Opinion Number: 2002-NMCA-087
Filing Date: June 26, 2002
Docket No. 22,046
BC&L PAVEMENT SERVICES, INC.
a foreign corporation,
Plaintiff-Petitioner,
v.
LOUIS T. HIGGINS, State Purchasing
Agent for the State of New Mexico,
Defendant-Respondent,
and
DISMUKE CONSTRUCTION COMPANY,
a New Mexico corporation,
Interested Party-Respondent.
APPEAL FROM THE DISTRICT COURT OF SANTA FE COUNTY
ART ENCINIAS, District Judge
Douglas Seegmiller
Douglas Seegmiller Law Offices
Albuquerque, NM
for Petitioner
Walter G. Lombardi
Legal Bureau Risk Management Division
Santa Fe, NM
for Respondent
David P. Gorman
Sheehan, Sheehan & Stelzner, P.A.
Albuquerque, NM
for Interested Party-Respondent
WECHSLER, Judge.
{1}
BC&L Pavement Services, Inc. (BC&L) appealed the
decision of Louis Higgins, State Purchasing Agent (Higgins),
to affirm the decision of the State Purchasing Office. The
State Purchasing Office rejected BC&L's bid to provide
materials and labor for certain treatments to paved surfaces at airports and accepted the bid of Interested Party-Respondent Dismuke Construction Company (Dismuke). BC&L was
not licensed at the time of the bid, but obtained a license
before the time of contact. Higgins denied BC&L's protest,
and the district court affirmed the denial. We granted
BC&L's petition for a writ of certiorari. We discuss
whether the doctrine of substantial compliance applies to
the requirement that bidders on construction contracts be
licensed at the time of bidding, whether the State
Purchasing Office violated the requirement that bids be
rejected only on the basis of factors set out in the
invitation for bids, and whether BC&L is entitled to relief
because Higgins did not follow proper procedures. We affirm
the district court.
Standard of Review
{2}
When reviewing the decision of the district court
through a writ of certiorari, this Court employs a limited
standard of review. C.F.T. Dev., LLC v. Bd. of County
Comm'rs, 2001-NMCA-069, ¶¶ 6-14, 130 N.M. 775, 32 P.3d 784.
A writ of certiorari may be issued only on the basis of one
of the following four grounds:
(a) a conflict between the district court order
and a prior appellate opinion of either this Court
or the Supreme Court; (b) a conflict between the
district court order and any statutory provision,
ordinance or agency regulation; (c) a significant
question of law under the New Mexico or United
States Constitutions; or (d) an issue of
substantial public interest that should be
determined by this Court.
Id. ¶ 8. BC&L asserts that each of its issues involves a
conflict between the decisions of the district court on the
one hand and appellate decisions and statutes or regulations
on the other. (BIC ii) This case thus presents issues of
law which we review de novo. Sitterly v. Matthews, 2000-NMCA-037, ¶ 22, 129 N.M. 134, 2 P.3d 871 (discussing
standard of review).
{3}
We do not decide whether there was substantial evidence
to support the agency's decision or whether the agency
abused its discretion. C.F.T. Dev., LLC, 2001-NMCA-069, ¶¶
9-10. Those decisions are left to the district court in its
appellate capacity. Id.
Facts
{4}
BC&L, a Texas corporation, bid on an invitation for
bids on a "price agreement" issued by the Purchasing
Division of the General Services Department to furnish and
apply sealer to asphalt pavement. Under a "price agreement" the successful bidder agrees to furnish goods or services at
a specified price for a defined period of time "to a state
agency or a local public body which issues a purchase
order." NMSA 1978, § 13-1-71 (1984). The invitation for
bids specifically left open the quantity of goods to be
purchased. See NMSA 1978, § 13-1-63 (1984) (defining
indefinite quantity contract). Invoices were to be sent to
the Aviation Division of the New Mexico State Highway and
Transportation Department (the Department). Delivery was to
be to the Department at "various airports as requested at
time of order."
{5}
The invitation for bids did not specify whether a
bidder was required to be a licensed contractor in New
Mexico at the time of bidding. The parties dispute whether
such licensure was required.
