# Ml, Inc. v. Edison Township Board of Education

> New Jersey Superior Court Appellate Division · November 18, 2025

URL: https://www.frixlaw.com/law-library/cases/11205950

## Case

- **Court:** New Jersey Superior Court Appellate Division
- **Decided:** November 18, 2025
- **Precedential status:** Published
- **Opinion:** Opinion
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/11205950

## Opinion text

NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-0179-25

ML, INC.,

Plaintiff-Appellant/Cross-
APPROVED FOR PUBLICATION
Respondent,
November 18, 2025

v. APPELLATE DIVISION

EDISON TOWNSHIP BOARD
OF EDUCATION and VANAS
CONSTRUCTION CO., INC.,

Defendants-Respondents.

BENARD ASSOCIATES, INC.,

Plaintiff-Respondent/Cross
Appellant,

v.

EDISON TOWNSHIP BOARD OF
EDUCATION, VANAS
CONSTRUCTION CO., INC.,
and ML, INC.,

Defendants-Respondents.

Argued October 27, 2025 – Decided November 18, 2025

Before Judges Sabatino, Natali and Bergman.
On appeal from the Superior Court of New Jersey, Law
Division, Middlesex County, Docket Nos. L-3854-25
and L-3941-25.

Greg Trif argued the cause for appellant/cross-
respondent ML, Inc. (Trif & Modugno, LLC, attorneys;
Greg Trif and Kyle H. Cassidy, of counsel and on the
briefs).

Allan C. Roth argued the cause for respondent Edison
Township Board of Education (Ruderman & Roth,
LLC, attorneys; Allan C. Roth and Jeffrey J. Berezny,
on the brief).

Matthew D. Lakind argued the cause for
respondent/cross-appellant Benard Associates, Inc.
(Tesser & Cohen, PC, attorneys; Matthew D. Lakind
and Lee Tesser, on the briefs).

George E. Pallas argued the cause for respondent Vanas
Construction Co., Inc. (Cohen, Seglias, Pallas,
Greenhall & Furman, PC, attorneys; George E. Pallas
and Timothy R. Ryan, of counsel and on the briefs).

The opinion of the court was delivered by

SABATINO, P.J.A.D.

This appeal and cross-appeal in a public bidding dispute originated before

us through emergent applications. The case arises from the award of an

anticipated public school construction contract to the company deemed by the

Edison Township Board of Education to be the "lowest responsible bidder"

A-0179-25
2
pursuant to N.J.S.A. 18A:18A-4(a). The planned construction involves an

addition to one of the district's intermediate-level schools.

Among others, the Board received bids from plaintiff ML, Inc. ("ML"),

plaintiff Benard Associates, Inc. ("Benard"), and defendant Vanas Construction

Co., Inc. ("Vanas"). Of the three bids submitted by the parties, Benard's bid was

the lowest ($14,885,000), ML's bid was the second lowest ($14,975,000), and

Vanas's bid was the highest ($15,540,000). That represents a spread of $655,000

between the lowest bid by Benard and the highest bid by Vanas.

Shortly after the bid opening, the Board announced at a public meeting its

decision to award the contract to Vanas. The Board deemed Vanas to be the

"lowest responsible bidder," concluding that its bid, unlike those of ML and

Benard, did not suffer from any material defect.

ML and Bernard each filed suit in the Law Division to halt and overturn

the award to Vanas, and their lawsuits were eventually consolidated. On the

return date of the order to show cause, the trial court denied the plaintiffs'

requests for a preliminary injunction.

ML filed an emergent application with this court, and Benard filed an

emergent cross-appeal, each of them respectively arguing that they are the

lowest responsible bidder. We entered an interim stay of the Board's award and

A-0179-25
3
the work on contract pursuant to Rule 2:9-8. We have since considered

extensive briefing and oral argument on the merits.

For the reasons that follow, we affirm the trial court's preliminary

determination upholding the Board's award to Vanas. We agree with the trial

court that the Board reasonably rejected ML's bid as materially defective

because of the staleness of the information—on what is known as DPMC Form

701 ("the DPMC form")—attesting to the status of work that ML's electrical

subcontractor was obligated to perform on other pending projects.

