Pacific Security Alarm, Inc. v. CPA
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledJuly 13, 2006
Docket03-0035-GA
JudgeDemapan
StatusPublished
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Full Opinion
Appeal No. 03-0035-GA
IN THE SUPREME COURT OF THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
PACIFIC SECURITY ALARM, INC.,
P lai"tiff-Appellee.
v.
COMMONWEALTH PORTS AUTHORITY,
Defe"da"t -Appella"t.
Superior Court Case No. 02-0119E
OPINION
Cite as: Pacific Security Alarm, Inc. v. CPA, 2006 MP 17
Argued and submitted on August 20, 2004
Tinian, Northem Mariana Islands
Attomey for Plaillliffs-Appellant Attomey for Defwdallt-Appellee
G. Anthony Lon& Esq. Douglas Cushnie, Esq.
2nd Floor Lim's Building P.O. Box 500949
P.O. Box 504970 Saipan, MP 96950
Saipan, MP 96950
BEFORE: MIGUEL S. DEMAPAN, Chief Justice; ROBERT j. TORRES, Justice Pro
Tempore; MICHAEL BORDALLO, Justice Pro Tempore
DEMAPAN, Chief Justice:
1[1 Pacific Security Alarm (PSA) was one of seven bidders on a Commonwealth
Ports Authority (CPA) project to improve the security access system and construct a
new security control office at the Saipan International Airport. As the runner up
bidder, PSA challenged AIC Marianas' (AIC) winning bid by filing a protest with
the CPA's Executive Director, who rejected the bid protest. PSA argued that Ale
submitted an unresponsive bid which the CPA then wrongfully allowed to be cured
of its defects. In addition, PSA argued that the award to Ale was arbitrary,
capricious, and an abuse of discretion.
1[2 PSA appealed the Executive Director's denial to the CPA Board of Directors,
which also denied PSA's appeal. PSA then filed a complaint for injunctive relief
with the Superior Court which was denied, as well as a petition for judicial review.
PSA additionally argued in its petition for judicial review of the administrative
agency's decision that its due process rights were violated because the CPA allowed
a biased committee of its board of directors to decide the appeaL
1[3 The Superior Court affirmed the agency decision and found that the CPA's
award to AlC was not arbitrary or capricious. We AFFIRM the trial court's decision.
I.
1[4 In June 2001, the CPA published a Notice to Bidders, which solicited bids to
improve security systems at the Saipan International Airport. S.5.F.M. International,
2
Inc., the project manager and designer ("Project Manager"), held a pre-bid
conference. In a prepared question and answer format, the Project Manager
provided specific information on requirements concerrung the availability of
technical staff and the issue of prices and quantities for the various bid items.
1[5 Paragraph 1.07 of the invitation for the bid ("Bid Invite") specified
qualification prerequisites for potential bidders. These requirements induded:
(1) An office in Saipan or Guam "staffed with certified
factory trained engineers and technicians fully
capable of engineering, supervising installation,
system startup, commissioning, providing training,
and providing ongoing maintenance and emergency
service."
(2) The "bidder" and his equipment
supplier/subcontractor have ten years experience in
the design, development, production and installation
of computerized building systems with emphasis on
access control and dosed circuit video systems"
(3) The bidder shall submit a list of manufacturer and
model numbers of proposed equipment to be
installed as listed in § 01300
(4) The bidder shall submit a list of proposed spare pal1s as
recommended by the equipment manufacturers.
Appellant's E.R. at 12-13.
Paragraph B of the Bid Invite provided:
Proposal Qualification: The Bidder shall ensure that his proposal
addresses and satisfies all requirements of this specification. The
Bidder shall provide necessary and sufficient information that
3
allows comprehensive review of his proposal and proves that his
proposal meets the requirements of the specification.
Appellant's E.R. at 14.
