DANIEL L. DYSART, Judge.
In this case involving the award of a public construction contract, appellant, Command Construction Industries, L.L.C. ("Command"), seeks reversal of the trial court's denial of its request for injunctive relief (or mandamus). For the reasons that follow, we find that the trial court improperly denied Command's request for injunctive relief (or mandamus). At this stage, with the near completion of the contract at issue, a reversal of the trial court's rulings is no longer possible. As Command reserved its right to seek damages at a later date "should the contract be improperly awarded," we remand this matter for a determination of whether Command is entitled to damages.
Intervenor, Durr Heavy Construction, L.L.C. ("Durr"), to whom the contract was awarded, appeals the trial court's denial of attorney's fees and costs. Because of our finding that the contract was improperly awarded to it, we do not reach the issues raised in its appeal as those issues are moot.
This matter involves the bidding on, and awarding of, a public works construction project by the City of New Orleans ("City"), known as the Harrison Avenue Streetscape Project ("the Project"). The contract for the work was ultimately awarded to Durr. Two unsuccessful bidders on the project, Command and FHP Tectonics Corp. ("FHP") filed separate actions seeking injunctive relief (or mandamus). Those cases were consolidated; however, FHP voluntarily dismissed its action on October 8, 2012. Accordingly, the only matter before this Court concerns Command.
Command initiated this action by filing a Petition for Temporary Restraining Order, Preliminary Injunction and Writ of Mandamus ("Petition") on August 17, 2012, which sought to compel the City to award it the construction project for which it was allegedly the lowest bidder. The Petition also sought to enjoin the City from receiving bids and awarding or executing any
According to the Petition, the City opened bidding on the Project on July 10, 2012. Bids were submitted by FHP, Durr and Command. FHP was the lowest bidder; however, because of irregularities in its submission, FHP's bid was not considered. The next lowest bid was from Command, whose base bid totaled $2,793,046.00. Durr submitted a base bid in the amount of $2,974,275.00. By letter dated July 11, 2012 (the day after Durr submitted its bid), Durr sought to amend its bid because of a "clerical error," and it substituted a revised base bid ("Revised Bid") of $2,444,850.80.
On July 27, 2012, Command issued a letter of formal protest to Durr's bid, which maintained that Durr's bidding procedures violated the Louisiana Public Bid Law, La. R.S. 38:2212 et seq. At that time, the contract had not been awarded. However, the City reportedly advised Command that it intended to award the contract to Durr, leading Command to file this lawsuit on August 17, 2012.
By order dated August 20, 2012, the trial court denied Command's request for a temporary restraining order and a writ of mandamus. The court set the application for injunctive relief for an August 30, 2012 hearing, with the matter to be heard upon the verified pleadings and supporting affidavits.
Durr intervened in the action on September 5, 2012, on the basis that the contract was properly awarded to it on August 17, 2012, as it was the lowest bidder on the project. As concerns Durr's amended bid submission, Durr's position was that a clerical error had been made, which was obvious from the bid submission form. In addition to a declaration that the contract had been properly awarded to it, Durr sought attorney's fee and costs under La. R.S. 38:2220.4 B(1). Durr filed a Motion for Attorney's Fees and Costs which was heard on November 30, 2012, and denied by judgment dated January 8, 2013.
The trial court then rendered judgment on February 19, 2013, denying Command's request for a preliminary and permanent injunction. It further denied the request for a writ of mandamus as moot. Appeals were taken by Command as to the denial of injunctive relief and mandamus, and by Durr as to the trial court's denial of its request for attorney's fees and costs.