{6}
It is not clear when BC&L submitted its bid, but it
certainly did so before April 20, 2000, when bids were
opened. BC&L was formally issued its New Mexico
contractor's license on May 17, 2000.
{7}
BC&L was the lowest bidder. Higgins rejected BC&L's
bid because BC&L was not a licensed New Mexico contractor at
the time bids were opened on April 20, 2000. Higgins signed
a price agreement with Dismuke on May 2, 2000.
{8}
BC&L learned of the award to Dismuke by an oral
communication with Higgins' office on May 9, 2000. It filed
a protest on May 24th on the grounds that the price
agreement included work on federally funded projects to
which the requirement to be licensed at the time of bidding
did not apply. On June 2nd, it sent another letter adding
"a few legal points [which] might clarify the grounds for
protest, stated in our earlier letter." In its June 2nd
letter, it contended that Higgins could not add a
requirement, namely licensure, which had not been set out in
the invitation for bids, and that in any case, BC&L had
substantially complied with the licensing requirement. It
did not request a hearing or submit further information.
{9}
On June 6th, Higgins issued a letter decision rejecting
the contention in BC&L's May 24th protest on the grounds
that the invitation for bids concerned only state and
locally funded airport projects for which bidders were
required to be licensed. Higgins ruled that BC&L's June 2nd
letter did not merely clarify issues raised in the May 24th
letter, but raised new issues which were not timely filed
pursuant to NMSA 1978, § 13-1-172 (1987) (providing that
protest be submitted "within fifteen calendar days after
knowledge of the facts or occurrences giving rise to the
protest"). However, Higgins ruled on the merits of the issues BC&L raised in its June 2nd letter, determining that
the statutory requirement of licensing was included in the
invitation for bids as a matter of law. He also ruled that
even if BC&L could be said to have substantially complied
with the timing component of the licensure requirement, it
had obtained the wrong type of license.
{10}
BC&L appealed to the district court, raising the issues
it had raised in its May 24th and June 2nd letters and
adding the arguments that Higgins failed to follow proper
procedures and violated due process of law by failing to
mention until June 6th the contention that BC&L had failed
to obtain the proper license. See NMSA 1978, § 13-1-183
(1999) (providing that procurement code decisions shall be
appealed pursuant to NMSA 1978, § 39-3-1.1 (1999)); § 39-3-1.1 (providing for appeal of certain agency decisions to
district court). The district court affirmed Higgins,
ruling that BC&L violated the statutory requirement that it
be licensed at the time of bidding, that the licensing
requirement did not need to be stated in the invitation for
bids, and that the doctrine of substantial compliance did
not apply. It did not reach BC&L's procedural issues.
Substantial Compliance with Licensing Requirement
{11}
BC&L contends that the district court erred in failing
to apply the doctrine of substantial compliance. This
doctrine was adopted by Peck v. Ives, 84 N.M. 62, 65-66, 499
P.2d 684, 687-88 (1972), "to determine whether an unlicenced
contractor has complied with the licensing requirements to
the degree necessary to avoid bar from bringing suit."
Koehler v. Donnelly, 114 N.M. 363, 365, 838 P.2d 980, 982
(1992). An unlicenced contractor may not file an action to
recover for work performed. NMSA 1978, § 60-13-30 (1977).
{12}
The factors to be considered in applying the doctrine
to avoid the bar to pursuing litigation include whether "(1)
the contractor held a valid license at the time of
contracting; (2) the contractor readily secured a renewal of
that license; and (3) the responsibility and competence of
the contractor's managing officer . . . throughout the
period of performance." Koehler, 114 N.M. at 365, 838 P.2d
at 982. All three need not be established; the crucial
question is whether "the party seeking to escape his
obligation has received the full protection contemplated by
the statute." Id.
