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Thursday, December 11, 2003
Facilitec v. Hibbs: Arizona Supreme Court Holds that Director of Arizona Department of Administration May Delegate to the Deputy Director Authority to Make the Final Decision on the Appeal of a Procurement Protest.
On December 10, the Arizona Supreme Court, per Vice Chief Justice McGregor, issued its unanimous decision in Facilitec v. Hibbs, in which it resolved a "recurring issue of statewide importance" pertaining to the Department of Administration's handling of bid protests. The bidder protested its non-selection for a contract to provide office furniture to the State to the Department's procurement officer, who denied the protest. The bidder appealed the decision up to the Director, who delegated the matter to the Deputy Director, who affirmed the denial. The bidder then filed a complaint in Superior Court, arguing that the Deputy Director lacked the lawful authority to review the bid protest. The Superior Court agreed, holding that the Legislature had not given the Director the power to delegate the matter to the Deputy Director, but the Court of Appeals reversed.
The Supreme Court agreed with the Court of Appeals that the Director acted within his lawful authority in delegating the matter to the Deputy Director. The Court focused on A.R.S. 38-462, which authorizes deputies of state officers to exercise the officers' duties. The Court rejected the bidder's argument that other statutes limiting the Director's delegations to "administrative" functions invalidated the delegation, noting that these statutes do not limit the scope of section 38-462, and that "administrative" functions in any event would include quasi-judicial functions of the sort at issue. The Court also noted that the Legislature had expressly limited other State officers' powers to delegate functions, but had not imposed any such limitation on the Director of the Department of Administration.
On December 10, the Arizona Supreme Court, per Vice Chief Justice McGregor, issued its unanimous decision in Facilitec v. Hibbs, in which it resolved a "recurring issue of statewide importance" pertaining to the Department of Administration's handling of bid protests. The bidder protested its non-selection for a contract to provide office furniture to the State to the Department's procurement officer, who denied the protest. The bidder appealed the decision up to the Director, who delegated the matter to the Deputy Director, who affirmed the denial. The bidder then filed a complaint in Superior Court, arguing that the Deputy Director lacked the lawful authority to review the bid protest. The Superior Court agreed, holding that the Legislature had not given the Director the power to delegate the matter to the Deputy Director, but the Court of Appeals reversed.
The Supreme Court agreed with the Court of Appeals that the Director acted within his lawful authority in delegating the matter to the Deputy Director. The Court focused on A.R.S. 38-462, which authorizes deputies of state officers to exercise the officers' duties. The Court rejected the bidder's argument that other statutes limiting the Director's delegations to "administrative" functions invalidated the delegation, noting that these statutes do not limit the scope of section 38-462, and that "administrative" functions in any event would include quasi-judicial functions of the sort at issue. The Court also noted that the Legislature had expressly limited other State officers' powers to delegate functions, but had not imposed any such limitation on the Director of the Department of Administration.
Posted date: Thu, Dec 11, 2003