The Bid Invite instructions also stated:
The apparent low bidder will be subject to a thorough and
comprehensive review of its qualifications and Bid Documents to
ensure that they are "responsive and responsible." TIUs review
will include, but is not limited to previous project experience,
financial capabilities, quality of equipment and personnel, and
bonding and insurance. If the apparent low bidder is found not to
be "responsible or responsive," their bid will be rejected and the
next lowest bidder will be evaluated for qualifications.
Appellant's E.R. at 9.
1[6 The CPA received seven bids prior to the bid opening and determined that
AIC was the lowest responsible bidder at $1,493,814.00 and PSA was the next lowest
bidder at $1,526,170.00. AIC pooled its resources with subcontractor Diebold to
prove its qualifications and meet the responsibility requirement. Diebold had a staff
of certified factory-trained technicians and more than ten years of experience with
respect to airport security installation. The CPA announced its intent to award the
contract to Ale. After Federal Aviation Administration review, the CPA entered
into a contract with AIC for the airport project in October 2001. In response, PSA
filed a protest. AIC, thereafter, submitted additional information and materials to
the CPA, including detailed listings of equipment, parts and identification of
personneL
1[7 After the CPA denied the protest, PSA appealed the denial to the CPA
4
Appeals Board and moved to recuse the attorney representing the Appeals Board as
well as the entire Appeals Board. Counsel for the Appeals Board subsequently
withdrew, but the members of the Appeals Board declined to recuse themselves.
1[8 In the meantime, the CPA issued a Notice to Proceed to Ale and in a letter
subsequently notified PSA of this decision. Before the Appeals Committee could
make its decision, PSA initiated an action in the Superior Court for injunctive relief.
TIle CPA responded that the September 11, 2001 terrorist attacks in New York and
Washington D.C resulted in a security simation that required the inunediate construction
and installation of the airport security project.
�9 The Superior COUll issued an order denying the motion for a preliminary injullction.
Subsequently, the Appeals Board denied PSA's appeal. PSA then sought judicial review of
the denial of its appeal in the Superior Comt. The Superior Comt affinned the administrative
order.1 PSA filed a timely notice of appeal with this Comt in accordance with Rule 4(A) of
the Commonwealth Rules of Appellate Procedure.
II.
1[10 This Court has jurisdiction pursuant to Article IV, section 3 of the
Commonwealth Constitution and Title 1, section 3102(a) of the Commonwealth
Code.
I Security Alamz Inc., v. Commonwealt/z CPA and AIC Manarws, Inc., Ov. No. 02-0199-E (N.M.!. Super.
Ct. Oct. 1, 2003).
5
III.
1[11 We address this appeal in two parts. First, we begin our analysis by
addressing the applicable standard of review. Next, we move into a substantive
discussion of the legal issues raised.
A. Standard of Review
1[12 PSA argues the applicable standard of review of this administrative appeal
from the Superior Court is de novo. The CPA asserts that the specific review
standard is set forth by the Commonwealth Administrative Procedure Act
("Administrative Procedure Act") at 1 CMC § 9112(f) and contends that there exists
a presumption of administrative regularity in judicial review of agency decisions.
Essentially, both parties are partially correct. While our review of the Superior
Court decision is indeed de novo, it is important to emphasize that we are bound by
the constraints of the Administrative Procedure Act in our de novo review. As a
result, we do not give deference to the lower court's findings because our review of
agency actions is done with the identical guidelines followed by the lower court
under the Administrative Procedure Act. In re San Nicolas, 1 N.M.1. 329, 333-
5 (N.Mariana Islands, 1990).
1[13 The Administrative Procedure Act provides that appeals from final
judgments of the Commonwealth Superior Court regarding agency actions "be
6
taken as in other civil cases." 1 CMC § 9113. Any court reviewing the actions of a
NMI administrative agency, however, must follow the Administrative Procedure
Act. 1 CMC § 9112. See In re San Nicolas, 1 N.M.1. 329, (N.Manana Islands, 1990).
