Caddell Construction Company v. United States

125 Fed. Cl. 30, 2016 U.S. Claims LEXIS 69, 2016 WL 537314
CourtUnited States Court of Federal Claims
DecidedFebruary 10, 2016
Docket15-645C
StatusPublished
Cited by30 cases

This text of 125 Fed. Cl. 30 (Caddell Construction Company 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
Caddell Construction Company v. United States, 125 Fed. Cl. 30, 2016 U.S. Claims LEXIS 69, 2016 WL 537314 (uscfc 2016).

Opinion

Post-award Bid Protest; 28 U.S.C. § 1491(b)(1); Omnibus Diplomatic Security and Antiterrorism Act of 1986; Lowest Priced Technically Acceptable Offeror; Misleading Discussions; Price Reasonableness; FAR 15.306; FAR 15.404-1; Price Verification; FAR 14.403; FAR 1.102; Prejudice; Injunctive Relief.

OPINION AND ORDER

WILLIAMS, Judge.

In this post-award bid protest, Plaintiff, Caddell Construction Company (“Caddell”), challenges the Department of Státe, Bureau of Overseas Building Operations’ (“DOS”) award of a contract to Pernix Group, Inc. (“Pernix”) for the construction of a New Embassy Compound in Maputo, Mozambique. *34 This is the second opinion in this case. In the first opinion, the Court denied Caddell’s claim that Pemix was ineligible for award under the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (“the Act”) because Pernix had not demonstrated either the total-business volume or the performance of similar work required by the Act. Caddell Constr. Co. v. United States, 128 Fed.Cl. 469 (2015).

This opinion concerns Caddell’s claim that DOS’ misleading discussions tainted the pricing evaluation and resulted in an illegal award. DOS admittedly advised the awar-dee that its price was higher than the Independent Government Estimate (“IGE”), when it was actually [* * *] lower than the IGE. As such, award was based on a misinformed price, the price competition was skewed, there was no level playing field in what had become a price-based competition, and the procurement process lacked integrity. Given the arbitrary and capricious conduct of this procurement, the Court vacates the award and directs DOS to correct its erroneous discussion letter, afford Pemix the opportunity to revise its pricing based upon an accurate discussion letter, and make a new award decision.

This Court recognizes that typically when discussions are reopened with one offeror, they should be reopened with all offerors. Here, however, two circumstances taken together militate against such relief. First, the misleading discussions only affected the awardee’s pricing. All other offerors received accurate information and had an opportunity to submit informed revised offers. Second, the awardee’s price and the IGE have been publicly disclosed. This information would give Plaintiff and other offerors an unfair advantage over the awardee in a price reevaluation. As such, based upon the circumstances of this case, the Court grants this limited injunction.

Findings of Fact 2

The Solicitation and Pre-Qualiflcation

On February 2, 2014, DOS issued a Notice of Solicitation for the construction of a New Embassy Compound in Maputo, Mozambique. AR 1-3 (Solicitation No. SAQMMA-14-R0073). This project was to involve the “construction and commissioning” of a new office building, marine security guard quarters, shops, storage and maintenance facilities, vehicle and pedestrian access control pavilions, a utility budding, a bathhouse/cabana, and a vehicle parking structure, on a site totaling approximately four hectares. AR 1. The estimated construction cost in the Notice provided to prospective offers was stated to be $160-$210 million. Id.

The procurement consisted of two phases — Phase I, in which DOS would pre-qualify offerors for compliance with statutory and security clearance requirements, and Phase II, in which DOS would evaluate pre-quali-fied offerors’ technical and price proposals. AR 1-2. This was a “lowest price technically acceptable acquisition” to result in a firm fixed-price contract. AR 1, 1067. The project was anticipated to last for 33 months, with work beginning between November 1, 2014, and February 1, 2015. AR 134.

The Solicitation required proposals to be evaluated for price reasonableness under the price analysis techniques provided in FAR 15.404-1. Section M.3 of the Solicitation entitled Evaluation of Price provided:

M.3.1. Price proposals will be evaluated for price reasonableness based on the total price proposed for performance of the Building Project as specified in Section B [Pricing] of this solicitation. Analysis shall be performed in accordance with Federal Acquisition Regulation 15.404-1 and Section M [Evaluation Factors for Award] of this solicitation.

AR 239.

Phase II Evaluations and Discussions

Following Phase I of the procurement, four pre-qualified offerors remained in the competition: Caddell, Pernix, Framaco International, Inc. (“Framaco”), and B.L. Har- *35 bert International, LLC (“BL Harbert”). AB 1054-55. DOS issued its Bequest for Proposals (“BFP”) following Phase I on September 30, 2014, and these four entities timely submitted proposals. 3 Id. The Technical Evaluation Panel (“TEP”) reviewed the proposals and scored them on a pass/fail basis. AB 877. Caddell, Pernix, and BL Harbert received overall “pass” ratings. AB 855. Framaco received a “fail” rating, as it did not meet proposal requirements. Id.

DOS’ Bureau of Overseas Building Operations, Program Development Coordination and Support, and Office of Cost Management (“COST”) evaluated the price proposals, and issued a memorandum to Contracting Officer Lai setting forth the following price comparison table:

[[Image here]]

AB 878, 883.

COST separately analyzed each CLIN and its subelements. AB 879-82. Because CLIN 001, the construction of the new embassy compound, accounted for approximately 99% of the overall project based on the IGE, COST provided two charts: the first comparing the offerors’ total building costs to complete construction of CLIN 001, and the *36 second comparing the offerors’ individual building costs to complete construction of the new embassy compound required by CLIN 001. AR 879-80. The total construction cost chart set forth the following:

CLIN 001 Costs
[[Image here]]

AR 879. COST noted with respect to total building and site work in CLIN 001 that all but one of the bidders were above the IGE and stated: “[t]here are wide differences from the IGE that ranged from [* * *] below the IGE from Pernix, to [* * *] above the IGE from [* * *].” Id. (internal parenthetical omitted). With respect to profit as a percentage of total construction costs, COST wrote:

Profit — ... The bids ranged from a low of [* * from Pernix to a high of [* * *J from Caddell. One would question Per-nix’s ability because they have the [* * *] throughout their proposal and a [* * *] profit margin.
[Total Construction Cost] — [* * *] and Caddell are within [* * *] of the IGE; Pernix and [* * *] are at the extremes with [* * *] the IGE respectively. The differences ranged from [* * *] the IGE.

AR 879-80 (emphasis added).

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125 Fed. Cl. 30, 2016 U.S. Claims LEXIS 69, 2016 WL 537314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caddell-construction-company-v-united-states-uscfc-2016.