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Procurement Code - Legal and Contractual Remedies

Administrative Resolution of Controversies

1. Right to protest; procedure; settlement of protest; administrative review and decision; notice of decision; finality; stay of procurement pending; exclusivity of remedy.
2. Posting of Bond or Irrevocable Letter of Credit.
3. Authority to Debar or Suspend.
4. Authority to Resolve Contract and Breach of Contract Controversies.

Remedies

 

Review Panel

 

A. Administrative Resolution Of Controversies

1. Right to protest; procedure; settlement of protest; administrative review and decision; notice of decision; finality; stay of procurement pending; exclusivity of remedy.

 

a. Right to Protest; Exclusive remedy.

 

(1) Any prospective bidder, offeror, contractor, or subcontractor who is aggrieved in connection with the solicitation of a contract or award of a contract shall protest to the Procurement Officer in the manner stated in Subsection b. below within fifteen days of the date of issuance of the Invitation for Bids or Requests for Proposals or other solicitation documents, whichever is applicable or any amendment thereto, if the amendment is at issue.(2) Any actual bidder, offeror, contractor, or subcontractor who is aggrieved in connection with the intended award or award of a contract shall protest to the Procurement Officer in the manner stated in Subsection b. below within fifteen days of the date of notification of award is posted in accordance with the Code.

(3) The rights and remedies granted in this Section to a disappointed bidder, offeror, contractor, or subcontractor are to the exclusion of all other rights and remedies of such disappointed bidder, offeror, contractor, or subcontractor against the District at common law or otherwise for the loss or potential loss of an award of a contract under this Procurement Code.

b. Protest Procedure. A protest under Subsection a. above shall be in writing, submitted to the Procurement Officer and shall set forth the grounds of the protest and the relief requested with enough particularity to give notice of the issues to be decided.

c. Duty and Authority to Attempt to Settle Protests. The Procurement Officer shall have authority, prior to the commencement of an administrative review, to settle and resolve by mutual agreement a protest of an aggrieved bidder, offeror, contractor or subcontractor, actual or prospective, concerning the solicitation or award of a contract.

d. Administrative Review and Decision. If the protest is not resolved by mutual agreement, the Procurement Officer shall promptly conduct an administrative review and shall issue a decision in writing within ten days of completion of the review. The decision shall state the reasons for the action taken.

e. Notice of Decision. A copy of the decision along with a statement of appeal rights shall be mailed or otherwise furnished immediately to the protestor and any other party intervening. The Procurement Officer shall also post a copy of the decision at a date and place communicated to all parties participating in the administrative appeal; and such posted decision shall indicate the date of posting on its face and shall be accompanied by a statement of the right to appeal.

f. Finality of Decision. A decision shall be final and conclusive, unless fraudulent, or unless any person adversely affected by the decision requests, in writing, a further administrative review by the Senior Associate for Management Services within ten days of the posting of the decision. The request for the review will be directed to the Procurement Officer, who shall forward the request to the Senior Associate for Management Services, and shall set forth in writing the reasons why the person disagrees with the decision of the Procurement Officer. A person adversely affected by the decision of the Senior Associate for Management Services may request review and a hearing before the District Procurement Review Panel. The request for the review shall set forth in writing the reasons why the person disagrees with the decision of the Senior Associate for Management Services, and must be delivered to the Procurement Officer within ten days of the posting of the decision of the Senior Associate for Management Services. The Procurement Officer shall forward the request to the District Procurement Review Panel for its consideration.

g. Stay of Procurement During Protest. The District shall not proceed further with the solicitation or award of the contract until a decision is rendered by the Procurement Officer; or in the event of timely appeal to the Senior Associate for Management Services until a decision is rendered by the Senior Associate for Management Services; or in the event of timely appeal to the District Procurement Review Panel until a decision is rendered by the District Procurement Review Panel; provided, however, that the solicitation or award of a protested contract will not be stayed if the Procurement Officer, after consultation with the Senior Associate for Management Services and the Superintendent, makes a written determination that the solicitation or award of the contract without delay is necessary to protect the best interests of the District.

