Automation Technologies, Inc. v. United States

72 Fed. Cl. 723, 2006 U.S. Claims LEXIS 278, 2006 WL 2720642
CourtUnited States Court of Federal Claims
DecidedSeptember 11, 2006
DocketNo. 06-599C
StatusPublished
Cited by9 cases

This text of 72 Fed. Cl. 723 (Automation Technologies, 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
Automation Technologies, Inc. v. United States, 72 Fed. Cl. 723, 2006 U.S. Claims LEXIS 278, 2006 WL 2720642 (uscfc 2006).

Opinion

ORDER

HORN, Judge.

Plaintiff Automation Technologies, Inc. (ATI) filed an August 22, 2006 complaint challenging an agency override of the automatic stay stemming from a Government Accountability Office (GAO) bid protest. The complaint was accompanied by requests for a temporary restraining order and a preliminary injunction. The complaint seeks a declaratory judgment holding that the agency’s decision to override the stay is arbitrary, capricious, or otherwise not in accordance with law, a reinstatement of the stay, and permanent injunctive relief. Defendant and intervenor filed responses on August 25, 2006, and the court held a hearing on August 28, 2006. At the August 28, 2006 hearing, the agency indicated that it intended to issue task orders and proceed with the awardee and intervenor, Digital Technologies, Inc. (DTI), on September 1, 2006. The court issued a bench ruling on the propriety of the override, in favor of the plaintiff on August 31, 2006, the same day that task orders issued to the plaintiff, which was the incumbent on the contract, would have expired. This Order memorializes the bench ruling.

The United States Customs and Border Protection (Customs) agency, part of the Department of Homeland Security, solicited proposals for computer maintenance services. Plaintiff ATI, intervenor DTI, and a third offeror, Signature Technology Group, Inc. (STG), submitted proposals. The technical evaluation score for ATI was higher than DTI’s score, 85 percent to 76 percent.2 In this initial evaluation, ATI’s price was lower than DTI’s price. Customs awarded the contract to ATI on January 4, 2006. On January 11, 2006, DTI filed a protest with the GAO (Comp.Gen.B-297851). An automatic stay of the award to ATI stemmed from the GAO protest, pursuant to 31 U.S.C. § 3553(d)(3)(A) (2000). A Customs official, however, determined that it was in the “best interests of the United States” to override the automatic stay pursuant to 31 U.S.C. [725]*725§ 3553(d)(3)(C)(i)(I), permitting ATI to proceed with the contract.

DTI proceeded with this earlier protest. Upon hearing that the GAO believed improper discussions may have taken place, Customs took corrective action and, as a result, the protest was dismissed by the GAO on March 23, 2006. The agency’s corrective action included an amendment of the solicitation, submission of revised price proposals by ATI, DTI, and STG, and a new source selection decision. Since only price proposals were re-submitted, the technical submissions and scores remained the same from the earlier evaluation. However, DTI was the lower bidder this time compared to ATI. According to Customs’ June 28, 2006 Price Negotiation Memorandum:

The solicitation stated that between competing proposals, the Government is not willing to pay significantly more for a minor difference in the non-cost or price factors rating, nor is the Government willing to forego a significant difference in the non-cost or price factors rating in exchange for a small cost/price differential.
CPB [Custom and Border Protection] is unwilling to pay 17% more than DTI’s offered price to obtain a 9 percentage point increase in technical scoring, particularly when DTI has provided this service to CBP in the past at an acceptable performance level.

(emphasis in original).

On August 4, 2006, Customs made an award to DTI on the amended solicitation. On August 11, 2006, ATI filed a bid protest with the GAO (Comp.Gen.B-298618). The GAO decision was expected by November 20, 2006.3 An automatic stay went into effect pursuant to 31 U.S.C. § 3553(d)(3)(A).

On August 17, 2006, a Customs official executed a Determination and Findings (D & F) to override the automatic stay. The D & F was based on an evaluation of the GAO protest, which concluded that the protester, ATI, will lose the protest:

The protest matter pertaining to the cosi/technieal tradeoff is without merit since the tradeoff analysis was well documented as shown on pages 7-8 of the attached Price Negotiation Memorandum (PNM) and strongly supported the award decision. As stated in the solicitation, between competing proposals, the Government is not willing to pay significantly more for a minor difference in the non-cost or price factors rating. In this instance, the difference in price was simply too great to overcome given the comparatively small difference in the technical/past performance scores.
Although the awardee’s pricing will result in significant cost savings to the Government, the protest basis pertaining to unrealistically low CLIN [contract line item number] pricing (CLINs 0002 and 0010 in particular) is unfounded. The protestor states simply that the awardee does not understand the Government’s requirements. CLIN pricing offered by the protestor and the awardee is shown in the PNM. As to downgrade of the awardee’s offer for poor past performance, the protestor is unaware that CBP/OIT [a Customs entity] was used as a past performance reference by the awardee, and the awardee received the highest possible past performance rating from CBP/OIT.
The portion of the protest pertaining to the technical evaluation/scoring will be resolved against the protestor, since the protest is now untimely. Technical scoring for all offerors was released with Amendment No. 0004 on April 6, 2006.

The D & F then concluded that it was in the “best interests of the United States” to proceed with the award to DTI, because sig[726]*726nificant cost savings would result. Customs estimated that $103,196.27 per month could be saved by issuing task orders to DTI on September 1, 2006.

The Automatic Stay

Automatic stays of the procurement were instituted for both of the protests discussed above, the first one by DTI, and the second one, the propriety of the override of which is before this court, filed by ATI. The automatic stay is statutory:

(A) If the Federal agency awarding the contract receives notice of a protest in accordance with this section during the period described in paragraph (4)—
(i) the contracting officer may not authorize performance of the contract to begin while the protest is pending; or
(ii) if authorization for contract performance to proceed was not withheld in accordance with paragraph (2) before receipt of the notice, the contracting officer shall immediately direct the contractor to cease performance under the contract and to suspend any related activities that may result in additional obligations being incurred by the United States under that contract.
(B) Performance and related activities suspended pursuant to subparagraph (A)(ii) by reason of a protest may not be resumed while the protest is pending.

31 U.S.C. § 3553(d)(3)(A), (B).

The Agency Override

On August 17, 2006, Customs notified the GAO, which was considering ATI’s protest, that the agency was overriding the automatic stay.

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Cite This Page — Counsel Stack

Bluebook (online)
72 Fed. Cl. 723, 2006 U.S. Claims LEXIS 278, 2006 WL 2720642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automation-technologies-inc-v-united-states-uscfc-2006.