Angelica Textile Services, Inc. v. United States

95 Fed. Cl. 208, 2010 U.S. Claims LEXIS 825, 2010 WL 4227462
CourtUnited States Court of Federal Claims
DecidedOctober 26, 2010
DocketNo. 10-496C
StatusPublished
Cited by25 cases

This text of 95 Fed. Cl. 208 (Angelica Textile Services, Inc. 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
Angelica Textile Services, Inc. v. United States, 95 Fed. Cl. 208, 2010 U.S. Claims LEXIS 825, 2010 WL 4227462 (uscfc 2010).

Opinion

OPINION AND ORDER

LETTOW, Judge.

Jurisdictionally, this bid protest rests upon the so-called third prong of 28 U.S.C. § 1491(b)(1).1 Plaintiff, Angelica Textile Services, Inc. (“Angelica” or “Angelica Textile”), alleges that the Department of Veterans Affairs (“DVA” or “the Department”) is proceeding with a procurement of laundry services for six veterans’ hospitals in contravention of law and regulation. Angelica is the current incumbent contractor for such services, and it in essence protests the government’s restriction of the solicitation for the follow-on contract to offerors eligible under the AbilityOne program.2 This case rais[212]*212es questions about the priority of the federal contracting preference accorded participants under the AbilityOne program as contrasted to that given veteran-owned (“VO”) and service-disabled veteran-owned (“SDVO”) entities who qualify under the Veterans Benefits Health Care, and Information Technology Act of 2006 (“Veterans Benefits Act”), Pub.L. No. 109-461, tit. V, 120 Stat. 3403, 3435 (codified at 38 U.S.C. §§ 8127-28). Pending before the court are cross-motions by the parties for judgment on the administrative record.

FACTS3

A. The Laundry Services Contract

Angelica Textiles provides laundry services for six hospitals located in the southeastern area of the United States, for the Department, under a contract which was scheduled to terminate on March 31, 2010.4 AR 1-85 to 90.5 On January 12, 2010, two and one-half months before Angelica’s contract was scheduled to expire, the Department issued a “Sources Sought Notification” to identify businesses interested in providing laundry services at the locations then served by Angelica. AR 7-117 to 118. The Department requested responses by January 22, 2010. Id.

Among the parties that expressed an interest in the laundry services contract was the National Institute for the Severely Handicapped (“NISH”), a nonprofit agency whose mission is to create employment opportunities for the disabled. NISH participates in the AbilityOne Program, which provides employment opportunities for people who are blind or have other significant disabilities by procuring federal contracts for goods and services.

NISH sent two e-mails to the Department before the deadline of January 22, 2010, stating its possible interest in the procurement. AR 8-171 (E-mail from George Patterson to Rufus Gates (Jan. 19, 2010)) (NISH “may have an interest and wanted to verify the time frames.”); AR 8-172 (E-mail from George Patterson to Robin Jones (Jan. 19, 2010)) (NISH “may [have] an interest if the timefr[a]mes will work.”). However, NISH did not provide a required “capabilities statement” until after the deadline, on January 28, 2010. See AR 9-178 to 189 (NISH Capabilities Statement (Jan. 28, 2010)); Dep. of Robin Jones, Contracting Officer (“Jones Dep.”) 10:17-10:20, 25:4-25:11 (Aug. 23, 2010).6

On January 25, 2010, before receiving NISH’s required capabilities statement, Ms. Jones as the Contracting Officer determined that the Department should award the new laundry contract to NISH on a sole-source basis. AR 8-131 (Dynamic Small Business Search Results — Industrial Launderer NA-ICS code 812332 (Jan. 25, 2010)) (“It is this recommendation that this requirement be sole sourced IAW FAR Part 8-Required Sources of Suppliers and Services, FAR Part 8.7 Acquisition from Non-Profit Agencies employing people who are blind or severely disabled.”); Jones Dep. 27:23-28:19.

[213]*213To award the laundry services contract to NISH on this basis, the services involved had to be placed on the list of government goods and services that were restricted to the Abili-tyOne program — the AbilityOne Procurement List. See 41 U.S.C. § 48; Jones Dep. 60:14-61:1. Placing the services on the Abili-tyOne Procurement List required time, specifically more time than that which remained on Angelica’s contract.7 To ameliorate that problem, Ms. Jones invoked a clause in Angelica’s contract allowing the government to “require continued performance of any services” for a period “not [to] exceed 6 months.” 48 C.F.R. (“FAR”) § 52.217-8. In a letter dated February 24, 2010, Ms. Jones informed Angelica that, “[i]n accordance with FAR § 52.217-8, Option to Extend Services (NOV 1999),” Angelica’s laundry services contract would be “extended for the period of performance through 30 September 2010.” AR 10-191 (Letter to Jeff Hoffman from Robin Jones (Feb. 24, 2010)).

Although FAR § 52.217-8 provides that the government may unilaterally “require” a contract extension of six months’ duration, Ms. Jones told Angelica that a “bilateral modification ... for this action [would] follow,” AR 10-191, and on March 12, 2010, a bilateral modification to Angelica’s contract was signed by both parties. AR 10-194 (Amendment of Solicitation/Modification of Contract). Angelica averred that Ms. Jones represented that the reason for the contract extension was to allow the Department to prepare a Request for Proposals (“RFP”) for full and open competition for the laundry services contract, Hr’g Tr. 14:10 to 15:2 (Aug. 4, 2010), but no independent evidence supports the claim that such a representation was made.

B. The Veterans Benefits Act

The Veterans Benefits Act, signed on December 22, 2006, directs the Secretary for Veterans Affairs to “give priority to a small business concern owned and controlled by veterans, if such business concern also meets the requirements of that contracting preference.” 38 U.S.C. § 8128(a). To implement the Veterans Benefits Act, the Department established the “Veterans First Contracting Program” on June 20, 2007. See AR 38-540 to 541 (New Guidelines for Placing Items and Services on the AbilityOne Procurement List (Apr. 28, 2010) (“New Guidelines”)). The program directed the Department to consider service-disabled veteran-owned small businesses (“SDVOSB”) and veteran-owned small businesses (“VOSB”) as a first and second priority when satisfying its acquisition requirements. Id. at 38-541. A final implementing rule establishing changes to the Department’s acquisition regulations was made effective January 7, 2010. See 74 Fed.Reg. 64619-01 (Dee. 8, 2009) (codified in scattered sections of 48 C.F.R. Subparts 802, 804, 808, 809, 810, 813, 815, 817, 819, 828, and 852).

To accommodate the Veterans Benefits Act, as implemented by the Department’s new acquisition regulations, the Department changed the internal process by which procurements could be added to the AbilityOne List. A Departmental Information Letter titled “New Guidelines for Placing Items on the AbilityOne Procurement List” explained:

[A]ll items currently on the AbilityOne Procurement List as of January 7, 2010 will continue to take priority over the contracting benefits mandated by [the Veterans Benefit Act].

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Bluebook (online)
95 Fed. Cl. 208, 2010 U.S. Claims LEXIS 825, 2010 WL 4227462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angelica-textile-services-inc-v-united-states-uscfc-2010.