Agustawestland North America, Inc. v. United States

127 Fed. Cl. 793, 2016 U.S. Claims LEXIS 1196, 2016 WL 4491385
United States Court of Federal Claims·Decided August 24, 2016·No. 14-877 C·Published·Cited by 1 cases

Opinion

PUBLIC VERSION *

Administrative Procedures Act (“APA”), 5 U.S.C. § 706;

Bid Protest Jurisdiction, 28 U.S.C. § 1491;

Competition In Contracting Act (“CICA”), 10 U.S.C. § 2304(a); 10 U.S.C. § 2305(a)(1); 31 U.S.C. § 3551 et seq.;

Deliberative Privilege;

Department of Defense Instruction 5000.02 (Operation of the Defense Acquisition System);

Federal Acquisition Regulation (“FAR”) 6.302-1 (Sole Source Procurement); 6.303 (Justification); 6.304 (Approval of the Justification); 17.207(f) (Exercise of Options);

Rules of the United States Court of Federal Claims (“RCFC”) 8(a)(1) (Pleading Requirements); RCFC 12(b)(1) (Jurisdiction); 12(b)(6) (Failure To State A Claim); 12(f) (Motion To Strike); RCFC 15(d) (Supplemental Pleadings); RCFC 52.1 (Administrative Record); 52.2 (Remand); RCFC 65(a) (Preliminary Injunction).

MEMORANDUM OPINION AND ORDER ENJOINING THE ARMY’S DESIGNATION OF THE UH-72A LAKOTA HELICOPTER AS THE ARMY’S “INSTITUTIONAL TRAINING HELICOPTER” AND DECEMBER 10, 2015 PROPOSAL TO PURCHASE ADDITIONAL UH-72A LAKOTA HELICOPTERS, WITHOUT “FULL AND OPEN” COMPETITION

BRADEN, Judge

On April 3, 2014, the Army issued Executive Order 109-14 that, in part, “standardized” on Airbus Helicopter, Ine.’s UH-72A Lakota helicopter as the “only one responsible source” for future training helicopter purchases. Pursuant to that Executive Order, on *798 December 10, 2015, the Army filed a Justification and Approval (“J & A”) to purchase 16 additional UH-72A Lakota helicopters and associated services for $[REDACTED]— without “full and open competition.” The court has been advised that the Army also intends to purchase an additional 97 training helicopters for FY18, subject to congressional appropriations but will not commit whether any of these potential purchases will be subject to “full and open competition.” ECF No. 96, at 3; ECF No. 96-1, at 3-4; AR Tab 70, at 5279. Previously, the Army has purchased approximately 400 of the UH-72A Lakota helicopters for approximately $3.2 billion under a 2006 Contract that was subject to “full and open competition.” AR Tab 3zh, at 2126.

For the reasons discussed herein, the court has issued a preliminary injunction and remanded this matter to the .Army f°r six months to: (1) proceed with a competitive procurement; (2) reissue a new Justification and Approval For Other Than Full And Open Competition, correcting the deficiencies identified herein and conducting a new Independent Government Estimate; or (3) not proceeding with this procurement. See Fla. Power & Light Co. v. Lorion, 470 U.S. 729, 744, 105 S.Ct. 1598, 84 L.Ed.2d 643 (1985).

I. RELEVANT FACTUAL BACKGROUND AND PROCEDURAL HISTORY. 1

On June 22, 2005, the United States Army (“Army”) issued an Acquisition Strategy to procure 322 Light Utility Helicopters (“LUH”) by full and open competition. AR Tab 1, at 1-5,16-17.

On July 26, 2005, the Army issued Solicitation No. W58RGZ-05-R-0519 (“2006 Solicitation”) requesting bids, on a full and open competition and “best value” basis, for 26 low rate initial production (“LRIP”) aircraft, “MEDEVAC [Medical Evacuation] B kits, hoist B kits, Contractor Logistic Support (CLS), training, Contractor Field Teams (CFT), engineering services and other supporting hardware and services.” AR Tab 34, at 2924, 2926 (emphasis added). “Options will be included in the contract to cover ten years of requirements for hardware and services.” AR Tab 34, at 2926.

On May 17, 2006, the Army issued a Statement of Work (“SOW”), defining the scope of the proposed procurement, as follows:

A need exists for a helicopter that can provide reliable and sustainable general and administrative support in non-hostile, non-combat environments at reduced acquisition and operating and support costs. The missions of LUH are primarily light GS (to include aerial transport of key personnel, air movement of supplies, and maintenance support), Generating Force Medical Evacuation (MEDEVAC), reconnaissance, and test and training support. When the operational need arises, the LUH will facilitate the commander’s ability to conduct disaster relief operations,- civil search and rescue, augmentation of UH-60 MEDEVAC aircraft, counter drug operar tions, conduct of Homeland Security, and other mission requirements such as catastrophic emergencies and support to civilian agencies against internal threats or national emergencies if directed by the President. It has been determined that the intended mission of the replacement helicopter can best be satisfied through the *799 acquisition of an aircraft that is Federal Aviation Administration (FAA) certified. The LUH is the Army’s solution to meet these requirements..

AR Tab 34, at 3229, 3232 (emphasis added).

In response to the 2006 Solicitation, Agus-taWestland North America, Inc. (“AgustaW-estland”) and EADS North America Defense Company (“EADS”) submitted bids.

On June 30, 2006, EADS was awarded Contract No. W58RGZ-06-C-0194 (“2006 Contract”) for $43,090,522. AR Tab 3, at 56. The 2006 Contract required that EADS provide a base quantity of 8 LRIP UH-72A Lakota helicopters, a modified version of EADS’ commercial rotary helicopter, known as the EC-145. AR Tab 3, at 57; AR Tab 33, at 2920.

In addition, the 2006 Contract provided that, during each Program Years (“PY”) 2 through 10, the Army could exercise options to purchase up to a total of 483 UH-72A Lakota helicopters, as Court Exhibit A indicates:

COURT EXHIBIT A

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The last date that the Army could exercise an option was on September 30, 2015. AR Tab 3, at 199. The 2006 Contract expired on June 30,2016. AR Tab 3, at 56.

On October 23, 2006, the General Accountability Office (“GAO”) denied a bid protest filed by AgustaWestland challenging the 2006 Contract award to EADS. ECF No. 14, at 3.

In January 2012, the President and Secretary of the Department of Defense announced a new Strategic Guidance, requiring a reduction in the Defense Budget and resizing/reshaping of the Armed Services to comply with the Budget Control Act of 2011. AR Tab 69A, at 5154-55. As a result of “budgetary constraints and fiscal uncertainty” the Army was required to “shape its force structure to reduce costs and ensure [that] it achieves further operational demand requirements.” AR Tab 69A, at 5155.

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Agustawestland North America, Inc. v. United States, 127 Fed. Cl. 793, 2016 U.S. Claims LEXIS 1196, 2016 WL 4491385 (uscfc 2016).

127 Fed. Cl. 793 (Agustawestland North America, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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