Source: https://openjurist.org/974/f2d/1/professional-building-concepts-inc-v-city-of-central-falls-professional-building-concepts-inc
Timestamp: 2020-01-19 08:59:17
Document Index: 679955898

Matched Legal Cases: ['§ 1', '§ 28', '§ 85', '§ 14', '§ 14', '§ 85']

974 F2d 1 Professional Building Concepts Inc v. City of Central Falls Professional Building Concepts Inc | OpenJurist
974 F. 2d 1 - Professional Building Concepts Inc v. City of Central Falls Professional Building Concepts Inc
974 F2d 1 Professional Building Concepts Inc v. City of Central Falls Professional Building Concepts Inc
974 F.2d 1
38 Cont.Cas.Fed. (CCH) P 76,395
PROFESSIONAL BUILDING CONCEPTS, INC., Plaintiff, Appellant,
The CITY OF CENTRAL FALLS, et al., Defendants, Appellees.
PROFESSIONAL BUILDING CONCEPTS, INC., Plaintiff, Appellee,
The CITY OF CENTRAL FALLS, et al., Defendants, Appellees,
Promac, Inc., Plaintiff-Intervenor, Appellant.
Nos. 92-1313, 92-1314.
PBC brought suit challenging the award of the contract to Maron and seeking an injunction. The district court rejected PBC's claim for injunctive relief, holding that the Authority's decision to reject PBC's bid was correct and, therefore, PBC has no basis for injunctive relief 783 F.Supp. 1558.
The materiality of a bid guarantee requirement is governed by HUD procurement regulations which must be read in conjunction with the Federal Acquisition Regulations System. See 48 C.F.R. § 1.101 (1991). The Federal Acquisition Regulation (FAR) provides that, in sealed bidding, noncompliance with a solicitation requirement for a bid guarantee requires rejection of a bid, except in certain limited situations which are not applicable to this case. See RADVA Corp. v. United States, 17 Cl.Ct. 812 (1989) (quoting 48 C.F.R. § 28.101-4), aff'd, 914 F.2d 271 (Fed.Cir.1990).
No controlling cases have been called to our attention, and we have not located any interpreting FAR or HUD regulations with respect to the significance of a bid guarantee. Decisions of the Comptroller General, although not controlling, are instructive on this issue. See Keco Industries, Inc. v. Laird, 318 F.Supp. 1361, 1363 (D.D.C.1970). Beginning in 1959, the approach of the Comptroller General has been that "where an invitation for bids requires a bid to be supported by a bid guarantee and noncompliance occurs, the bid shall be rejected." To the Heads of Departments, Independent Establishments, Agencies, & Others Concerned, 38 Comp.Gen. 532 (1959); see In re Castle Floor Covering, 70 Comp.Gen. 530 (1991); In re Hudgins & Co., Inc., 56 Comp.Gen. 43 (1976). The Comptroller reasons that "the submission of a binding bid guarantee is a material condition of responsiveness with which a bid must comply at the time of bid opening." In re Castle Floor Covering, 70 Comp.Gen. 530 (1991).
PBC argues that there was no defect in its bid guarantee since HUD regulations, 24 C.F.R. § 85.36(h)(1) (1991), specify that in addition to a bid bond or a certified check a bid guarantee may take the form of any other negotiable instrument. PBC maintains that its company check satisfies the "other negotiable instrument" requirement. The invitation to bid for this contract, however, called for submission of, at least, a certified check as a bid guarantee.
The district court correctly determined that PBC's failure to comply with the bid guarantee requirement is not an informality which was waived by the Authority. According to the FAR, "[a] minor informality or irregularity is one that is merely a matter of form and not of substance. It also pertains to some immaterial defect in a bid or variation of a bid from the exact requirements of the invitation that can be corrected or waived without being prejudicial to other bidders." 48 C.F.R. § 14.405 (1991). Typically, defects in bid reply documents, such as failure to sign the bid under some circumstances, failure to execute certain certificates, and failure to return the required number of copies, have been classified as minor informalities. 48 C.F.R. § 14.405 (1991); see also Excavation Const., Inc. v. United States, 204 Ct.Cl. 299, 494 F.2d 1289, 1293 (Ct.Cl.1974). The defect in this instance goes beyond a mere informality, so it is of no consequence here that the Authority delayed several weeks before rejecting PBC's bid.
PBC argues that the Authority had already accepted its bid and awarded PBC the contract, thereby precluding the Authority from later rejecting PBC's bid. PBC contends that the Authority actually awarded it the contract, due to the vote taken, at the Authority's April 23, 1991 meeting. HUD regulations specifically state, however, that a firm, fixed-price contract award will be made in writing to the lowest "responsive and responsible bidder." HUD Regulations, 24 C.F.R. § 85.36(d)(2)(ii)(D) (1991). At that meeting the Authority indicated that, before executing the contract, its legal counsel should review the issues. After the review, PBC's bid was determined to be nonresponsive. The contract was never awarded to PBC.
PBC has failed to demonstrate that the challenged procurement action either had no rational basis or constituted a clear and prejudicial violation of applicable statutes and regulations. See Ulstein Maritime, Ltd. v. United States, 833 F.2d 1052, 1054 (1st Cir.1987); Smith & Wesson v. United States, 782 F.2d 1074, 1078 (1st Cir.1986).