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A RESOLUTION OF THE
BOAl2D OF COUNTY COMML�IIISSIONERS OF
" PITIQN COIINTY, COLORADO ACTING AS Tf�;
PROC6RSMENT APPEAIS BOARD APPROVING THE
WRITTEN DECISION IN TSR PROC[TRII++IENNT APPEAL OF TfiE �'
K.,_:.'
FLEI5CHER-SMYTH COIKPANY
Resolution No. 89-�'3..
'�''° -
- WFiEREnS, Pitkin County issued a Request for Proposals and ;,:..'-�_�,
aonducted a tertiary selection process for development of a
� parcel of land adjacent to Aspen Valley Hospital and payment of � _
funds, from the developer's profit, to the County for
�°: oonstruction of a County Health aad Human Services Building; and
WF�REA5, one of the proposers on the project, Fleischer-
_� 5myth Company, filed an appeal of the County Selection Committee
i decision tn select another proposal; anfl r,:'-:_
''� � Wf�REAB, the Board of County Commissioners, sitting as the
' = Procurement Appeals Board pursuant to authority gz'anted them by
,��` the Pitkin County Procurement Code, Sections 5-101(5) and 5-403,
I ���� aonducted a puhlic hearing on Apri1 24th and April 25th, 1989,
��� and decided on April 25, 1989, by a three to one vote, with one .
` Board member abstaining, to uphold the County Seleation Committee
';.?� decision, �
;
�:1� , NOW THEREFORE BE IT RESOLVED by the Procurement Appeals
Board of Pitkin County, Colorado that the written decision,
�� attached hereta as Exhibit ��A," is the aetual and final decision
,.%� of the Board of County Commissioners, acting as the Procurement
.••�;�;,
Appeals Board, in the Fleischer-Smyth procurement appeaL
_ .J.E
�� �
I '��asr ATTEST: PROCUREMENT APPEALS BOARD OF
� PITKSN COUNTY, COLORADO
i
� By: i;
, 1 anette So s Colette Pen " ;;
, _ Chairwo�nan � ��,/3-�'r1 M¢e�+"� �
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� need for affordable employee housing in Pitkin County was a
report available to the public and was of such common knowledge
that its inclusion in The Stevens Group proposal had no d`;';-.
�. _
beneficial effect on the scoring of The Stevens Group.
�; ,,
Contrary to the contention of the protestor, The Stevens „'r
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Group did not develop the Request for Proposals, ("RFP"), and was
,_::,� not at the time of the pre-proposal meeting a proposer but �`
' decided after this meeting to submit a proposal. The Housing
;,� Authority became a co-applicant with The Stevens Group at a later �.
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` date and onl u on the re est of that ro oser. Thus there was �'. `
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T ;� no failure to disclose or misrepresent either the status of The
"`�,� Stevens Group or the Housing Authority. Furthermore, the Housing
`{a Authority also co-applied with the protestor upon their later
�� request.
�'�?� The Aousing Authority's co-applicant status with the winning
applicant and with the protestor is consistent with its public
'��
�,,i� purpose to further and facilitate affordable housing projects in �-.
�.:
the City of Aspen and Pitkin County. The Housing Authority is a
separate cnrporate entity from the County and the City. It was ��
not involved in the development of the RFP or in the selection �
process. Thus, the Housing Authority had no information to �� '
"� diwlge that would be of advantage to any applicant in the ��. . •
"-�� County's selection prooess for this project. The evidence failed -.,;
� to establish that any advantage was given to the winning proposer �'_ ' .
„ . �
� by its earlier association with the Housing Authority. b 4,�,,,
� Furthermore, the Board feels that the protestor's complaint, �,4n���
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after proposal se2ection, of advantageous information being
provided to one proposer over another during the RFP process was
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; not timely. If the protestor had complained at the time of any "' `
i
� alle ed �"',
g prob2ems, policy-making boards could have stopped the y::...",
process, directed that any requested inforntation be given the
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a protestor and the RFP bid period could have been extended. The �� ,�
'-?��� Procurement Code, Section 5-101 1 re ires '��
O qu' proposers who feel F`-
�r`.
,� they have a grievance concerning the proaurement process to
submit their protest in writing to the County within fourteen
- �:.
,f. (14) days of occurrence of the problem. The protestor did not do �� .
