The Mississippi State Port Authority at Gulfport v. Eutaw Construction Company, Inc.

CourtMississippi Supreme Court
DecidedJune 9, 2022
Docket2020-IA-00881-SCT
StatusPublished

This text of The Mississippi State Port Authority at Gulfport v. Eutaw Construction Company, Inc. (The Mississippi State Port Authority at Gulfport v. Eutaw Construction Company, Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Mississippi State Port Authority at Gulfport v. Eutaw Construction Company, Inc., (Mich. 2022).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2020-IA-00881-SCT

THE MISSISSIPPI STATE PORT AUTHORITY AT GULFPORT

v.

EUTAW CONSTRUCTION COMPANY, INC.

DATE OF JUDGMENT: 07/22/2020 TRIAL JUDGE: HON. WINSTON L. KIDD TRIAL COURT ATTORNEYS: CHRISTOPHER DANIEL MEYER DORSEY R. CARSON, JR. LOWRY CHRISTOPHER LOMAX M. BRANT PETTIS JAMES E. LAMBERT, III JAMES KENNETH WETZEL BEN H. STONE DOUGLAS T. MIRACLE MATTHEW WARD McDADE BRYAN CARL SAWYERS COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANT: M. BRANT PETTIS BEN H. STONE MARK E. BOND JAMES E. LAMBERT, III ATTORNEYS FOR APPELLEE: DORSEY R. CARSON, JR. ERIC F. HATTEN LINDSAY K. ROBERTS KATHRYN P. GOFF KELLI M. SLATER NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES DISPOSITION: REVERSED AND RENDERED - 06/09/2022 MOTION FOR REHEARING FILED: MANDATE ISSUED: BEFORE KITCHENS, P.J., MAXWELL AND CHAMBERLIN, JJ.

CHAMBERLIN, JUSTICE, FOR THE COURT:

¶1. This matter involves the award of a construction contract by the Mississippi State Port

Authority at Gulfport (the MSPA) to the low-bidder, W.C. Fore Trucking, Inc. (Fore). Eutaw

Construction Company, Inc. (Eutaw), another bidder, challenged that award, and the Circuit

Court of the First Judicial District of Hinds County reversed the MSPA’s decision to award

the contract to Fore. The MSPA appealed. Finding error, this Court reverses and renders the

decision of the circuit court.

FACTS AND PROCEDURAL HISTORY

¶2. The Mississippi Legislature created the MSPA as an agency responsible for the

development and operation of the state port located in Gulfport, Mississippi. See Miss. Code

Ann. § 59-5-1 through -69 (Rev. 2013). Following the aftermath of Hurricane Katrina and

pursuant to its statutory responsibility, the MSPA undertook a massive restoration of the state

port consisting of various construction projects. One of those projects was the West Pier +25

Fill-Phase 1, Project No. 005 (the Project), the construction project at issue here.1

¶3. The MSPA issued a bid solicitation for the Project on February 1, 2012. The deadline

to submit a bid was 10:00 a.m. on March 2, 2012. On February 24, 2012, the MSPA issued

Addendum No. 1 to the bid solicitation. This addendum doubled the quantity of riprap and

aggregate base course for the purpose of constructing a temporary haul ramp for the Project.

Additionally, Addendum No. 1 required bidders to submit bids on a revised bid form, which

1 The initial purpose of the Project was to raise the elevation of the west pier at the state port to twenty-five feet above the mean sea level.

2 recognized the addendum’s change to the bid solicitation.2

¶4. On March 6, 2012, the MSPA publically opened the bid envelopes submitted for the

Project. Among the eleven bidders were Eutaw and Fore. Fore’s bid was $19,956,587.98,

which was the lowest bid. Eutaw submitted the second-lowest bid of $22,905,525.

Unbeknownst to the other bidders, however, the MSPA wrote a letter to Fore on March 7,

2012, informing Fore of errors in its bid.

