Andrus v. Glover Construction Co.

Background

A federal road repair project in Oklahoma was awarded by the Bureau of Indian Affairs to an Indian-owned construction company after only Indian firms were asked to bid. A non-Indian construction company that was excluded sued, arguing the agency had to advertise the work publicly under the Federal Property and Administrative Services Act (FPASA). Lower courts agreed with the excluded company, voided the contract, and enjoined the agency from continuing the unadvertised practice.

Reasoning

The key question was whether the Buy Indian Act allowed the BIA to skip public bidding for road construction. The Court examined Title III of the FPASA and found a specific provision saying contracts for building or repairing roads cannot be negotiated without advertising except under certain listed exceptions. Because those exceptions do not include the Buy Indian Act, the Court held that the Buy Indian Act cannot be used to avoid the FPASA’s advertising rules for road projects. The Court therefore affirmed the lower courts’ rulings.

Real world impact

The decision requires the BIA to follow the FPASA advertising rules when awarding road construction and repair contracts, even when an Indian-preference law exists. Agencies must publicly advertise road projects unless they fit one of the narrow, listed exceptions. The opinion leaves open that the agency could seek other statutory grounds later, but the injunction and voiding of the challenged contract were upheld.