Legal Question in Business Law in California
Municipal Governments
I own a manufacturing company which produces pipe. A very simple yet vital component to our underground infrastructure. However, even though my pipe meets all the ASTM's which are approved by most Cities they still exclude us based on many laughable excuses. My question is, where is the Antitrust law here? Government agentcies are wasting tax payers money based on personel opinion by not allowing products with equal or better qualities. Placed side by side, my pipe which is not allowed is made exactly as the one they do allowed, just different name. How is this legal? How can Governments violate anti trust laws? I am tired of hearing, ''well let us evaluate your product and if we like it we will put you in on the next project.'' Look GOVERNMENT, my product is made with the exact same materials as the product you allow and if I am good enough for the next one I am good enough for this one. I want to take legal action here, not just for me but for all tax paying citizens. Not just in CA but all of the United States.
2 Answers from Attorneys
Re: Municipal Governments
IF you proved that your product fully meets and complies with the govt specs for the bid, and IF your bid was the lowest, and IF the bid specs said lowest bid wins, or if you can otherwise show you were clearly 'entitled' to win, then you might have a case. The question would then be, is your checkbook big enough to withstand the damage done it by the fees and costs of such suit.
You could also have a case if you could prove fraud, kickbacks, or other criminal activity in the winning bid [unlikely since you mentioned nothing].
Other than that, welcome to Govt Contracting and Corruption 101.
Re: Municipal Governments
Governments are immune from antitrust lawsuits. Further, like private businesses and individuals, they are allowed to base their purchasing decisions on factors other than cost. To offer but one example: It might be worth paying extra for a product manufactured by a company with good customer service than for an identical product from an unknown manufacturer.
Most governments have rules governing how they select suppliers. If you have made a proposal according to those rules AND if yours clearly should have been the winning bid, you may have a claim. The claim wouldn't be based on antitrust law, but it still might be valid.
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