Pacificorp Capital, Inc. v. State, Through Division of Administration, Office of State Purchasing

647 So. 2d 1122, 92 La.App. 1 Cir. 1729, 1994 La. App. LEXIS 3413
CourtLouisiana Court of Appeal
DecidedAugust 11, 1994
StatusPublished
Cited by19 cases

This text of 647 So. 2d 1122 (Pacificorp Capital, Inc. v. State, Through Division of Administration, Office of State Purchasing) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacificorp Capital, Inc. v. State, Through Division of Administration, Office of State Purchasing, 647 So. 2d 1122, 92 La.App. 1 Cir. 1729, 1994 La. App. LEXIS 3413 (La. Ct. App. 1994).

Opinion

647 So.2d 1122 (1994)

PACIFICORP CAPITAL, INC.
v.
STATE of Louisiana, Through the DIVISION OF ADMINISTRATION, OFFICE OF STATE PURCHASING.

92 CA 1729.

Court of Appeal of Louisiana, First Circuit.

August 11, 1994.

*1123 Anne J. Crochet, Baton Rouge, for plaintiff-appellant Pacificorp Capital, Inc.

Winston G. Decuir, Baton Rouge, for intervenor-appellant Delgado Community College.

Gordon Pugh, Baton Rouge, for defendant-appellee Intern. Business Machines Corp.

Kevin Torres, Baton Rouge, for defendant-appellee State.

Before LOTTINGER, C.J., and WATKINS, SHORTESS, CARTER, CRAIN, LeBLANC, FOIL, WHIPPLE, FOGG, PITCHER and PARRO, JJ.

*1124 FOGG, Judge.

This is an appeal by an aggrieved bidder who challenges an administrative agency's determination that a bid submitted by the lowest bidder on a public contract was responsive and also challenges the validity of the contract subsequently entered into by the successful bidder and the agency. The trial court affirmed the administrative rulings. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The pertinent facts are not in dispute. On November 16, 1990, Delgado Community College (Delgado) issued an Invitation for Bid (ITB) for the purchase of computer equipment. An addendum to the ITB was issued by Delgado on December 4, 1990. Pacificorp Capital, Inc. (PCC) and International Business Machines Corporation (IBM) submitted bids to Delgado. The bids were opened on April 1, 1991. Delgado recommended IBM as the successful bidder. On April 12, 1991, a state procurement support team (PST) approved Delgado's selection of IBM as the successful bidder for the purchase of the computer equipment. By letter dated April 16, 1991, the Director of State Purchasing advised Delgado of the approval of Delgado's selection of IBM. On April 25, 1991, PCC invoked the administrative review provided for by La.R.S. 39:1671. It protested Delgado's evaluation of the bids and the intent of Delgado to award the bid to IBM on the basis that IBM's bid was not responsive to the ITB.

On May 2, 1991, before a hearing was scheduled on PCC's April 25 protest, Delgado and IBM executed an agreement for the purchase of the computer equipment. On May 15, 1991, PCC filed a protest of the May 2, 1991 action. An administrative hearing on both PCC's April 25, 1991 protest and its May 15, 1991 protest was held on July 16, 1991. By written decision dated October 11, 1991, the Hearing Officer denied both the April 25, 1991 protest and the May 15, 1991 protest.

PCC protested the Hearing Officer's October 11, 1991 determination to the Commissioner of Administration. The Commissioner denied the appeal of PCC, thereby affirming the Hearing Officer's decision. PCC then appealed the decision of the Commissioner to the Nineteenth Judicial District Court. The trial court affirmed the Commissioner's decision. From this ruling, PCC appeals.

ISSUES

PCC contends that IBM's bid and the subsequent contract are not responsive to the ITB. Specifically, PCC contends that IBM's bid response is nonresponsive to Sections 1.4.4, 1.4.8, 1.4.9, 1.5.3 and 3.2, and Part IV of the ITB. As to the contract ultimately entered into by Delgado and IBM, PCC urges that the contract resolution, the educational discount, and the end-user certification provisions, as well as the alleged ability of IBM to unilaterally change prices under the contract, render it unlawful.

