BMY, a Division of Harsco Corp. v. United States

693 F. Supp. 1232, 35 Cont. Cas. Fed. 75,552, 1988 U.S. Dist. LEXIS 9844, 1988 WL 92395
CourtDistrict Court, District of Columbia
DecidedSeptember 2, 1988
DocketCiv. A. 88-536
StatusPublished
Cited by10 cases

This text of 693 F. Supp. 1232 (BMY, a Division of Harsco Corp. v. United States) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BMY, a Division of Harsco Corp. v. United States, 693 F. Supp. 1232, 35 Cont. Cas. Fed. 75,552, 1988 U.S. Dist. LEXIS 9844, 1988 WL 92395 (D.D.C. 1988).

Opinion

CHARLES R. RICHEY, District Judge.

INTRODUCTION

On January 29, 1988, the United States Army Tank Automotive Command (“TA-COM”) concluded a two-year negotiated procurement process by awarding a contract for variable reach, rough terrain forklift trucks to TRAK International. In this suit, plaintiff, an unsuccessful bidder for that contract, charges that the contract award was unlawful. Plaintiff asks the Court to suspend performance of that contract and to enjoin defendant from acting on it. Plaintiff also asks the Court to declare either that plaintiff was entitled to the contract award or that defendant must cancel the contract award and reopen discussions with all offerors.

Plaintiff originally moved for a preliminary injunction. Pursuant to Fed.R.Civ.P. 65(a)(2), the parties agreed to combine the hearing on the preliminary injunction with the hearing on the merits of this suit. The Court has had the benefit of that hearing, the extensive legal and evidentiary materials submitted by the parties, and the parties’ proposed findings of fact and conclusions of law. After carefully considering these submissions, the arguments advanced in Court, and the underlying law, the Court must conclude that plaintiff is not entitled to relief in this case, and it will enter judgment in favor of defendants and defendant-intervenors. 1

BACKGROUND

On October 29, 1985, the Army issued a Request for Proposal (“R.F.P.”) for procurement of 6000-pound variable reach rough terrain forklift trucks. Defendant’s Exhibit If. That R.F.P. specified that the Army would pursue a two-phase procurement process in order to

... develop, test, and competitively procure a reasonably priced, state-of-the-art forklift, which has been comprehensively designed to meet the requirements of the performance specification, and to satisfy the considerations of reliability, availability, and maintainability (RAM), operator compatibility and vehicle productivity.

Id. at 1.

In Phase One, which was the subject of the October 29, 1985, R.F.P., the Army *1236 would award contracts for design, development, and fabrication of prototype vehicles and ancillary equipment that would be extensively tested and evaluated by the Army. Id. at Section A. Phase One contract awards would be based on the Army’s assessment of the apparent risks and benefits of the proposals; the apparent “technical” merit of the proposals would be the most important factor in the selection of Phase One contractors. Id. at L-16; M.

The October 29, 1985, R.F.P. also specified that Phase Two of the competition would be open only to successful bidders for the Phase One contracts. On April 18, 1986, plaintiff was awarded a Phase-One contract, as were both defendant-inter-venor’s predecessor-in-interest and Con Diesel Mobile Equipment. 2 Spitzbarth Declaration 116. On the basis of its submissions on paper, plaintiffs technical proposal was rated higher than those of the other Phase One contractors. Phillips Affidavit 116.

These paper submissions, however, were not relevant to the final analysis of the vehicles’ technical merit. Rather, as the October 29 R.F.P. specified, in the second phase of the procurement the Army would select a production contractor

... based on the results of the Government’s evaluation of 1) Phase-two Multi-Year production proposals; 2) Phase-one prototype vehicle test results; and 3) contractor proposed ‘corrections’ to vehicle deficiencies identified during prototype testing.

Id.

The Army conducted extensive testing of the prototype vehicles over a six-month period beginning in December, 1986. Defendant’s Exhibit 3, part IY, at 1. The Army kept the contractors informed of test results in several ways. The Army issued “Test Incident Reports,” which described the prototypes’ shortcomings in the reliability and productivity tests. The Army also released the performance test results, which revealed the extent to which the prototypes met or failed to meet the contract specifications. Id. In addition to these reports, the Army also notified contractors of vehicle part failures through formal and informal correspondence. Wagner Declaration, ¶ 8.

These tests revealed that, despite plaintiff’s technical superiority on paper, plaintiff’s prototype vehicles were seriously flawed. “Several structural failures occurred in the frame, along with numerous electrical failures and hydraulic leak problems.” Defendant’s Exhibit 3, Part IV, at 13. Moreover, plaintiff’s vehicles failed to comply with gradeability and braking requirements. Id. All told, plaintiff’s prototypes failed to meet twenty-eight specification requirements, id., and experienced seventy-one different types of failures, id. at 17, scattered throughout the vehicle, Defendant’s Exhibit 2, at 2. As might be expected in a vehicle with so many critical failure “modes,” plaintiff’s trucks had a mean time between unscheduled maintenance actions of 9.3 hours. Defendant’s Exhibit 3, at 17.

In contrast, defendant-intervenor’s prototype vehicles failed to meet twenty-one specification requirements, id. at 3, and had forty-seven different types of failures, id. at 5. These raw figures, however, do not reflect the fact that most of these failures were located in one section of the prototype; because the problems were centralized, the Army found, they could be corrected more successfully. Defendant’s Exhibit 2, at 2. The Army also found that, while the mean time between failures of the TRAK prototype was only 6.5 hours during the early portion of the testing period, the TRAK prototypes’ performance and time between failures were “superior” once a design correction was made. Defendant’s Exhibit 2, at 5.

On June 12, 1987, the Army released the Phase Two Request for Proposal. Defendant’s Exhibit 5. This R.F.P. called for bids *1237 on production and delivery of 1,801 forklifts over a four-year period, with options for production of additional vehicles. The R.F.P. clearly stated that:

[t]he objective of this acquisition is the award of a Multi-year production contract to that contractor whose combination of Phase-one prototype test results and Phase-two Multi-year proposal ... have been evaluated and found most advantageous to the Government.

Id. at 1. The R.F.P. went on to state that the Source Selection Authority would evaluate the proposals on the basis of cost, technical, Logistics/MANPRINT, 3 and production capability. Id. at M-2. Of those factors, the R.F.P. stated, cost “is of primary importance and is worth ... somewhat more” than all other factors combined.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Friedler v. General Services Administration
271 F. Supp. 3d 40 (District of Columbia, 2017)
United Space Alliance, LLC v. Solis
824 F. Supp. 2d 68 (District of Columbia, 2011)
Corel Corp. v. United States
165 F. Supp. 2d 12 (District of Columbia, 2001)
Reeve Aleutian Airways, Inc. v. Rice
789 F. Supp. 417 (District of Columbia, 1992)
Saratoga Development Corp. v. United States
777 F. Supp. 29 (District of Columbia, 1991)
Robert E. Derecktor of Rhode Island, Inc. v. United States
762 F. Supp. 1019 (D. Rhode Island, 1991)
Howard Cooper Corp. v. United States
763 F. Supp. 829 (E.D. Virginia, 1991)
Atlantic Research Corp. v. Department of the Air Force
716 F. Supp. 904 (E.D. Virginia, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
693 F. Supp. 1232, 35 Cont. Cas. Fed. 75,552, 1988 U.S. Dist. LEXIS 9844, 1988 WL 92395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bmy-a-division-of-harsco-corp-v-united-states-dcd-1988.