Opinion ID: 669756
Heading Depth: 2
Heading Rank: 2

Heading: The Bidding Procedure

Text: 12 We turn then to Metropolitan's argument that it has standing to challenge the concession agreement because of the City's post-bid negotiations with the successful bidder. The district court, relying on Missouri cases denying standing to unsuccessful bidders, found that Metropolitan did not have standing to raise its illegal bid procedure claim. 13 Although the district court correctly noted that Missouri courts have denied standing to unsuccessful bidders, the cases upon which the district court and the City rely are distinguishable. In Metcalf & Eddy Services, Inc. v. City of St. Charles, for example, the court held that the plaintiff, an unsuccessful bidder, did not have standing to sue on its claim that it should have been awarded the contract because it submitted the lowest bid. 701 S.W.2d 497, 499 (Mo.Ct.App.1985); see also State ex rel. Johnson v. Sevier, 339 Mo. 483, 98 S.W.2d 677, 679 (1936) (en banc); Pace Constr. Co. v. Missouri Highway & Transp. Comm'n, 759 S.W.2d 272, 274-75 (Mo.Ct.App.1988); La Mar Constr. Co. v. Holt County R-II Sch. Dist., 542 S.W.2d 568, 570 (Mo.Ct.App.1976). Metropolitan is not claiming that it should have been awarded the concession agreement. Metropolitan did not even submit a bid. Rather, Metropolitan alleges that because the City disregarded competitive bidding procedures, it did not have an opportunity to bid on the concession agreement that was awarded to KCI Shuttle. 14 Although Missouri courts have not decided whether an unsuccessful bidder has standing to raise such a claim, other courts have held that an unsuccessful bidder has standing to challenge a contract that was not awarded in accordance with competitive bidding requirements. See, e.g., Conway Corp. v. Construction Engineers, Inc., 300 Ark. 225, 782 S.W.2d 36, 41 (1989), cert. denied, 494 U.S. 1080, 110 S.Ct. 1809, 108 L.Ed.2d 939 (1990); Wahl v. City of Wilmington, No. C.A. 13035, 1994 WL 13638, at  2 (Del.Ch. Jan. 10, 1994); Young v. Village of Glen Ellyn, 120 Ill.App.3d 692, 76 Ill.Dec. 483, 485, 458 N.E.2d 1137, 1139 (1983); Jerkins Truck & Equip., Inc. v. City of Yonkers, 174 A.D.2d 127, 579 N.Y.S.2d 417, 420 (1992); Wilson Bennett, Inc. v. Greater Cleveland Regional Transit Auth., 67 Ohio App.3d 812, 588 N.E.2d 920, 924 (1990); Metropolitan Air Research Testing Auth., Inc. v. Metropolitan Gov't of Nashville & Davidson County, 842 S.W.2d 611, 618 (Tenn.Ct.App.1992). Even in jurisdictions such as Missouri that generally do not permit an unsuccessful bidder to challenge the award of the contract to a higher bidder, an unsuccessful bidder has standing to challenge a contract if the bidding procedure did not permit all bidders to compete on equal terms. See, e.g., Spiniello Constr. Co. v. Town of Manchester, 189 Conn. 539, 456 A.2d 1199, 1202 (1983). 15 In Missouri, a plaintiff has standing to sue if he alleges some threatened or actual injury resulting from the putatively illegal action. Harrison v. Monroe County, 716 S.W.2d 263, 266 (Mo.1986) (en banc) (quoting Linda R.S. v. Richard D., 410 U.S. 614, 617, 93 S.Ct. 1146, 1148, 35 L.Ed.2d 536 (1973)). Additionally, that interest which the plaintiff seeks to protect must be within the zone of interests to be protected or regulated by the statute or constitutional guarantee in question. Id. (quoting Association of Data Processing Serv. Orgs., Inc. v. Camp, 397 U.S. 150, 153, 90 S.Ct. 827, 830, 25 L.Ed.2d 184 (1970)). 16 Applying the Missouri standing requirements, we conclude that an unsuccessful bidder has standing to challenge a contract that was not fairly bid. In State ex rel. Stricker v. Hanson, the court recognized that competitive bidding procedures for public contracts should ensure 'that all who may wish to bid shall have a fair opportunity to compete in a field where no favoritism is shown or may be shown to other contestants.'  858 S.W.2d 771, 778 (Mo.Ct.App.1993) (quoting City of Maryville ex rel. Citizens' Nat'l Bank v. Lippman, 151 Mo.App. 447, 132 S.W. 47, 48 (1910)). Thus, an unsuccessful bidder that was denied a fair opportunity to bid on a public contract is within the zone of interests to be protected by competitive bidding requirements. Metropolitan contends that it did not have a fair opportunity to compete because the City provided KCI Shuttle, the successful bidder, with information that other bidders did not receive and, as a result of negotiations with KCI Shuttle based on that information, offered KCI Shuttle a contract that was materially different from the contract proposed in the bid package. See 64 Am.Jur.2d Public Works and Contracts Sec. 66 (1972) ([P]ublic authorities cannot enter into a contract with the lowest bidder containing substantial provisions beneficial to him, not included in or contemplated in the terms and specifications upon which bids were invited.); 63 C.J.S. Municipal Corporations Sec. 997 (1950) (In order that there may be fair competition, the same information should be given to all; and a contract awarded on private information given only to the successful bidder is unfair, illegal, and void.). If Metropolitan's claim has merit, 1 then the unsuccessful bidders suffered injury as a result of being deprived of an opportunity to bid on the contract that KCI Shuttle was awarded, giving them standing to challenge the contract. 17 Metropolitan, however, is not an unsuccessful bidder, for it did not submit a bid. Nevertheless, we believe that Metropolitan has standing to raise its competitive bid procedure claim. Metropolitan received a bid package, and the City expected Metropolitan to submit a bid. Metropolitan decided not to submit a bid, however, because the bid package did not provide for mobile ticket counters. Metropolitan believed that the concession agreement was not economically viable without mobile ticket counters. The bid package prohibited conditional bids and alterations, and the City did not inform Metropolitan that it would be willing to accept bids providing for mobile ticket counters or to negotiate with the successful bidder regarding mobile ticket counters. Accordingly, we conclude that Metropolitan has standing to challenge the bid procedure because the City's actions that Metropolitan challenges also explain Metropolitan's failure to submit a bid. See Unysis Corp. v. Department of Labor, 220 Conn. 689, 600 A.2d 1019, 1022-23 (1991) (holding that a qualified potential bidder who would have submitted a bid absent an unfair bid procedure has standing to challenge the procedure); Pucillo & Sons, Inc. v. Township of Belleville, 249 N.J.Super. 536, 592 A.2d 1216, 1222-23 (App.Div.) (same), cert. denied, 127 N.J. 551, 606 A.2d 364 (1991). 18 Having decided that Metropolitan has standing to challenge the award of the concession agreement as a potential bidder, we need not consider Metropolitan's claim that it also has standing to challenge the agreement as a Kansas City, Missouri, taxpayer. 19 The judgment dismissing Metropolitan's claims for lack of standing is reversed, and the case is remanded to the district court for further proceedings.