As we will explain in more detail, the DPMC form, which was developed

by the New Jersey Department of Treasury, requires each bidder to provide

"current" information about the status of its outstanding work and that of its

designated subcontractors. See N.J.A.C. 17:19-2.13 (specifying the required

contents of the form). In its role as the procurement agency, the Board

reasonably concluded the lengthy gap of over five months between the date of

the DPMC form in December 2024 and the bid opening date in June 2025

rendered ML's bid unresponsive. In making that assessment, the Board had the

statutory authority as a local procurement agency to treat the DPMC form's

untimeliness more stringently than the Treasury otherwise might have on a State

contract.

A-0179-25
4
We further sustain the trial court's decision to deny relief to Benard. The

Board had a reasonable basis to reject Benard's bid because of its non-

compliance with the Board's bid bond requirements. In particular, unlike Vanas,

Benard's bid bond was dated over one month before the opening date of bid

submissions and, notably, before a contract Addendum issued in the interim by

the Board had materially altered the project's scope of work and pricing.

We further uphold the trial court's determinations that: (1) neither ML nor

Benard had proven comparable material deficiencies in Vanas's bid submissions;

and (2) there was no need for the Board to conduct a bidder responsibility

hearing.

Because the record before us suffices to determine the legal issues with

finality, we modify the trial court's decision and convert it from a preliminary

ruling to a final ruling that affirms the contract award to Vanas.

I.

The pertinent facts are largely undisputed and reflected in the non-

testimonial documentary record. We summarize the background briefly.

The School Construction Project and The Bid Solicitation

The case arises from a public bidding process for a construction project

described in the Board's advertisement for bids as an "Addition at James

A-0179-25
5
Madison Intermediate School." Among a great many other things, the Board's

solicitation of bids required bidders to:

• Submit with their bid a "Form of Proposal, fully
executed and notarized."

• Submit a "Certificate of Surety from the
Bidder[']s Surety Company."

• Guarantee their bid in the form of a Bid Bond
written by a Surety authorized to do business in
the State bearing "the same date as the Form of
Proposal."

• Include with their bid a "NJ Department of
Treasury Total Amount of Uncompleted
Contracts Certification, DPMC Form 701 (or
other certified form indicating amount of
uncompleted contracts [as] of the date of the bid
opening), for Bidder and all Prime
Subcontractors (Steel, HVAC, Plumbing,
Electric)."

[(Emphasis added).]

The Board's solicitation further required bidders to submit a base bid for the

primary scope of the work, along with separate pricing for three "alternates"

modifying the construction in various specified aspects.

The bid submission deadline for all interested parties was initially set by

the Board as 2:00 p.m. on May 13, 2025. That initial date was later adjourned

A-0179-25
6
to May 20, 2025, and was then further adjourned again to a final date of June

10, 2025.

Meanwhile, on May 30, 2025, the Board issued "Addendum #4," which

made several modifications to the project's specifications, increased the scope

of work, and added multiple new design drawings.

The Three Parties' Bid Submissions

On June 10, 2025, ML, Benard, and Vanas each submitted bid packages

with the Board, the prices of which are listed below as follows (in descending

order from the lowest bid to the highest):

Bidder Base Bid Alt. 1 Alt. 2 Alt. 3

Benard $14,885,000 $540,000 $30,000 $176,000

ML $14,975,000 $650,000 $95,000 $85,000

Vanas $15,450,000 $483,500 $94,000 $178,000

On June 12, 2025, Vanas submitted a formal protest letter to the Board

identifying what it alleged to be "non-waivable bid defects" pertaining to the

respective bids of ML and Benard. Regarding ML's alleged deficiencies, Vanas

asserted: (1) ML's electrical subcontractor's DPMC form was dated December

18, 2024, a date nearly six months before the bid opening of June 10, 2025; and

(2) that ML's Form of Proposal had not been notarized.

A-0179-25
7
Additionally, as to Benard, Vanas asserted that: (1) its bid bond and

consent of surety were dated May 13, 2025, rather than the proper bid opening

date; (2) its DPMC form was dated May 6, 2025, approximately one month

before the bid opening; and (3) its Form of Proposal lacked a notarized signature.

The Board's Decision and Ensuing Protests

At a public meeting on June 17, 2025, the Board announced it had rejected

the bids submitted by ML and Benard and had awarded the anticipated contract

for the school addition project to Vanas.

