2001-128-Minutes for Meeting March 22,2001 Recorded 3/30/2001VOL: CJ2001 PAGE: 128
RECORDED DOCUMENT
STATE OF OREGON
COUNTY OF DESCHUTES
*02001-128 * Vol -Page Printed: 04/05/2001 14:30:11
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DATE AND TIME:
DOCUMENT TYPE:
Mar. 30, 2001; 8:09 a.m.
Regular Meeting (CJ)
NUMBER OF PAGES: 5
MARY SUE PENHOLLOW
DESCHUTES COUNTY CLERK
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1130 N.W. Harriman St., Bend, Oregon 97701-1947
(541) 388-6570 • Fax (541) 388-4752
www.deschutes.org
Tom De Wolf
Dennis R. Luke
MINUTES OF MEETING Mike Daly
DESCHUTES COUNTY BOARD OF COMMISSIONERS
CONVENED AS THE CONTRACT REVIEW BOARD
THURSDAY, MARCH 22, 2001
This meeting was a continuation of a meeting begun Wednesday, March 21. The
purpose of the meeting was for the Board of Commissioners, acting as the
Contract Review Board, to make a decision regarding a bid protest on the Knott
Landfill Cell 2 project.
Present were Commissioners Tom De Wolf, Dennis Luke and Mike Daly. Also
present were Rick Isham, County Counsel; Mike Maier, County Administrator; and
George Holroyd George Holroyd, representing David Evans & Associates.
Chair Tom De Wolf opened the meeting at 9:35 a.m.
Rick Isham stated that this meeting is a continuation of the Board of County
Commissioners' meeting of Wednesday, March 21, 2001, regarding the protest of
JAL Construction, Inc. of L & H Grading, Inc.'s notice of intent to award a contract
for the Knott Landfill Cell 2 project. He explained that the Board issued an oral
decision on March 21regarding this issue.
Mr. Isham said that the question was whether the Board should issue a new notice
of intent to award or whether the protest period is over as a result of only one
protest being filed within the fourteen days from the notice of intent to award. He
stated that under OAR 137.030 (01) (04), an offeror is adversely affected or
aggrieved only if the offeror is eligible for award of the contract as the responsible
bidder submitting the lowest responsive bid, and is next in line for award. Thus,
the protesting offer must claim that all lower bidders are ineligible for award.
Minutes of Meeting Thursday, March 22, 2001
Deschutes County Board of Commissioners
Convened as the Contract Review Board Page 1 of 5 Pages
Quality Services Performed with Pride
Mr. Isham said when he first read that section, its meaning was not clear to him.
He said he has determined that what they are saying is that when you announce
your notice of intent to award, anybody can issue a protest. There is low one, low
two and low three; low two can issue a protest - which is what happened here, with
low two protesting low one. If low three wants to protest, he has to protest against
low two and low one. A copy of this law was sent to all of the bidders with the
notice of intent to award, and it did not offer any interpretation for this.
Commissioner Luke asked, if he were low three, and believed that low one had a
responsive bid and would probably not be successfully challenged, and low two
drops their protest at the last minute, can low one file a protest against low two?
Mr. Isham stated no, that,he can defend a protest against them. You must be a
higher bidder to file a protest. If you receive a notice of intent to award and
nothing happens, then you get the award after the fourteen -day period. If someone
files a protest, then you are required to hold a hearing to determine whether the
protest is valid. If you deny the protest, then automatically the number one gets the
award.
Commissioner Luke asked, what if low two is non-responsive. Mr. Isham said that
he believes that if you have a low two that is non-responsive, that you have to
reject this bid. For example, if low two didn't submit a subcontractor disclosure
list at all, they are considered non-responsive and their bid is eliminated.
Commissioner Luke then asked what if low two had left the contractor board
number off. Mr. Isham replied that this is a required statement; and that's a good
question. The County has the right to waive irregularities, and in the absence of a
protest it could probably be waived. If there's a protest, you may not be able to.
Mr. Isham further explained that he believes the County is going to change that
form, however. To answer the question, he said you need to either put in the
number, or state, "not required". If you don't put a number in and you don't check
the box, it's a problem.
Commissioner Luke asked if it is possible to access the CCB computer on the web.
Commissioner Daly replied yes, it is fairly easy to do so.
Commissioner DeWolf stated that it sounds like where Commissioner Luke is
headed with this is that if the County makes an award at this point, no one can
protest. Mr. Isham replied that there is no protest time left.
Minutes of Meeting
Deschutes County Board of Commissioners
Convened as the Contract Review Board
Thursday, March 22, 2001
Page 2 of 5 Pages
Commissioner DeWolf stated he has a problem with that. He said that if low two
has listed an electrical contractor who says he won't work with them, they then
become non-responsive, which is the same situation right now. That's because low
three thinks that low one is going to get the bid, so they didn't protest against low
two, because low two didn't originally get the bid.
