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AWARD OF A CONTRACT TO OTHER THAN THE LOWEST COMPETITIVE BIDDER
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AWARD OF A CONTRACT TO OTHER THAN THE LOWEST COMPETITIVE BIDDER
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1/3/2012 1:31:19 PM
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Legal Opinions
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AWARD OF A CONTRACT TO OTHER THAN THE LOWEST COMPETITIVE BIDDER
Date
3/19/1973
Agency
City Attorney's Office
Notes
OPINION 73-26
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mean the lowest bidder ~,~hose offer best responds in <br />quality, fitness, and capacity to the particular re- <br />quirements of_ the proposed work. <br />Rnd the term "best" as used by the P?est Court has been inter- <br />preted in Inglewood as not applying a standard of relative <br />superiority, but rather permitting lowest bid rejection in <br />such instances as :here the bidder's product was not satisfac- <br />tory or because his previous work on another puhlic project <br />~,?as pocr. In our own Charter, the term "lowest and best bidder" <br />does suggest a standard of. relative superiority. However, the <br />use of_ such a standard is disapproved in the Inglewood case and <br />in the law generally, because it provides no adequate measure <br />to restrain the kind of_ favoritism which competitive bidding is <br />designed to prevent. Accordingly, we believe that our Charter <br />language must be read as if_ the phrase "lowest resporsible bid- <br />der" appeared. <br />With. this background, we can state the case in Inglewood. Bids <br />were invited on ar_ aspect o_f. construction of the City-L.A. County <br />Civic Center by the Civic Center Puthority which, under State law, <br />was obligated to use the bidding procedure. The invitation stated <br />that the award would be made to the lowest responsible bidder, <br />considering the contractor's financial resources, surety and in- <br />surance experience, completion ability, construction experience, <br />personnel., equipment, work load and other pertinent factors, and <br />it required information concerning the contractor's financial <br />responsiblity, the best estimated cost of the work and estimated <br />completion schedule. nf_ twelve bids received, at least nine <br />c~~ere rejected. Petitioner's bid was low by $7~,OOQ.00 over the <br />nearest competitor, nn the financial responsiblity questionnaire, <br />the second lowest bidder received more points than the low bidder, <br />but both achieved at least the minimum rea_uired score. There- <br />af_ter, a panel interviewed the contractors with respect to their <br />experience capabilities. Can a point system, the second lowest <br />bidder scored higher than the low bidder. The panel recommended <br />to the Puthority that the contract be ac,~arded to the second low <br />bidder. There was no findin.c~ by the panel or_ the Authority that <br />the low bidder was not responsible; to the contrary, there tags <br />evidence that the low bidder ~.~as considered capable but that the <br />next lowest bidder had significantly superior qualifications. <br />2'he lo~~~est bidder successfully challenged the award of_ the con- <br />tract to the sc~c~nd lowest bidder. The Supreme Court. reasoned <br />as f_ol lows ; <br />(1) Where the 1<zw requires a~~~~rd ~~f the contract to <br />48 <br />
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