DISCUSSION

Both the Data Processing Procurement Code, La.R.S. 39:196 et seq., and the Louisiana Procurement Code, La.R.S. 39:1551 et seq., apply to the procurement of data processing equipment and services; however, the Data Processing Procurement Code supersedes any conflicting statutory provisions of the Louisiana Procurement Code. La.R.S. 39:198 and 200M; Pacificorp Capital, Inc. v. State, 604 So.2d 710 (La.App. 1st Cir.1992).

The Data Processing Procurement Code provides that, except for small purchases and emergency situations, all procurement of computer hardware shall be by "competitive sealed bidding." La.R.S. 39:199. "Competitive sealed bidding" is defined therein as "a method of procurement which strictly follows the requirements set forth in Chapter 17 of Title 39 [which is the Louisiana Procurement Code] except for such variations as are specifically established herein." La.R.S. 39:197(6).

The Louisiana Procurement Code provides that competitive sealed bidding shall be initiated by the issuance of an invitation to bid containing all contractual terms and conditions applicable to the procurement, as well as the evaluation criteria to be used. La.R.S. *1125 39:1594B and E. A procurement support team assists the state in evaluating bids and negotiating the contract with the apparently successful bidder. La.R.S. 39:2001. The negotiation of contracts after the evaluation of bids is one of the primary differences between the procurement of data processing equipment and other procurement contracts subject to the Louisiana Procurement Code. Pacificorp Capital, Inc. v. State, 604 So.2d 710 (La.App. 1st Cir.1992).

The contract shall be awarded with reasonable promptness to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. La.R.S. 39:1594G. A "responsive bidder" is one who submitted a bid which conforms in all substantive respects to the invitation to bid. La.R.S. 39:1591(8). It is well settled that not every deviation between a bid invitation and a bid renders the bid nonresponsive; it is only when there is a substantial deviation that the bid must be rejected as nonresponsive. Where there is a deviation between the bid proposal and the bid which is considered insubstantial, there is valid competitive bidding, and contracts based thereon are not void. Bilongo v. Department of Health and Human Resources, 428 So.2d 1021 (La.App. 1st Cir.1983). The decision of whether or not a bid is responsive lies with the agency.

The standard of judicial review of a decision of the agency is set forth in La.R.S. 49:964G. That statute provides that the court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are (1) in violation of constitutional or statutory provisions; (2) in excess of the agency's statutory authority; (3) made upon unlawful procedure; (4) affected by error of law; (5) arbitrary, capricious, or an abuse of discretion; or (6) manifestly erroneous.

The manifest error test of La.R.S. 49:964G(6) is used in reviewing the facts as found by the administrative tribunal; the arbitrary and capricious test of La.R.S. 49:964G(5) is used in reviewing the administrative tribunal's conclusions and the exercise of discretion. Save Ourselves v. La. Environ. Cont. Com'n, 452 So.2d 1152 (La.1984). A conclusion of a public body is capricious when the conclusion has no substantial evidence to support it, or the conclusion is contrary to substantiated competent evidence. The word "arbitrary" implies a disregard of evidence or of the proper weight thereof. Coliseum Square Ass'n v. New Orleans, 544 So.2d 351 (La.1989). One purpose of so limiting the scope of review is to prevent the reviewing court from asserting the power delegated to the agency by the legislature. Buras v. Board of Trustees of Police Pension, 367 So.2d 849 (La.1979).

PROTEST OF THE AWARD

PCC insists that IBM's bid is nonresponsive to Sections 1.4.4, 1.4.8, 1.4.9, 1.5.3 and 3.2, and Part IV of the ITB.

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647 So. 2d 1122, 92 La.App. 1 Cir. 1729, 1994 La. App. LEXIS 3413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacificorp-capital-inc-v-state-through-division-of-administration-lactapp-1994.