Benard filed a protest letter the following day, inquiring as to why its bid

had been rejected by the Board. A week later, the Board responded by letter,

explaining that Benard's bid had been rejected because its: (1) bid bond had

"failed to bear the same date as the form of proposal"; and (2) certification of

uncompleted documents had failed to comply with the Board's dating

requirement.

On June 25, 2025, ML filed a verified complaint and order to show cause

with the Law Division seeking temporary restraints against the Board to prevent

it from awarding or executing the anticipated contract with Vanas. Benard

likewise filed a verified complaint and order to show cause seeking similar

relief.

A-0179-25
8
ML and Benard argued that the Board had acted arbitrarily, capriciously,

and unreasonably in selecting Vanas's higher bid over their own lower bids,

particularly noting that Vanas's subcontractors' DPMC forms had been dated

five, seven, and nine days earlier than the bid opening. After a case management

conference, Benard's case was formally consolidated with that of ML.

Amplifying its position, the Board submitted a letter to the trial court

elaborating its grounds for rejecting the bids of ML and Benard and awarding

the anticipated contract to Vanas. Although Benard's bid had conveyed the

lowest submitted price for the project, the Board stated that Benard's: (1) bid

bond and consent of surety had not been dated with the same date of its

submitted bid, as required by the Board's instructions; (2) DPMC form had been

improperly dated May 6, 2025, and was therefore "not accurate on the day of

the bid of June 10, 2025"; and (3) Form of Proposal lacked a notarized signature,

as specified in the bid proposal checklist provided to the parties.

Regarding ML, the Board found that its: (1) DPMC form was improperly

dated December 18, 2024; and (2) Form of Proposal also lacked a notarized

signature.

A-0179-25
9
The Board recognized that Vanas's bid was the highest of the three, but

nevertheless characterized it as the only bid received that was wholly complete

without defect.

The Trial Court's Decision

The trial court held a non-testimonial proceeding on the orders to show

cause, with argument from counsel for the three bidders and the Board. Three

days later, the court issued an oral decision on September 5, 2025, in which it

upheld the Board's decision rejecting the bids submitted by ML and Benard and

awarding the anticipated contract to Vanas.

More specifically, the trial court concluded that:

• The Board had acted arbitrarily and capriciously
in disqualifying the bids of ML and Benard for
non-compliance with its notarization provision,
as the Board "failed to demonstrate how waiver
of technical compliance of [this] provision would
impair the public interest."

• ML and Benard had not "proved that the [B]oard
acted in an arbitrary and capricious [manner] in
rejecting the[ir] bid[s] for non-compliance"
because of the early dates that had been provided
on those parties' DPMC forms.

• "[I]n giving deference to the [B]oard," the waiver
that was given to Vanas by the Board "as to their
dating of the DPMC forms was not arbitrary
capricious."

A-0179-25
10
• Benard's failure "to submit a bid bond and a
consent of surety bearing the same date as the
form of proposal" was a "material non-waivable
defect under New Jersey law."

• A provision of ML's bid "dealing with additional
work" was not disqualifying, despite ML's failure
to explicitly identify whether the costs that were
listed amounted to "addition[s]" or
"deduction[s]" because it was "obvious" to the
court that these figures reflected an additional
cost rather than a deduction.

Accordingly, the trial court entered a final order and judgment denying

the preliminary injunctive relief ML and Benard had requested under the criteria

of Crowe v. De Gioia, 90 N.J. 126 (1982). Consequently, the court dismissed

the consolidated action with prejudice.

The Present Appeals and Requests for Emergent Relief

Ten days later, ML filed an emergent appeal with this court, requesting

that we: (1) temporarily and preliminarily enjoin the Board from entering into

the anticipated contract with Vanas; (2) rescind, vacate, and declare null and

void the anticipated contract between the Board and Vanas; (3) rescind, vacate,

and declare null and void any resolution awarding the anticipated contract to

Vanas; and (4) declare ML to be entitled to the anticipated contract "as the

lowest responsive bidder." That same day, we temporarily stayed the anticipated

contract pursuant to Rule 2:9-8. Benard then filed a cross-appeal, arguing that,

A-0179-25
11
as the alleged lowest responsible and responsive bidder, it was entitled to the

contract award. The Board and Vanas filed opposition, and we heard oral

argument after accelerated briefing.

II.

The applicable principles of public bidding law governing this case are as

follows.

