CC Distributors, Inc. v. United States

69 Fed. Cl. 277, 2006 U.S. Claims LEXIS 11, 2006 WL 148890
CourtUnited States Court of Federal Claims
DecidedJanuary 19, 2006
DocketNo. 05-571C
StatusPublished
Cited by4 cases

This text of 69 Fed. Cl. 277 (CC Distributors, 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
CC Distributors, Inc. v. United States, 69 Fed. Cl. 277, 2006 U.S. Claims LEXIS 11, 2006 WL 148890 (uscfc 2006).

Opinion

OPINION ON CROSS-MOTIONS FOR JUDGMENT UPON THE ADMINISTRATIVE RECORD

FIRESTONE, Judge.

This post-award bid protest comes before the court on the parties’ cross-motions for [278]*278judgment upon the Administrative Record pursuant to Rule 56.1 of the Rules of the United States Court of Federal Claims (“RCFC”). The plaintiff, CC Distributors, Inc. (“plaintiff’ or “CCD”) protests the award of a requirements contract for a Contractor Operated Civil Engineering Supply Store at Hanscom Air Force Base (“AFB”), Massachusetts, to Maratech Engineering Services Inc. (“Maratech”). The plaintiff seeks to permanently enjoin the performance of the contract. The plaintiff argues (1) that the price reasonableness analysis was improper because the contracting officer failed to compare the offerors’ prices for individual items and that the price analysis was arbitrary and capricious and (2) that the contracting officer’s determination that Mar-atech was a responsible contractor was arbitrary and capricious. The defendant, the United States (“government” or “United States”), argues that in this simplified acquisition, the contracting officer was not required to compare prices for individual items and that neither the price analysis nor the responsibility determination was arbitrary and capricious. For the reasons that follow, the government’s motion for judgment upon the Administrative Record is GRANTED. The plaintiffs cross-motion for judgment upon the Administrative Record is DENIED.

BACKGROUND

On February 17, 2005, the Air Force issued solicitation number FA2835-05-T-0003. The solicitation was in the form of a Request for Quotation (“RFQ”), and it required offer-ors to submit individual quotations for approximately 1,500 items for the base year plus two option years. The items, largely in the nature of hardware supplies, are for a Contractor Operated Civil Engineering Supply Store (“COCESS”) at Hanscom AFB in Massachusetts. Under the terms of the solicitation, the COCESS is required to ensure that the 1,500 items “are stocked and available for immediate issue.” AR 113. The RFQ advised offerors that the procurement was being conducted pursuant to Federal Acquisition Regulation (“FAR”) Part 12, “Acquisition of Commercial Items,” and FAR Part 13, “Simplified Acquisition Procedures.” The solicitation contemplated awarding a firm fixed-price requirements contract.

The RFQ further provided that the award would be based on a “best value” determination. In this connection, the RFQ provided that offers would be evaluated according to FAR § 52.212-2, Evaluation — Commercial Items, and an Addendum to FAR § 52.212-2 that was provided in the RFQ. Under the evaluation criteria set forth in FAR § 52.212-2:

The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers: (i) Price; (ii) Past Performance.... The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement.

AR 85.

The RFQ’s Addendum to FAR § 52.212-2 provided: “Proposals conforming to the solicitation will be determined technically acceptable. Once technically acceptable proposals are determined, tradeoffs may be made between past performance and price to determine the successful offeror.” AR 86.

The Air Force received three timely offers. The putative awardee, Maratech, submitted an offer of * * *. The plaintiff, CCD, submitted the next lowest offer of * * *. National General Supply Incorporated (“NGSI”) submitted the highest offer of * * *.

The Air Force conducted a technical evaluation. According to the Air Force, the technical evaluator examined each proposing of-feror’s unit pricing and noted unit prices that he found problematic. Evaluation notices were sent to each of the offerors and each was asked to either verify a price or examine whether the item was priced on a proper unit basis. With regard to each offer, the technical evaluator indicated that all unit prices “appeared reasonable” with the exception of those noted. With regard to Maratech’s proposal, the technical evaluator identified eight items as potentially unreasonable. Five items noted were identified on internal docu[279]*279ments to be unreasonably low, and three were noted because of a possible incorrect unit size. AR 351. With regard to CCD’s proposal, two price quotations were questioned as too low, two were questioned because the prices were too high, and one price was questioned because it appeared to be based on an incorrect unit size. AR 352. Finally, with regard to NGSI, eight items were noted. Prices were questioned on three items because they appeared to be too low and five were questioned because they appeared to be too high. AR 353.

It is not disputed that the technical evaluator was not perfectly consistent in his questioning among the three offerors. For example, when faced in some instances with similar prices from two different offerors, he may have indicated that one offeror’s price was too high and not indicated that the other offeror’s price was high. Accordingly, some offerors were asked to provide verifications for certain items while others were not asked to verify comparably priced items. In addition, the technical evaluator did not compare the offerors’ prices for the individual items against each other. AR 834 (Cronin Decl. ¶ 7). Further, the technical evaluator concedes in the declaration he filed with this action that he “did not scrutinize each and every item during [his] evaluation.” AR 834 (Cronin Decl. ¶ 8). The record demonstrates, with respect to 279 items, or approximately 20% of the 1,500 items, that Marateeh’s proposal is dramatically less than CCD’s proposal. In some instances the difference is nearly 25,000% (Maratech’s price was * * * for an item whereas CCD’s price for that same item was * * *).

On March 17,2005, the Contracting Officer (“CO”) made the decision to award the contract to Marateeh on the basis of price and past performance. The CO’s memorandum for the record indicated that all three of the offers conformed to the requirements of the solicitation. The final source selection memorandum explained that the CO was making her “best value” determination in favor of Marateeh because, “when compared to the lowest priced offeror, the next higher priced offeror is 104% higher.” AR 624. The CO noted that Marateeh had received a * * * past performance rating, while CCD had received an * * * rating. Nonetheless, she stated:

The difference in price far outweighs the difference in the performance confidence levels .... Awarding to the next higher priced offeror for an increased level of past performance from * * * to * * * for the 104% additional price premium is not justified and would not be in the best interest of the government.

Id.

CCD was informed of the CO’s decision on March 18, 2005. Thereafter, CCD requested a debriefing, which was provided on March 21, 2005. CCD then filed a bid protest with the Government Accountability Office (“GAO”) on March 23, 2005. The contract award was stayed and CCD was issued an interim purchase order contract with two thirty-day options. The first option expired on May 31, 2005.

In its protest before the GAO, CCD challenged the Marateeh award on two grounds.

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Cite This Page — Counsel Stack

Bluebook (online)
69 Fed. Cl. 277, 2006 U.S. Claims LEXIS 11, 2006 WL 148890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cc-distributors-inc-v-united-states-uscfc-2006.