Albano Cleaners, Inc. v. United States

455 F.2d 556, 197 Ct. Cl. 450, 1972 U.S. Ct. Cl. LEXIS 23
United States Court of Claims·Decided February 18, 1972·No. No. 188-67·Published·Cited by 27 cases

Opinion

Per Curiam :

This case was referred to Trial Commissioner Saul Richard Gamer with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Rule 134(h). The commissioner has done so in an opinion and report filed on October 7, 1971. No exceptions to or brief on this opinion and report have been filed by the parties and the times for so filing pursuant to the rules of the court have expired. On December 23, 1971, plaintiff [453] filed a motion for judgment pursuant to Kule 141(b) requesting that the court adopt the commissioner’s findings of fact, opinion and recommendation for conclusion of law and enter judgment accordingly. Defendant has filed no response to this motion, the time for so responding has expired and the case has been submitted to the court without oral argument.

Since the court agrees with the commissioner’s opinion, findings of fact and recommended conclusion of law, as hereinafter set forth, it hereby, granting plaintiff’s motion, adopts the same as the basis for its judgment in this case. Therefore, it is concluded that plaintiff is entitled to recover and judgment is entered for plaintiff with the amount of recovery to be determined pursuant to Rule 131 (c).

OPINION OF COMMISSIONER

Gamer, Commissioner: This is another case in which the Government, shortly after awarding a contract, terminated it on the ground that the award had been improper. The plaintiff contractor contends the Government’s action constituted a breach of contract, for which it seeks recovery of the expenditures it made to perform the contract and of its anticipated profits. The contract was to be in effect for one year but was ended after less than one month.

On September 8, 1966, the Naval Supply Center at Norfolk, Virginia, invited bids for the furnishing of laundry, drycleaning, waterproofing, and repair services on various designated garments and other items. The services and items were set forth in four “Lots,” with bidders to indicate a unit price for each item in the lot upon which they submitted a bid. Five “Zones” were designated, consisting of specified areas in and around Norfolk (where several naval installations are located), the unit price for each item to be set forth for each zone. Plaintiff, which had held similar contracts in previous years, submitted a bid on two of the lots — Lots III and IV. On the basis of the overall unit prices, plaintiff was the second lowest bidder on Lot IV, which pertained to garments referred to as “foul weather gear.”

The Supply Center decided, however, that, with respect to [454] Lot IV, it would not award the contract to the bidder, Compeco Cleaners, whose unit prices were, on an overall basis, the lowest. This decision was based upon the fact that Com-peco had inserted a qualification in its bid to the effect that minimum order charges would apply — $6 per order if the items were transported by Government vehicles, and $15 per order if the items were picked up and delivered by the contractor. Accordingly, a contract with respect to Lot IV was awarded to plaintiff, the contract term being for one year, commencing October 1, 1966.

Thereupon, Compeco protested its failure to receive the award. It pointed out that a similar minimum charge provision had been included in a contract it then currently held with the Center, as well as in seven contracts it had had during the past eight years, and that the provision had not theretofore been considered disqualifying.

Plaintiff had also inserted a qualification in its bid. This qualification was that “[d]elivery services will not be offered on orders totaling less than $50.” Following consideration of Compeco’s protest, defendant decided to terminate its contract relationship with plaintiff. On October 28, 1966, after plaintiff had been performing the contract since October 1, 1966, the Center notified plaintiff by letter that its contract “is hereby withdrawn because bid submitted in response” to the invitation “was improper inasmuch as the invitation did not provide for ‘minimum order’ charges.” During the brief period the contract had been in effect, defendant had ordered and paid for services totaling over $1,000.

Plaintiff protested the termination by conferences and correspondence, during the course of which (a) defendant contended that the qualification plaintiff had inserted made its bid nonresponsive, that the award to plaintiff was therefore improper, and that the award had been made as a result of administrative error (it had allegedly faded to notice the qualification); and (b) plaintiff denied that its qualification established any “minimum order” charge as stated in defendant’s letter and asserted that defendant’s standard practice in prior years was to accept bids containing a qualification of [455] the kind in question. Failing to obtain reinstatement of its contract, this suit followed.1

Defendant here reiterates that the qualification plaintiff inserted served to make its bid nonresponsive and disqualifying, that the award of the contract to plaintiff was therefore improper, making the contract void db initio, and that the withdrawal of the contract was consequently justified. It is true that in an appropriate case defendant may disclaim a contract on the ground of voidness db initio because of the nonresponsiveness of the bid. Where a public contract is to be let pursuant to formal advertising, the strictures upon defendant’s contracting agent are such “that the contract awarded must be the contract advertised and * * * if it is not, the Government is not bound, since defendant’s contracting agent could not bind the Government beyond his actual authority.” Prestex Inc. v. United States, 162 Ct. Cl. 620, 625, 320 F. 2d 367, 371 (1963).

It is plain, however, that this is not such a case. Every bid deviation from an advertised proposal does not automatically compel rejection. Contracting officers may waive deviations “provided they do not go to the substance of the bid or work an injustice to other bidders. A substantial deviation is defined as one which affects either the price, quantity, or quality of the article offered.” Prestex Inc. v. United States, supra, 162 Ct. Cl. at 627, 320 F. 2d at 372. Thus, “[t]he pertinent question * * * is whether plaintiff’s [bid] represented a substantial deviation.” Id. Defendant, of course, argues that the qualification plaintiff inserted in its bid constituted such a substantial deviation, whereas plaintiff asserts otherwise.

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Albano Cleaners, Inc. v. United States, 455 F.2d 556, 197 Ct. Cl. 450, 1972 U.S. Ct. Cl. LEXIS 23 (cc 1972).

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