Statutory Procurement Law Governing Boards of Education Contracts

N.J.S.A. 18A:18A-4(a) prescribes, in relevant part, that:

Every contract for the provision or performance of any
goods or services, the cost of which in the aggregate
exceeds the bid threshold, shall be awarded only by
resolution of the board of education to the lowest
responsible bidder after public advertising for bids and
bidding therefor, except as is provided otherwise in this
chapter or specifically by any other law.

[(Emphasis added).]

Defined in N.J.S.A. 18A:18A-2(t), a "lowest responsible bidder" in this context

means a bidder: "(1) whose response to a request for bids offers the lowest price

and is responsive; and (2) who is responsible." (Emphasis added).

Although the vocabulary may sound like synonyms, a "responsive" bidder

is one who conforms "in all material respects to the terms and conditions,

specifications, legal requirements, and other provisions of the request." N.J.S.A.

A-0179-25
12
18A:18A-2(y) (emphasis added). A "responsible" bidder, on the other hand, is

one who is "able to complete the contract in accordance with its requirements,

including but not limited to requirements pertaining to experience, moral

integrity, operating capacity, financial capacity, credit, and workforce,

equipment, and facilities availability." N.J.S.A. 18A:18A-2(x).1

General Bid Conformity Principles

In general, when reviewing a procurement agency's determination as to

bid conformity, courts consider whether "the determination was not arbitrary or

unreasonable." DGR Co. v. State, Dep't of Treasury, Div. of Prop. Mgmt. and

Constr., 361 N.J. Super. 467, 474 (App. Div. 2003) (citing In re Protest of Award

of On-Line Games Prod. & Operation Servs. Cont., Bid No. 95-X-20175, 279

N.J. Super. 566, 593 (App. Div. 1995) ("On-Line Games")). When performing

that judicial review, "[t]he preliminary inquiry is whether the bid deviates from

the [bid instructions]." On-Line Games, 279 N.J. Super. at 594. If a bid does

1
A board of education is permitted under the statutory scheme to disqualify a
party who would otherwise be the lowest responsible bidder because of certain
previous "negative experience." N.J.S.A. 18A:18A-4(a). No such
disqualification was invoked by the Board as to any of the three bidders here.

A-0179-25
13
not deviate from the instructions, the bid is considered conforming. Ibid.; see

also In re Jasper Seating Co., Inc., 406 N.J. Super. 213, 223 (App. Div. 2009).

As a matter of law, where a bid contains a deviation, that deviation can

only be waived if it is not material. In re Jasper, 406 N.J. Super. at 223-24

(citing On-Line Games, 279 N.J. Super. at 595). To determine whether a bid

deviation is material, courts generally employ a two-part test first enunciated in

Twp. of River Vale v. R.J. Longo Constr. Co., 127 N.J. Super. 207 (Law Div.

1974) ("River Vale"), and which the Supreme Court subsequently adopted in

Meadowbrook Carting Co. v. Borough of Island Heights, 138 N.J. 307, 315

(1994).

First, a reviewing court must determine whether a waiver of the deviation

would "deprive the [public entity] of its assurance that the contract will be

entered into, performed and guaranteed according to its specified requirements

. . ." River Vale, 127 N.J. Super. at 216. Second, the court must decide whether

the deviation "is of such a nature that its waiver would adversely affect

competitive bidding by placing a bidder in a position of advantage over other

bidders or by otherwise undermining the necessary common standard of

competition." Ibid. (citations omitted). Where "deviation from the [bid

instructions] is found to be substantial[,]" i.e., material, "under the River Vale

A-0179-25
14
standard, it may not be waived and the inquiry is over because a 'non-conforming

bid is no bid at all.'" In re Jasper, 406 N.J. Super. at 223-24 (quoting On-Line

Games, 279 N.J. Super. at 595).

"[A] public entity may not waive any material departure from bid

specifications or requirements of law, and is bound to reject a non-conforming

bid with such defects." Serenity Contracting Grp., Inc. v. Borough of Ft. Lee,

306 N.J. Super. 151, 156 (App. Div. 1997) (citing Hillside Twp. v. Sternin, 25

N.J. 317, 324-25 (1957)) (emphasis added). However, even when a bid defect

is properly determined to be non-material, a public entity is not always required

to accept it. See ibid. A public entity is permitted, at its discretion, to either

accept or reject a bid that does not conform "with specifications or formal

requirements in non-material respects[,]" so long as the public entity's decisions

"reflect sound business judgment" and do not "bespeak any avoidance of the

underlying purposes of public bidding requirements." Id. at 156-57 (citing

Terminal Constr. Corp. v. Atl. Cnty. Sewerage Auth., 67 N.J. 403, 431 (1975)).

