NBS Imaging Systems, Inc. v. State Bd. of Control

A disappointed bidder resorted to litigation to regain a government contract it had secured for 35 years—a contract to produce California drivers’ licenses. The disappointed bidder lost, on every timely issue raised before the hearing officer, the administrative board, and the superior court. However, the superior court, exceeding its circumscribed review of administrative decisions, reversed the board, relying on a legal theory never raised in the administrative proceedings.

The superior court’s rulings have prevented the state from implementing the new contract with the successful bidder. Instead, the rulings have compelled the state to continue the previous contract with the disappointed bidder—under which the state pays 64 percent more for each license.

We reverse both the judgment granting the petition for writ of mandate and the order granting the preliminary injunction.

Factual and Procedural Background

In May 1994, the Department of General Services issued a request for proposals (RFP DMV-3026), soliciting bids for a turn-key production system to produce plasticized or plastic-based, nonembossed, credit-card size, color photo drivers’ licenses, identification…