{13}
In Peck, our Supreme Court held that the contractor
substantially complied with the licensing requirements to
bring a lawsuit when the parties did not agree on a definite
price, but agreed to monthly billings on a cost plus
percentage basis, even though the completed cost of the project exceeded the contractor's licensed financial limits
at the time of contracting. Peck, 84 N.M. at 65, 499 P.2d
at 687. It also applied the doctrine in Koehler, in which
the contractor did not willfully violate the licensing
statutes because he was unaware that his license had been
cancelled for reasons beyond his control at the time of
contracting. Koehler, 114 N.M. at 365-66, 838 P.2d at 982-83. In contrast, the Supreme Court held that the contractor
did not substantially comply with the statute and could not
file an action for payment in Roth v. Thompson, 113 N.M.
331, 335, 825 P.2d 1241, 1245 (1992), when the contractor
was not licensed at the time of contracting even though he
applied for a license while the project was ongoing.
{14}
Peck and Koehler address only substantial compliance to
avoid the bar on a contractor from instituting a lawsuit for
work performed. The question of whether the doctrine of
substantial compliance applies to the statutory requirement
that bidders possess a license at the time they make their
bids is one of first impression in New Mexico. NMSA 1978, §
60-13-12(B) (1989) provides: "No bid on a contract shall be
submitted unless the contractor has a valid license issued
by the [construction industries] division to bid and perform
the type of work to be undertaken." Section 60-13-12(C)
exempts highway projects involving federal funds from the
requirements of Subsection B. We discuss below whether
Subsection C's exemption to the licensing requirement is
applicable. First, we focus on whether BC&L substantially
complied with Subsection B.
{15}
In construing statutes, our primary concern is to
fulfill the legislature's intent. Regents of the Univ. of
N.M. v. N.M. Fed'n of Teachers, 1998-NMSC-020, ¶ 28, 125
N.M. 401, 962 P.2d 1236. We consider relevant statutes as a
whole. See id. ("We will construe the entire statute as a
whole so that all the provisions will be considered in
relation to one another."). We give effect to the statute's
language and refrain from further interpretation when the
language is clear and unambiguous. Sims v. Sims, 1996-NMSC-078, ¶ 17, 122 N.M. 618, 930 P.2d 153.
{16}
In this appeal, we are concerned with two legislative
acts, the Construction Industries Licensing Act, NMSA 1978,
§§ 60-13-1 to 60-13-59 (1967, as amended through 2001)
(Licensing Act), and the Procurement Code, NMSA 1978, §§ 13-1-28 to 13-1-199 (1984, as amended through 2001). The
purpose of the Licensing Act is to efficiently protect the
public from incompetent or fiscally irresponsible
contractors.
The purpose of the Construction Industries
Licensing Act [this article] is to promote the general welfare of the people of New Mexico by
providing for the protection of life and property
by adopting and enforcing codes and standards for
construction, alteration, installation,
connection, demolition and repair work. To effect
this purpose, it is the intent of the legislature
that:
A. examination, licensing and
certification of the occupations and trades within
the jurisdiction of the Construction Industries
Licensing Act be such as to ensure or encourage
the highest quality of performance and to require
compliance with approved codes and standards and
be, to the maximum extent possible, uniform in
application, procedure and enforcement;
B. there be eliminated the wasteful
and inefficient administrative practices of dual
licensing, duplication of inspection, nonuniform
classification and examination of closely related
trades or occupational activities and
jurisdictional conflicts; and
C. contractors be required to furnish
and maintain evidence of responsibility.
NMSA 1978, § 60-13-1.1(A)-(C) (1989); see Mascarenas v.
Jaramillo, 111 N.M. 410, 413, 806 P.2d 59, 62 (1991). "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." NMSA 1978, §
13-1-29(C) (1984). Protecting the public interest is the
most important goal of the Procurement Code. Planning &
Design Solutions v. City of Santa Fe, 118 N.M. 707, 710, 885
P.2d 628, 631 (1994).
{17}
Construing the above statutes together, we conclude for
the context of this case that the legislature intended (1)
that public contracts should be awarded only to licensed
contractors and (2) that purchasing authorities be relieved
from the necessity of making an independent investigation
into the qualifications and fiscal responsibility of a
contractor who was not licensed at the time of bidding. See
id. at 710, 885 P.2d at 631 ("An economical and efficient
system of procurement directly benefits taxpayers."). With
this legislative intent, the doctrine of substantial
compliance does not apply to the requirement of Section 60-13-12(B) that a contractor have a valid license when
submitting a bid on a public contract.