Judicial Review

In the present case, the trial court considered the arguments of the

disappointed bidders, i.e., ML and Benard, in light of these principles, and

A-0179-25
15
rejected their claims for relief. On appeal of that ruling, we are guided by

several related principles.

"The standard of review on the matter of whether a bid on a local public

contract conforms to specifications . . . is whether the decision was arbitrary,

unreasonable or capricious." On-Line Games, 279 N.J. Super. at 590 (citing

Palamar Constr. v. Twp. of Pennsauken, 196 N.J. Super. 241, 250 (App. Div.

1983); Stano v. Soldo Constr. Co., 187 N.J. Super. 524, 534 (App. Div. 1983))

(emphasis added). An agency's ultimate determination should be sustained

unless the decision is "'not supported by substantial credible evidence in the

record as a whole.'" Barrick v. State, 218 N.J. 247, 259 (2014) (quoting In re

Stallworth, 208 N.J. 182, 194 (2011) (alteration in the original)).

Even where the court would have reached a different conclusion than the

municipal body it is reviewing, '"there can be no judicial declaration of

invalidity in the absence of clear abuse of discretion by the public agencies

involved.' It is not the function of a reviewing court to substitute its judgment

for that of the [municipal] body. . ." Palamar Constr., 196 N.J. Super. at 250

(quoting Kramer v. Sea Girt Bd. of Adj., 45 N.J. 268, 296-97 (1965)). That said,

we apply de novo review to pure questions of law that govern the circumstances.

A-0179-25
16
See D'Agostino v. Maldonado, 216 N.J. 168, 182-83 (2013) (citing Manalapan

Realty, L.P. v. Twp. Comm. of Manalapan, 140 N.J. 366, 378 (1995)).

III.

Bearing in mind these principles, we first address what turns out to be the

pivotal valid reason 2 for rejecting ML's bid: the stale nature of the information

on its electrical subcontractor's DPMC form.

Regulatory Framework of DPMC Form 701

"[P]rospective bidders for public work are required to be preclassified by

the Division of Property Management and Construction ["DPMC"] . . . in the

[New Jersey] Department of the Treasury in accordance with the provisions of

N.J.A.C. 17:19-2.1 to -2.7." Dobco, Inc. v. Brockwell & Carrington

Contractors, Inc., 441 N.J. Super. 148, 151 (Law Div. 2015). The DPMC then

calculates and classifies each bidder's "aggregate rating" based upon a variety

of factors, including "the bidder's working capital, bonding capacity, and

performance rating" to determine the amount of the proposed contract on which

2
We are cognizant that the Board and the other two bidders contended that ML's
bid was also materially defective because it did not specify whether certain extra
work would result in additions or deductions to the contract price. The trial
court disagreed with their contentions. We likewise are not persuaded that the
manner in which ML presented this information was materially insufficient, as
it could be reasonably presumed the extra work involved would most likely
increase the price.
A-0179-25
17
a bidder may bid. Ibid. "At the conclusion of the classification process DPMC

issues the bidder a notice of classification, which includes the maximum amount

of public work on which it is qualified to bid." Ibid.3

When a party signs DPMC Form 701 ("Total Amount of Uncompleted

Contracts"), the party certifies that "[t]he amount claimed includes uncompleted

portions of all currently held contracts from all sources (public and private) in

accordance with N.J.A.C. 17:19-2.13." Central to the parties' arguments on

appeal, N.J.A.C. 17:19-2.13(c), as amended in 2016, currently states:

A firm shall not be awarded a contract which, when
added to the backlog of uncompleted construction
work, would exceed the firm's aggregate rating. The
backlog of uncompleted construction work shall be the
total contract value of unbilled work, as evidenced by
the most recent approved invoice (or other similar
documentation) received by the bidder before or on the
date of the bid. The firm may deduct 85 percent of the
total contract value of the work performed by principal
trades . . . on such uncompleted work. DPMC may
require the firm to provide documentary proof that its

