NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-5557-00T5
ADVANCE ELECTRIC COMPANY, INC.,
Plaintiff/Appellant,
v.
MONTGOMERY TOWNSHIP BOARD OF
EDUCATION,
Defendant/Respondent.
Submitted April 15, 2002 - Decided May 21, 2002
Before Judges Kestin, Steinberg and Alley.
On appeal from the Superior Court of New
Jersey, Law Division, Somerset County, L-354-
01.
Hill Wallack, attorneys for appellant
(Patrick D. Kennedy and Maeve E. Cannon, of
counsel; Ryan A. Marrone and Anthony L.
Velasquez, on the brief).
Parker, McCray & Criscuolo, attorneys for
respondent Montgomery Township Board of
Education (James F. Schwerin, on the brief).
David Samson, Attorney General, attorney for
respondent State of New Jersey (Patrick
DeAlmeida, Deputy Attorney General, of
counsel; Elaine C. Schwartz, Deputy Attorney
General, on the brief).
The opinion of the court was delivered by
ALLEY, J.A.D.
Plaintiff, Advance Electric Company, Inc. (Advance), appeals
from the denial of its application seeking to restrain the
Montgomery Township Board of Education (Board) from awarding a
contract to BML Productions, Inc. (BML), a contractor that
intended to use one of Advance's competitors as the electrical
subcontractor to replace and install stage lighting at the
Montgomery Township High School theater. Under N.J.S.A. 18A:18A-
18(b), a public school board may award a contract to a prime
contractor, who may then subcontract specific portions of the job
only to a qualified subcontractor. Advance argues that no
regulations exist under which subcontractors for public school
contracts may be qualified, and that the portion of the statute
under which the bid was awarded is consequently invalid.
The State contends that because the work under the subject
contract has already been completed, this appeal is moot.
Alternatively, the State and the Board assert that because
regulations promulgated by the Department of Treasury contain
standards for the qualification of subcontractors, we should
affirm the trial court's determination that the statute upon
which the contract was bid is valid. We consider this matter on
the merits and affirm.
I
In 2000, the Board issued a request for proposal (RFP)
seeking bids for the replacement and installation of stage
lighting and a dimming control system for the Montgomery Township
High School. The RFP required that the bidding contractor
provide the names of all subcontractors to whom work would be
subcontracted, "each of which shall be qualified and shall
provide proof thereof with the bid." On December 18, 2000, the
contract was awarded to BML Productions, Inc. Advance, which
also bid on the contract, protested that award, claiming that BML
was not certified or licensed as an electrical contractor.
The matter was transmitted to the Office of Administrative
Law (OAL) for hearing, and on January 8, 2001, Administrative Law
Judge Robert S. Miller issued an order staying the award of the
contract. Further hearings were to be scheduled. On January 29,
2001, the State Board of Education affirmed Judge Miller's stay
and remanded for further hearings. Before those hearings could
commence, however, the Board canceled the contract to BML and re-
bid the project.
A new RFP was then prepared to solicit bids for the project.
BML again submitted a bid, this time using Electric Wire as its
electrical subcontractor. Although Advance claims that Electric
Wire was not in compliance with the registration requirements of
the "Public Works Contractor Registration Act,"
N.J.S.A. 34:11-
56.48 to -56.57, the Board submitted correspondence in connection
with this appeal indicating that Electric Wire was duly
registered.
Advance then filed a complaint in Superior Court alleging
that no qualification standards for electrical subcontractors had
been adopted as required by the Public School Contracts Law,
N.J.S.A. 18A:18A-1 to -59 (the Act), and that no local board of
education could solicit bids from contractors for all of the work
on a particular project, which work would then be subcontracted
out. According to Advance, the Board's only recourse at this
point would be to re-bid the contract seeking separate bids for
each portion of work to be done under the contract. Advance
sought temporary restraints against the award to BML. It also
sought a ruling that the Board's bid solicitation was illegal and
that the contract must be re-bid.