{18}
BC&L protests that it was competent and fiscally
responsible at the time of bidding, pointing to the fact
that it was issued a license less than a month after bids
were opened. The test, however, from the plain language of
the statute, is not whether Higgins should somehow have
known that BC&L was competent and fiscally responsible at
the time of bidding, but whether BC&L was actually licensed
at the time of bidding. Section 60-13-12(B).
{19}
BC&L argues that it substantially complied with the
statute because it was licensed before the State issued a
purchase order to form a completed contract. It relies on
Peck, 84 N.M. at 65, 499 P.2d at 687, and Koehler, 114 N.M.
at 365, 838 P.2d at 982, for the principle that it only had
to be licensed at the time of contracting. However, the
problem with BC&L's argument is that it is not in the same
position as a bidder as were the bidders in Peck and
Koehler_-unlicensed contractors who were not incompetent and
not irresponsible in circumstances in which enforcement of
strict compliance would enable the party who owed them for
their services to use the statute as an "unwarranted shield
for the avoidance of a just obligation." Peck, 84 N.M. at
66, 499 P.2d at 688; Koehler, 114 N.M. at 365-66, 838 P.2d
at 982-83.
{20}
BC&L further argues that Higgins's decision works a
forfeiture upon it and would be unfair. We do not agree.
The doctrine of substantial compliance prevents a forfeiture
on the part of a contractor who has performed work on a
project as long as the party for whom the work is performed
has received all the protections due it under the licensing
statute. See Koehler, 114 N.M. at 365, 838 P.2d at 982.
BC&L has not performed work, but only incurred the expense
necessary to prepare a bid. Like all bidders, it knew or
should have known that its bid might not be accepted and
that the cost of preparing what may turn out to be an
unaccepted bid is part of the cost of doing business.
Instead, it now argues the acceptance of its bid was so
certain that rejection of it is a "forfeiture." This
position ignores the plain terms of Section 60-13-12(B) and
overlooks the considerable discretion given to purchasing
authorities to decide who is a responsible bidder, see State
ex rel. KNC, Inc. v. N.M. Dep't of Fin. & Admin., 103 N.M.
167, 172, 704 P.2d 79, 84 (Ct. App. 1985), or even to reject
all bids and start over. See § 13-1-131.
{21}
Finally, BC&L argues that the district court's decision
is contrary to the purpose of the Procurement Code, which is
to "maximize the purchasing value of public funds," citing
Section 13-1-29(C). Maximizing the purchasing value of
public funds is one of the purposes of the Procurement Code
set out in Section 13-1-29(C). However, the legislature itself decided to put restrictions on maximizing the
purchasing value of public funds while enhancing the
efficiency of the procurement process and promoting quality
and integrity by requiring that bidders be licensed at the
time of bidding. We will not second-guess the legislature's
policy decision. See Madrid v. St. Joseph Hosp.,
1996-NMSC-064, ¶ 10, 122 N.M. 524, 928 P.2d 250 (explaining
that unless a statute violates the constitution, "[w]e will
not question the wisdom, policy, or justness of legislation
enacted by our [l]egislature").
{22}
We note that this case is not like Planning & Design
Solutions, 118 N.M. at 714-16, 885 P.2d at 635-37, in which
our Supreme Court required a public owner to repay a
rejected bidder the cost of preparing its bid. In that
case, the public owner had capriciously violated the
Procurement Code. Such repayment is unwarranted in this
case in which BC&L, the bidder rather than the public owner,
violated the Procurement Code.
{23}
To buttress his conclusion that BC&L did not
substantially comply with the licensure requirement, Higgins
also determined that BC&L did not have the correct type of
license. BC&L disagrees. We need not reach this issue
because it is undisputed that BC&L did not have any license
at the time of bidding.
{24}
The doctrine of substantial compliance with Section 60-13-30 as set forth in Peck and Koehler does not apply to the
requirement that a party be licensed to bid in accordance
with Section 60-13-12(B).
