Afghan American Army Services Corp. v. United States

106 Fed. Cl. 714, 2012 WL 4857802
CourtUnited States Court of Federal Claims
DecidedOctober 15, 2012
DocketNo. 11-520C
StatusPublished
Cited by14 cases

This text of 106 Fed. Cl. 714 (Afghan American Army Services Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Afghan American Army Services Corp. v. United States, 106 Fed. Cl. 714, 2012 WL 4857802 (uscfc 2012).

Opinion

OPINION AND ORDER

WILLIAMS, Judge.

In this post-award bid protest, Afghan American Army Services Corporation (“AAA”) challenges its nonresponsibility determination and exclusion from the competition in the National Afghan Trucking (“NAT”) multiple-award procurement for trucking services in Afghanistan. The Army disqualified AAA from receiving an award on the ground that AAA was nonresponsible, a determination AAA seeks to overturn as arbitrary and capricious. AAA also claims that the Army applied unequal and heightened responsibility requirements to AAA as compared to Anham LLC (“Anham”), a contractor that was deemed responsible and awarded a NAT contract. AAA seeks a permanent injunction remanding its responsibility determination to the Army for a reevaluation.

This matter comes before the Court on the parties’ cross-motions for judgment on the administrative record (“AR”) and Plaintiff’s request for a permanent injunction.2 The Court concludes that the contracting officer erred in relying on a referral for proposed debarment based upon alleged forgeries by AAA in finding AAA nonresponsible. Because this error tainted the responsibility determination, this matter is remanded to the Army for a reevaluation of AAA’s responsibility without reference to the alleged forgeries or the notice of proposed debarment.3

Findings of Fact4

The Solicitation

On February 22, 2011, the Army issued solicitation number W91B4N-11-R-5000 for NAT services in Afghanistan. The purpose of the NAT contract was to provide a secure and reliable means of distributing reconstruction material, security equipment, fuel, miscellaneous dry cargo, and life support assets to forward operating bases and distribution sites throughout the combined joint operations area in Afghanistan. The Army anticipated the award of indefinite deliv[717]*717ery/indefinite quantity contracts for trucking services in three suites: Suite 1 for bulk fuel, Suite 2 for dry cargo, and Suite 3 for heavy cargo. AR 393. The NAT procurement was essentially a follow-on procurement to the prior Host Nation Trucking (“HNT”) contract, which had covered substantially the same mission requirements. The Army awarded NAT contracts to 20 contractors, none of whom were HNT contractors.5

The solicitation stated that the Army would make awards based on Federal Acquisition Regulation (“FAR”) 15.101-2, “lowest price technically acceptable.”6 Proposals were to be evaluated using two criteria: technical capability and price. AR 394. The solicitation stated that the Government would evaluate offerors for responsibility in accordance with FAR 9.1. AR 398. FAR 9.104-1 provides:

To be determined responsible, a prospective contractor must—

(a) Have adequate financial resources to perform the contract, or the ability to obtain them (see 9.104 — 3(a));
(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments;
(e)Have a satisfactory performance record (see 48 CFR 9.104-3(b) and part 42, subpart 42.15) ...;
(d) Have a satisfactory record of integrity and business ethics (for example, see Sub-part 42.15).
(e) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors) (see 9.104-3(a));
(f) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (see 9.104-3(a)); and
(g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations....

Submission of Proposals

AAA timely submitted its proposal on April 8, 2011, for all three NAT suites. See AR 425-692. On July 29, 2011, the Army eliminated all bidders whose proposals failed either the technical or price requirements, and forwarded the remaining proposals for determinations of responsibility. AR 1133-53. By letter dated July 30, 2011, the contracting officer informed AAA that its responsibility evaluation was ongoing and listed several areas of concern relating to AAA’s performance of the HNT contract. The contracting officer requested that AAA provide responses addressing the circumstances giving rise to the area of concern, identifying any mitigating circumstances, and outlining the corrective action taken to prevent reoc-currence. AR 993-94. Adverse information involved noncomplianee with In-Transit Visibility (“ITV”) contract requirements, transponder stacking,7 failure to meet Private Security Contractor (“PSC”) Arming requirements, and withholding of contract payments for failed missions, canceled no-pay missions, pilferage/baekeharges, and fuel backcharges. Id. The letter also stated that “reoccurring instances of submission of forged Transpor[718]*718tation Movement Requests (TMRs) have been reported throughout the life of the contract.” AR 994. In describing this adverse information, the contracting officer cited letters of concern issued to AAA dated February 1, 2010, May 1, 2010, May 11, 2010, October 1, 2010, March 1, 2011, April 18, 2011, and May 14, 2011. AR 993-94. The contracting officer also cited two cure notices issued to AAA dated July 1, 2011, and July 2, 2011. Id. With the exception of the allegations regarding forged TMRs, the Army had raised each of these performance problems with AAA during its performance of the HNT contract. See AR 995-1103. The Army had never mentioned alleged forgeries to AAA during HNT performance. AR 1007-08.

In a subsequent letter, the contracting officer informed AAA of an additional area of concern regarding AAA’s performance on the HNT contract — an alleged instance of bribery involving an email allegedly sent by AAA’s CEO appearing to offer payment to government officials in return for a contract award. See AR 1104.

On August 2, 2011, AAA responded to the contracting officer’s notice of the ongoing responsibility evaluation, detailing the relevant circumstances, mitigating factors, and corrective action taken or proposed to be taken with respect to each area of concern raised by the contracting officer. AR 995-1009. On August 3, 2011, AAA also responded to the contracting officer’s letter notifying AAA of the allegation that AAA’s CEO had proposed to bribe government officials in an email. AR 1105-07. In a declaration attached to AAA’s response, AAA’s CEO denied ever offering a bribe in exchange for contract award. AR 1131-32.

The Nonresponsibility Determination

On August 9, 2011, Army contracting officer Salia J. Price found that AAA was non-responsible, relying on AAA’s performance of the HNT contract, corrective action taken by AAA, and her assessment of AAA’s responsibility for each requirement enumerated in FAR 9.104.

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Bluebook (online)
106 Fed. Cl. 714, 2012 WL 4857802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/afghan-american-army-services-corp-v-united-states-uscfc-2012.