The main issue in this appeal turns on whether Durr's Revised Bid submission complied with the provisions of the Public Bid Law found at La. R.S. 38:2212 et seq. According to the documents in the record, the City solicited bids for the Project, which contained certain instructions, including the warning that "[b]ids containing any conditions, omissions, unexplained alterations, or irregularities of any kind may be rejected as informal." The City's bid documents further indicated that "[t]he prices should be expressed in words and figures ... [and][i]n case of discrepancy between the prices written in the bid and those given in the figures, the price in writing will be considered as the bid." Modifications to bids were permitted before bidding was opened, as the bid documents expressly stated that:
Implicit within these guidelines is that, once bidding was opened, modifications
The form used by the bidders, a Louisiana Uniform Public Work Bid Form,
There is no dispute that Durr's original total base bid was mistakenly comprised of the base bid (an addition of all the unit prices) plus all three alternates. That is, Durr erroneously added the three alternates to the base bid unit prices to arrive at its initial bid of $2,974,975.00. This sum is obviously higher than Command's base bid of $2,793,046.00. When the three alternates are subtracted from the total base bid, however, Durr's base bid is $2,444,850.90, as stated in its July 11, 2012 letter, which is lower than Command's bid.
The question before this Court, therefore, is whether the City was required to consider only Durr's initial bid of $2,974,975.00 or whether it could consider Durr's entire bid packet (of seven pages) to determine the correct amount of its total base bid. Command maintains that, even if Durr's original bid may have contained an accounting error, its July 11, 2012, attempt to substitute the first page of the bid documents was improper. Command further maintains that Durr's sole recourse under the public bid laws was to withdraw its bid without forfeiting its bid bond.
We agree.
The Louisiana Public Bid Law, found at La. R.S. 38:2212 et seq., governs the manner by which all contracts for public works are to be awarded. Under La. R.S. 38:2212(A)(1)(a):
Command correctly notes that "requirements contained in the Public Bid Law and in a public entity's bid requirements may not be waived." Hamp's Const., L.L.C. v. City of New Orleans, 05-0489, p. 1 (La.2/22/06), 924 So.2d 104, 105. At issue in Hamp's was whether the City of New Orleans could waive the failure of the lowest bidder on a public works project to attach a copy of the City's Invitation to Bid in awarding it the project. The bid solicitation required the attachment of several documents, including a copy of the invitation to bid. It also warned that, where specifications were included in the bid proposal, "all bidders must comply with these specifications. Any deviations ... must be detailed and fully explained by bidder in writing." Id., 05-0489 at p. 2, 924 So.2d at 106. The trial court held that the "substantive formalities as set forth in the bid requirement" had been met and therefore, the job had been properly awarded to the lowest bidder. Id., 05-0489 at p. 3, 924 So.2d at 107. This Court, in an unpublished opinion, reversed, finding that the City, which created the requirements for bidding "was bound by those requirements" and could not later waive them. Id.
The Supreme Court granted the City's writ, reviewed the history of the legislative amendments to La. R.S. 38:2212(A)(1)(b) and noted:
Hamp's, 05-0489 at p. 9, 924 So.2d at 110. (Second emphasis added). It then held that no public entity has the discretion "to determine, after bids have been submitted, whether a requirement is substantive or non-substantive, waivable or non-waivable." Id., 05-0489, pp. 10-11, 924 So.2d at 111.
Several cases decided after Hamp's reflect that irregularities in bid forms, even if informal or seemingly inconsequential, may not be discounted and set aside. In Enmon Enterprises, L.L.C. v. City of New Orleans ex rel. New Orleans Aviation Bd., 11-0459 (La.App. 4 Cir. 9/28/11), 76 So.3d 548, writ denied, 11-2580 (La.2/3/12), 79 So.3d 1029, for example, the City of New Orleans solicited bids for janitorial services at the Louis Armstrong New Orleans International Airport. Nine bids were submitted, all of which were rejected. One of the unsuccessful bidders sought a writ of mandamus, compelling the award of the contract to it. Among the issues with its bid were calculation errors, i.e. errors in arithmetic. Citing Hamp's as evidence that the Supreme Court "made it clear that a public entity cannot deviate in any manner from the requirements it sets forth in its bid documents and the requirements set forth in any aspect of the Public Bid Law," this Court found that the City properly rejected all of the bids. Id., 11-0459
Similarly, in Roof Technologies, Inc. v. State, Div. of Admin., Office of Facility Planning and Control, 09-0925 (La.App. 1 Cir. 10/28/09), 29 So.3d 621, a public works contract bid solicitation for roofing work contained instructions including one that "[a]ny interlineations, alteration or erasure must be initialed by the Signer of the bid or his authorized representative." Id., 09-0925 at p. 3, 29 So.3d at 622. One bid was submitted that contained certain typing errors that were corrected by the "word-out" typing feature of the typewriter used to prepare the bid. Under the corrected information, "faint shadows" of the errors could be seen, although there were no initials by the bidder next to these corrections. The Second Circuit, noting that "[a]s it pertains to projects let for public bid, form matters as much as substance," reversed the trial court's finding that there were no "typos that would necessitate rejecting" the bid. Id., 09-0925 at p. 5, 29 So.3d at 623.