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2. Posting of Bond or Irrevocable Letter of Credit. The District may request that the Procurement Officer require any bidder or offeror who files an action protesting the intended award or award of a contract and valued at one million dollars or more to post with the Procurement Officer a bond or irrevocable letter of credit payable to the District in an amount equal to one percent of the total potential value of the contract as determined by the Procurement Officer. The Procurement Officer's decision to require a bond or irrevocable letter of credit is not subject to challenge through a protest filed under Section IX.A.1. The bond or irrevocable letter of credit shall be conditioned upon the payment of all reasonable reimbursement costs which may be adjudged against the bidder or offeror filing the protest in the administrative hearing in which the action is brought and in any subsequent appellate court proceeding. For protests of intended award or award of a contract of the purchasing agency's request for sole source or emergency procurements, the bond or irrevocable letter of credit shall be in an amount equal to one percent of the District's estimate of the contract amount for the sole source or emergency procurement requested. In lieu of a bond or irrevocable letter of credit, the Procurement Officer may accept a cashier's check or money order in the amount of the bond or irrevocable letter of credit. If, after completion of the administrative hearing process and any court proceedings, the District prevails, it may request that the Procurement Review Panel allow it to recover all reasonable reimbursement costs and charges associated with the protest which shall be included in the final order or judgment, excluding attorney's fees. Upon payment of such costs and charges by the bidder or offeror protesting the intended award or award of a contract, the bond, irrevocable letter of credit, cashier's check, or money order shall be returned to the bidder or offeror. Failure to pay such costs and charges by the bidder or offeror protesting the intended award or award of a contract shall result in the forfeiture of the bond, irrevocable letter of credit, cashier's check, or money order to the extent necessary to cover the payment of all reasonable reimbursement costs adjudged against the protesting bidder or offeror. If the bidder or offeror prevails in the protest, the cost of providing the bond, irrevocable letter of credit or cashier's check may be sought from the District.

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3. Authority to Debar or Suspend.

 

a. Authority. After reasonable notice of debarment to the person or firm involved, and a reasonable opportunity for such person or firm to be heard, the Procurement Officer shall have the authority to debar a person for cause from consideration for award of contracts, provided that doing so is in the best interest of the District and there is probable cause for debarment. The Procurement Officer may also suspend a person or firm from consideration for award of contracts during an investigation where there is probable cause for debarment. The period of debarment or suspension shall be for a period as set forth by the Procurement Officer.

b. Causes for Debarment or Suspension. The causes for debarment or suspension shall include, but not be limited to, the following:

 

(1) conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract;(2) conviction, under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property or any other offense indicating a lack of business integrity or professional honesty which currently, seriously and directly affects responsibility as a contractor;(3) conviction, under state or federal antitrust laws arising out of the submission of bids or proposals;(4) violation of contract provisions, as set forth below, of a character which is regarded by the Procurement Officer to be so serious as to justify debarment action:(a) deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract; or(b) a recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts; provided, that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment;(5) violation of an Order of the District Procurement Review Panel; and

(6) any other cause the Procurement Officer determines to be so serious and compelling as to affect responsibility as a contractor, including debarment by another governmental entity for any cause listed herein.

c. Decision. The Procurement Officer shall issue a written decision to debar or suspend within ten days of the completion of his administrative review. The decision shall state the specific reasons for the action taken, if any, and the period of debarment or suspension.

d. Notice of Decision. A copy of the decision shall be mailed or otherwise furnished immediately to the debarred or suspended person and any other party intervening. The notice must include a statement of the person's right to appeal. In addition, the Procurement Officer must post a copy of the decision at a time and place communicated to all parties participating in the administrative review, and such copy must include the posting date annotated on its face and a statement of the appeal rights.

