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Monday, February 8, 2021

IN RE PROTEST OF CONTRACT AWARD FOR PROJECT A1150-18, ETC. (DIVISION OF PROPERTY MANAGEMENT AND CONSTRUCTION) (A-1193-19T1)

 IN RE PROTEST OF CONTRACT AWARD FOR PROJECT A1150-18, ETC. (DIVISION OF PROPERTY MANAGEMENT AND CONSTRUCTION) (A-1193-19T1)

This appeal from the Division of Property Management and Construction's (DPMC) rejection of a bid protest and award of the contract for the Comprehensive Renovation and Restoration of the New Jersey Executive State House project to the lowest bidder presents an issue of first impression—whether a prime contractor bidder is required to name its building control systems subcontractor in its bid. See N.J.S.A. 52:32-2.

The DPMC and the court denied the protestor's earlier applications for a stay of the decision and a request to accelerate the appeal. Significant expenses were incurred by the successful bidder, and substantial work on the project progressed, while the appeal was pending. This included the award of thirty-six subcontracts.

The court found setting aside the contract award would severely impact the Executive State House, jeopardize the work already completed, the project in general, and risk damage to the historic structure. Therefore, it would be contrary to the public interest to void the contract even for any remaining uncompleted portion of the construction. Accordingly, the court dismissed the appeal as moot.

Because the issues raised arguably involve a matter of public importance capable of repetition while evading review, the court addressed the merits. The court found no merit in appellant's arguments, holding that the DPMC properly interpreted the subcontractor naming provisions of N.J.S.A. 52:32-2. Bidders are only required to identify subcontractors who would install the actual HVACR system but not those who would engage in a separate trade by performing the more specialized work of installing building management control systems.