United Systems of Arkansas, Inc. v. Stamison

In United Systems of Arkansas, Inc. v. Stamison (1998) 63 Cal.App.4th 1001, the Court invalidated a provision of SAM that changed the statutory protest procedure for bids on smaller information technology jobs. The SAM provision in question, section 5210.2, provided that all formally advertised procurement protests shall be heard by the Board of Control, as provided in section 12102, subdivision (h). However, "protests involving informal quotations or protests of the procurement document or process prior to selection announcement" shall be resolved by DGS. (SAM 5210.2.) The Court concluded such provision, which changed the protest procedure for smaller jobs, created a new rule rather than simply applying an existing one, and therefore amounted to a regulation under the APA. ( United Systems, supra, at p. 1010.) Because the provision was not adopted as required by the APA, it could not be enforced. (Ibid.)