e. Finality of Decision. A decision shall be final and conclusive, unless fraudulent, or unless the debarred or suspended person requests further administrative review by the Senior Associate for Management Services within ten days of the posting of the decision. The request for review will be directed to the Procurement Officer, who shall forward the request to the Senior Associate for Management Services, and shall be in writing, setting forth the reasons why the person disagrees with the decision of the Procurement Officer. The person may also request a review and hearing before the Procurement Review Panel. The request for the review shall set forth in writing the reasons why the person disagrees with the decision of the Senior Associate for Management Services, and must be delivered to the Procurement Officer within ten days of the posting of the decision of the Senior Associate for Management Services. The Procurement Officer shall forward the request to the District Procurement Review Panel for its consideration.

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4. Authority to Resolve Contract and Breach of Contract Controversies.

 

a. Applicability. This section applies to controversies between the District and a contractor or subcontractor when the subcontractor is the real party in interest, which arises under or by virtue of a contract between them. This includes without limitation controversies based upon breach of contract, mistake, misrepresentation or other cause for contract modification or recession.

b. Request for Resolution; Time for filing. Either the District or the contractor, or subcontractor when the subcontractor is the real party in interest, may initiate resolution proceedings before the Procurement Officer by submitting a request for resolution in writing setting forth the general nature of the controversy and the relief requested with enough particularity to give notice to the issues to be decided. A request for resolution of contract controversy must be filed within one year of the date the contractor last performs work under the contract; provided however, that in the case of latent defects a request for resolution of a contract controversy must be filed within one year of the date the requesting party first knows or should know of the grounds giving rise to the request for resolution.

c. Duty and Authority to Attempt to Settle Contract Controversies. Prior to the commencement of an administrative review, the Procurement Officer shall attempt to settle by mutual agreement a contract controversy. The Procurement Officer shall have the authority to approve any settlement reached by mutual agreement.

d. Administrative Review and Decision. If, in the opinion of the Procurement Officer, after reasonable attempt, a protest cannot be settled by mutual agreement, the Procurement Officer shall promptly conduct an administrative review and shall issue a decision in writing within ten days of completion of the review. The decision shall state the reasons for the action taken.

e. Notice of Decision. A copy of the decision and a statement of appeal rights shall be mailed or otherwise furnished immediately to all parties participating in the administrative review proceedings. The Procurement Officer shall also post a copy of the decision at a time and place communicated to all parties participating in the review and such posted decision shall indicate the date of posting on its face and shall be accompanied by a statement of the right to appeal.

f. Finality of Decision. A decision shall be final and conclusive, unless fraudulent, or unless any person adversely affected requests a further review, in writing, setting forth the reasons why the person disagrees with the decision, to the Procurement Officer within ten days of the posting of the decision. The request for review shall be directed to the Procurement Officer and shall be in writing, setting forth the reasons why the person disagrees with the decision of the Procurement Officer. The Procurement Officer shall forward the request for further administrative review to the Senior Associate for Management Services. The person may also request a review and hearing before the District Procurement Review Panel. The request for the review shall set forth in writing the reasons why the person disagrees with the decision of the Senior Associate for Management Services, and must be delivered to the Procurement Officer within ten days of the posting of the decision of the Senior Associate for Management Services. The Procurement Officer shall forward the request to the District Procurement Review Panel for its consideration.

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B. Remedies:

1. Solicitations or Awards in Violation of the Law.

 

a. Applicability. The provisions of this section apply where it is determined by either the Procurement Officer, the Senior Associate for Management Services, or the District Procurement Review Panel upon administrative review that a solicitation or award of a contract is in violation of law. The remedies set forth herein may be granted after review, by the Procurement Officer, Senior Associate for Management Services, or District Procurement Review Panel.

b. Remedies Prior To Award. If, prior to award of a contract, it is determined that a solicitation or proposed contract is in violation of law, the solicitation or proposed contract may be:

 

(1) canceled:

(2) revised to comply with the law and rebid; or,

(3) awarded in a manner that complies with the provisions of this Code.