¶5. The errors identified by the MSPA in its March 7, 2012 letter are recited here

verbatim:

1) The original Bid Form, instead of the amended Bid Form that was provided to the bidders, was used by Fore Trucking;

2) The calculations of the cost for certain line items in the Bid Form are incorrect; and

3) The sum of the line item amounts in the Bid Form is significantly less than the “TOTAL AMOUNT OF BASE BID” shown in the Bid Form.

In the letter, the MSPA recited the relevant rule from the Procurement Manual of the

Mississippi Department of Finance and Administration, Rule 3.106.12.4, that governs the

MSPA’s evaluation and decision after the opening of sealed bids and the discovery of errors

in a submitted bid but before the time of the award of the contract. Rule 3.106.12.4 provides

as follows:

(1) Minor Informalities

2 The original bid form required 2,200 square yards of riprap and 2,500 square yards of aggregate base course. The revised bid form, which incorporated Addendum No. 1, increased the bid solicitation requirements to 4,400 square yards of riprap and 5,000 square yards of aggregate base course.

3 Minor informalities are matters of form rather than substance evident from the bid document, or insignificant mistakes that can be waived or corrected without prejudice to other bidders; that is, the effect on price, quantity, quality, delivery, or contractual conditions is negligible. The Agency Procurement Officer shall waive such informalities or allow the bidder to correct them depending on which is in the best interest of the State. Examples include the failure of a bidder to:

(a) Return the number of signed bids required by the Invitation for Bids;

(b) Sign the bid, but only if the unsigned bid is accompanied by other material indicating the bidder’s intent to be bound;

(c) Failure to submit literature or samples with bid provided that such literature or samples shall be received prior to any award being made; or

(d) Acknowledge receipt of an amendment to the Invitation for Bids, but only if:

(I) It is clear from the bid that the bidder received the amendment and intended to be bound by its terms; or

(ii) The amendment involved had a negligible effect on price, quantity, quality, or delivery.

(2) Mistakes Where Intended Correct Bid Is Evident

If the mistake and the intended correct bid are clearly evident on the bid document, the bid shall be corrected on the intended correct bid and may not be withdrawn. Examples of mistakes that may be clearly evident on the bid document are typographical errors, errors in extending unit prices, and mathematical errors.

(3) Mistakes Where Intended Correct Bid is Not Evident

A bidder may be permitted to withdraw a low bid if:

(a) A mistake is clearly evident on the bid document, but the intended correct bid is not similarly evident; or

4 (b) The bidder submits proof of evidentiary value which clearly and convincingly demonstrates that a mistake was made.

12 Miss. Admin. Code Pt. 6, R. 3.106.12.4 (adopted Jan. 1, 2018), Westlaw.

¶6. As stated previously, the first error identified by the MSPA involved Fore’s

submitting its bid on the original bid form instead of the revised bid form as required by

Addendum No. 1. This error caused Fore’s bid to include incorrect quantities for riprap and

aggregate base course.3 Fore, however, affirmatively indicated in its bid that it received

Addendum No. 1. Specifically, Fore recognized the addendum by hand-writing “1” and

“2/24/2012” in a specified blank on the bid form that asked for bidders to note any addenda

that have been received by that bidder. For this reason, the MSPA determined in its letter

that “it is Fore Trucking’s position that its item total amounts for Riprap and the Aggregate

Base Course were based on the quantities specified in the amended Bid Form (4,400 SY and

5,000 SY, respectively).” (Emphasis added.) The MSPA determined that

Based on this representation from Fore Trucking that it intended to bid $159,732.50 for 4,400 SY of Riprap and $35,000.00 for 5,000 SY of Aggregate Base Course, the MSPA finds under Rule 3.106.12.4(1) of the Procurement Manual that it is in the State’s best interest to allow Fore Trucking to correct this informality by resubmitting its bid on the amended Bid Form.

The MSPA further decided that the correction of this error would not prejudice the other

bidders. The total bid for these items, $159,732.50 and $35,000, were the same on both the

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