The CPA Board of Directors Appeal Committee's decision qualifies as final agency
action as defined by 1 CMC § 9112(d). The applicable standards of review of agency
action are set forth in 1 CMC § 9112(fy-, and as a "reviewing court," we must analyze
this appeal using the guidelines set forth in this section.
1[14 Under the Administrative Procedure Act, we defer to agency decisions.
Agency decisions are reviewed on the basis of an "arbitrary and capricious"
standard. Wileman Bros. & Elliott, Inc. v. Espy, 58 F.3d 1367, 1374 (9th Cir. 1995).
2
1 CMC § 9112(f) provides that:
(t) To the extent necessary to decision and when presented, the reviewing comt
shall decide all relevant questions of law, interpret constihttional and
stahttory provisions, and detennine the meaning or applicability of the tenns
of an agency action. The reviewing court shall:
(1) Compel agency action unlawfully withheld or tmreasonably delayed;
and
(2) Hold tmlawful and set aside agency action, findings, and conclusions
fOlUld to be:
(i) Arbitrary, capricious, an abuse of discretion, or otherwise not in
accordance with law;
(ii) Contrary to constihttional right, power, privilege, or immunity;
(iii) In excess of stahttory jurisdiction, authority, or limitations, or
short of stahttory rights;
(iv) Without observance of procedme required by law;
(v) Unsupported by substantial evidence in a case subject to 1 CMC
§§ 9108 and 9109 or otherwise reviewed on the record of an agency hearing
provided by stahtte; or
(vi) Unwarranted by the facts to the extent that the facts are subject
to trial de novo by the reviewing comt.
In making the forgoing detennination, the comt shall review the whole record or those parts of it
cited by a party, and due accolUlt shall be taken of the rule of prejudicial error.
7
Although arbitrary action under 1 CMC § 9112 is not specifically defined in the
statute, it has been defined in this jurisdiction as "characterization of a decision or
action taken by an administrative agency or inferior court meaning willful and
ruueasonable action without consideration or in disregard of facts or without
determining principle." In re Blankenship, 3 N.M.1. 209, 217 (1992)(citing Black's law
Dictionary 5th ed. 1979). Entirely failing to consider an important aspect of a claim
will also render an agency action arbitrary and capricious. In re Hajadai Beach Hotel
Extension, 4 N.M.I. 37, 45 n.33 (1993). That being said, "the scope of review under the
'arbitrary and capricious' standard is narrow and a court is not to substitute its
judgment for that of the agency." Motor Vehicle Mr
f s. Ass'n v. State Farm Mutual
Auto. Ins. Co., 463 U.s. 29, 43 (1983). Id. Agency action should be overturned only
when the agency has relied on factors the Legislature has not intended it to consider,
"entirely failed to consider an important aspect of the problem, offered an
explanation for its decision that runs counter to the evidence before the agency, or is
so implausible that it could not be ascribed to a difference in view or the product of
agency expertise." Motor Vehicle Mfrs. Ass'n v. State Farm Mutual Auto. Ins. Co., 463
U.S. 29, 43 (1983).
115 Agency actions under reVIew are also "entitled to a presumption of
regularity." Citizens to Pres. Overton Park, Inc. v. Volpe, 401 U.S. 402, 415 (1971),
abrogated on other grounds by Califano v. Sanders, 430 U.s. 99 (1977). An agency should
8
not be required to provide an explanation unless the presumption of regularity has
been rebutted by evidence suggesting that the agency decision is arbitrary and
capricious. Impresa Construzioni Geom. Domenico Garufi v. U.S., 238 F.3d 1324, 1338
(2001). In the context of a bid protest, a frustrated bidder must show not only that
there was a significant error in the bidding process, but that the error prejudiced it in
order to prevail. Industrial Property Management, Inc. v. U.S., 59 Fed.CL 318,
323 (2004). "To establish prejudice a protester must show that there is a 'substantial
chance it would have received the contract award but for that error.'" Id., citing Alfa
Laval Separation, Inc. v. United States, 175 F.3d 1365, 1367 (Fed.Cir.1999).