Licensing Requirement as Part of Invitation for Bids
{25}
BC&L contends that the requirement to hold a valid
license in order to bid should not be enforced in this case
because it was not stated in the invitation for bids. It
relies on the following statutory language:
Bids shall be evaluated based on the requirements
set forth in the invitation for bids, which
requirements may include criteria to determine
acceptability such as inspection, testing,
quality, workmanship, delivery and suitability for
a particular purpose. Those criteria such as
discounts, transportation costs and total or
life-cycle costs that will affect the bid price
shall be objectively measurable, which shall be
defined by regulation. The invitation for bids
shall set forth the evaluation criteria to be
used. No criteria may be used in bid evaluation
that are not set forth in the invitation for bids.
Section 13-1-105. It further relies on Planning & Design
Solutions, 118 N.M. at 712, 885 P.2d at 633 (holding city
violated Procurement Code by improperly adding to evaluation
criteria after receiving bids the factor that local firms
would be favored).
{26}
However, the statutory requirement that bidders be
licensed is not simply another criterion which an owner may
or may not choose to include in an invitation for bids. A
public body does not have the choice to selectively veto
Section 60-13-12(B), and we have been directed to nothing in
either the Procurement Code, including Section 13-1-105, or
the Licensing Act giving public owners a choice about
whether bidders must be licensed. Rather, the licensing
requirement is incorporated into invitations for bids as a
matter of law. Cf. Schmick v. State Farm Mut. Auto. Ins.
Co., 103 N.M. 216, 218, 704 P.2d 1092, 1094 (1985) ("Thus,
the [uninsured motorist] statute will be read into the
[insurance] policies and, to the extent that the policy
provisions conflict with the statute, the statute
prevails.").
{27}
BC&L argues alternatively that the licensing
requirement was not stated because the licensing requirement
did not apply under Section 60-13-12(C), which provides that
"[a]ny contractor may bid on a New Mexico highway project
involving the expenditure of federal funds prior to making
application to the division for a license." It argues that
the invitation for bids was sufficiently generic to include
highway projects involving the expenditure of federal funds.
It contends, but does not cite evidence in support, that
airport projects without federal funding "are scarcer than
hen's teeth." We do not consider this last contention.
"Argument of counsel is not evidence." State v. Cochran,
112 N.M. 190, 192, 812 P.2d 1338, 1340 (Ct. App. 1991).
{28}
The record reveals that the invitation for bids stated
"that these documents apply to airport improvement projects
that involve state and/or local community funding only."
The invitation contained a conditional provision that if
federal funds became available, the acceptable low bidder
would have to undertake additional work to qualify to be the
provider on such projects, stating "[w]hen Federal Aviation
Administration (FAA), funds are involved, there could be
additional administrative requirements of the contractor."
The invitation for bids provided further information about
the "additional requirements." It then concluded, "[s]hould
acceptable low bidders indicate they are not interested in
being considered for FAA funded projects by refusing to fill
out the above discussed forms, separate awards could be made
to contractors who are interested in projects which include
FAA funding." There were requirements that invoices be sent to the Aviation Division with delivery to the Department at
"various airports as requested at time of order." The work
consisted of applying "coal-tar sealer/rejuvenator to
bituminous surfaces (airport runways)." There is no
indication in the record that any federal funds actually
were used for the project.
{29}
Higgins determined that the contract was for airport
surfaces and was not a generic contract for highways as well
as airports and held that Section 60-12-13(C) did not apply.
The district court agreed. Neither Higgins nor the district
court indicated that the invitation for bids was ambiguous.
{30}
The ambiguity of the invitation for bids is a question
of law. See Kirkpatrick v. Introspect Healthcare Corp., 114
N.M. 706, 711, 845 P.2d 800, 805 (1992) ("Whether or not a
contract is ambiguous is a question of law for the court.").
The resolution of the ambiguity is generally a question of
fact. Young v. Thomas, 93 N.M. 677, 679, 604 P.2d 370, 372
(1979) ("But once this determination [of ambiguity] has been
made, the construction of the agreement depends on extrinsic
facts and circumstances, and then the terms of the agreement
become questions of fact.").