Judge Rosemarie R. Williams denied Advance's application,
declining to exercise jurisdiction in light of the hearing still
pending before the OAL. A week later, Judge Miller issued an
order noting that the only issue before him was the award of the
contract to BML in late 2000, that he was not confronted with the
issue raised by Advance in its complaint, and that in his view
nothing prevented the Superior Court from accepting jurisdiction
over the issues raised in Advance's complaint.
After the Board announced plans to award a contract on April
23, 2001, Advance asked it to refrain from doing so until Judge
Williams had issued a ruling on its complaint. Advance also
filed an emergent application with the Appellate Division seeking
a stay of any contract the Board might award. We denied the
application in our order of April 20, 2001, stating that Advance
had made "[n]o showing of a reasonable probability of ultimate
success on the merits[,]" and citing
Crowe v. DeGioia,
90 N.J. 126, 133 (1982). Moreover, the Board rejected Advance's call for
a delay in awarding the contract and instead awarded it to BML.
In Judge Williams' decision, which she issued in May 2001,
she described the procedural history and facts relevant to the
dispute and noted the four-part test created by
Crowe v. DeGioia,
supra, to determine whether injunctive relief would be warranted.
She also pointed to the heavy burden on Advance to demonstrate
the Act's invalidity.
Judge Williams determined that under
N.J.S.A. 18A:18A-27,
the Department "may" adopt regulations, but does not require that
it do so. She concluded that Advance's argument that regulations
had to be adopted before the Act could be implemented thus was
without merit. She further observed that the Department of
Treasury had adopted regulations regarding the classification of
all contractors who bid for state contracts, which "addressed the
quality of work, the experience, performance record, etc.
Although this classification is a method to qualify contractors,
there is nothing to support the proposition that the Legislature
anticipated a different methodology for qualifying
subcontractors."
The court concluded that Advance had not
demonstrated that
N.J.S.A. 18A:18A-18(b) is
inoperable for three reasons. First,
[Advance] has not rebutted the presumption of
the statute's validity by presenting clear
and convincing proofs demonstrating
otherwise. Second, the express language of
N.J.S.A. 18A:18A-27 provides that the State
Treasurer
may enact regulations and does not
require that the promulgation of such
regulations be mandatory. Finally, the State
has already adopted qualification methodology
for contractors and there is no evidence to
support the proposition that a subcontractor
would [be] qualified in a different manner.
Since [Advance] has not met their burden as
to the invalidity of the statute it follows
that prongs 2, 3 and 4 of the
Crowe v.
DeGioia test have not been satisfied.
The court consequently denied Advance's application to stay
the award or implementation of the contract to BML and denied
Advance's application to invalidate
N.J.S.A. 18A:18A-18(b).
Advance then moved for reconsideration of Judge Williams'
decision, arguing that a response by the Department of Treasury
to a comment made upon the Department's re-adoption, with
amendments, of its bidder classification and qualification rules
demonstrated that those rules were
not intended to qualify
subcontractors under the Act,
see
33 N.J.R. 712 (February 22,
2001). Judge Williams denied this motion as well.
II
The State contends that the subject contract has been
completely performed, and that this appeal is thus moot and
should be dismissed. Alternatively, it asserts that Advance
lacks standing because it will not suffer any harm if the statute
is found valid.
A case is moot if the disputed issue was resolved, at least
with respect to the parties who instituted the litigation.
DeVesa v. Dorsey,
134 N.J. 420, 428 (1993) (Handler, J.,
concurring);
Oxfeld v. New Jersey State Bd. of Educ.,
68 N.J. 301, 303-04 (1975). Moot or academic appeals are generally
dismissed.
Cinque v. New Jersey Dep't of Corrections,
261 N.J.
Super. 242, 243 (App. Div. 1993). Thus, a court will not decide
a case if the issues are hypothetical, a judgment cannot grant
effective relief, or there is no concrete adversity of interest
between the parties.
Anderson v. Sills,
143 N.J. Super. 432, 437
(Ch. Div. 1976). Courts occasionally will rule on such matters
where they are of substantial importance and are capable of
repetition while evading review, however.
