The Schrodinger Legality of RIDOT Paying a Losing Bidder
This is not the biggest question pertaining to Rhode Island’s handling of the failed Washington Bridge – it is secondary, for example, to WHY the state had to offer a serious incentive for what would seem to be a juicy public contract, not to mention what Ken Block is in the process of turning up – but still an important one.
Credit right up front: this article was spurred by a comment on Twitter (sorry, won’t call it X) by @startchangeri.
As you probably know, RIDOT and Governor McKee got no bids on the first RFP to design and build the westbound Washington Bridge. RIDOT then issued an RFI and an RFQ as groundwork for issuing a second RFP. Further to that,
In an effort to get more companies to submit bids, RIDOT said it would offer “an increased $1.75 million stipend” to the unsuccessful shortlisted company to help cover the costs associated with crafting their technical and cost proposal.
Inasmuch as any company qualified to bid would not know if it was going to be the losing finalist … or, put it another way, would know that it could well be the losing finalist, this approach is almost an enticement by raffle to bid — a raffle with a generous prize and a favorably low number of participants at that.
Commenter @startchangeri on Twitter alertly pointed to Rhode Island purchasing regulation #220-RICR-30-00-13 which states (emphasis added)
All costs associated with the preparation, development and submission of bids or proposals and/or protests arising therefrom, in response to solicitations issued on behalf of the State, shall be the Vendor’s sole responsibility. The State will not reimburse any Vendor for such costs.
and wondered if there was some sort of legal waiver in this case.
Anchor Rising inquired of Governor Dan McKee’s administration about the prohibition on reimbursement for such bidding costs. The Department of Administration pointed to another purchasing reg, 220-RICR-30-00-13.33, which states
The State Purchasing Agent reserves the right to agree to alternate terms and conditions for a specific purchase in order to serve the best interests of the State and/or protect the health, safety or welfare, economic or otherwise, of the State and its citizens.
So in Rhode Island, it is illegal to reimburse any Vendor for bidding costs … unless it is deemed not to be illegal, conferring on such a raffle … er, reimbursement, an almost quantum, or Schrodinger’s Cat, state of legality.
Meanwhile, those interested in learning more about the Why and How of the state’s serious failure to keep and maintain the westbound Washington Bridge should drop in on Ken Block’s Twitter feed throughout this coming week.