within the lamp industry to utilize lamp manufacturer's employees as service representatives. It was Mercedes' contention, among other things, that it had filed a bid which substantially complied with all of the material provisions of the I; that the requirement that a list of in-state service representatives be provided is not a material term of the ITB because the nature of the commodity provided — lamp bulbs — rarely requires "service" of the type contemplated by the availability of "in-state service representatives"; and thus, Mercedes' late submission of the list of in-state service representatives did not prejudice or injure any other bidder or give Mercedes an unfair advantage in the bidding process.[1] Mercedes cited and relied upon rule 13A-1.002, Florida Administrative Code, which at the time of this bid protest provided in pertinent part:

(10) Right to Waive Minor Irregularities — The agency shall reserve the right to waive any minor irregularities in an otherwise valid bid/proposal. A minor irregularity is a variation from the invitation to bid/request for proposal terms and conditions which does not affect the price of the bid/proposal, or give the bidder or offeror an advantage or benefit not enjoyed by other bidders or offerors, or does not adversely impact the interests of the agency. Variations which are not minor cannot be waived.

The ITB also included a standard provision for waiver of minor irregularities.

Marpan intervened in the administrative proceeding. The Department did not move to dismiss or strike Mercedes' petition on the grounds that it was baseless or filed for an improper purpose. Instead, the cause proceeded to a full formal hearing under section 120.57(1), Florida Statutes.

It is undisputed that only one in-state service representative needed to be designated in the bid. Mercedes introduced testimony that Victor LaPorta was an expert in lamp sales and service and in fact had worked for the lamp manufacturer. This testimony was introduced in support of Mercedes' contention that LaPorta's name would have sufficed as an in-state service representative. Also, Department personnel testified that in the past when they needed service or technical assistance for the previous contract, they contacted the contractor, not the in-state service representative. Further, the Department did not attempt to verify the qualifications of any person listed as an in-state service representative. This evidence went toward Mercedes' contention that the omission of an in-state service representative was a waivable minor irregularity.

*275 Mercedes also contended before the hearing officer that this was not a situation where bidders had to hire outside persons to use as service representatives. A bidder gained no advantage by not initially submitting an in-state service representative list. In addition, a bidder gained no advantage of price or time, and did not act contrary to the state's best interests, by submitting the list after bid opening. In support of all of its contentions, Mercedes submitted the testimony of several witnesses and introduced numerous exhibits.

The hearing officer found that Mercedes' inclusion of a product information contact (Victor J. LaPorta) could not reasonably be construed as the designation of an in-state service representative as required by the I. Rejecting Mercedes' contention that its bid was responsive to the I, the hearing officer commented that Mercedes' proof was inherently improbable and unworthy of belief. With respect to Mercedes' contention that its failure to include a list of in-state service representatives with its bid was a minor irregularity because the demand for technical assistance under the state contract was not frequent, the hearing officer found that although the frequency or infrequency of the demand for technical assistance may be a matter germane to a timely challenge to the propriety of the I requirement that a list of in-state service representatives be included in the bid, Mercedes did not protest such conditions in a timely manner, and thus waived its right to a chapter 120 proceeding to contest its priority.

The hearing officer found that to allow Mercedes to correct a deficiency after bid opening would accord Mercedes an advantage not enjoyed by other bidders. This is so, he reasoned, because Mercedes could revisit its bid on bid opening, refuse to supply the required list, and thereby effectively disqualify itself and withdraw its bid, whereas other bidders who timely submitted their lists would not have an opportunity to revisit or withdraw their bids, but would be held to the provision of the I prohibiting such withdrawal for ninety days after bid opening.

Finally, the hearing officer found that Mercedes' protest was "frivolous," as it presented no justifiable question for resolution and was without basis in fact or in law.

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Bluebook (online)
560 So. 2d 272, 1990 WL 43145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercedes-lighting-and-electrical-supply-inc-v-dept-gen-serv-fladistctapp-1990.