Mistrick v. Div. of
Med. Assistance and Health Servs.,
154 N.J. 158, 165 (1998);
Zirger v. General Accident Ins. Co.,
144 N.J. 327, 330 (1996).
Even assuming the work under the contract in issue has been
completely finished, we disagree that the appeal should be
dismissed as moot. First, this issue plainly is capable of
frequent recurrence until such time as either subcontractor
qualification regulations are specifically adopted under the Act,
or until the issues that Advance now raises are judicially
resolved. Moreover, given the time it takes to hear and decide
appeals, it is likely that future appeals on the same issue would
not be decided until the construction was completed. This appeal
squarely implicates the public bidding process, which is a matter
of great public interest.
In
Statewide Hi-Way Safety, Inc. v. New Jersey Dep't of
Transp.,
283 N.J. Super. 223, 225 (App. Div. 1995), we denied an
unsuccessful bidder's application for a stay and thus the subject
contract was substantially completed. Although we dismissed the
appeal as moot, we also noted that "because of its public
importance, we address one of the issues raised by the appeal."
Id. at 226.
Similarly, in
Gross v. Ocean Tp.,
92 N.J. 539, 541 (1983),
an unsuccessful bidder on a public contract filed suit, claiming
that the township's bidding procedure was invalid. Although the
appeal was deemed "technically moot, inasmuch as the one-year
period of the contract for which bids were subject has long since
expired," the Supreme Court nevertheless addressed the issue
raised in the appeal because of the "portentous nature" of the
appeal.
Ibid. Moreover,
O'Shea v. Bd. of Educ. of Tp. of
Franklin,
127 N.J. 244-45 (1992), does not require dismissal of
this appeal. In
O'Shea, the Supreme Court dismissed an appeal as
moot after concluding that a newly-adopted statute resolved for
the future the issue raised in the appeal; thus, the issue was
not capable of repetition. Moreover, since the project was
completed, there was no controversy remaining between the
parties.
Ibid. Here, however, no statute was adopted which
moots the issue and makes it unlikely that it will be raised
again.
Given the public importance of the issues raised by Advance,
coupled with the likelihood of their repetition, we hold that,
although technically moot, this appeal should be decided on its
merits.See footnote 11
III
We now consider Advance's contention that, until separate
classification standards are adopted regarding the qualifications
of subcontractors bidding for public school contracts, we should
declare invalid the portion of the bidding statute permitting the
award of a public school contract to a contractor who will use
qualified subcontractors. We proceed, of course, from the
firmly-established principle that a trial court's interpretations
of the law and the legal consequences flowing therefrom are not
entitled to any special deference on appeal.
Manalapan Realty v.
Manalapan Tp. Comm.,
140 N.J. 366, 378 (1975);
LaSala v. LaSala,
335 N.J. Super. 1, 6, (App. Div.),
certif. denied,
167 N.J. 630
(2000);
Muise v. GPU, Inc.,
332 N.J. Super. 140, 157 (App. Div.
2000). Here, the issues that Advance raises involve the proper
interpretation of the Act, and whether the classification
regulations adopted by the Department can be applied to qualify
subcontractors for contracts under the Act. These issues are
purely legal ones, and thus we need not defer to the trial
court's determination.
We are in substantial agreement, however, with the views
expressed in Judge Williams' written opinion and we affirm
essentially for those reasons. Judge Williams correctly declined
Advance's invitation to hold
N.J.S.A. 18A:18A-18(b) invalid,
despite the absence of regulations specifically adopted under the
Act to qualify subcontractors used by contractors on contracts
procured under the Act. We add the following, however.
Plaintiff's contentions essentially do not go beyond the
undisputed fact that the Act requires subcontractors to be
"qualified," from which plaintiffs conclude that there must be
regulations to govern their qualification. The Act itself does
not, however, require such regulations.
Our review shows that a longstanding procedure already
exists for qualifying subcontractors in accordance with N.J.S.A.
18A:18A-1. Under N.J.S.A. 18A:18A-18(b), "each . . .
subcontractor [] shall be qualified in accordance with this
Chapter [
N.J.S.A. 18A:18A-1 to -59]," and under
N.J.S.A. 18A:18A-
27, "reasonable regulations for controlling the qualifications of
prospective bidders" may be, but are not required to be,
established by the State Treasurer. Moreover, under
N.J.S.A.
