Ae Nova Distributors, Inc. v. Junta Subastas Colegio Ciencia Agricola
KLRA202400294
Tribunal De Apelaciones De Pue...Oct 8, 2024Background
- AE Nova Distributors, Inc. challenged the outcome of a government procurement auction held by the College of Agricultural Sciences at the University of Puerto Rico, Mayagüez Campus (the College), after the contract was awarded to Multidesk, LLC.
- AE Nova alleged that it was denied the chance to review the agency’s administrative record pertaining to the auction and that the notification of the award was legally deficient.
- Despite having submitted the lowest bid, AE Nova was not awarded the contract, with the College citing AE Nova's unsatisfactory service record as the reason.
- The relevant regulations and statutes governing subastas (public bidding) had changed with the adoption of Ley Núm. 73-2019 and the LPAU (Ley de Procedimiento Administrativo Uniforme), but the College relied on outdated procedures.
- AE Nova sought judicial review after its requests to examine the administrative file were denied, and the reconsideration panel failed to act within the required timeframe.
- The Court addressed whether proper process was followed in denying access to the administrative record and in the content of the notification, and refrained from addressing the merits of the contract award until AE Nova could review the file.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Denial of access to the administrative record post-adjudication | Right to review file after award, essential for due process | Access was available only during auction opening; not required after | AE Nova had a right to review the record after award |
| Adequacy of award notification | Notification used outdated law; was unclear/confusing | Notification met requirements; referred to proper process | Notification was defective and did not meet current law |
| Review of merits of contract award | Should have been awarded as lowest responsible bidder | Award justified by AE Nova’s poor service history | Court withheld ruling until procedural issues corrected |
| Application of correct legal and procedural standards | College used outdated standards; should follow updated law | College followed its internal regulation | Must apply terms from current statutes and regulations (LPAU, Ley 73-2019) |
Key Cases Cited
- CD Builders v. Mun. Las Piedras, 196 DPR 336 (importance of public interest in government bids)
- Maranello et al. v. O.A.T., 186 DPR 780 (purpose of bidding to protect public funds and eliminate favoritism)
- PVH MOTOR, LLC v. Junta de Subastas de la Administración de Servicios Generales, 209 DPR 122 (notification requirements as due process)
- PR Eco Park, Inc. v. Mun. de Yauco, 202 DPR 525 (defective notification affects appellate jurisdiction, timeline)
- Trans. Ad de PR. v. Junta de Subastas, 174 DPR 56 (right to review administrative record after award for transparency)
- IM Winner, Inc. v. Mun. de Guayanilla, 151 DPR 30 (requirements for adequate notification in procurement process)
- Ortiz v. Dir. Adm. De los Tribunales, 152 DPR 161 (constitutional right to public information in Puerto Rico)
- Soto v. Secretario de Justicia, 112 DPR 477 (citizen right to access public information for accountability)