Cardinal Maintenance Service, Inc. v. United States

63 Fed. Cl. 98, 2004 U.S. Claims LEXIS 322, 2004 WL 2750099
CourtUnited States Court of Federal Claims
DecidedNovember 22, 2004
DocketNo. 04-94C
StatusPublished
Cited by48 cases

This text of 63 Fed. Cl. 98 (Cardinal Maintenance Service, 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
Cardinal Maintenance Service, Inc. v. United States, 63 Fed. Cl. 98, 2004 U.S. Claims LEXIS 322, 2004 WL 2750099 (uscfc 2004).

Opinion

OPINION ON CROSS-MOTIONS FOR JUDGMENT UPON THE ADMINISTRATIVE RECORD

FIRESTONE, Judge.

Pending before the court are the parties’ cross-motions for judgment upon the administrative record pursuant to Rule 56.1 of the Rules of the United States Court of Federal Claims (“RCFC”).1 The plaintiff, Cardinal Maintenance Service, Inc. (“Cardinal”), challenges the award of a contract for custodial services at Hickam Air Force Base, Hawaii (“Hickam AFB”) to the intervenor, Navales Enterprises, Inc. (“Navales”). Prior to the award of the contract in dispute, Cardinal had been the incumbent custodial service contractor at Hickam AFB. The subject contract was awarded by the defendant, the United States Air Force (the “Air Force” or “government”) to Navales on February 20, 2003. Cardinal filed the present action nearly a year later on January 27, 2004. Cardinal challenges both the award of the contract to Navales and the Air Force’s post-award administration of the contract. Cardinal charges that the Air Force violated the Competition in Contracting Act, Pub.L. No. 98-369, 98 Stat. 1175 (1984) (“CICA”), by authorizing contract modifications outside the scope of the original contract. For the reasons set forth below, Cardinal’s motion for judgment upon the administrative record is GRANTED. The government’s and Na-vales’ cross-motions for judgment upon the administrative record are therefore DENIED.

I. Statement of the Facts

A. The Solicitation and Award

The following facts are set forth in the Administrative Record (“AR”) and are not in dispute. On June 7, 2002, the Air Force issued Request for Proposal No. F64605-02R-0026 (“RFP”) for custodial services at Hickam AFB. The solicitation combined Contract F64605-97-C-0004 for custodial services in Building 1102 for the Pacific Air Command (“PACAF”) and contract F6460597-C-0017 for custodial services for the 15th Air Base Wind buildings. In all, the RFP called for the performance of custodial services in approximately 92 buildings throughout Hickam AFB. The solicitation stated that the contract would be awarded for a base year with four one-year options, except for the PACAF headquarters building, which would have a six-month base period and four one-year options. Prior to issuing the RFP, the Air Force imposed a fifteen percent reduction in funding FY2003 contracts for custodial services, refuse collection, and grounds maintenance.

The solicitation included descriptions of the types of cleaning services being procured. It identified the following general categories: basic cleaning services; basic restroom/locker rooms cleaning services; periodic cleaning services; and emergency or special event cleaning services. AR at 209-211. The solicitation provided estimated workloads for each category. In addition, the solicitation set forth certain special requirements, including: providing custodial services at Hickam AFB’s Child Development Centers; cleaning tile floors in buildings 1725 and 1726; providing special care in cleaning the headquarters building of the PACAF; and cleaning the exterior courtyards and monuments. AR at 211.

The Air Force received twenty-four proposals in response to the RFP. Proposals ranged in price from $3,358,041.90 to $9,586,407.50. The government also pre[101]*101pared an internal independent estimate of the appropriate cost of the contract. The independent government estimate (“IGE”), dated January 23, 2003, was for $6,586,983.00 excluding two contract line items (“CLINs”). These two line items were to be inserted into the contract along with figures which the cost of the CLINs, if inserted, were not to exceed. All of the offerors were determined responsive and all, with the exception of one contractor who withdrew from the competition, were considered for award.