3
Dobco concerned a dispute that arose over "whether a bidder who has been
adjudicated the low bidder on a particular contract must disclose as much in
subsequent bid submissions if the combination of such projects would cause it
to exceed its aggregate rating." 441 N.J. Super. at 152. The court held that "a
bidder's failure to disclose precludes it from providing, post-bid, clear and
convincing evidence that it would nonetheless be able to perform both
contracts." Ibid. Unlike Dobco the situation here does not involve such a post-
bid submission. Instead, it concerns the question of whether a party's allegedly
"stale" DPMC Form 701 amounts to a material and non-waivable defect of that
party's bid, a question that has not been addressed to date in a published opinion.
A-0179-25
18
backlog of uncompleted work plus the contract price of
the contract to be awarded would not cause the firm to
exceed its aggregate rating.

[(Emphasis added).]

When N.J.A.C. 17:19-2.13 was most recently amended in 2016, the

DPMC provided the following explanation of its proposed amendment in the

New Jersey Register:

DPMC . . . proposes to amend N.J.A.C. 17:19-2.13(c)
to strike the reference to Form DPMC 701, calling for
bidders to disclose, among other things, the current
value and status of its work backlog. . . . DPMC does
not require bidders to provide this disclosure.
Additionally, subsection (c) is proposed for amendment
to expressly recognize DPMC's authority to require a
firm, as a condition of contract award following bid
opening, to document its backlog of uncompleted work
and demonstrate that the award of the contract, together
with the firm's current backlog, will not cause the firm
to exceed its aggregate rating.

[48 N.J.R. 1495(a) (proposed Aug. 1, 2016) (emphasis
added).]

The proposal further elaborated:

Having a firm substantiate the amount of its current
work backlog as a condition of contract award rather
than in its bid proposal, as required under existing
subsection (a) (and proposed for amendment), provides
a more thorough, effective, and efficient way for
DPMC to avoid the award of contracts to firms in
excess of their financial capacity to perform.

A-0179-25
19
[Ibid. (emphasis added).]

After receiving comments from the public about its proposed

amendments, the Treasury chose not to eliminate the DPMC Form 701

requirement entirely. Instead, it retained the requirement, with the final

language in N.J.A.C. 17:19-2.13 we have quoted above. The following

comment at the time of the amended rule's adoption provides some insight into

Treasury's regulatory action:

2. COMMENT: [A commenter] expresses concern with
the proposed amendment of N.J.A.C. 17:19-2.13(a),
specifically, the elimination of the requirement that
firms bidding on a project must include with the bid a
statement of the current value and status of its backlog
of uncompleted work as of the bid due date. The
proposed amendment would leave in place the
requirement that the firm provide a certification that its
bid amount will not cause the firm to exceed its
aggregate ratings limit, when added to the firm's then-
current backlog of uncompleted work.

RESPONSE: As the Division of Property Management
and Construction (Division) does not currently require
submission of a detailed backlog statement with the bid,
elimination of the requirement from the proposed rule
simply brings it in line with current Division practice.
In the Division's view, the furnishing of a certification
with the bid is sufficient to protect the public interest.
The rule is intended to prevent award of a contract that
will not cause the successful low bidder to exceed its
aggregate limit. This purpose can be effectively
addressed by providing the Division with the authority
to require the low bidder to document its work backlog

A-0179-25
20
before the contract is awarded.. . . (See the Response to
Comment No. 3). Moreover, because the dollar value
of a firm's work backlog may change between the time
of bid opening and the time of contract award, a
detailed backlog statement provided with the bid is of
limited value.

3. COMMENT: [A commenter] expresses concern with
the proposed amendment of N.J.A.C. 19:17-2.13(c),
specifically, the provision, which allows the Division
to require the successful bidder to disclose its backlog
of uncompleted work prior to contract award rather than
at the time of bid opening.

RESPONSE: See the Response to Comment No. 2.
The Division currently defers the disclosure of work
backlog until the time of bid award, and in this respect,
the amendment only brings the rules in line with
established Division practice.

[48 N.J.R. 2830(a) (adopted Dec. 19, 2016) (emphasis
added).]

In sum, N.J.A.C. 17:19-2.13 (as amended) and the DMPC form require the

bidder on a State contract to certify that it and its designated subcontractors will

not cause the bidder to exceed its aggregate ratings limit when added to the

firm's then-current backlog of uncompleted work.

