70211 Contracts (Spring 2017) Written problem-solving assessment 2 Instructions Read: Subject Outline, p 10-11 Information on UTSOnline in Assessment Information and Resources/Assessment tasks 2 and 3. Failure to follow instructions properly may result in lost marks. The scope of this question is limited to Topics 1 to 4. (See Subject Outline, p 5.) Ensure that the first page of your submission is the UTS:Law Assignment Cover Sheet for Online Submission. Facts The NSW Department of Administrative Affairs wished to update the security of its head office in Sydney. It sought tenders from independent contractors. The advertisement promoting the tender directed interested parties to register online. Frank, the managing director of Alcatraz Security Systems Pty Ltd ('Alcatraz') decided to submit a tender. On 1 April, he registered his interest. The Department responded to Frank by emailing him the Department guidelines on submitting tenders. The guidelines set out the scope and goals of the project. It specifically said: 1. A non-refundable administration fee of $150 was payable with tender submission; 2. The tender must address certain criteria, and the Department will offer the contract to the tenderer whose tender best meets those criteria; 3. Tenders must be submitted by 30 June; 4. All tenders received would be kept strictly confidential. Page 1 of 3 70211 Contracts (Spring 2017) Written problem-solving assessment 2 5. The Department, in its absolute and unfettered discretion, could choose the successful tender and then make an offer to contract. In particular, the Department was not bound to accept the lowest quoted tender. Frank spent the next month preparing the tender on behalf of Alcatraz. He was confident that Alcatraz would be offered the contract because Alcatraz had excellent experience and offered its service at a low price. Alcatraz paid the $150 fee and submitted the tender on time. On 25 July, the Department announced that the successful tenderer was Trident Systems Pty Ltd (\"Trident\"). Frank was bitterly disappointed, especially because Trident's quote for the cost of the service was 50% more than Alcatraz's quote. That same day, Frank discovered that the head of the Department had revealed some details of Alcatraz's tender to Trident before Trident had submitted its tender (which was submitted on time). At all relevant times during the tender process, the Government Tenders Act 1999 (NSW) provided: Section 2 - Objects of Act To provide a fair, open and systematic tender procedure for government tenders. Section 4 - Disclosure information A government officer must not accept and consider tenders for a project unless the all matters identified in section 5 are disclosed to tenderers. ... Section 30 - Disciplinary powers of the Minister The relevant Minister may discipline a government officer who contravenes any provision of this Act, in accordance with the Government Sector Employment (General) Rules 2014. The guidelines provided to Alcatraz did not disclose all the information required by section 5, nor was that information fully provided by the time the Department had accepted and considered Alcatraz's tender. Page 2 of 3 70211 Contracts (Spring 2017) Written problem-solving assessment 2 Questions Advise Alcatraz whether the Department is obliged to accept its tender? If not, does Alcatraz have any other contractual rights? Do not research or discuss obligations of good faith in contract law. You can assume that any actions of Frank are the actions of Alcatraz. The legislation provided in this question is fictional. Do not research any legislation on government tenders, administrative or public law. Answer the questions with reference to just the facts above and contractual principles as taught in this subject. Page 3 of 3