Pa. Associated Builders & Contractors, Inc. v. Commonwealth Department of General Services

DISSENTING OPINION BY

President Judge COLINS.

I respectfully dissent. Article 3, Section 22 of the Pennsylvania Constitution, entitled “State purchases,” states in relevant part,

The General Assembly shall maintain by law a system of competitive bidding under which all purchases of materials, printing, supplies or other personal property used by the government of this Commonwealth shall so far as practicable be made.

I agree with the Department of General Services (DGS) that this constitutional provision does not apply to construction contracts.

Subject to additional definitions contained in subsequent provisions, and unless the context clearly indicates otherwise, the word “contract” includes construction contracts. “Contract” is “[a] type of written agreement, regardless of what it may be called, for the procurement or disposal of supplies, services or construction....” 62 Pa.C.S. § 103. Chapter 5 of the Code, which governs selection and contract formation, contains no alternative definition for “contract.”

*398Section 511 of the Procurement Code sets forth the methods of source selection, calling for competitive sealed bidding unless otherwise authorized.

Unless otherwise authorized by law, all Commonwealth agency contracts shall be awarded by competitive sealed bidding under section 512(relating to competitive sealed bidding) except as provided in:
Section 512.1 (relating to competitive electronic auction bidding).
Section 513 (relating to competitive sealed proposals).
Section 514 (relating to small procurements).
Section 515 (relating to sole source procurement).
Section 516 (relating to emergency procurement.)
Section 517 (relating to multiple awards).
Section 518 (relating to competitive selection procedures for certain services).
Section 519 (relating to selection procedure for insurance and notary bonds).
Section 520 (relating to supplies manufactured and services performed by persons with disabilities).
Section 905 (relating to procurement of design professional services).

62 Pa.C.S. § 511. The applicable sections set forth the conditions for use of that particular method. For example, if the purchasing agency determines in writing that competitive auction bidding is in the Commonwealth’s best interests, contracts for supplies or services, “but not construction,” may be entered into by competitive electronic auction bidding. 62 Pa.C.S. § 512.1.

Pursuant to Section 513, “[w]hen the contracting officer determines in writing that the use of competitive sealed bidding is either not practicable or advantageous to the Commonwealth, a contract may be entered into by competitive sealed proposals.” In this instance, “contract” includes contracts for construction, and in the instant matter, the DGS Secretary exercised his authority to employ this alternative method of source selection. I would defer to the Secretary’s determination:

The use of the standard competitive sealed bid process for the renovation of Foster Union would not be advantageous to the Commonwealth. Competitive sealed proposals are a more practical method of procurement since this will allow Proposers flexibility in developing their proposals to address their experience with this type of work and the ability to complete coordinated construction in a timely manner. In addition to expediting the process,- this method will be more advantageous by allowing the Commonwealth the ability to consider criteria other than cost in the award process. The prime contracts to be awarded, if any, will be agreed— upon lump sum awards reflecting the costs submitted in the proposals.1

I also agree with DGS that the Separation Act’s use of the term “bidder,” given its date of enactment, does not preclude the use of the RFP process so long as the RFP contains separate specifications resulting in construction contracts awarded to separate prime contractors. Because the competitive sealed proposal method for construction contracts is clearly not prohibited by constitution or statute, this Court’s inquiry should end. It is unwise *399for the Courts to micromanage executive branch procurement practices.

Therefore, I would grant summary judgment in favor of the Commonwealth, Department of General Services.

Judge McGINLEY and Judge LEADBETTER join in this dissent.

. The decision to use the RFP process resulted from an April 11, 2005, “Determination to Use the Request for Proposal Method of Procurement.”