B. The selection and Award to Ale.
1. Responsiveness of Bid
116 The standards used in contracting and bidding by the CPA are codified by
the Commonwealth Ports Authority Act (the CPA Act). Rivera v. Guerrero, 4 N.M.I.
79, 82 (1993). The CPA Act empowers the CPA "[t]o adopt and enIorce rules and
regulations for the orderly, safe, and sanitary operation of its ports." Id. (citing 2
CMC § 2122U)). The CPA's bidding procedures and exceptions provide that
expenditures exceeding $25,000.00 must be made by contract to the "lowest
responsible bidder." 2 CMC § 2132. The CPA rules and regulations provide that a
bid may be rejected for the failure to conform to the essential requirements of an
Invitation to Bid. See CPA Regulations at Part 3.2(7)(a).
9
117 Laws regulating competitive bidding are enacted for the benefit and protection
of the taxpaying public, not for the benefit and enrichment of bidders. Legal Aid
Society v. City ofNew York, 114 F.Supp.2d 204, 230-3\ (S.D.N.Y., 2000). The purpose of
such laws is "to guard against favoritism, improvidence, extravagance, fraud and
corruption." ld.
118 PSA argues that AIC's bid was unresponsive because AlC (1) failed to identify
the equipment and spare part list; (2) failed to specify the quantities of card readers
and spare cards; and (3) did not have personnel on Saipan who possessed the
necessary experience and background to meet the Bid Invite personnel requirement.
In order to analyze whether the bid was responsive, it is necessary to determine
whether the specific proposal items in the bid fall under the category of the
responsibility of the bidder to perform or the category of the responsiveness of the
actual bid submitted.
119 Responsibility and responsIveness are two distinct categories involved in
bidding proposals. The term "responsibility" refers to a bidder's ability to perform
the contract before an award is determined. News Printing Co., Inc. v. U.S., 46 Fed.Cl.
740, 746 (2000). The term "responsiveness" refers to whether the actual bid is in
conformity with the material terms of an invitation for bids. ld.
120 Responsibility determinations will not generally be overturned unless there
are allegations of fraud or bad faith. ld. Government agencies have broad discretion
10
in making responsibility determinations. Id. Eligibility requirements, including
personnel and their qualifications, are matters of bidder responsibility. Id. In
addition, contracting officers are not required to provide written explanations for
their actions in determining responsibility. Impresa Construzioni Geom. Domenico
Garufi v. U.S., 238 F.3d 1324, 1338 (cir. 2001).
121 Because the equipment, spare parts, and staffing and experience requirements
were included as part of the "Qualifications" section of the Bid Invite, the CPA
correctly determined they were matters of responsibility. Bidders were required to
submit lists of equipment and spare parts in support of their bid. Bidders were also
required to list manufacturer names and model numbers for the required
equipment. IFB § 13980 at 1.07A Bidder Qualification (3)(e and F). A spare parts list
was also required. Although Ale did not submit its lists until after bid opening, the
CPA found the failure to submit such lists went to issues of responsibility that could
be resolved after the bid opening and were not fatal to Ale's bid. The CPA further
determined that because it had placed the list requirement within the
"Qualification" section of the bid, bidders understood that failure to fully comply
with this "responsibility" issue would not be fatal, and thus it would be unfair to
lead a bidder to believe that it could address this particular bid requirement after the
opening and later re-Iabel the requirement as relating to responsiveness. We agree.
The CPA had broad discretion to define its terms and make responsibility
11
determinations. It fairly put bidders on notice as to what was required and there
was no fraud or bad faith evident in the process.
122 PSA also argues that AIC should not have been allowed to pool its resources
with subcontractor Diebold to prove its qualifications. The Appeals Board ruled
this was a matter of Bid Invite language interpretation and that the obvious goal of
this provision was to insure the successful bidder had the "ability and capacity to
perform all contract requirements." Because the requirements of equipment, spare
parts and staffing were matters of responsibility, the CPA had broad discretion to
make its determination. The fact that AIC pooled its resources to prove its
qualifications does not implicate bad faith or fraud. Absent any other allegations of
bad faith or fraud, we find that the CPA's determination of responsibility cannot be
overturned.
