Legal Aspects and Ramifications of Filing Frivolous Bid Protests
The filing of bid protests seems all the more familiar in today's public works industry. Thus, it is important for contractors to be aware of the ramifications of filing bid protests which may be deemed frivolous.
Despite whether a particular contracting department agrees to participate in the pilot project, a successful bidder, whose bid is being protested, is still entitled to pursue other legal remedies against a competitor asserting a frivolous bid protest. Such causes of action include, but are not limited to Negligent and/or Intentional Interference with Prospective Business Advantage. It should also be noted that as of July 1, 2006 the legislature has amended Public Contract Code ' 6611 to prohibit an unsuccessful bidder from using the Alternative Protest Process, and would instead provide for the filing of a writ of mandate.
The Legislature has looked into the issue of requiring unsuccessful bid protestors to pay the cost of the protest proceedings. Such actions may however, have a "chilling effect" on legitimate bid protest actions. In light of the legal ramifications, any party contemplating a bid protest of a California state or local governmental agency procurement, must proceed with particular caution.
* This is an intricate area of the law. As such, if you have issues pertaining to the above, please contact an attorney or other legal advisor. For more information please feel free to contact Beaumont Law Firm, PC by phone at (559) 658-8771 or via e-mail at www.blf-law.com.
(1) Public Contract Code ' 12125 was recently amended by 2005 Cal. Legis. Serv. Ch. 272 (S.B. 837) (WEST) and will be entitled the Alternative Protest Process.
(2) Public Contract Code ' 12128, as amended by 2005 Cal. Legis. Serv. Ch. 272 (S.B. 837) (WEST) shall be operative until December 31, 2011.
- « Previous Page
- 1
- 2
- Next Page »