The record reveals that the Air Force’s Source Selection Authority performed a best value evaluation. The best value was determined by evaluating two factors: price and past performance. Because past performance was weighted nearly equal to price, the government reserved the right to select an offer other than the lowest price offer when the perceived benefits of the higher priced proposal merited the additional cost. The evaluations were conducted on an anonymous basis.

With respect to price, the Air Force did not consider cost or pricing data in determining the reasonableness and realism of the offered prices because the Air Force had invoked part 15.403-l(b)(l) and (c)(1) of the Federal Acquisition Regulation (“FAR”). Part (b)(1) provides for “Exceptions to cost or pricing data requirements.”2 The Air Force determined that the “Exceptions” provision applied on the grounds that it had received adequate price competition as defined by FAR 15.403-l(c)(l). The Air Force reviewed each proposal to validate the accuracy of the pricing schedule for each contract line item. Proposals were evaluated by comparing the offered prices in accordance with FAR part 15.404-l(b)(2)(i), (ii), (iii), and (v). As provided for in FAR part 15.404-(b)(2), the Air Force contracting officer compared each offer to: (1) other offers; (2) previous government contracts; (3) parametric estimates/application of rough yardsticks obtained through field observations, such as the amount of time spent per square foot of building space; and (3) bottom line costs of the IGE. See AR at 8; 48 C.F.R. § 15.404(b)(2). Navales’ price proposal for the base and option years amounted to $4,066,463.95. Cardinal’s price proposal amounted to $5,957,133.60 for the same services.

With respect to past performance, the Air Force assessed each offeror’s past performance as a prime contractor on similar service contracts. The assessment was subjective; however, it was based on an evaluation of the scope of the information provided. An Exceptional/High Confidence rating was given to those offerors for whom “essentially no doubt exists that the offeror will successfully perform the required effort.” AR at 29. A Very Good/Significant Confidence rating was given to those offerors whose performance record leaves “little doubt ... that the offer- or will successfully perform the required effort.” Id. Ratings below Very Good included Satisfactory, Neutral, Marginal and Unsatisfactory. After the evaluation process Na-vales was given a Very Good/Significant past performance rating. Cardinal was given an Exceptional/High Confidence past performance rating. Id.

The Source Selection Evaluation Report (“SSER”) sets forth in detail the basis for the Air Force’s selection of Navales for award. After comparing Navales to the other offerors, the SSER concluded: “[Navales’] Very Good/Significant Confidence past performance rating, together with their strengths of providing strong top management, excellent administrative support and experienced project managers in previous contracts, and their lower price outweighs Offerors [Cardinal], X, A and D’s Exeeptional/High Confidence rating at a higher price. [102]*102Therefore, I consider [Navales] to be the best value to the Government.” AR at 34.

On February 27, 2003, the Air Force sent a letter to each unsuccessful bidder, including Cardinal, explaining why the contract was awarded to Navales. Cardinal filed a bid protest regarding the award with the General Accounting Office (“GAO”) on March 14, 2003. Cardinal withdrew its protest before the GAO issued a decision. On July 1, 2003, Navales commenced performance.

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

Related

Eco Tour Adventures, Inc. v. Jewell
249 F. Supp. 3d 360 (District of Columbia, 2017)
Turner Construction Co. v. MJ Flaherty Co.
34 Mass. L. Rptr. 171 (Massachusetts Superior Court, Suffolk County, 2017)
Algese 2 S.C.A.R.L. v. United States
125 Fed. Cl. 431 (Federal Claims, 2016)
Schott Government Services, LLC v. United States
123 Fed. Cl. 160 (Federal Claims, 2015)
Arkray USA, Inc. v. United States
118 Fed. Cl. 129 (Federal Claims, 2014)
Clinicomp International, Inc. v. United States
117 Fed. Cl. 722 (Federal Claims, 2014)
American Apparel, Inc. v. United States
108 Fed. Cl. 11 (Federal Claims, 2012)
Golden Manufacturing Co. v. United States
107 Fed. Cl. 264 (Federal Claims, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
63 Fed. Cl. 98, 2004 U.S. Claims LEXIS 322, 2004 WL 2750099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cardinal-maintenance-service-inc-v-united-states-uscfc-2004.