123 Looking at responsIveness, PSA cites several unpublished decisions to
support the contention that AIC's bid was unresponsive because failure to provide
an equipment and spare parts list is a matter of responsiveness. We do not find
these decisions to have precedential value. Rule 51, Rules of Appellate Procedure
(as amended by Judicial Administrative Order No. 2004-300, Sept. 3, 2004). See
Kaainoa u. Cabrera, 6 N.M.I. 634, 637, In. 7 (N. Mariana Islands, 2003). In addition,
PSA cites no case law prohibiting the soliciting agency from classifying something
that could be considered as an issue of "responsiveness" as one of "responsibility."
12
124 Ale's bid as submitted was responsive because it was in conformity with the
material terms of the invitation for bids. The bid proposal contained a precise figure
for which the contractor offered to complete the job. As discussed above, certain
issues which may arguably be classified as responsive were here classified as issues
of responsibility in the invitation to bid and therefore addressed in that context.
Ale's bid remained responsive by offering to provide the exact thing called for in
the invitation for bids at the offered price.
2. AIC's Cure of its Bid
125 Next, PSA argues the selection and award to AIC was unlawful because AIC
was wrongfully allowed to cure its unresponsive bid after opening of the bids. PSA
asserts it was an abuse of discretion for the CPA to notify AIC at a separate meeting
after the bids were open that some of the quantities in their original bid were
incorrect, and to allow them the opportunity to refuse the contract award. The Bid
Invite called for 1000 magnetic card readers and AIC offered only 100. PSA argues
this action contradicted the proper application of Commonwealth Procurement
Regulations, CPA Procurement Regulations and established case law.
126 PSA believes the CPA cannot justify this action in light of Commonwealth
Procurement Regulations, 23 Comm. Reg. No. 5, which permits corrections of bids in
13
certain instances but does not allow an otherwise low bidder to change its bid. 3 PSA
further contends application of § 3.2(8) of CPA's Procurement Regulations also
prohibits allowing AIC to alter its bid. The language of this provision is virtually
identical to the Commonwealth Procurement Regulations with the exception being
approval of bid correction under this provision is made by the contracting officer
instead of the Director of Procurement and Supply. See Commonwealth CPA
Procurement Regulations § 3.2(8).
1[27 PSA cites Grade Construction v. United States, 7 Cl. Ct. 263 (CL Ct. 1985) for the
proposition that in relation to a provision concerning responsiveness, the
government cannot allow a bidder to cure or correct a bid regardless of how de
minimis or negligible the impact upon the price of the item bid. Grade Construction, 7
3 23 Cormn. Reg. No. 5 provides in pertinent part that
[c]orrection or withdrawal of inadvertently erroneous bids, before or after award,
or cancellation of awards based on bid mistakes must be approved by the P&S
Director in writing. After the bid opening. no changes in bid price or other
provisimlS of bids prejudicial to the interests of the government or fair
competition shall be allowed. Whenever a bid mistake is suspected, the
government shall request confirmation of the bid prior to award. In such an
instance, if the bidder alleges an error, the government shall only permit
correction of the bid or withdrawal of the bid in accordance with subparagraph
(a) m (b).
Correction of bids. Correction of bids shall only be permitted when:
(l)an obvious clerical mistake is evident from examining the bid
document. Examples of SUcll mistakes are errors in addition or the obvious
misplacement of a decimal point; or
(2)the otherwise low bidder alleges a mistake and the intended bid is
evident from the bid document or is otherwise supported by clear and convincing
evidence as to the bid intended and the corrected bid remains the low bid. A
lower bid shall not be permitted to correct a bid mistake resulting from an error of
judgment.
