Okada Trucking Co. v. Board of Water Supply

62 P.3d 631, 101 Haw. 68, 2002 Haw. App. LEXIS 395
CourtHawaii Intermediate Court of Appeals
DecidedDecember 30, 2002
DocketNo. 22956
StatusPublished
Cited by2 cases

This text of 62 P.3d 631 (Okada Trucking Co. v. Board of Water Supply) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Okada Trucking Co. v. Board of Water Supply, 62 P.3d 631, 101 Haw. 68, 2002 Haw. App. LEXIS 395 (hawapp 2002).

Opinion

Opinion of the Court by

WATANABE, J.

This ease is before us on remand from the Hawaii Supreme Court with instructions that we “consider on the merits the points of error” raised by Intervenor -Respondent-Appellant/Respondent-Petitioner Inter Island Environmental Services, Inc. (Inter Island) in its application for judicial review of a decision entered on November 10, 1999 by a Department of Commerce and Consumer Affairs, State of Hawaii hearings officer, terminating an award by Respondent-Appel-lee/Respondent-Respondent Board of Water Supply, City and County of Honolulu (BWS) [70]*70to Inter Island of a contract to construct a booster station in Kaluanui, 0‘ahu (the Project).

The lengthy background of this case is laid out in Okada Trucking Co. v. [BWS], 97 Hawai'i 544, 40 P.3d 946 (App.2001) (Okada I), and Okada Trucking Co. v. [BWS], 97 Hawai'i 450, 40 P.3d 73 (2002) (Okada II), so we will not repeat it here, except to note that there is no dispute that: (1) Inter Island, in submitting the lowest bid ($1,349,160.00) for the Project, failed to list a plumbing subcontractor, as required by Hawai'i Revised Statutes (HRS) § 103D-302(b) (Supp.1999)1; (2) the value of the work to be performed by Inter Island’s plumbing subcontractor, who was retained after bid opening, was $8,300.00, $5,191.60 less than one percent of the total amount bid by Inter Island for the Project; and (3) BWS, applying the one percent exception set forth in HRS § 103D-302(b), determined that it was in the public’s best interest to waive Inter Island’s failure to list the plumbing subcontractor and accept Inter Island’s lowest bid for the Project.

Inter Island claims that the hearings officer erred in terminating BWS’s contract award on grounds that: (1) Inter Island was not a “[responsible bidder,” as defined by HRS § 103D-104 (1993) and Hawaii Administrative Rules (HAR) § 3-120-2,2 because it did not have, at the time of bid opening, a properly licensed plumbing subcontractor “lined up” and contractually bound to perform the portions of the. contract that required a licensed plumbing subcontractor; (2) Inter Island’s bid was “nonresponsive” under HRS § 103D-104 (1993)3 because, at the time of its submission, (a) the bid faded to list the name of an appropriate licensed plumbing subcontractor who would be doing the required plumbing subcontract work for the Project, and (b) Inter Island did not have a subcontractor lined up and contractually bound to perform the required plumbing work for the Project; and (3) BWS violated the Hawaii Public Procurement Code, HRS chapter 103D (the Procurement Code), by waiving the subcontractor listing requirement pursuant to HRS § 103D-302(b) and HAR § 3-122-21(a)(8).4

We agree with Inter Island’s first and third contentions but disagree with Inter Island’s second contention.

DISCUSSION

A. Standard of Review

The legal' issue we must decide in this case involves the proper interpretation of HRS § 103D-302, which provides, in relevant part, as follows:

[71]*71Competitive sealed bidding, (a) Contracts shall be awarded by competitive sealed bidding except as otherwise provided in section 103D-301. Awards of contracts by competitive sealed bidding may be made after single or multi-step bidding. Competitive sealed bidding does not include negotiations with bidders after the receipt and opening of bids. Award is based on the criteria set forth in the invitation for bids.
(b) An invitation for bids shall be issued, and shall include a purchase description and all contractual terms and conditions applicable to the procurement. If the invitation for bids is for construction, it shall specify that all bids include the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in the performance of the contract and the nature and scope of the work to be performed by each. Construction bids that do not comply with this requirement may be accepted if acceptance is in the best interest of the State and the value of the work to be performed by the joint contractor or subcontractor is equal to or less than one per cent of the total bid amount.
[[Image here]]
(d) Bids shall be opened publicly in the presence of one or more witnesses, at the time and place designated in the invitation for bids. The amount of each bid and other relevant information specified by rule, together with the name of each bidder shall be recorded. The record and each bid shall be open to public inspection.
(e) Bids shall be unconditionally accepted without alteration or correction, except as authorized in this, chapter or by rules adopted by the policy board.
(f) Bids shall be evaluated based on the requirements set forth in the invitation for bids. These requirements may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bids.
(g) Con'ection or withdrawal of inadvertently erroneous bids before or after award, or cancellation of invitations for bids, awards, or contracts based on such bid mistakes, shall be permitted in accordance with rules adopted by the policy board. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the public or to fair competition shall be permitted. Except as otherwise provided by rule, all decisions to permit the correction or withdrawal of bids, or to cancel aivards or contracts based on bid mistakes, shall be supported by a written determination made by the chief procurement officer or head of a purchasing agency.
(h) The contract shall be awarded with reasonable promptness by written notice to the loivest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alpha, Inc. v. Board of Water Supply
542 P.3d 1259 (Hawaii Intermediate Court of Appeals, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
62 P.3d 631, 101 Haw. 68, 2002 Haw. App. LEXIS 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/okada-trucking-co-v-board-of-water-supply-hawapp-2002.