Archer Western Contractors, Ltd. v. City of San Diego

MEMORANDUM *

Archer Western Contractors, Ltd. (Archer) appeals from the district court’s dismissal for failure to state a claim pursuant to Rule 12(b)(6). We have jurisdiction pursuant to 28 U.S.C. § 1291 . We review de novo dismissals under Rule 12(b)(6), taking all allegations in the complaint as true. See Holcombe v. Hosmer, 477 F.3d 1094, 1097 (9th Cir.2007). We reverse and remand.

Under California contract law, as it relates to public works construction, a contractor’s bid is treated as an irrevocable offer. See Menefee v. County of Fresno, 163 Cal.App.3d 1175, 1178 , 210 Cal.Rptr. 99 (Cal.Ct.App.1985). Once a bid is accepted, it is transformed in to a binding contract. Id.

Archer made an irrevocable offer when it submitted a bid to the City of San Diego (the City). At issue is whether the City accepted Archer’s bid, and thereby formed a binding contract, within the 90-day bid guarantee window.

The City’s notification to Archer in a letter dated January 13, 2004, that Archer was the “apparent low bidder” did not constitute the City’s acceptance of Archer’s bid. City Resolution No. R-298186 authorizes the City Manager to *977 award the contract only “to the lowest…