This article is an excerpt from The Art of Tendering: A Global Due Diligence Guide, which is available for purchase.
In its September 1997 decision in American Business Systems v. Department of Labor and Employment Security, the Florida Division of Administrative Hearings upheld the government’s cancel and re-tender decision due to the high cost of the lowest compliant bid. The case dealt with a Request for Proposals (RFP) for mailing equipment. As the Court noted, a competing bid was disqualified for failing to provide proof that the company was an authorized dealer of the required equipment; however, the cost of the single compliant bid was prohibitive. The Court ruled that “in the absence of clear proof of illegality, arbitrariness, dishonesty, or fraudulent dealing, the Department should be permitted to re-bid.” The complaint was therefore rejected.