14
Cl. Ct. at 273. In Grade Construction the court prevented the lowest bidder who had
previously failed to acknowledge a bid amendment from later acknowledging the
bid amendment. PSA argues the CPA put AIC into the position where it could
decide to accept the additional items or avoid the contract, a situation Grade
Construction explicitly prohibits.
1[28 Grade Construction is inapplicable here. CPA Procurement Rule § 3.2(8)(a)(i)
allows a bidder to correct a bid when "an obvious clerical mistake is clearly evident
from examining the bid document." The CPA acknowledged that Ale's bid
provided for fewer electronic components than what the bid required. The Appeals
Board ruled this quantity deficiency was not an issue of responsiveness because AIC
was willing to provide the additional quantities without changing the bid price. We
agree. As a result, Ale essentially transformed its understatement of quantities
from a responsive issue to a typographical error. Thus, AIC was still offering to
provide the exact thing called for in the Bid Invite at the offered price.
129 Further, it was not an abuse of discretion for the CPA to accept Ale's bid,
which provided the additional required equipment at no charge to the CPA. Instead
of withdrawing its bid, Ale chose to offer the additional quantities at the original
bid price. Had AIC refused to provide the additional quantities or attempted to
Commonwealth Procurement Regulations § 3-102(12).
15
amend its bid price, the CPA would have rejected the bid. Therefore, the CPA's
award of the project contract to AIC was not unlawful.
3. Arbitrary or Capricious Conduct of CPA
130 Next, PSA argues that CPA demonstrated favoritism and the kind of
"arbitrary and capricious" conduct that competitive bidding laws are meant to
prevent when it awarded the contract to Ale. PSA reasserts all of its arguments
induding the assertions that (1) AIC did not identify the required equipment and
spare parts listings for components of an airport security system required by the Bid
Invite, (2) AIC failed to specify the quantities of card readers and spare cards, (3)
AIC was allowed to amend its bid after opening to correct these deficiencies, and (4)
the CPA wrongfully allowed AIC to use a subcontractor to satisfy the Bid Invite
personnel requirement.
131 Recognizing the several standards of review set forth in 1 CMC § 9112(£), this
Court finds no merit in PSA's assertion that the CPA's award to AIC was "arbitrary
and capricious" or the result of favoritism. There was nothing irrational in the
CPA's selection process or its ultimate decision to award the project to Ale. First,
the CPA sought professional technical advice from the very start of the Bid Invite
process, employing the Project Manager, an expert in the bidding selection process,
as a consultant. Second, the CPA solicited bids through a Bid Invite that required
bidders to meet specific qualifications as to both responsibility and responsiveness.
16
AIC was the lowest responsive responsible bidder and was therefore awarded the
project. PSA, who was the second lowest bidder, was allowed to protest the bidding
process and was heard by the CPA's Executive Director who thoughtfully addressed
the protest and produced a clear and rational multi-page written decision upholding
the award to Ale. PSA then appealed this decision to the CPA Appeals Committee.
The Appeals Committee issued a detailed rational written decision thoroughly
considering and addressing all the facts and legal arguments PSA had brought
before it. Nothing the CPA did during the selection or administrative appeals
process fails scrutiny under 1 CMC § 9112(f). Accordingly, we find that the award
to AIC was not arbitrary or capricious.
4. CPA Appeals Board as an Impartial Tribunal
132 Article I, § 5, of the CNMI Constitution provides due process protection in the
Commonwealth much like the Fourteenth Amendment of the United States. Com. of
Northern Mariana Islands v . Bergonia, 3 N.M.1. 22 (1992). Accordingly, we apply
Article I, § 5 using the same analysis as the Fourteenth Amendment to the United
States Constitution. Id. Due process prevents the State from depriving a plaintiff of
a protected property interest without "a fair trial in a fair tribunal." See In re
Murchison, 349 U.S. 133, 136 (1955). PSA argues the CPA Appeals Committee
showed bias in considering its appeal because the CPA Board of Directors hired
counsel to appear on the CPA's behalf concerning PSA's injunction lawsuit, Civil
17
Action No. 02-005. The CPA took a position m the injunction hearing, which
concerned the identical factual circumstances as PSA's administrative appeaL PSA
argues the CPA's position at the injunction hearing showed that the Appeals Board
had in some measure pre-adjudged the facts as well as the law since the CPA
affirmatively argued the selection and award to AIC was proper. In addition, PSA
argues that the CPA Appeals Committee acting as a decision maker additionally had
a strong motive to rule in a way that aided the institution. See Alpha Epsilon Phi Tau
Chapter Housing Assn. v. City of Berkeley, 114 F.3d 840, 844 (9th Cir. 1997).