18A:18A-26, "all persons proposing to bid on any contract
requiring public advertisement for bids with the board for public
works, the entire cost whereof will exceed $20,000.00, shall
first be classified in accordance with
N.J.S.A. 18A:18A-27."
Reading these provisions together with
N.J.S.A. 52:32-2, it is
evident that the system of classifying bidders is part of the
evaluation procedure, that is, the classification system is a
method that is employed to qualify contractors. The Legislature
has never changed this system, and thus it can be deemed to have
approved of it. Accordingly, Advance's claimed deficiency in the
legislative and regulatory pattern for the qualification of
subcontractors in fact is non-existent.
To elaborate, we note that
N.J.S.A. 18A:18A-3 and -4 provide
that all contracts to be awarded by a board of education which
exceed, in a contract year, the total sum of $17,500, can be
awarded only after utilizing a public bidding process. Prior to
1999,
N.J.S.A. 18A:18A-18 provided that a board of education had
to seek both bids for each separate branch of work to be
performed (
i.e., plumbing, electrical, etc.), and also, included
in a single, overall contract, bids for all the services to be
performed. The responding bids, moreover, had to identify all
subcontractors to whom the bidder would subcontract all plumbing
and gas fitting, heating and ventilation work, electrical work,
and structural steel and ornamental iron work. Each such
subcontractor "[had to be] qualified in accordance with this
chapter."
N.J.S.A. 18A:18A-18.
Additionally,
N.J.S.A. 18A:18A-26, which has not been
amended since 1983, has long provided that each board of
education had to "require that all persons proposing to bid on
any contract requiring public advertisement for bids with the
Board for public work, the entire cost whereof will exceed
$20,000.00, shall first be classified in accordance with"
N.J.S.A. 18A:18A-27. With that classification requirement in
place, bids can only be accepted from "persons qualified in
accordance with such classification."
N.J.S.A. 18A:18A-26.
Under the pre-1999 version of
N.J.S.A. 18A:18A-27, the State
Board of Education could establish regulations "for controlling
the qualifications of prospective bidders upon contracts for
public work . . . by the amount, class or category of work to be
performed or materials and supplies to be furnished or hired
which may fix the qualifications required" of bidders.
In 1999, the Act was amended.See footnote 22 Pursuant to
L. 1999,
c. 440,
§ 65,
N.J.S.A. 18A:18A-18(b) now provides that
The board of education or its purchasing
agent shall advertise for and receive, in the
manner provided by law, (1) separate bids for
each of the branches of work specified in
subsection a. of this section, or (2) bids
for all the work, goods and services required
to complete the building to be included in a
single overall contract, or (3) both. In the
case of a single bid under paragraph (2) or
(3) of this subsection, there will be set
forth in the bid the name or names of all
subcontractors to whom the bidder will
subcontract the furnishing of plumbing and
gas fitting, and all kindred work, and of the
heating and ventilating systems and
equipment, and electrical work, structural
steel and ornamental iron work, each of which
subcontractors shall be qualified in
accordance with this chapter.
Thus, a school board may solicit contractors to submit bids
either for all the work to be done, or for each portion of the
work, or both.
N.J.S.A. 18A:18A-27, which was also revised in 1999,
L.
1999,
c. 440, § 71, now provides that the State Treasurer, rather
than the State Board of Education, may establish regulations
appropriate for controlling the qualifica-
tions of prospective bidders under contracts
for public works, the entire cost whereof
will exceed the bid threshold, by the amount,
class or category of goods or services to be
provided or performed which may fix the
qualifications required according to the
financial ability and experience of the
bidders and the capital and equipment
available to them pertinent to and reasonably
related to the class or category of goods or
services to be provided or performed in the
performance of any such contract, and may
require each bidder to furnish the statement
thereof.
