San Joaquin Helicopters v. Department of Forestry

3 Cal. Rptr. 3d 246, 110 Cal. App. 4th 1549, 2003 Daily Journal DAR 8663, 2003 Cal. Daily Op. Serv. 6943, 2003 Cal. App. LEXIS 1183
CourtCalifornia Court of Appeal
DecidedJuly 2, 2003
DocketC041310
StatusPublished
Cited by6 cases

This text of 3 Cal. Rptr. 3d 246 (San Joaquin Helicopters v. Department of Forestry) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Joaquin Helicopters v. Department of Forestry, 3 Cal. Rptr. 3d 246, 110 Cal. App. 4th 1549, 2003 Daily Journal DAR 8663, 2003 Cal. Daily Op. Serv. 6943, 2003 Cal. App. LEXIS 1183 (Cal. Ct. App. 2003).

Opinion

*1553 Opinion

MORRISON, J.

San Joaquin Helicopters appeals from denial of its petition for a writ of mandate challenging the validity of an interim contract between State of California (the State) Department of Forestry and Fire Protection (CDF) and DynCorp Technical Services for maintenance services on aircraft used in fighting fires. San Joaquin Helicopters contends CDF and the Department of General Services (DGS) had no authority to enter into the interim contract while its bid protest was pending; the State’s reliance on section 6.05 of the State Contracting Manual to authorize the interim contract was misplaced as the manual was not adopted as a regulation pursuant to the Administrative Procedure Act; and Government Code section 14615.1, which purports to exempt DGS from the requirements of the Administrative Procedure Act when acting under the State Contracting Manual, is invalid as it was enacted in violation of the single-subject rule of article IV, section 9 of the California Constitution.

We conclude section 6.05 of the State Contracting Manual gave CDF and DGS authority to enter into the interim contract while the bid protest was pending. Government Code section 14615.1 exempted DGS, in actions taken with respect to the State Contracting Manual, from the requirements of the Administrative Procedure Act and its enactment did not violate the single-subject rule. We affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

CDF had a contract with San Joaquin Helicopters for maintenance services for aircraft used to fight fires. The contract was scheduled to expire November 30, 2001. In May 2001, CDF issued a request for proposals for a new maintenance contract. San Joaquin Helicopters and DynCorp submitted responses. CDF rejected both proposals as nonresponsive and San Joaquin Helicopters and DynCorp resubmitted proposals. In late August 2001, CDF issued a notice of intent to award the contract to DynCorp.

San Joaquin Helicopters protested the proposed award. After various delays, a hearing on the bid protest was scheduled for early December, after the existing contract was to expire. San Joaquin Helicopters offered to extend the existing contract at an increased rate. Instead, CDF and DGS decided to enter into an interim sole source contract with DynCorp for the period of the protest. The State’s authority for entering into this contract was section 6.05 of the State Contracting Manual, which permits a sole source contract while a bid protest is pending under specified circumstances. San Joaquin Helicopters formally objected to this interim contract.

On November 19, 2001, San Joaquin Helicopters filed a petition for a writ of mandate directing CDF to refrain from awarding a new contract while the *1554 bid protest was pending and to extend the existing contract with San Joaquin Helicopters. The petition also sought a temporary restraining order to prevent the existing contract from expiring. The trial court issued an alternative writ, but denied the request for a temporary restraining order.

On November 26, 2001, San Joaquin Helicopters offered to extend its soon-to-expire contract at the current rates. The next day, San Joaquin Helicopters again applied for a temporary restraining order to restrain CDF from awarding a sole source contract to DynCorp. The trial court again denied the request.

CDF entered into an interim sole source contract with DynCorp.

San Joaquin Helicopters amended its petition for a writ of mandate to compel CDF to refrain from making payment on the interim contract and to recover any funds paid on the contract. San Joaquin Helicopters sought a declaration that the contract was void as being in excess of the State’s authority to contract. In addition, San Joaquin Helicopters sought attorney fees.

San Joaquin Helicopters argued that CDF and DGS had no authority to enter into a sole source contract without competitive bidding because no regulations permitting such a contract had been adopted pursuant to the Administrative Procedure Act. Government Code section 14615.1, which purported to exempt DGS from the requirements of the Administrative Procedure Act, was invalid because it was enacted as part of a bill concerning the disposal of surplus property and so violated the single-subject rule. Even if there was authority for entering into the sole source contract, CDF and DGS failed to comply with the requirements of section 6.05 of the State Contracting Manual and Executive Order No. W-103-94. Under section 6.05, a sole source contract is permitted during a bid protest only if the existing contractor does not wish to continue at the same or lower rates, and San Joaquin Helicopters did wish to continue at the same rates. The executive order permits a sole source contract only during an emergency or if the public health and safety so requires. Neither condition was present here.

The trial court denied the petition. It found it was a close call whether Senate Bill No. 1645 (1997-1998 Reg. Sess.) (Senate Bill 1645), which enacted Government Code section 14615.1, violated the single-subject rule, but in deference to the Legislature, it concluded there was no constitutional violation. The court found CDF and DGS had authority under the State Contracting Manual to enter into the interim contract.

*1555 DISCUSSION

I *

n

Generally, state agencies are required to secure competitive bids for contracts for services. (Pub. Contract Code, § 10340.) A service contract may be awarded without competitive bidding if it meets the conditions prescribed by DGS pursuant to section 10348, subdivision (a) of the Public Contract Code. (Id., § 10340, subd. (a).) Regulations authorized by section 10348 were adopted and then repealed. (Cal. Code Regs., tit. 2, §§ 1896.200-1896.203.)

In entering into a single source contract with DynCorp during the bid protest, the State acted pursuant to section 6.05 of the State Contracting Manual, which permits a sole source contract in that situation “[i]f there is no existing contractor or if the contractor does not wish to continue.” San Joaquin Helicopters contends that since section 6.05 of the State Contracting Manual was not adopted pursuant to the Administrative Procedure Act, it is without legal effect. (See United Systems of Arkansas, Inc. v. Stamison (1998) 63 Cal.App.4th 1001, 1008 [74 Cal.Rptr.2d 407] [provision of State Administrative Manual is a regulation subject to Administrative Procedure Act].) The State and DynCorp contend section 6.05 of the State Contracting Manual did not have to comply with the Administrative Procedure Act because it was expressly exempted by Government Code section 14615.1. San Joaquin Helicopters contends Government Code section 14615.1, which was originally enacted as part of Senate Bill 1645 in the 1998 session, is unconstitutional because its enactment violated the single-subject rule.

The single-subject rule is set forth in article IV, section 9 of the California Constitution, which provides in part as follows: “A statute shall embrace but one subject, which shall be expressed in its title.

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3 Cal. Rptr. 3d 246, 110 Cal. App. 4th 1549, 2003 Daily Journal DAR 8663, 2003 Cal. Daily Op. Serv. 6943, 2003 Cal. App. LEXIS 1183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-joaquin-helicopters-v-department-of-forestry-calctapp-2003.