BRIGHT HOUSE NETWORKS, APPELLANT,
v.
AT & T CORP., AND BREVARD COUNTY SCHOOL BOARD, APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Bright House Networks appeals a school board's decision to award an internet services contract to AT&T following a bid protest. The court reversed, holding that Florida law prohibits bidders from revising prices after sealed bids are opened, and that AT&T's bid contained material exceptions making it non-responsive to the RFP requirements.
The court held that Florida Statutes section 120.57(3)(f) prohibits price revisions or other material bid changes after the opening of sealed bids, making the School Board's permission for Bright House to revise its price improper. Alternatively, the court found that AT&T's bid was not materially responsive to the RFP due to its exceptions to material indemnification and warranty provisions.
[1] A bid protest challenging the fairness of a bidding process may be brought by a responsive and responsible bidder.
[2] A public entity's solicitation process may be flawed if it allows bidders to change their bids after sealed bids have been opened.
Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the plain language of section 120.57(3)(f), Florida Statutes (2015), prohibits price revisions (or other material bid changes) after the opening of sealed bids”
Establishes the core legal principle that the School Board violated Florida law by allowing Bright House to revise its price after sealed bids were opened.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceThe Brevard County School Board issued an RFP for internet services to replace its existing AT&T contract. Bright House and AT&T were selected as fina…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Bid Protest cases and more on FLexlaw
Bright House Networks appeals the final order entered by the Brevard County School Board following a bid protest by AT & T Corp. as the losing proposer in a Request for Proposal (“RFP”) to provide internet services to Brevard County’s schools. We reverse.
In December 2013, the School Board issued an RFP seeking proposals from vendors who could provide “Internet Provider Wide Area Network” services to its schools. The new contract would replace the School Board’s existing contract (with AT & T) to provide those services. The RFP required each proposer to provide sealed bids, which would be ranked by a selection committee when opened. The RFP provided that the top proposers would then advance to oral presentations, during which the finalists were allowed to submit a “best and final offer” fee schedule (which would account for forty percent of each bidder’s final score). The sealed bids were opened for a private meeting of the selection committee with the stated intent that no one with access to the opened bids *839would reveal information about them to other bidders until after the oral presentations. Bright House and AT & T were selected as finalists, with Bright House receiving the most favorable score from the selection committee on all but one of the selection criteria, including the lowest price (at $1,033,000). AT & T’s sealed bid was ranked as a tie with Bright House on one selection criteria, and lower on all other criteria. AT & T’s sealed bid contained a price offer of $1,090,000, and also included 170 “exceptions” to the RFP— some about which the selection committee expressed serious concerns. Most notably, AT & T took exception to the RFP’s indemnification and warranty provisions, which the School Board’s purchasing agent and evaluation committee clearly viewed as material RFP requirements.
The School. Board scheduled AT & T to present first. At its oral presentation, AT & T announced a revised price of $763,000, thereby undercutting Bright House’s initial price by $243,000. AT & T was also offered an opportunity to change its bid (by rescinding its exceptions) in response to the selection committee’s concerns, but declined to do so. Instead, AT & T’s presenter vaguely stated that AT & T would “work with” the School Board if given the contract. In response to AT & T’s presentation, Bright House made a last minute change in its price (to slightly below AT & Ts revised price), such that Bright House remained the highest ranking bidder in all categories except one (where there was a tie) at the conclusion of the oral presentations. The School Board noticed its intent to award the contract to Bright House, and AT & T filed a bid protest challenging Bright House’s revised price. The School Board’s attorney ultimately agreed with AT &, T that it was unfair for Bright House to revise its price after hearing AT & T’s revised price, and both argued during the two-day administrative (evidentiary) hearing that Bright House should be disqualified for doing so — which would leave AT & T as the winning bidder. Bright House intervened in the proceeding.
After the administrative hearing, an Administrative Law Judge (“ALJ”) recommended that the School Board reject all proposals and rebid the project. The ALJ first found that AT & T had standing to bring the challenge (as a responsible and responsive bidder). She then found that although it was inappropriate (contrary to the notion of a fair bid process) for Bright House to change its price after AT & T revealed its “best and final” price, the flaw was in the bidding process itself, specifically that section 120.57, Florida Statutes (2015), does not permit a school board to allow bidders to change their bids after submission.
Both AT & T and Bright House filed exceptions to the ALJ’s findings. Of significance to this appeal, Bright House challenged the ALJ’s finding that AT & T’s bid was responsive to the RFP in light of its significant “exceptions” to material requirements of the RFP. AT & T challenged the finding that Florida law did not allow the School Board to permit bid modifications after it opened the proposals. The School Board ultimately agreed with AT & T and entered the order on appeal, which: (1) accepted the finding that AT & T was a responsive and responsible bidder; (2) rejected the finding that its RFP process violated Florida Law; (3) accepted the finding that Bright House’s change in price (after hearing AT & T’s revised price) improperly resulted in a competitive advantage to Bright House not enjoyed by AT & T; and (4) found that Bright House’s revised price should not be considered, such that the contract should be awarded to AT & T.
Because the ALJ correctly concluded that the plain language of section 120.57(3)(f), Florida Statutes (2015), pro*840hibits price revisions (or other material bid changes) after the opening of sealed bids, we conclude that the School Board erred in rejecting the ALJ’s findings related to this issue.1 Alternatively, we agree with Bright House that competent, substantial evidence did not support the ALJ’s finding that AT & T’s bid was materially responsive to the RFP. Accordingly, we reverse the School Board’s final order and remand with instructions that the School Board enter a final order consistent with this opinion, and which accepts the ALJ’s recommendation that it re-bid the contract using a new RFP consistent with Florida law.2
REVERSED AND REMANDED WITH INSTRUCTIONS.
LAWSON, C.J., TORPY and WALLIS, JJ., concur.