Also relevant is
N.J.S.A. 52:32-2, which provides that if a
contractor bids on a project, the subcontractor it proposes to
use must be "qualified in accordance with Chapter 35 of Title 52
of the Revised Statutes." Under
N.J.S.A. 52:35-3, "State
officials shall classify all such prospective bidders as to the
character and amount of public work on which they shall be
qualified to submit bids, and bids shall be accepted only from
persons qualified in accordance with such classification."
Finally,
N.J.S.A. 52:35-11 provides that regulations can be
adopted "for controlling the qualifications of prospective
bidders. The regulations may fix the qualification requirements
for bidders according to available capital and equipment, and
with due regard to experience and records of past performance."
The Department of Treasury (Department) adopted such
regulations at
N.J.A.C. 17:19-1.1 to -5.11, which provide
standards for the "classification and qualification" of all
bidders for state contracts. Thus, the State Treasurer has, in
fact, established a procedure for the qualification of
contractors at
N.J.A.C. 17:19-1.1,
et seq. The regulations
define "classification" as "the process and product of assigning
specific construction categories or trades and the maximum
aggregate work load level(s) which define eligibility of
prospective bidders."
N.J.A.C. 17:19-1.1. Moreover,
N.J.A.C.
17:19-2.1(a) requires each person proposing to submit bids to
submit to the Department's Director of the Division of Property
Management and Construction (DPMC) a statement describing its
"financial ability, responsibility, plant and equipment,
organization, ownership, relationships and prior experience[.]"
N.J.A.C. 17:19-2.1(b) describes the specific facts each statement
must contain. According to the State, the standards contained in
N.J.A.C. 17:19-2.1 are used to qualify all state bidders,
including both contractors and subcontractors for school
projects and were used in this case.
In the face of Advance's contention that
N.J.S.A. 18A:18A-
18(b) is invalid because no regulation has been adopted which
qualifies subcontractors that a contractor intends to use in
performing a contract awarded under the Act, we emphasize that a
statute is presumed to be valid, and that this presumption is a
strong one. Thus, an individual challenging a statute's validity
bears a heavy burden.
Planned Parenthood of Central New Jersey
v. Farmer,
165 N.J. 609, 619 (2000). Moreover, if the language
of a statute is clear and unambiguous, it must be given its plain
meaning.
New Jersey v. Trump Hotels and Casino Resorts, Inc.,
160 N.J. 505, 527 (1999).
As we have noted, under
N.J.S.A. 18A:18A-18(b), "each" of
the "subcontractors shall be qualified in accordance with this
chapter," and the only other reference to "qualifying" in Chapter
18A is in
N.J.S.A. 18A:18A-26, which concerns classification of
bidders on public school contracts and provides that all bidders
must be properly classified for the relevant type of work. As
already noted, another provision,
N.J.S.A. 18A:18A-27, states
that the Treasurer "may establish regulations appropriate for
controlling the qualifications of prospective bidders[.]" Use of
the word "may" in a statute generally signifies that the power
conferred is permissive rather than mandatory.
Aponte-Correa v.
Allstate Insurance Co.,
162 N.J. 318, 325 (2000). Under
N.J.S.A.
18A:18A-27, as amended, regulations for classification are to
control the "qualifications" of bidders. Therefore, bidders have
to be qualified pursuant to these regulations promulgated under
the same chapter of the School Laws as the section calling for
qualification of subcontractors.
According to plaintiff, in the absence of regulations, there
is no basis for determining who is qualified under the Act. This
is incorrect. References to subcontractors being "qualified"
pre-date the 1999 amendments which allowed single prime
contracts. Subcontractors have had to be qualified all along,
whether there were five prime contracts or, as has been allowed
since 1999, only one. The only regulations that have ever been
in place are those that deal with the classification of bidders.
The system has worked well for years without challenge, and the
1999 amendments established nothing new that would justify
invalidating the statutory bidding process. Subcontractors are
not new to the construction scene, but earlier they were required
to perform under five separate prime contracts per project rather
than under a single one. Thus, not only is plaintiff incorrect
is claiming that there is no qualifying of subcontractors
pursuant to
N.J.S.A. 18A:18A-18, but the procedure for qualifying
subcontractors has remained untouched by the Legislature for many
years.