The First Circuit held:
Id., 09-0925 at pp. 5-6, 29 So.3d at 624.
In Beverly Constr. Co., L.L.C. v. Parish of Jefferson, 07-847, p. 5 (La.App. 5 Cir. 2/6/08), 979 So.2d 551, 553, the court rejected the bid of an unsuccessful bidder on a public works project which failed to attach its entire bid packet. In that case, the advertisements for bids stated that "this bid package must be returned in its entirety" and "bid package, including instructions and specifications, must be returned in its entirety for bid to be valid." In finding the bid deficient, the court noted that "Hamp's emphasized that even `informalities' cannot be waived." Id., 07-847 at p. 6, 979 So.2d at 554.
In light of Hamp's, and its progeny, it is clear that public entities have no discretion in evaluating bids for public works to determine the lowest responsible bidder. Even ostensibly insignificant irregularities, such as failing to attach a copy of the public entity's invitation to bid, as in Hamp's, which in no way affected the actual
Here, while Durr's bid need not be disqualified, the City was required to consider the bid, as it was presented on July 10, 2012. According to the City's bid documents, modifications to bids were permitted only until the time that bidding was opened. Necessarily, once bidding was opened, no modifications were permitted. More importantly, the Uniform Public Work Bid Form expressly stated that the
In this case, the City required a total base bid, exclusive of the alternates and only allowed modifications to bids prior to the opening of bids. Durr's mistaken inclusion of the alternates in its total base cannot alter its unequivocal total base bid.
Because the trial court denied the preliminary and permanent injunction and a mandamus, the project went forward, and, at this time, these remedies are no longer available. Durr maintains that "Command can never prove it was the lowest bidder and therefore can never be entitled to damages. Therefore, Command's appeal is moot."
As the Louisiana Supreme Court indicated in Airline Const. Co., Inc. v. Ascension Parish School Bd., 568 So.2d 1029, 1033 (La. 1990) that "an unsuccessful bidder on a public contract who fails to resort to the relief granted by statute by attempting to enjoin timely the execution or the performance of the contract, when the facts necessary for injunctive relief are known or readily ascertainable by the bidder, is precluded from recovering damages against the public body." The court expressly noted that it did not reach the issue of whether "an unsuccessful bidder [has] a cause of action ... to recover damages against a public body which awards a public contract in violation of the public bid laws." Id.
We make no determination as to whether Command is entitled to damages, as that issue is not before us. In its Petition, Command "reserve[d] the right to seek damages at a later date should the contract be improperly awarded to any entity other than Command." Accordingly, we remand this matter to allow Command to pursue its claim for damages.
We need not address the issue raised by Durr in its appeal of whether the trial court erred in refusing to award it attorney's fees and costs pursuant to La. R.S. 38:220.4(B)(1). That issue is moot.
Because we have concluded that the bid in this matter was improperly awarded to Durr, this matter is remanded to the trial court for further proceedings consistent with this opinion.
See, e.g., Terrebonne Parish Police Jury v. A.L. Sizeler Constr. Co., 491 So.2d 409 (La.App. 1st Cir. 1986), where the low bidder mistakenly neglected to include certain costs in its bid and notified the public entity of its desire to withdraw or correct its bid, the bidder was allowed to withdraw its bid and the public entity could not compel the bidder to enter into a contract or forfeit its bond.