Neilsen & Co. v. Cassia and Twin Falls County Joint Class A School Dist. 151

• Decision Date: 13 June 1975
• Docket Number: No. 11675,11675
• Citation: 536 P.2d 1113,96 Idaho 763
• Court: Idaho Supreme Court
• Parties: NEILSEN & CO., a co-partnership consisting of Craig Neilsen, et al., Plaintiff-Appellant, v. CASSIA AND TWIN FALLS COUNTY JOINT CLASS A SCHOOL DISTRICT 151, a political subdivision of the State of Idaho, et al., Defendants-Respondents.

Page 1113

536 P.2d 1113

96 Idaho 763

NEILSEN & CO., a co-partnership consisting of Craig Neilsen, et al., Plaintiff-Appellant, v. CASSIA AND TWIN FALLS COUNTY JOINT CLASS A SCHOOL DISTRICT 151, a political subdivision of the State of Idaho, et al., Defendants-Respondents.

No. 11675.

Supreme Court of Idaho.

June 13, 1975.

Donald J. Chisholm, of Goodman, Duff & Chisholm, Rupert, for plaintiff-appellant.

Herman E. Bedke, Burley, John B. Kugler, Pocatello, for defendants-respondents.

DONALDSON, Justice.

In November, 1973, the Burley Junior High School was destroyed by fire. Plan specifications for a new building were drawn by Richardson and Richardson, architects, and bids were opened April 3, 1974, pursuant to appropriate Idaho statutes. Defendant-respondent Leslie Mitchell, doing business as Mitchell Construction Co., Inc., hereinafter fererred to as 'Mitchell,' submitted the lowest bid, naming as plumbing and mechanical subcontractor, J. & R. Plumbing and Heating, Idaho Falls. Plaintiff-appellant Neilsen and Co., a partnership, hereinafter referred to as 'Neilsen,' submitted the second lowest bid, naming Home Plumbing and Heating Co., Twin Falls, as subcontractor for the above mentioned contracts, and in the event federal funds were utilized, ¹ J. & R. Plumbing and Heating.

At the formal bid opening, Neilsen argued that Mitchell's sole use of J. & R. Plumbing and Heating as subcontractor rendered its bid unresponsive and void. The matter was reviewed by defendant-respondent Cassia and Twin Falls County Joint Class A School District 151, hereinafter referred to as the 'School Board,' and determination was made that the Mitchell bid was proper. The contract was executed and bond was furnished. Appellant then brought action in the district court for injunction and/or writ of prohibition against the Board. The district court denied appellants' relief. However, the appellant was given permission to amend and pray for damages in the event that decision was appealed and reversed.

The appellant assigns error to the district court's dismissal of his writ of prohibition forbidding the School Board from entering into or performing a contract with Mitchell. Error is also assigned to the district court's refusal to enjoin both the School Board and Mitchell from entering said contract or allowing Mitchell to commence work and derive benefit therefrom. Since both assignments are premised upon the contention that Mitchell's bid was unresponsive and void, we now consider that issue.

I.C. § 67-2310 ² provides in part where a general contractor fails to name a properly licensed mechanical subcontractor, the bid of the general contractor is rendered unresponsive and void. I.C. § 33-601 ³ permits a public works contract to be awarded only to the lowest responsible bidder. It appears self-evident that a bid determined unresponsive and void under I.C. § 67-2310 cannot qualify as a responsible bid under I.C. § 33-601. Therefore, in order for the School Board to have properly executed the contract under I.C. § 33-601, provisions of I.C. § 67-2310 must have been satisfied.

The respondents argue the above provisions were met since J. & R. Plumbing and Heating held a certificate of competency in plumbing as defined by I.C. § 39-2716(a). We believe more is required, for the import of I.C. §§ 54-1901-1924 requires a subcontractor not only to be licensed for a general classification of work, but also to hold a specific license from the state based upon type, scope and responsibility of operation.

I.C. § 54-1904 ⁴ specifically sets forth the classificatory license scheme governing public works contractors. At all times pertinent, J. & R. Plumbing and Heating was holder of a 'AA' license which entitled them to execute contracts for public works involving an estimated cost of not more than $250,000.00. The contract in question involves $465,331.00. I.C. § 54-1904 ⁵ states that a contractor must hold a 'AAA' license in order to execute contracts involving an estimated cost of more than $250,000.00. Therefore, sole use of a 'AA' licensed subcontractor in the instant case was improper. Mitchell's bid solely listing J. & R. Plumbing and Heating as subcontractor was in violation of I.C. § 54-1904. As such, the provisions of I.C. § 67-2310 were not satisfied and the bid must be considered unacceptable under I.C. § 33-601.

The School Board, at its option, should have either rejected the Mitchell bid and accepted the lowest responsible bid or readvertised and sought new bids on the project. Clearly, the School Board had no right to waive compliance with I.C. § 67-2310. Provisions affecting competitive bidding on public works were initially established to invite effective competition, prevent fraud, and to secure subcontractors who were capable of satisfactorily performing the work and furnishing supplies at the lowest overall cost. Only through application of the entire scheme can these initial purposes be reached. I.C. § 67-2310 cannot be considered to have been passed solely for regulation and benefit of industrial contractors, and therefore is binding on the School Board.

The respondents contend that I.C. § 67-2310 is constitutionally offensive because it violates the equal protection laws of the United States and Idaho Constitutions. In only specifying electrical and mechanical contractors, arbitrary classification is alleged. We find this argument unpersuasive in that the classification is reasonably related to the purpose of the statute.

The State has a ligitimate public interest in controlling electrical and mechanical subcontractors because public health and safety is greatly affected by skilled application of these trades. By promoting economic stability for public works subcontractors, the legislature is assuring that competent personnel will be available to...