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Blaine Equip. Co. v. State, Purchasing Div.

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138 P.3d 820 (2006) BLAINE EQUIPMENT COMPANY, INC., Appellant, v. The STATE of Nevada; Nevada State Purchasing Division; and State of Nevada Department of Transportation, Respondents. No. 44648. Supreme Court of Nevada. July 27, 2006. *821 Callister & Reynolds and Matthew Q. Callister, Las Vegas, for Appellant. George Chanos, Attorney General, Sonia E. Taggart, Senior Deputy Attorney General, and George G. Campbell, Deputy Attorney General, Carson City, for Respondent State Purchasing Division. George Chanos, Attorney General, and Teresa J. Thienhaus, Deputy Attorney General, Carson City, for Respondent Department of Transportation. Before ROSE, C.J., GIBBONS and HARDESTY, JJ. OPINION HARDESTY, J. In this appeal, we consider (1) whether the district court had an obligation to join, sua sponte, Cashman Equipment as a necessary party under NRCP 19(a); and (2) whether a district court has the equitable power to reach a conclusion contrary to the mandatory language of NRS 333.810(1). We conclude that the district court was required, sua sponte, to join Cashman as a necessary party under NRCP 19(a). Further, we conclude that the district court does not have the equitable power to reach a conclusion contrary to the mandatory language of NRS 333.810(1). FACTS AND PROCEDURAL HISTORY When state agencies like the Nevada Department of Transportation (NDOT) wish to purchase equipment for state projects, they must abide by the State Purchasing Act codified in NRS Chapter 333. NRS Chapter 333 details the procedures and regulations that the Purchasing Division must follow during the bidding process and the subsequent award of contracts to vendors. Under NRS 333.135, the Chief of the Purchasing Division must "adopt regulations establishing procedures for awarding contracts pursuant to [Chapter 333]."[1] One such regulation is contained in Nevada Administrative Code 333.050, stating that "[i]n addition to the methods of obtaining a contract set forth in NRS 333.162, the Chief may use [purchase] price agreements," or PPAs. Even though the Chief has the power to adopt regulations and establish procedures for awarding contracts, this power is limited by NRS 333.340. NRS 333.340 requires the Chief to award every purchasing contract to the "lowest responsible bidder," which is determined by the consideration of certain factors contained in NRS 333.340(1)(a) and (b). The use of PPAs, however, relaxes the restrictions of NRS 333.340 by allowing the Chief to award contracts to multiple bidders instead of the single lowest responsible bidder. Here, the NDOT requested, through PPA 6757, that the Purchasing Division invite bids from suppliers for the purchase of articulated motor graders.[2] After receiving the request, the Purchasing Division issued an invitation to bid on the contract. Several bidders, including appellant Blaine Equipment Company, Inc., submitted bids. The Purchasing Division accepted multiple bids, including Blaine's, as responsive to PPA 6757. After reviewing the bids, NDOT requested that the Purchasing Division purchase seven of the necessary motor graders from Cashman because NDOT found Cashman to be "the lowest responsible bidder based upon the factors set forth in NRS 333.340(1)." The Purchasing Division agreed with NDOT's assessment and processed NDOT's request. The …


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