ILNews

COA: Competitor can't challenge state contract for services

Back to TopCommentsE-mailPrintBookmark and Share

A mental health services provider doesn’t have standing to challenge a nonprofit competitor’s subcontract for similar services with the Indiana Department of Administration, the state’s second highest appellate court has ruled.

In Midwest Psychological Center, Inc. v. Indiana Dept. of Administration, et al., No. 49A02-1103-MI-213, the Indiana Court of Appeals affirmed a ruling from Marion Superior Judge Cynthia Ayers regarding a contract with the state Department of Administration.

The state hired a company named Corizon to provide mental health services and that company has a subcontract for some of those services with Indiana Minority Health Coalition, a nonprofit organization that is certified by the state as a minority business enterprise (MBE). But Midwest Psychological Center Inc., the only for-profit MBE mental health provider in Indiana that provides the same services as Minority Health, objected to the contract and filed a grievance that alleged Minority Health wasn’t eligible to be certified as a MBE. Midwest filed a complaint seeking a declaratory judgment on various points: that Minority Health isn’t a MBE; that defendant Tony Kirkland has a conflict of interest by serving both on Minority Health’s governing board and as the commissioner overseeing IDOA’s decertification process; enjoining Minority Health from providing mental health services under its subcontract; and enjoining the state from contracting with Corizon because of its subcontract with Minority Health.

The trial court found Midwest lacked standing and granted motions for judgment on the pleadings in favor of the state and Minority Health. On appeal, the three-judge appellate panel found that Midwest isn’t an “aggrieved party” under Indiana Code 5-22-19-2 and, as a result, doesn’t have standing to challenge either the subcontract or the underlying contract.

Midwest argued that it has standing as an aggrieved party under the Public Purchasing Act outlined in IC 5-22. It argued that it’s the only for-profit that is certified as a MBE to provide those mental health services and if Minority Health was decertified, Corizon would have to subcontract with Midwest.

The appellate court disagreed, finding that generally an unsuccessful bidder doesn’t have standing to challenge the award of a government contract under the Public Purchasing Act. The court didn’t address Midwest’s arguments regarding primary jurisdiction because the case was resolved on on the other points.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Based on several recent Indy Star articles, I would agree that being a case worker would be really hard. You would see the worst of humanity on a daily basis; and when things go wrong guess who gets blamed??!! Not biological parent!! Best of luck to those who entered that line of work.

  2. I was looking through some of your blog posts on this internet site and I conceive this web site is rattling informative ! Keep on posting . dfkcfdkdgbekdffe

  3. Don't believe me, listen to Pacino: https://www.youtube.com/watch?v=z6bC9w9cH-M

  4. Law school is social control the goal to produce a social product. As such it began after the Revolution and has nearly ruined us to this day: "“Scarcely any political question arises in the United States which is not resolved, sooner or later, into a judicial question. Hence all parties are obliged to borrow, in their daily controversies, the ideas, and even the language, peculiar to judicial proceedings. As most public men [i.e., politicians] are, or have been, legal practitioners, they introduce the customs and technicalities of their profession into the management of public affairs. The jury extends this habitude to all classes. The language of the law thus becomes, in some measure, a vulgar tongue; the spirit of the law, which is produced in the schools and courts of justice, gradually penetrates beyond their walls into the bosom of society, where it descends to the lowest classes, so that at last the whole people contract the habits and the tastes of the judicial magistrate.” ? Alexis de Tocqueville, Democracy in America

  5. Attorney? Really? Or is it former attorney? Status with the Ind St Ct? Status with federal court, with SCOTUS? This is a legal newspaper, or should I look elsewhere?

ADVERTISEMENT