133 PSA's due process arguments fail in their entirety. In order to find a due
process violation, we look to the test set forth in Alpha Epsilon:
Tumey v. Ohio and its progeny establish two main categories of due
process challenges based on structural bias. First, due process is
violated if a decisionmaker has a "direct, personal, substantial
pecuniary interest" in the proceedings. Id. Second, even if the
decisionmaker does not stand to gain personally, due process may also
be offended where the decisionmaker, because of his institutional
responsibilities, would have "so strong a motive" to rule in a way that
would aid the institution.
Alpha Epsilon Phi Tau Chapter Housing Assn, 114 F.3d 840 at 844 (internal citations
omitted).
134 Nothing m the record supports PSA's contention that the CPA's general
counsel, the litigation counsel the CPA employed to handle the injunctive relief
proceedings, the CPA Appeals Board, or any individual member thereof had a
18
direct, personal, substantial pecuniary interest in the proceedings, or was in any way
impartial or predisposed to deciding against PSA in the administrative appeals
process. In addition, there is no motive for the CPA to rule in a specific way
because of the decision-maker's institutional responsibilities. This is not a case like
Alpha Epsilon, where the decision-maker Board regulated the entities that directly
funded its operations. Alpha Epsilon Phi Tau Chapter Housing Assn. v. City of Berkeley,
114 F.3d at 842. Here we have a contract to perform work on the airport which has
nothing to do with the survival of the CPA as an institution.
135 In addition, there exists a presumption that an agency will follow its
regulatory directives by invalidating "any of its own actions that it finds to be
illegal." Rivera v. Guerrero, 4 N.M.1. 79, 83 (1993). Members of an appeals committee
are presumed to be impartial and fair:
The courts have long applied the presumption that policymakers with
decision-making power exercise their power with honesty and
integrity. The burden of overcoming the presumption of impartiality
"rests on the party making the assertion [of bias]," and the
presumption can be overcome only with convincing evidence that "a
risk of actual bias or prejudgment" is present. In other words, any
alleged prejudice on the part of the decisionmaker must be evident
from the record and cannot be based on speculation or inference.
Nauastar International Transport. v. E.P.A., 941 F.2d 1339, 1360 (6th Cir. 1991)(intemal
citations omitted). PSA has failed to point to anything in the record that warrants
this Court ruling there was a risk of actual bias or prejudgment inherent in the CPA
19
Appeals Board. Therefore, the Court finds no impartiality in the makeup or
execution of the CPA's administrative appeals process and no due process violation
in the resulting decision.
136 Because the Court finds the CPA's award to AIC proper, the Court declines to
address the issue of lost profits.
CONCLUSION
137 For the reasons above, this Court holds the CPA's selection and award of the
Saipan International Airport Security Access System Phase II Project to AIC was
lawful and the decision of the CPA Appeals Board and trial court is AFFIRMED.
Because the award to AIC was lawful, PSA is not entitled to bid preparation costs,
attorneys' fees, or any other costs incurred in pursuing its bid protest or resultant
litigation including this appeal.
SO ORDERED this 13th day of July, 2006.
lsi Miguel S. Demapan
MIGUEL S. DEMAPAN
Chief Justice
lsi Robert J. Torres lsi Michael J. Em'dallo
ROBERT J. TORRES MICHAEL I BORDALLO
Associate Justice Pro Tempore Associate Justice Pro Tempore
20