Governmental entities are subject to strict requirements in soliciting and awarding bids for public works projects. The rules for competitive bidding are designed to protect the interests of the taxpayers and to ensure that the work is performed by the bidder in a workmanlike and professional manner.
Generally speaking, the government is required to award a public works contract to the “lowest responsible and responsive bidder.” “Responsibility” generally relates to reputation, competence, and the ability to get the job done. “Responsiveness” generally relates to compliance with bid instructions, specs, and procedural requirements for competitive bidding.
What happens when an aggrieved contractor feels that the government failed to follow the requirements for competitive bidding in awarding the contract?
While remedies are somewhat limited, the contractor may be able to enjoin the award of the contract by filing a lawsuit under the Indiana Public Lawsuit Act. Furthermore, the public meetings where contracts are awarded are often under the watchful eyes of the news media and the general public, even in smaller communities. Public pressure on the governmental entity to do what is lawful and right for the taxpayers can yield effective results.
Tags: competitive bidding, governmental entities, Indiana Public Lawsuit Act, public works
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