| Skankska USA Civ. Northeast Inc. v City of N.Y. Off. of Admin. Trials & Hearings, Contract Dispute Resolution Bd. |
| 2014 NY Slip Op 51058(U) [44 Misc 3d 1208(A)] |
| Decided on July 10, 2014 |
| Supreme Court, New York County |
| Stallman, J. |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Skankska
USA Civil Northeast Inc., Petitioner, For a Judgment Pursuant to Article 78 of the Civil
Practice Law and Rules
against The City of New York Office of Administrative Trials and Hearings, Contract Dispute Resolution Board and THE NEW YORK CITY DEPARTMENT OF ENVIRONMENTAL PROTECTION, Respondents. |
Petitioner challenges a memorandum decision dated July 8, 2013 of the Contract Dispute Resolution Board (CDRB), which upheld a determination by respondent New York City Departmental of Environmental Protection (DEP) to reject petitioner's request to substitute an "approved equal" for material called for in a contract.
According to the CDRB decision, DEP awarded petitioner a contract to improve piping systems that move sludge from wastewater treatment plants. (Kirsch Aff., Ex 1 [CDRB Decision].) Contract specifications called
Petitioner requested that DEP approve a coupling manufactured by MMC International which has a "ratchet" lock (ratchet coupling) as a substitute for the coupling manufactured by M.I.B. International Limited, which has a "hand-wheel" lock (hand-wheel coupling). (CDRB Decision, at 2.) DEP's engineer rejected the substitution, stating "Submittal did not meet specification since coupling proposed does not have a handwheel as specified." (CDRB Decision, at 2; Verified Petition, Ex 4.)
CDRB upheld DEP's rejection of Skanska's proposed coupling, reasoning,
"Judicial review of a CDRB determination is limited to the question of whether it was made in violation of lawful procedure, was affected by an error of law, or was arbitrary or capricious or an abuse of discretion' (9 RCNY 4—09[g] [6])." (Matter of Start El., Inc. v City of New York, 104 AD3d 488 [1st Dept 2013].)
Here, petitioner has not demonstrated that CDRB's decision was arbitrary, capricious, or lacking a rational basis. As the CDRB indicated in its decision, Contract Specification D-1.8 states, in pertinent part:
Petitioner argues that Contract Specification D-1.8 empowers DEP's Engineer to render an "expert opinion," and that DEP's Engineer did not render an "expert opinion" because "The Engineer made absolutely no investigation, analysis or judgment as to the type, function and quality of the proposed MMC Coupling as it related to the specified MIB Coupling." (Verified Petition ¶ 14.)
Petitioner's interpretation of Contract Specification D-1.8 is contradicted by its express terms. Petitioner does not point to any provisions of Contract Specification D-1.8 that imposes an affirmative duty upon the Engineer to "investigate" whether a proposed substitute material is acceptable under the contract. Under the contract, the burden of demonstrating that the proposed substituted material is equal to a specification falls on the contractor. Contract [*2]Specification D-1.8 states, in pertinent part, "If the Contractor proposes a substitution of the manufacturer or to furnish a substitute item, material or equipment . . . the Contractor shall make a written application to the Engineer for
Because the contract does not require the Engineer to justify the basis of the rejection, petitioner's argument that the Engineer should have given a more extensive written analysis as to the substitution is without merit.
Petitioner also argues that whether the proposed substituted was an "approved equal" may be determined by the Court. Petitioner reasons that because the terms of Contract Specification D-1.8 are unambiguous, the interpretation of its terms involve a question of law, i.e., contract interpretation, for the Court.
However, the question of whether the proposed ratchet coupling is equivalent in type, function, and quality to the hand-wheel coupling manufactured by someone else is not a matter of contract interpretation. Deciding the question might call for specialized knowledge, and the contract clearly placed that question solely within the purview of the Engineer. Thus, petitioner's reliance on Matter of Daily Star v Board of Trustees of Village of Cooperstown (164 AD2d 531 [2d Dept 1991], which involved the interpretation of a village bylaw, is misplaced.
Next, petitioner contends that this case is extraordinarily similar to Appeal of Ocean Electric Corporation (73-2 BCA P 10335, available in Westlaw at 1973 WL 120), which involved an appeal to the NASA Board of Contract Appeals. The CDRB stated, "As Skanska acknowledged, Ocean Electric is not binding on the CDRB." (CDRB Decision, at 4.) Because the decision of the NASA Board of Contract Appeals was not binding upon CDRB, its decision not to follow the decision, however similar it might arguably be, is not arbitrary and capricious and not an abuse of its discretion.
Finally, petitioner alleges that DEP itself was unable to identify an alternative manufacturer of the hand-wheel coupling. Petitioner therefore
Insofar as petitioner is alleging that the contract procurement was in violation of Procurement Policy Board Rules, any challenge to the contract procurement amounts to an impermissible collateral attack. "Prior administrative actions as to which no challenge has been brought for judicial review may not be collaterally challenged in such proceedings brought for direct review of other administrative actions based on the prior actions." (24 Carmody-Wait 2d § 145:22, at 331; see e.g. Matter of Lewis Tree Serv. v Fire Dept. of City of NY, 66 NY2d 667 [1985] [an unsuccessful bidder, who did not bring an Article 78 proceeding to challenge the Comptroller's determination that the unsuccessful bidder violated the Labor Law, may not collaterally attack the determination later
Petitioner had an opportunity to review the bid specifications and to research sources of the hand-wheel coupling before submitting a bid. Having been awarded the contract, it may not now seek to modify it unilaterally.
Accordingly, it is hereby ADJUDGED that this Article 78 petition seeking to vacate a decision dated July 8, 2013 of the Contract Dispute Resolution Board is denied, and the proceeding is dismissed.
ENTER:
/s/