Opinion ID: 2613977
Heading Depth: 3
Heading Rank: 1

Heading: The procurement process

Text: Purchasing by public entities in New Mexico is governed by the Procurement Code, NMSA 1978, §§ 13-1-28 to -199 (Repl. Pamp.1992 & Cum.Supp.1994) [hereinafter Code]. As required by Section 13-1-117.1, the City of Santa Fe has also adopted its own procurement regulations which are published in the Purchasing Manual. The Code applies to all nonfederal expenditures by state agencies and local public bodies for the procurement of items of tangible personal property, services and construction. Section 13-1-30. In resolving this matter we must compare the City's conduct with the strictures of the Code and the Purchasing Manual. The purposes of the Procurement Code are to provide for the fair and equitable treatment of all persons involved in public procurement, to maximize the purchasing value of public funds and to provide safeguards for maintaining a procurement system of quality and integrity. Section 13-1-29(C). Of all the interests involved in competitive bidding, the public interest is the most important. State ex rel. Educational Assessments Sys., Inc. v. Cooperative Educ. Servs. of N.M., Inc., 115 N.M. 196, 201, 848 P.2d 1123, 1128 (Ct.App.1993). An economical and efficient system of procurement directly benefits taxpayers. See Id. at 201, 848 P.2d at 1128. Through competitive bidding the municipality hopes to obtain the best product at the best price. See John J. Brennan Constr. Corp. v. City of Shelton, 187 Conn. 695, 448 A.2d 180, 184 (1982). Thus the Code protects against the evils of favoritism, nepotism, patronage, collusion, fraud, and corruption in the award of public contracts. Id. It is certainly in the public interest that the City abide by the procurement rules it has set for itself. Through the initial stages of the procurement process the City complied with the requirements of the Code and the Purchasing Manual. The City's Request was issued in accordance with Section 13-1-112(A) of the Code: Competitive sealed proposals, including competitive qualifications-based proposals, shall be solicited through a request for proposals which shall be issued and shall include the specifications for the services or items of tangible personal property to be procured, all contractual terms and conditions applicable to the procurement, the location where proposals are to be received and the date, time and place where proposals are to be received and reviewed. As mentioned above, the Request listed the relative weight to be given to the factors in evaluating proposals. Section 13-1-114. Locality is a criterion which the City may legitimately consider when evaluating proposals: The selection committee shall select, ranked in the order of their qualifications, no less than three businesses deemed to be the most highly qualified to perform the required services, after considering the following criteria together with any criteria, except price, established by the using agency authorizing the project: .... (4) proximity to or familiarity with the area in which the project is located; [and] (5) the amount of design work that will be produced by a New Mexico business within this state.... Section 13-1-120(B)(4) & (5). But locality was not one of the four weighted factors listed by the Request. See Request 20. PDS claims to have specifically inquired whether local firms would receive preference and was verbally informed they would not. Based on the four factors and other requirements in the Request, PDS submitted a responsive bid which conformed in all material respects to the requirements set forth in the invitation for bids. Section 13-1-84. The bids were ranked by a selection committee appointed to evaluate this specific project. See Request 4. Many procurement codes in other jurisdictions require that a contract award be made to the lowest responsible bidder who complies with the advertised proposals. See 10 McQuillin, supra, § 29.73, at 496. The City, however, may award a contract to the responsible offeror or offerors whose proposal is most advantageous to the City, taking into consideration the evaluation factors set forth in the request for proposal. Purchasing Manual § 23.14.1 (emphasis added). After considering the criteria in the Request, the selection committee ranked PDS's bid as the one most advantageous to the City. A contract was negotiated between PDS and the designee of [the] local public bodythe purchasing agent of the City. See § 13-1-122; Purchasing Manual § 23.14.2. The recommended contract was submitted to and unanimously approved by the Santa Fe Finance Committee. See Minutes of the City of Santa Fe Finance Committee 16-19 (June 29, 1992); Purchasing Manual § 23.14.3. Finally, the proposals submitted and the recommendation of award were brought before the Santa Fe City Council for final consideration. See Purchasing Manual § 23.14.4. Up to this point, the City adhered to the requirements of the Code and the Purchasing Manual.