N.J.S.A. 18A:18A-27, under which the Treasurer may establish
a procedure for qualification, must be read in conjunction with
N.J.S.A. 52:32-1,
et seq. with which it is
in pari materia.
N.J.S.A. 52:32-2 requires that all bidders for work on public
buildings qualify any
subcontractor.
N.J.S.A. 52:32-2 in
accordance with the classification mandated by
N.J.S.A. 52:35-3
provides as follows:
The State officials shall
classify all such
prospective bidders as to the character and
amount of public work on which they shall be
qualified to submit bids, and bids shall be
accepted only from persons
qualified in
accordance with such classification. . . .
Thus, the Legislature plainly intended classification to be
part of the evaluation procedure. This system is, by definition,
a method to qualify contractors.
Additionally, it is evident that the Treasurer's
classification regulations address quality of work, despite
plaintiff's assertions that the public will not get quality work.
N.J.A.C. 17:19-2.5 requires a responsibility determination, which
includes consideration of technical qualifications, experience,
and satisfactory performance record.
N.J.A.C. 17:19-2.5(b)(2),
(3) and (6). Performance ratings are covered by
N.J.A.C. 17:19-
2.6. A contractor may be debarred from a classification for,
among other reasons, "a record of failure to perform or of
unsatisfactory performance . . . within a reasonable time
preceding the determination[.]"
N.J.A.C. 17:19-3.2(a)(10).
We do not understand plaintiff to claim that any
subcontractor on the project for the Montgomery High School
actually was not qualified. In fact, the procedure in place as
envisioned by the Legislature applies to subcontractors on public
school contracts, and was utilized on the bidding for the
contract at issue in the instant case.
Plaintiff apparently contends only that the statute requires
a procedure for qualifying subcontractors which is separate and
distinct from the procedure for qualifying contractors. This
argument not only ignores the legislative intent, it also flies
in the face of common sense.
The overall procedure currently in place requiring all
subcontractors be qualified has remained virtually unchanged for
more than twenty-five years, despite the Legislature's revisiting
of the statute four times since 1977. In fact, in 1999 in its
most recent amendments to the Local Public Contracts Law, the
Legislature did not alter the language that is at issue in the
instant matter. It is plain that the Legislature has long
deferred to the current interpretation of the statute. Although
the Legislature had the opportunity in 1999, if it was
dissatisfied with the process used by the State and boards of
education around the state, to specifically require that separate
qualification regulations be adopted by either the State Board of
Education or the Department of Treasury for those specific types
of subcontractors identified in
N.J.S.A. 18A:18A-18(b), it did
not do so. We infer from this non-action by the Legislature that
it accepted the process used by the State and boards of education
as meeting its intent under the Act. The legislative approval of
an administrative interpretation of a statute can be inferred
when the Legislature, in amending a statute after a prior
administrative interpretation thereof, leaves intact the language
which the agency has so construed.
Commissioner of Internal
Revenue v. Noel,
380 U.S. 678, 681-82,
85 S. Ct. 1238, 1240,
14 L. Ed.2d 159, 162 (1965);
In Re Estate of Gilmore,
101 N.J.
Super. 77, 86 (App. Div. 1968),
certif. denied,
52 N.J. 175
(1968); 2A
Sutherland Statutory Construction, § 49.09, at 400-401
(4th ed. 1984).
In essence, the Legislature has determined that the
classification of bidders, as accomplished by the Treasurer's
regulations, is a reasonable method by which to qualify both
bidders and their subcontractors. A component of the
qualification of bidders is their classification. The Department
may adopt more stringent qualification regulations with respect
to the specific type of contractors named in
N.J.S.A. 18A:18A-
18(b) if it chooses to do so.
This conclusion is buttressed by the requirement in
N.J.S.A.
18A:18A-26 that bidders be classified, and that a board of
education can only accept bids from those "qualified in
accordance with such classification." In fact, the subject bid
here requires that "all bidders must be pre-qualified by the
. . . Department of Treasury, Division of Property Management and
Construction . . . in accordance with
N.J.S.A. 18A:18A-26."
