The West Virginia Supreme Court cleared the way Tuesday for the Lottery Commission to complete a $7.6 million renovation project at its headquarters building - but justices also scolded Lottery and state purchasing officials for making "nonsensical" decisions that contradicted state laws.
The Supreme Court upheld a ruling by Kanawha Circuit Judge Jennifer Bailey, who ordered the Lottery to sign a contract with Maynard C. Smith Construction, a Charleston company that submitted the lowest bid by $174,000. MCS has already finished half of the renovations at the Lottery building.
Competitor Wiseman Construction had appealed Bailey's decision to the Supreme Court, arguing that the Lottery and state Purchasing Division had properly revoked MCS Construction's bid on the project.
But the Supreme Court concluded that the state's decision to toss out MCS's bid "offends one's sense of fair play."
"It is difficult for this court to avoid the conclusion that the agency showed a complete lack of intelligent use of its discretion," Chief Justice Margaret Workman wrote in a 19-page ruling issued Tuesday. "Not only was the agency's decision nonsensical, it was contrary to the underlying policy of public procurement [purchasing] laws."
Last March, Lottery officials selected MCS Construction for the renovations but rescinded a proposed contract after Wiseman complained that MCS didn't include references in its bid for the project.
The state failed to attach a required form - used by contractors to submit references - to bid application documents.
Nevertheless, the Lottery subsequently awarded the project to the second-lowest bidder, Wiseman Construction, which did include references in its bid.
In response, MCS sued the Lottery Commission, Purchasing Division, Department of Administration and Wiseman.
The dispute had dogged the Lottery building project for eight months, causing numerous construction delays.
"We find the public interest of ensuring that tax dollars are spent wisely predominates over the agency's stringent adherence to faulty bid specifications," Workman wrote.
The Lottery is renovating its parking garage and three floors of office space. The state Insurance Commission has announced plans to move into the Lottery building - located near the Interstate 77/64 split - once MCS finishes the project.
The 13-story office tower now houses the Lottery Commission, Alcohol Beverage Control Administration and other state agencies. Sen. Joe Manchin, D-W.Va., also has an office there.
MCS Construction's lawyer, Phil Melick, declined comment Tuesday. Wiseman and a Lottery spokeswoman couldn't immediately be reached for comment.
Reach Eric Eyre at ericeyre@wvgazettemail.com, 304-348-4869 or follow @ericeyre on Twitter.