The undisputed record here reflects that ML's electrical subcontractor's

DPMC form was dated December 18, 2024, nearly six months (precisely 174

days) before the adjourned bid opening date of June 10, 2025. By comparison,

Benard's DPMC form (which reported the status of its own outstanding contracts

A-0179-25
21
and not that of any subcontractor) was dated May 6, 2025, thirty-five days before

the bid opening date. Meanwhile, Vanas submitted separate DPMC forms for

three subcontractors, respectively dated nine, seven, and five days before the bid

opening date.

With respect to ML, we agree with the Board and the trial court that the

over five-months stale timing of its DPMC form gave the Board adequate

grounds to deem it non-responsive. The form is manifestly designed to inform

the procurement agency at the time of bid opening that the bidder and its

subcontractors are not over-committed to other work that may make it infeasible

to perform the subject contract. To be sure, the status of that information can

change from day-to-day when the bidder completes existing work or enters into

new commitments. However, the agency has a reasonable interest in knowing

"where things stood" at the time, or within a short period before, the bid opening

date.

As Treasury's comments in the New Jersey Register indicate, the process

is enhanced by the agency requiring the bidder to submit updated status

information between the time of bid opening and the date of the contract award.

If, during that interval, the bidder has taken on an excessive amount of new work

that could hinder its ability to perform the subject contract, the agency can take

A-0179-25
22
appropriate measures, including a rejection of the bid and possibly awarding the

work to a different bidder or rebidding the contract. See Marvec Constr. Corp.

v. Twp. of Belleville, 254 N.J. Super. 282, 292 (Law Div. 1992) (exemplifying

"a situation where the rejection of all bids is justified and valid").

We reject ML's argument that the December 2024 date on its DPMC form

was not material and that ML was entitled to cure the defect after the bid

opening. The 2016 amendment to the regulation did not eliminate the need to

submit a timely certification, even though the computed current sums can be

supplied to the State post-bid opening. N.J.A.C. 17:19-2.13 emphasizes that a

bidder's aggregate rating is to be determined by the bidder's "most recent

approved invoice" received "before or on the date of the bid." (Emphasis added).

Moreover, insofar as ML construes Treasury's comments in the New

Jersey Register to signal an alleged tolerance for stale information on the DPMC

form when it is used in State contracting, the Board, as a local board of education

governed by its own procurement statute, has the prerogative to be more

stringent. The Board explicitly included in its solicitation of bids that all

potential bidders were to include "DPMC Form 701 (or [an]other certified form

indicating amount of uncompleted contracts [as] of the date of the bid opening)."

This language is attributable to the Board and the Board alone. It is indicative

A-0179-25
23
of the fact that the Board intended to craft the requirements of its solicitation of

bids to fit its own specific needs rather than adopt the DPMC's approach

precisely. A local board of education can choose to be more stringent than the

State Treasury when the latter is awarding State contracts. School Board

procurements are governed by their own discrete statutory scheme. See N.J.S.A.

18A:18A-4.

By contrast, the Board did not act arbitrarily or capriciously in

determining the dates on Vanas's subcontractors' three DPMC forms to be

compliant with the bid specifications. The range of five to nine days collectively

reflected on those forms was reasonably deemed to be not comparable to ML's

time lag of nearly six months.

The 35-day lag reflected on Benard's DPMC form presents a closer

question. At oral argument before us, Vanas and the Board have suggested that

the DPMC form's reference to a bidder's current invoices may correspond with

a one-month (i.e., 30-day) billing cycle that may be customary in the business

world, and therefore Benard's 35-day-old form was not sufficiently recent. We

have been pointed to no legislative or regulatory history to support that

conjecture, nor any language in the Board's bidding instructions to substantiate

the claim. In any event, we decline to resolve whether Benard's DPMC form

A-0179-25
24
was compliant because, as we will discuss in Part IV of this opinion, Benard's

bid bond was materially defective.

IV.

We next focus on what we regard as the dispositive reason the Board

rejected Benard's bid, i.e., the date of its bid bond. 4

In part two of its bidding instructions outlining the "Bidding Procedures"

governing its solicitation of bids, the Board specified in Part 2(B)(2) that bidders

are required to submit:

The bid guarantee in the form of Bid Bond in
accordance with N.J.S.A. 18A:18A-24, written by a
Surety authorized to do business in the State of New
Jersey in a dollar amount not less than 10% of the bid
sum, (not to exceed $20,000.00). The Bid Bond shall
bear the same date as the Form of Proposal. A certified
check or cashiers check made payable to the “Edison
Township Board of Education” in the same amount is
also acceptable.