Notably, it was that very Division within the Department that
promulgated
N.J.A.C. 17:19. Thus, contrary to Advance's
argument, it and all other bidders were put on notice that they
and their subcontractors would have to be pre-qualified. The
only regulations under which they could do so was
N.J.A.C. 17:19.
Advance's argument that the public interest would be
furthered if its position was adopted is mistaken for two
reasons. First, as the State argues, there would be delays in
completing work already in progress or scheduled. We fail to see
how the public interest would be advanced in the least by
requiring the State and boards of education to establish
additional regulations, when regulations already exist. To the
contrary, it would be an extreme example of elevating form over
substance, all to the detriment of the public interest. If
public contracts bid under the current statute were required to
be terminated, the result could seriously threaten the public
interest. This result could well delay completion of public
school contract work already in progress as well as work
scheduled. It would expose the public to costs associated with
terminations for convenience as well as costs associated with the
preparation of new plans and specifications based on "as-built"
measurements, costs associated with re-advertising, rebidding,
awarding and start-up of the partially completed project, and of
course, the costs associated with needless delays required
awaiting legislative implementation of a procedure that already
exists.
Second, we also reject Advance's assertion that the
Treasurer's regulations do not address quality of work concerns.
As noted,
N.J.A.C. 17:19-2.1(a) requires that anyone proposing to
submit a bid on a public contract must demonstrate its "financial
ability, responsibility, plant and equipment, organization,
ownership, relationships and prior experience." Additionally,
N.J.A.C. 17:19-2.1(b) requires detailed evidence regarding these
issues.
N.J.A.C. 17:19-2.5 requires the Department to make a
"responsibility determination" as to the financial resources,
technical qualifications, experience, organization and facilities
to carry out the work, and satisfactory performance record for
completed projects, for any bidder. In our view, these
regulations are structured to insure that quality work will be
provided. Moreover, they apply to the specific types of
subcontractors identified at
N.J.S.A. 18A:18A-18(b), by virtue of
N.J.S.A. 52:32-2 and
N.J.S.A. 52:35-3, as discussed above.
Finally, Advance's argument that nothing in the Act
expressly permits a local board of education to use
N.J.A.C.
17:19 to qualify contractors and subcontractors bidding on school
projects is also unpersuasive. While Advance correctly points
out that there is no express authorization for the use of those
rules, it is equally true that nothing prohibits a local school
board from using a system already in place (
i.e.,
N.J.A.C. 17:19)
to qualify its bidders as well. Further, that the Treasurer was
given an option whether to adopt regulations under
N.J.S.A.
18A:18A-2
7 suggests that separate regulations are not necessary.
Indeed, it is beyond legitimate dispute that the use of pre-
existing regulations, of which the Legislature was presumably
aware, suffices to qualify contractors and their subcontractors.
Accordingly, Advance's assertions are wholly without merit
and Judge Williams was correct in rejecting those contentions.
Affirmed.
Footnote: 1 1We disagree with the State's argument that Advance lacks
standing to appeal. Given the public importance of the bidding
statutes, an unsuccessful bidder may challenge a bid award by
seeking to enforce the policy of the bidding statutes. Trap Rock
Inc. Inc. v. Kohl,
59 N.J. 471, 479-81 (1971), certif. denied,
405 U.S. 1065,
92 S. Ct. 1500,
31 L. Ed.2d 796 (1972).
Footnote: 2 2As the State properly points out, this amendment is
inaccurately described in the pocket part of the volume of New
Jersey Statutes Annotated. In fact, the Act was amended by L.
1999, c. 280, to be effective December 20, 1999. L. 1999, c.
280, § 4. The Act was subsequently amended again, "to
incorporate the inadvertently omitted provisions of this section
by L. 1999, c. 280, § 1." See note to L. 1999, c. 440, § 65.
Therefore, we use the version of the Act contained in the 1999
New Jersey Sessions Laws, L. 1999, c. 280, §1, in setting forth
the text of the amended statute.