� �v this but only complained after selection of another proposal.
�.��� Such conduct prevented the County from correcting any possible
���� improprieties oz misunderstandinqs on the part of any proposer. ' -
��� The protestor's credibility is damaged when it proceeds through a
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three-step selection process without complaint and then complains
�?�' after selection of another proposal is made.
At one point in the selection process the protestor
;,_ .
� complained informal2y to a Housing Authority Board member that it
� was unable to get requested information from the Housing
�-�:° Authority Director, James Adamski, on the affordable housing
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�� market. The Board member contaoted Mr. Adamski and the ! ;
,;�;�a information was expeditiousZy provided to the protestor. `
'� The protestor Failed to ahow that any advantaqeous
information was supplied to one proposer and not another so as to ' �t
;,� prejudzce the protestor's proposal or p2ace it at any '^ ..
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disadvantage in the scaring process. ��r
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At the hearing the protestor did not establish that any
� conflict of interest was present in the selecY.ion process. No �:,� ,
� �•, _
public employee benefitted or stood to benefit privately from the �=:,A=�;
j project or �he selection pracess and no misuse of official
��;.`;
information was shown. - '
,°� The protestor complained that the Housinq Authority � ,.
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committed to tax-exempt public financing for The Stevens Group.
�'S?� However, despite The Stevens Group's apparent exploration of the -
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potential for tax-exempt financing, the evidence showed that The �';.
- �:'., �
T Stevens Group did not receive a commitment from the Housing
,es'�'� Authority for any aZternative financing and did not base its i
'�.'�� proposal on any assumption of tax-exempt financing. � _
�V?�� Furthermore, the Housing Authority did r�ot commit
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$400,000.00 in financing to The Stevens Group. Rather, The
r�� Stevans Group's proposal contained a commitment to generate
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;.,-�;,9 $400,000.0o to the County upon sale of the proposed units. The
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Board further finds that the Selection Committee correct2y �'
'"� concluded that the protestor's proposal did not contain an
�"r unconditional commitment to provide a $400,000.00 return to the
r:.r��y.
;ti� County without tap and permit fee waivers.
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" 'S The sending of different letters to the proposers at the :`
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� tertiary staqe was justified and necessary due to the need to
place the proposers on equal footing with regard to their `
��� development assumptions and due to a change in policy direction ;w..n.,
'"ir�� from the new Board of County Commissioners. The new Board `��"��`•,�
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decided that it wanted to see comparable proposals for an
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employee housing project with a density level compatible with the
surrounding communities. Thus, the different letters sent to the .
proposers a� the tertiary stage of selection were intended to,
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and did, place the proposers on an equal footing so that both '
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proposers were designing a low density sinqle family employee ;�:
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housing project with a minimum retuxn o£ $400,000.00 to the !;"�
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;'� County. ��
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, " The evidence also fai2ed to establish improprieties in the
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,�° � scoring process, although the protestor apparently misunderstood �;',
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how the scores were to be calculated. Testimony revealed however
�.�' that both proposers were treated equally and fairly in the
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`'�3 scoring process.
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� At the hearing the protestor went to some lengths to
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<�� establish the superiority af its proposal. However, it is not `
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the Procurement Appeal Board's role to second guess the Selection
;�s��` Committee's judgment in its seZection of a proposa2, but to �
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<�;'�>,.��' determine if there were any unfair advantages or impropxieties in '
; `'�;
the selection process.
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=-'� CONCLUSION OF LAW
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The evidence at the hearinq failed to establish that an
'=�.�± unfair advantage was given one proposer over another or that `' '
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-- there were improprieties in the County�s selection process so as � �
_ to justify overturning the Selection Committee's deczsion. The
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, � `;rs decision of the Selection Committee is affirmed.
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�3 ATTEST: PROCUREMENT APPEALS BOARD
i� OE PITKIN COUNTY, COLURADO ;
�� '
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+ � By: �11��n.tSC, �,L(J/1/L �4� ;::
p nette Jones Colette Penne (�_�3,.� y
eputy Clerk Recorder t ���Chairwoman t�
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,,,�;^� ?� APPROVED AS TO FORM: j',.
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t�t{.�'�� Q .
?�;;�•:, • Susan W. Snyder '
iY���r`�.. Asst. Pitkin County arney }
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