This article is an excerpt from The Art of Tendering: A Global Due Diligence Guide, which is available for purchase.
In its September 2007 decision in AIDS Healthcare Foundation v. Agency For Health Care Administration, the Florida Division of Administrative Hearings found fatal flaws in the assessment of supplier financial viability. The case dealt with a Request for Proposals (RFP) for the administration of disease management services. The complainant, an unsuccessful proponent, challenged the contract award, asserting that the winning bidder failed to satisfy the required financial viability criteria. The Court agreed, finding that the winning bidder failed to show it had sufficient financial reserves to perform the contract. While the Court ruled that the contract should not be awarded to that non-compliant bidder, the Court also ruled that the complainant was ineligible for the contract award since its proposal was also non-compliant on other grounds.
As this case illustrates, non-compliant bids are legally invalid and incapable of lawful acceptance.