Mr. Isham said everyone has fourteen days to get your facts together, and if you
can't do so and don't file a protest, it's over.
Commissioner DeWolf then said that there would be no need to protest because
low two doesn't have the bid; low one does, and they are fine as far as low three
knows.
Mr. Isham clarified that you could be low ten, and you would have to protest all of
the other lower bidders if you decided to protest. However, in reality no one would
do that.
Commissioner DeWolf said that he feels this is a stupid law.
Mr. Isham said that ODOT will toss a bid if there is one blank left unfilled on their
form. Commissioner DeWolf stated that he doesn't want the County to be like
ODOT.
Commissioner Daly said that there needs to be consistency in upholding the rules.
Commissioner DeWolf stated that he thinks low three through eight should be able
to protest as well. Rick Isham replied that the protest was faxed to all of them, and
they all had the opportunity to protest. If a bidder protests one after the other, with
others being able to protest as well along the way, the project would never get
built. Commissioner DeWolf emphasized that he feels this is taking away people's
rights.
Rick Isham stated that in the human services building project, the three lowest
bidders were qualified before the award; however, it was not done in this case. An
engineering firm was hired to do that for the County, and somehow let all of the
bidders get on the list. This was an indication to the Board that all of them were
responsive.
Minutes of Meeting
Deschutes County Board of Commissioners
Convened as the Contract Review Board
Thursday, March 22, 2001
Page 3 of 5 Pages
Commissioner DeWolf said that the Board shouldn't have to be placed in this
position. Rick Isham said that he has not reviewed the solid waste contract yet, but
doesn't agree with the way this has been performed.
Commissioner DeWolf stated that this has to be one of the worst ways to proceed,
and he would like to see all of the County's engineers to act in a consistent manner
so that the County is protected and won't end up involved in a situation like this.
Rick Isham said that during the pre -conference meeting the County needs to
instruct the contract engineers exactly what to do and what is expected; sometimes
the engineers are doing things in different ways. Everyone needs to be more
specific at the beginning. He said he feels that the contractors should be qualified
before issuing a notice of award, because that gives the County the ability to better
control things. He said he doesn't agree with the theory that they are proceeding
with on this particular contract.
Commissioner Luke asked, then, if there are any more appeal periods. Mr. Isham
replied that there are none; that this part of the issue is over.
Commissioner Luke asked if it was felt that number two is responsive; Mr. Isham
replied yes, and they even listed some subcontractors that didn't have to be
included, such as the electrician and the fencing subcontractor.
Rick Isham stated that the decision says, "Shall promptly issue a written decision
on the protest. The successful offeror shall promptly execute the contract after the
award is filed." He said it is considered final when the Board issues its decision.
Commissioner DeWolf stated that this protest situation bothers him a lot, and
asked if it is state law or the County's law. He further said that the Board shouldn't
have to be put into this situation.
Mr. Isham said that state law and the Attorney General have universally utilized
the model rules. Deschutes County uses those state rules, as opposed to
developing its own. This gives the County access to State law to support its
decisions. If the County uses its own ordinances, there then is no case law or
administrative law to fall back on to support its decisions.
Minutes of Meeting Thursday, March 22, 2001
Deschutes County Board of Commissioners
Convened as the Contract Review Board Page 4 of 5 Pages
Commissioner DeWolf read a portion of the OARS [(4) (a) Right to Protest
Award.] "An adversely affected or aggrieved offeror may submit to the agency a
written protest of the agency's intent to award within fourteen days after issuance
of the notice of intent to award the contract, unless a different protest period is
provided under the solicitation document." He said that the County's intent to
award names one intention; that is, to award to low one. It makes no mention of
two, three, four, five, six or seven.
Mr. Isham said that the definition of adversely affected and aggrieved is one of
higher rank that can knock out all the lower bids; you get one bite of the apple.
LUKE: I move that the Board supplement the decision and provide within
the written decision an award of the contract to JAL, Inc.
DALY: Second.
VOTE: LUKE: Aye.
DALY: Aye.
DEWOLF: Chair votes aye.
Being no further action taken on this issue, Chair Tom DeWolf adjourned the
meeting at 10: 05 a. m.
DATED this 22nd Day of March 2001 for the Deschutes County Board of
Commissioners.
ATTEST:
Recording Secretary
Minutes of Meeting
Deschutes County Board of Commissioners
Convened as the Contract Review Board
Tom DeWolf, Chair
Dennis R. Luke, Commissioner
is ael M. Daly, ommissioner
Thursday, March 22, 2001
Page 5 of 5 Pages