White's Farm Dairy, Inc. v. City of New Bedford

10 Mass. L. Rptr. 348
CourtMassachusetts Superior Court
DecidedAugust 25, 1999
DocketNo. B 9801481
StatusPublished

This text of 10 Mass. L. Rptr. 348 (White's Farm Dairy, Inc. v. City of New Bedford) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White's Farm Dairy, Inc. v. City of New Bedford, 10 Mass. L. Rptr. 348 (Mass. Ct. App. 1999).

Opinion

Garsh, J.

White’s Farm Dairy, Inc. (“White’s”) alleges that the City of New Bedford (“City”) improperly awarded a contract for dairy products for public schools to its competitor Baby G Farms, Inc. (“Baby G”) in violation of the Uniform Procurement Act, G.L.c. 30B, §§1 et seq. The complaint, brought pursuant to G.L.c. 231A, seeks to have the contract declared invalid as well as injunctive relief and compensatory damages. Because the contract period had expired prior to trial, White’s now seeks only the cost of its bid preparation as well as lost profits. A jury-waived trial was held at which three witnesses testified, several exhibits were introduced, and the parties stipulated to numerous facts.

FINDINGS OF FACT

Based on all the credible evidence and reasonable inferences drawn from that evidence, the court finds the following facts:

White’s is a corporation organized under the laws of the Commonwealth of Massachusetts with a usual place of business in Acushnet, Massachusetts. Baby G is a corporation organized under the laws of the Commonwealth of Massachusetts with a usual place of business in Lakeville, Massachusetts. The City is a corporate body politic of the Commonwealth of Massachusetts and a political subdivision located in Bristol County.

On May 15, 1998, the City publicly invited the submission of sealed bids for the provision of milk and other milk products for the New Bedford public schools. The City did so byway of a document entitled “Invitation to Bid” and identified as “Invitation No. [349]*349317" (the “Invitation”). The Invitation states that ”[a]ll bids are subject to the terms and conditions included in bid package." The City reserved the right to reject any and all bids. In the Invitation, the City stated that sealed bids on a prescribed form would be received and verified on June 5, 1998 at 3:00 p.m. and would be publicly opened and read at that time.

The Invitation contains inconsistent and confusing references with respect to the period of the contract. Page one of the Invitation indicates that the City was soliciting bids for dairy products for the School Department Food Service Division, “School year 9/1/98 thru 6/30/99.” Page three of the Invitation, under the heading “Milk Contract,” states that “Vendor is expected to pick up milk during vacation/summer as arranged.” Page four of the Invitation states that “[t]he price quoted will be firm during the month of July, the first month of delivery.” That same page also states that “(m]ilk is to be delivered to 29 schools through the city of New Bedford, MA, as per attached." The attachment lists eleven schools as delivery sites and an additional eighteen possible school locations for delivery. Page five of the Invitation, under the section heading “New Bedford Public Schools Food Service Contract Agreements,” states in the first paragraph: “Provided is a copy of the specification sheets for contract period — July 1, 1998 thru June 30, 1999.” One of the specifications is that the Food Service Department will consider it a violation of the contract and will go to another vendor “[i]f prices are not held for 12 months.”

When the City issued its Invitation, it intended the winning vendors to provide milk and other dairy products to the New Bedford Public Schools for a twelvemonth period beginning June 29, 1998, the first day of summer school. The amount required during the summer is significantly lower than during the school year, and milk is delivered to only two schools during the summer months. Based on past experience, White’s assumed, when it submitted its bid, that the winner would be supplying some dairy products during the summer of 1998. There is no evidence as to what other bidders assumed.

Page two of the Invitation is a four-column form entitled “Milk Specifications.” The first column lists the following seven items: whole milk, low fat milk, skim milk, low fat coffee milk, low fat chocolate milk, cottage cheese, and half and half creamers. Straws are not a listed item. The City did not solicit and did not intend to solicit a bid on wrapped straws. The second column, “Pack,” provides a quantity for each item. The third and fourth columns, “CS/Pack” [case price] and “Unit/Price,” were left blank to be completed by each bidder.

Page four of the Invitation lists nine “ [specifications for half pints of milk to be delivered to all schools listed as ordered and required during the term of contract.” The specifications include such items as milk to meet standards and requirements of the state department of health and local board of health, milk to have a certain minimum butter fat content, milk to be in paper containers, and bidder to have capability for microbiological testing and control. Specification number six states: “Individually wrapped straws in sufficient quantity to be supplied by contractors.”

The Invitation is clear that straws must be provided by any vendor chosen to supply half pints of milk. It is equally clear that the City was not seeking a line item bid on straws. The specifications had remained unchanged from the previous year’s invitation to bid. However, in the interim, the City had decided to meet its need for straws as part of a separate nonperishable bid, and straws were being supplied inside individually wrapped packages containing a straw, a napkin and a “spork.” The reference to straws in the Invitation should have been deleted before the Invitation went out but, through inadvertence, was not. White’s interpreted the Invitation as requiring it to submit a bid on straws and deemed straws simply to be another item to be determined on a line item basis despite the absence of straws as a line item on the chart on page two of the Invitation. Inclusion of a requirement in the Invitation that straws be part of any delivery of half pints of milk when straws, in fact, are not required to be delivered is misleading and does not convey adequate information to bidders.

The Invitation also specifies that “[Contracts are awarded per line/low price and satisfaction of each item.” Following receipt of the Invitation, White’s had a conversation with the City’s Purchasing Agent, Lawrence Oliveira (“Oliveira”), expressing surprise that the bids were to be analyzed on a “per line/low price” basis since that method in the past had resulted in the winner of the chocolate milk contract ending up with the entire dairy contract by default. During the previous year, Oliveira had agreed that it would be a good idea to assess the bid as a package and not by line item.

After the Invitation was issued, the School Department learned that the Board of Health was insisting that coolers for dairy products be at each school site. The School Department owned several coolers, but not as many as the Board of Health required, and there were insufficient funds in the School Department’s budget to purchase additional coolers. As a result of consultations between Nancy Carvalho (“Carvalho”), the Food Service Supervisor for the New Bedford Public Schools, and the School Department, it was decided to require the vendor who provided the milk product to provide the coolers as well. To accomplish this end, on or about May 27, 1998, the City published an addendum to the Invitation (“the Addendum"). The Addendum was prepared by Carvalho and reviewed and edited by Oliveira. The Addendum stated:

We are requesting between 15-18 school milk coolers to be supplied and serviced by low bidder as part [350]*350of the milk contract. Cooler sizes will range from 8 case-16 case. Please specify if there is a charge.

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Bluebook (online)
10 Mass. L. Rptr. 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whites-farm-dairy-inc-v-city-of-new-bedford-masssuperct-1999.