AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• In 2014, the New Mexico Department of Transportation (NMDOT) sought and received approval from the Federal Highway Administration to participate in the Special Experimental Program No. 14 (SEP-14), aimed at establishing innovative contracting practices. Following this, NMDOT promulgated the "Contractor Prequalification Rule" in 2015, allowing for the consideration of performance-based factors in addition to bid amount in awarding construction contracts. In 2016, James Hamilton Construction Company (JHCC) submitted the lowest monetary bid for a highway construction project in Eddy County, New Mexico. However, after applying the Rule, the contract was awarded to Fisher Sand & Gravel – New Mexico, Inc. (Fisher), leading JHCC to file a post-award bid protest, which was initially rejected by a NMDOT hearing officer. Despite a successful appeal in district court regarding the bid protest, Fisher continued the construction as the project had already commenced (paras 2-4).

Procedural History

• [Not applicable or not found]

Parties' Submissions

• Plaintiff-Appellant (JHCC): Argued that the district court erred in dismissing its complaint for declaratory judgment, contending that the "Contractor Prequalification Rule" is not in harmony with the New Mexico Procurement Code and its application is arbitrary and capricious (para 1).
• Defendants-Appellees (NMDOT and Fisher): NMDOT argued that JHCC failed to state a claim upon which relief can be granted, leading to the dismissal of JHCC's complaint. Fisher took no position on JHCC’s appeal (paras 5-6, 22).

Legal Issues

• Whether the "Contractor Prequalification Rule" is in harmony with the New Mexico Procurement Code.
• Whether NMDOT's application of the prequalification factor is arbitrary and capricious.

Disposition

• The appeal was dismissed, affirming the district court's decision to dismiss JHCC's complaint for failure to state a claim upon which relief can be granted (para 23).

Reasons

• The Court, consisting of Judges Henderson, Vargas, and Attrep, unanimously found that the "Contractor Prequalification Rule" is in harmony with the New Mexico Procurement Code. The Rule allows NMDOT to consider factors beyond the lowest monetary bid in awarding construction contracts, aligning with the legislative intent to ensure contracts are awarded to the "lowest responsible bidder" and not solely based on the lowest monetary bid. The Court also determined that the Rule is not arbitrary and capricious, as it is reasonably related to the legislative purpose of maximizing purchasing value of public funds and ensuring a procurement system of quality and integrity. The Court declined to consider JHCC's argument regarding the Rule's conflict with federal statutory authority due to insufficient development and lack of supporting authority (paras 7-22).