Rimco, LLC v. Junta De Subastas De La Administracion
KLRA202400195
Tribunal De Apelaciones De Pue...May 22, 2024Background
- The dispute involves the award of a government contract by the Junta de Subastas de la Administración de Servicios Generales (ASG) for a 35-ton platform for the Puerto Rico Department of Transportation and Public Works (DTOP).
- RIMCO submitted the lowest bid, but the contract was awarded to Reliable Equipment, whose bid was higher but allegedly offered better access to parts and service.
- RIMCO’s bid had a 30-day validity, which expired before the final evaluation and award, thus invalidating their offer for consideration.
- RIMCO appealed the award, filing a motion for reconsideration with the ASG Review Board and, upon its denial, sought judicial review before the Puerto Rico Court of Appeals.
- The key legal framework derives from Ley Núm. 73-2019 and the ASG’s Reglamento Núm. 9230, both governing government procurement and bid evaluation, focusing on the concept of "best value" rather than simply lowest price.
- The court was also asked to consider the impact of subsequently-enacted Ley Núm. 48-2024 on procedural deadlines, but ultimately found the earlier law controlling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Award to higher-priced bidder violates value criteria | RIMCO: Lower price, met all terms; award to Reliable wastes public funds | Reliable/ASG: Reliable’s bid offered better value considering service, delivery, and parts | Court: Award did not err; "best value" is not strictly lowest price |
| Failure to follow original ASG recommendation | RIMCO: ASG recommended RIMCO, DTOP's revised advice lacked record support | Reliable/ASG: DTOP expertise justified valuing service/parts availability | Court: Agency's expertise entitled to deference; DTOP’s evaluation valid |
| Non-adherence to evaluation criteria per Regulation | RIMCO: Only delivery/performance considered, ignoring holistic evaluation | Reliable/ASG: All regulatory factors, including best value, considered | Court: Record shows multifactor analysis per regulation |
| Retroactive application of new procedural law | RIMCO: Old law applies, retroactivity improper | Reliable/ASG: (Not central on merits argument) | Court: Old law applied; no retroactive effect |
Key Cases Cited
- Capó Cruz v. Jta. Planificación, 204 DPR 581 (PR 2020) (administrative decisions carry presumption of legality and correctness)
- García Reyes v. Cruz Auto Corp., 173 DPR 870 (PR 2008) (courts defer to agencies on specialized matters)
- Pacheco v. Estancias, 160 DPR 409 (PR 2003) (judicial review limited to substantial evidence, legal correctness)
- ECA Gen. Contrac. v. Mun. De Mayagüez, 200 DPR 665 (PR 2018) (purpose of public bidding is good government, anti-favoritism)
- Empresas Toledo v. Junta de Subastas, 168 DPR 771 (PR 2006) (review of bid awards limited to abuse of discretion, arbitrariness)