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Direnzo Coal Co. v. Dept. of General Services, Bureau of Purchases

Determination by defendant agency denying plaintiff's letter of protest regarding bid specifications for the statewide anthracite coal contract vacated because plaintiff was not afforded reasonable notice of a hearing and an opportunity to be heard as statutorily required.

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Argued: April 3, 2001

Direnzo Coal Company (Direnzo) petitions this Court to review a determination of the Department of General Services, Bureau of Purchases (DGS) which denied Direnzo’s letter of protest regarding bid specifications for the statewide anthracite coal contract. We vacate and remand.

DGS procures anthracite coal on a statewide contract for all agencies under the Governor’s jurisdiction, as well as some independent agencies. DGS issued a detailed bid specification, Anthracite Coal Specification C-80, setting forth technical requirements for coal vendors desiring to bid. The most recent C- 80 Specification, effective April 19, 2000, required a 12.6% standard for ash content. Ash content is derived by dividing the heating value of anthracite coal by 1000 (B.T.U./1,000).*fn1 Prior to 1997, the allowable ash content for anthracite coal was 14%. On June 22, 2000, Direnzo filed a protest under the Commonwealth Procurement Code (Procurement Code) *fn2 wherein Direnzo alleged that the 12.6% ash content specification is unduly restrictive and should be raised to 14%. On June 30, 2000, DGS denied Direnzo’s protest and held that C-80 Specification is not unduly restrictive. From this decision, Direnzo has filed a petition for review in our appellate jurisdiction.

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