{31}
Either way, whether the district court determined the
invitation for bids referred only to state and locally
funded projects as a matter of law or whether it resolved an
ambiguity as a question of fact, its resolution of this
issue does not fall within our normal scope of appellate
review on certiorari. We do not review questions of fact.
C.F.T. Dev., LLC, 2001-NMCA-069, ¶¶ 9-10. The issue of
whether this particular invitation for bids involved generic
highway projects as a matter of law does not present a
conflict between the district court's decision and case law,
statutes, regulations, or constitutions. See id. ¶ 8. Nor
it is a matter of substantial public interest; it concerns
the wording of one invitation for bids. Id. Therefore,
under our standard of review, whether the decision below was
factual or legal, we do not reach the merits. We affirm the
district court's determination that the invitation related
to state and locally funded airport projects only.
{32}
Moreover, even if we were to reach the merits, we
believe that the invitation for bids unambiguously concerns
only airport projects not involving federal funding. It
specifically so states, and the particulars of the
invitation set out above support its plain wording. Section
60-12-13(C) does not apply.
{33}
BC&L further relies on decisions of the Comptroller
General of the United States in procurement cases, which
treat licensing as a contract performance problem to be resolved after the contract is awarded. Indeed, Higgins
concedes that current Federal Highway Administration
regulations prohibit requiring a contractor to obtain a
license "before submission of a bid or before the bid may be
considered for . . . contract." Higgins contends, and BC&L
does not dispute, that the federal government does not
license contractors. Decisions from a jurisdiction lacking
a statute similar to Section 60-13-12 are not relevant.
{34}
The licensing requirement did not have to be explicitly
included in the invitation for bids.
Procedural Issues
{35}
BC&L also raises procedural issues. It maintains the
district court wrongly dismissed its alternative claim for a
writ of mandamus or injunction, and denied it any relief,
because Higgins "did not provide either notice or a hearing
of his reasons for rejecting [BC&L's] bid, as required by
State Purchasing Regulations, [1.4.1.71(B) NMAC (2001) and
1.4.1.79 NMAC (1998)] and by . . . Board of Education v.
Harrell, 118 N.M. 470, 478, 882 P.2d 511, 519 (1994)." Its
argument encompasses both due process and Procurement Code
issues.
{36}
To prevail on a due process claim, BC&L "must prove
that it had a definite liberty or property interest and that
such interest was, under color of state law, abridged
without appropriate process." Curtis Ambulance of Fla.,
Inc. v. Bd. of County Comm'rs, 811 F.2d 1371, 1375 (10th
Cir. 1987). The majority of federal courts have held that a
disappointed bidder who is not awarded a state contract does
not possess a constitutionally protected property interest.
Buckley Constr., Inc. v. Shawnee Civic & Cultural Dev.
Auth., 933 F.2d 853, 857 (10th Cir. 1991). A distinct
minority has recognized a limited property interest in
unsuccessful bidders who met all substantive standards and
took all appropriate procedural steps to have their "claim
of entitlement to the benefit decided, not arbitrarily, but
in accordance with state law." Hixon v. Durbin, 560 F.
Supp. 654, 661 (E.D. Pa. 1983). See generally Curtis, 811
F.2d at 1376 and cases cited therein (summarizing both
majority and minority views). We need not decide which line
of cases New Mexico would follow. BC&L did not meet all
substantive and procedural requirements because it was not
licensed at the time of bidding. Under either the majority
or the minority view, it did not have a property interest
protected by the due process clause. Its due process
arguments must therefore fail.
{37}
However, BC&L had the right to procedures established
by the regulations under the Procurement Code for all bidders and an implied contract with the State Purchasing
Office that all bidders would be treated fairly. See
Planning & Design Solutions, 118 N.M. at 714-15, 885 P.2d at
35-36 (holding that city had implied contract with bidder to
treat bidder fairly). The regulations clearly provide that a
written copy of the determination rejecting a bid shall be
sent to the nonresponsive bidder:
1.4.1.71 NMAC REJECTION OF INDIVIDUAL BIDS OR
PROPOSALS:
. . . .