c. Remedies After Award. If, after an award of a contract, it is determined that the solicitation or award is in violation of law;

 

(1) the contract may be ratified and affirmed, provided it is in the best interest of the District; or

(2) the contract may be terminated and the payment of such damages, if any, as may be provided in the contract, may be awarded.

d. Entitlement to Costs. In addition to or in lieu of any other relief, when a protest submitted is sustained, and it is determined that the protesting bidder or offeror should have been awarded the contract under the solicitation but is not, then the protesting bidder or offeror may request and be awarded a reasonable reimbursement amount, including reimbursement of its reasonable bid preparation costs.

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2. Contract Controversies. In any contract controversy brought under the provisions of Section IX.A.4. (Authority to Resolve Contract and Breach of Contract Controversies) the Procurement Officer, Senior Associate for Management Services, or District Procurement Review Panel may award such relief as is necessary to resolve the controversy as allowed by the terms of the contract or the applicable law.

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3. Frivolous Protests:

 

a. Signature on Protest Constitutes Certificate. The signature of an attorney or party on a request for review, protest, motion, or other document constitutes a certificate by the signer that the signer has read such document, that to the best of the signer's knowledge, information, and belief formed after reasonable inquiry, it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass, limit competition, or to cause unnecessary delay or needless increase in the cost of the procurement or of the litigation.

b. Sanctions for Violation. If a request for review, protest, pleading, motion, or other document is signed in violation of this subsection on or after appeal to the District Procurement Review Panel, the District Procurement Review Panel, upon motion or upon its own initiative, may impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the protest, pleading, motion, or other paper, including a reasonable attorney's fee.

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C. Review Panel

1. District Procurement Review Panel.

 
 

a. Creation. The District Procurement Review Panel shall be charged with the responsibility to review and determine de novo:

(1) requests for review of written determinations of the Senior Associate for Management Services under Sections IX.A.1.f., IX.A.3.e. and IX.A.4.f.; and

(2) requests for review of other written determination of written determinations, decisions, policies,, and procedures as arise from or concern procurement of supplies, or services procured in accordance with the provision of this Code and any regulations drafted by the District; provided, however, that any matter which could have been brought before the Procurement Officer and Senior Associate for Management Services in a timely and appropriate manner under Sections IX.A.1., IX.A.3. or IX.A.4, but was not, shall not be the subject of review. Requests for review pursuant to this provision shall be directed to the Procurement Officer and shall be in writing, setting forth the grounds, within fifteen days of the date of such written determinations, decisions, policies and procedures. The Procurement Officer shall forward the request to the District Procurement Review Panel.

b. Membership. The panel shall be composed of five members, all of whom shall be lay citizens.

c. Chairperson and Meetings. The chairperson of the panel shall be appointed by the chairperson of the Board. The panel shall meet as often as necessary to afford a swift resolution of the controversies submitted to it. Three members present and voting shall constitute a quorum.

d. Administrative Support. The panel shall receive such administrative and clerical support as is necessary for the orderly transaction of business.

e. Jurisdiction. The District Procurement Review Panel shall be vested with authority to:

(1) establish its own rules and procedures for the conduct of its business and holding of its hearings;(2) interview any person it deems necessary;(3) review all written decisions rendered or such other documents or evidence submitted or deemed necessary;(4) record all determinations; and

(5) make a report and recommendation to the Board.

f. Procedure. Within fifteen days of receiving a grievance filed under Sections IX.A.1.f., IX.A.3.e., IX.A.4.f. or IX.C.1.a.(2), the chairperson shall convene the review panel to conduct an administrative review of the determinations rendered. The panel shall within thirty days record its determination and make a report and recommendation to the Board. The Board may affirm, alter or reject the recommendation of the panel. The Board, through its chairperson, shall communicate its decision to those involved in the determination.

g. Finality. The decision of the Board is final as to administrative review and may be appealed to the Circuit Court under the provisions of the South Carolina Administrative Act.

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