[(Emphasis added).]

In Part 2(B)(3), the Board additionally conveyed to bidders that:

The bidder shall submit with their bid an unconditional
Certificate of Surety from the Bidders Surety Company

4
We recognize that the Board rejected the bids of ML and Benard because of
an additional reason: a failure to have their bids submissions notarized. We
agree with the trial court that the bid forms contain merely a signature line for
an attestation and do not indicate a spot for notarization. Hence, we do not rely
on lack of notarization as proper grounds for rejection.
A-0179-25
25
pursuant to N.J.S.A. 18A:18A-25 stating that it will
provide the Contractor, if awarded a contract for the
Project, with a bond representing 100% of the Contract
Sum for the faithful performance of all provisions
relating to the performance of the Contract.
Submission of a Consent of Surety which contains any
prior conditions upon the Surety’s issuance of the
required Bonds may be cause for rejection of the Bid.

In its oral opinion, the trial court determined that Benard's bid bond and

consent of surety, both dated May 13, 2025 (approximately one month before

the bid opening date of June 10, 2025), created a risk that Benard might do

something that negatively affected the documents' enforceability in between the

time that the bid bond and the consent of surety were dated and Benard's ultimate

submission of its bid. The court further opined that this risk was "the very reason

the bidding specifications require up-to-date documents[, providing]

enforceability and assurance so the [B]oard can be as certain as humanly

possible as of the bid opening that the surety stands behind the bid and will issue

the required performance bond." (Emphasis added).

We are satisfied the trial court reasonably determined the Board had not

acted arbitrarily and capriciously when it rejected Benard's bid for the material

and non-waivable defect of having dated its bid bond May 13, 2025, more than

a month before the bid opening date of June 10, 2025. As we noted above, in

its instructions to bidders, the Board made explicitly clear that any bid bond

A-0179-25
26
submitted was to "bear the same date as the Form of Proposal." (Emphasis

added).

The difference of over one month as to this particular requirement was

manifestly material, because, during that interval, the Board issued on May 30,

2025 Addendum #4, which materially altered the scope of work and readily

could affect the associated costs. The bonding company that had been willing

to ensure the bid on May 13 may well have refused to bond the project in light

of that significant intervening Addendum. The Board therefore did not act

arbitrarily or unreasonably given the sequence of events and circumstances.5

V.

Lastly, we have considered the arguments made by ML and Benard in

attempting to invalidate Vanas's bid on the grounds that Vanas's bid was

significantly higher than their own comparatively lower bids. We discern no

merit to these arguments. To be sure, we are mindful that Vanas was the third

lowest bidder and that there is a cost differential of more than $600,000 between

its bid and the lowest bid by Benard. Even so, the Board, as the procurement

agency entrusted with the statutory authority to make the contract award under

5
Because the bid instructions are not equally explicit as to the date of the
consent of surety, we decline to rest our analysis on that discrete basis for
rejection.
A-0179-25
27
N.J.S.A. 18A:18A-4—and which ultimately is the governmental body

accountable to local taxpayers—is presumed to be cognizant of those fiscal

implications.

VI.

For the foregoing reasons, we affirm the trial court's decision, albeit on

slightly more limited grounds than those it articulated. N.J. Div. of Child Prot.

and Permanency v. K.M., 444 N.J. Super. 325, 334 (2016) (quoting State v.

Adubato, 420 N.J. Super. 167, 176 (App. Div. 2011), certif. denied, 209 N.J.

430, 37 (2012)). We need not and do not reach any other issues.

Because we have decided these expedited appeals on the merits with

finality, and there is no reason to remand this case for a responsiveness hearing

or any further proceedings or discovery, we modify the trial court's decision to

be the permanent (not just preliminary) denial of injunctive relief. The contract

award to Vanas is accordingly affirmed. The emergent stay we issued pending

appeal shall automatically dissolve within three business days of this opi nion,

unless one or both appellants file an emergent application with the Supreme

Court within that time frame.

Affirmed.

A-0179-25
28

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/11205950. Public record. Not legal advice.