B. Written determination required. A
written determination which contains the reasons
for the rejection of an individual bid or proposal
shall be prepared by the [S]tate [P]urchasing
[A]gent or central purchasing office and made a
part of the procurement file. In the case of
procurements for information system resources, a
written determination which contains the reasons
for the rejection of an individual proposal shall
be prepared by the procurement manager and shall
be included as an attachment to the evaluation
committee report as a part of the procurement
file. Further, a copy of the determination shall
also be sent to the nonresponsive offeror.
. . . .
1.4.1.79 NMAC DETERMINATION REQUIRED
A. If a bidder or offeror who
otherwise would have been awarded a contract is
found to be non-responsible, a written
determination, setting forth the basis of the
finding, shall be prepared by the State Purchasing
Agent or central purchasing office. The written
determination shall be made part of the
procurement file, and a copy of the determination
shall be sent to the non-responsible bidder or
offeror.
1.4.1.71 NMAC and 1.4.1.79 NMAC.
{38} Higgins admits BC&L did not receive written
notification, but asserts this error was harmless because
BC&L did receive oral notification and filed a timely
protest. While not condoning the failure of the Purchasing
Agent's Office to follow its own regulations in sending
written notice, we do not believe BC&L suffered any
prejudice. As a consequence, there is no reversible error. See Tartaglia v. Hodges, 2000-NMCA-080, ¶ 33, 129 N.M. 497,
10 P.3d 176 (stating that in the absence of prejudice, there
is no reversible error). BC&L asserts that Higgins also
failed to comply with the regulation concerning inquiry by
the procurement officer:
A. Before awarding a contract, the
procurement officer or procurement manager must be
satisfied that the bidder or offeror is
responsible. Therefore, a bidder or offeror shall
supply information and data requested by the
procurement officer concerning the responsibility
of the bidder or offeror. The unreasonable failure
of a bidder or offeror to promptly supply
information or data in connection with such an
inquiry is grounds for a determination that the
bidder or offeror is not responsible.
1.4.1.78 NMAC (1998). BC&L contends inquiry concerning a
bidder's responsibility is mandatory on the part of the
officer. We do not agree. Responding to such an inquiry is
mandatory on the part of the would-be successful bidder, but
the inquiry on the part of the procurement officer is
optional.
{39}
BC&L also contends it did not have the opportunity to
counter Higgins's decision that it had the wrong category of
license. BC&L argues that due process entitled it to a
hearing, but, in effect, it did not have an administrative
remedy. This claim is without foundation. As we have
pointed out earlier in this opinion, BC&L did not have any
license whatsoever. In addition, BC&L does not call our
attention to anything in the regulations which would have
prevented it from requesting a hearing, submitting more
documents for the administrative record, or moving for
reconsideration of Higgins's decision. It is true that BC&L
was not automatically entitled to a hearing under the
regulations:
A. Hearings will be held only when the
State Purchasing Agent or central purchasing
office determines that substantial material
factual issues are present that cannot be resolved
satisfactorily through an examination of written
documents in the record. Any party may request a
hearing, but such requests shall be deemed denied
unless specifically granted.
1.4.1.86 NMAC (1998). However, this regulation allows state
officials to hold a hearing when one is necessary.
Therefore, we agree with Higgins that BC&L, having failed to
request a hearing, may not now complain of being deprived of one. See State Racing Comm'n v. McManus, 82 N.M. 108, 111-12, 476 P.2d 767, 770-71 (1970) (holding that jockey who
failed to exercise his administrative remedy of requesting
hearing before racing commission could not complain to
courts of receiving no hearing).
{40} Procedural irregularities do not require reversal of
the district court.
Conclusion
{41} We affirm the decision of the district court.
{42} IT IS SO ORDERED.
_______________________________
JAMES J. WECHSLER, Judge
WE CONCUR:
______________________________
LYNN PICKARD, Judge
______________________________
IRA ROBINSON, Judge