COA: Competitor can't challenge state contract for services

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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.


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.