AABCO, Inc. v. United States

31 Cont. Cas. Fed. 71,346, 3 Cl. Ct. 109, 1983 U.S. Claims LEXIS 1685
CourtUnited States Court of Claims
DecidedJuly 11, 1983
DocketNo. 411-83C
StatusPublished
Cited by11 cases

This text of 31 Cont. Cas. Fed. 71,346 (AABCO, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AABCO, Inc. v. United States, 31 Cont. Cas. Fed. 71,346, 3 Cl. Ct. 109, 1983 U.S. Claims LEXIS 1685 (cc 1983).

Opinion

OPINION

YOCK, Judge.

This contract case involves the issue of whether freight rates filed by the plaintiff with the Military Traffic Management Command (MTMC) were validly rejected as unresponsive bids to the defendant’s Solicitation for Rates.

[110]*110On June 22, 1983 at 2:30 p.m., the plaintiff filed a complaint for declaratory judgment, injunctive relief and other relief, together with motions for a temporary restraining order and a preliminary injunction. The motion for temporary restraint requested action by 3:00 p.m. of that same date enjoining the defendant from (1) requiring AABCO to certify at 3:00 p.m. that the 677 rates accepted by the Military Traffic Management Command (MTMC) completely and accurately reflect the rates submitted by AABCO and (2) publishing a low rate or printout on or about July 11, 1983, without including therein the 1,895 rejected rates filed by AABCO. After a brief telephone conference with counsel for the parties, a TRO was ordered. The defendant thereafter filed its Motion for Summary Judgment and Dissolution of the Temporary Restraining Order on June 24, 1983. On June 27, 1983, the plaintiff filed its response to the defendant’s Motion and its Cross-Motion for Summary Judgment.

The parties agreed to a hearing which was scheduled for 2:00 p.m. on June 27, 1983. The hearing was held and lasted until 3:10 p.m. on June 28,1983, after which the parties agreed that the matter was fully aired and requested a decision on the merits of the controversy. Post-trial briefing followed and the judge on his own motion extended the temporary restraining order another 10 days to expire on July 11, 1983.

For the reasons discussed herein, the plaintiff’s Cross-Motion for Summary Judgment is granted with appropriate permanent injunctive relief as indicated, and the defendant’s Motion for Summary Judgment is denied.

Facts

The plaintiff, AABCO Inc., is a regulated freight forwarder of used household goods and unaccompanied baggage pursuant to Permit No. FF-556 issued by the Interstate Commerce Commission, and it also complies with regulations of the Civil Aeronautics Board governing air freight forwarders. As such, plaintiff participates in the Department of Defense (DOD) procurement program for the transportation of used household goods and unaccompanied baggage belonging to armed services personnel and dependents between points within the United States and overseas. Freight forwarders submit rates for the shipment of this personal property under Government Bills of Lading (GBL). This program is referred to as the International Through Government Bill of Lading (ITGBL) program.

The Army’s Military Traffic Management Command (MTMC) is charged with responsibility for directing, controlling, and supervising all functions incident to the procurement of freight transportation for DOD components, including the ITGBL program.1

The responsibility for soliciting rates and establishing business terms and conditions is centralized in MTMC. Thus, while individual GBL shipments are arranged by some 298 military Installation Transportation Offices (ITO) worldwide, the rates, terms and conditions utilized in those transactions are established by MTMC.

Under the ITGBL program, approximately 150 DOD approved freight forwarders, including plaintiff, file rates with MTMC every six months in order to complete for these international shipments of personal property. These rates are “single factor” rates in that they include the full charges for pick up, packing, line haul, port services, over-ocean movement, delivery to residence, and unpacking.

The ITGBL program is specifically exempted from coverage under the Defense Acquisition Regulations. See 32 C.F.R. 1-102 (DAR § 1-102). Forwarders filing rates in response to solicitation letters must do so in compliance with the particular rate solicitation letter and MTMC’s Standing ITGBL Rate Filing Instructions and Proce[111]*111dures (Standing Instructions). The Standing Instructions are tantamount to regulations and form a part of the implied-in-fact contract involved herein. Dean Forwarding Co. v. United States, 2 Cl.Ct. 559 (1983) (HARKINS, J.).

The Standing Instructions establish the following three classes of rates: “Class 1” rates are competitive filings where all traffic (GBL shipments) in a particular “channel” (i.e., from a specific point of origin to a specific destination point) is given to the forwarder submitting the lowest rate. “Class 2” rates are competitive filings where less than 100 percent of the traffic in a channel goes to the forwarder with the low rate and other forwarders are allowed to “Me-Too” and share in the residual traffic. “Class 3” rates are also competitive filings where, regardless of which competitor sets the low rate, other forwarders may share equally in the traffic if they “Me-Too” or equalize that low rate.

MTMC solicits ITGBL freight rates twice a year, by means of a solicitation letter,2 for six month performance periods known as “Volumes.” This dispute concerns Volume 47, covering the period from October 1,1983 through March 31, 1984. Each solicitation contains two procedural cycles: the “Initial Filing” cycle (I/F), in which forwarders compete to set the low rate for each channel, and a subsequent “Me-Too” (M/T) cycle in which forwarders that did not set the low rate for a particular channel may adjust their rates to meet the low rate, i.e., “Me-Too” the rate, and share equally in the traffic. Typically, over one million separate rates are submitted by the forwarders to MTMC for each cycle of each “volume” on computer readable magnetic tape. These magnetic tapes are then entered into the MTMC computer which evaluates and reduces these rates to a printout which can be utilized by MTMC and the various ITOs.

At issue in this action are the Class 1 and 2 rates filed by plaintiff for Volume 47 for 1,883 traffic channels.3 On May 25, 1983, the I/F filing deadline, plaintiff submitted to MTMC its coded magnetic tape and a computer printout which duplicated its submitted rates. When the tapes were run on the MTMC computer some time after May 25,1983, the computer rejected 1,883 of the 2,572 rates submitted by the plaintiff for failing to include “leading zeros” in those rates filed which were under $100.00, for any transportation channel, e.g., 09889 for $98.89.

Prior to the instant submission, plaintiff had employed, as did almost all other carriers, one of the three computer service companies which are familiar with MTMC and its rate filing instructions. These computer service companies would take the rate input from the forwarders and place the rates on the appropriate magnetic tape. Thus, many forwarders’ rates were contained on one submitted tape. However, because plaintiff experienced accuracy and timing problems with his service company, and in order to cut his costs, plaintiff determined that for Volume 47, it would employ its own computer programmer and submit its own rate tape.4 Although Mr. Robert Acker-[112]*112man, plaintiff’s computer programmer had never submitted a rate tape to MTMC before, he had several years of programming experience in the freight forwarding industry and had computer experience in the military. The plaintiff’s president, Mr. Charles Magness, had utilized him on several programming projects and was confident that Mr.

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Bluebook (online)
31 Cont. Cas. Fed. 71,346, 3 Cl. Ct. 109, 1983 U.S. Claims LEXIS 1685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aabco-inc-v-united-states-cc-1983.