CCL Service Corp. v. United States

43 Fed. Cl. 680, 1999 U.S. Claims LEXIS 103, 1999 WL 301791
CourtUnited States Court of Federal Claims
DecidedMay 10, 1999
DocketNo. 98-664C, 98-692C
StatusPublished
Cited by36 cases

This text of 43 Fed. Cl. 680 (CCL Service Corp. 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
CCL Service Corp. v. United States, 43 Fed. Cl. 680, 1999 U.S. Claims LEXIS 103, 1999 WL 301791 (uscfc 1999).

Opinion

OPINION

MILLER, Judge.

This post-award bid protest is before the court on defendant’s motion for judgment on the pleadings or, in the alternative, suggestion that the court dismiss for lack of jurisdiction. Plaintiffs question whether the termination for convenience of the subject contracts and cancellation of the solicitation deprives this court of jurisdiction to consider the award of any further relief. They cross-moved for partial summai-y judgment, contending that the termination for convenience and failure to defend the award amounts to an admission of impropriety.

FACTS

On August 5, 1998, the Defense Information Systems Agency (“DISA”) awarded the seven contracts at issue in this ease pursuant to Request for Proposals (“RFP” or “solicitation”), No. DCA 200-97-R-0014 to CHE Consulting, Inc. (“CHE”).2 These contracts provided for various computer maintenance services for Department of Defense mega-centers. Plaintiff CCL Service Corporation (“CCL”), filed a protest to this award on August 18, 1998. Plaintiff PCC Federal Systems, Inc. (“PCC”), filed a similar protest on August 28, 1998. The court granted CHE’s motion to intervene on September 10, 1998. On September 22, 1998, the court permitted the intervention of Severn Companies, Inc. (“Severn”).3

The court held an initial status conference on August 20, 1998. Per the contract, performance was to begin on October 1, 1998. Because the lawsuit was filed several weeks before performance commenced, plaintiff CCL did not seek a temporary restraining order or preliminary injunction. See Transcript of Proceedings, CCL Serv. Corp. v. United States, No. 98-664C, at 3-4 (Fed.Cl. Aug. 20, 1998).4 The court instructed defendant to file the administrative record by September 9, 1998. Thereafter, a status conference was held on September 11, 1998, following which the protests of CCL and PCC were consolidated by agreement of the parties on September 14, 1998. Having consolidated these two cases and allowed the intervention of Severn and CHE, the court had before it most of the offerors under this solicitation, representing the majority, if not all, of the major players in the industry.

During the status conference, CHE characterized the protest in the following manner:

[682]*682I think what we’re looking at here is we have Ford and Chevrolet sitting over here with their maintenance programs, and you have the third-party person in CHE who can do it as well, and I think it’s ... similar[ ] to the IBM equipment when IBM had a problem when Andahl came out as the cheaper competitor for IBM equipment.

Transcript of Proceedings, CCL Serv. Corp. v. United States, Nos. 98-664C & 98-692C, at 26-27 (Fed.Cl. Sept. 11, 1998) (hereinafter “Sept. Tr.”). Defense counsel offered a similar analogy:

If the Government bought a fleet of Cad-illacs, can only Cadillac service[ ] the Cad-illacs, what if Bob’s Garage can service the Cadillacs perfectly as well at a cheaper price? That seems to be what is going on now. There is a big upheaval in the industry because these third parties are able to service the contracts much more price effectively.

Sept. Tr. at 28. Plaintiffs challenged the sufficiency of CHE’s proposal, charging that CHE failed to demonstrate that it was capable of performing the tasks required under the contract and, hence, did not fulfill the requirements of the solicitation. Plaintiffs also contested CHE’s ability to perform at the prices it proposed.

Focusing on DISA’s evaluation of CHE’s bid and the subsequent award, plaintiffs sought discovery with regard to, inter alia, the evaluations of the Technical Evaluation Review Panel (the “TERP”). Specifically, plaintiffs requested depositions of the contracting officer, the TERP Chairman, and one TERP evaluator to determine how CHE was given an acceptable evaluation and whether the evaluation documentation was available, or, in the alternative, what became of this documentation. Documentation regarding the TERP’s evaluation was mandatory under the provisions applicable to this procurement.5 Each member of the TERP was required to complete an “Individual Evaluation” worksheet providing commentary and details regarding assessment of each proposal. Defense counsel acknowledged that these evaluations were absent from the record. In place of these evaluations, defense counsel explained: “The way the best-and-final offers are reviewed is by committee, and each committee member’s signature on the final review indicates that they have answered to their satisfaction all of the outstanding issues for that given proposal.... There are no written notes.” Sept. Tr. at 32. The court rejected the affidavit submitted by defendant from the TERP president as insufficient to fill this gap in the record. See CCL Serv. Corp. v. United States, Nos. 98-664C & 98-692C (Fed.Cl. Oct. 7, 1998) (order granting limited discovery and outlining applicable case law); see also GraphicData, LLC v. United States, 37 Fed.Cl. 771, 779-80 (1997) (discussing appropriate circumstances in which supplementation of administrative record is permissible).

Finding that the administrative record did not contain the required documentation from the TERP, the court issued an order on October 7, 1998, permitting plaintiffs to take the limited depositions sought to establish the basis of the evaluators’ ratings, and to determine the materiality of the failure to [683]*683prepare mandatory documentation.6 The order recited:

Plaintiffs have established that specific documentation was required under the solicitation provisions and, further, that such documentation is absent from the record. Neither CHE nor defendant contests that the final evaluation reports of the TERP members are not included in the record. Because this documentation was a mandatory requirement, the award of the contract absent such documentation put forth, at least facially, an arbitrary or capricious action. Moreover, without such documentation, the court is unable to determine if the contracting officer’s decision has a reasonable basis. Thus, discovery should move forward.

The court, however, also warned the parties that deference was to be given to the agency and the court was without power to award the contract. See Transcript of Proceedings, CCL Serv. Corp. v. United States, Nos. 98-664C & 98-692C, at 35-36 (Fed.Cl. Oct. 6, 1998) (hereinafter “Oct. Tr.”).7

DISA issued a stop work order on September 16, 1998. The parties entered into a series of settlement negotiations. During a subsequent informal status conference on November 5, 1998, defendant indicated that DISA might take corrective action terminating the contracts at issue and conducting a resolicitation if a settlement was not forthcoming post-haste. Because the parties appeared genuinely interested in reaching a settlement, the court continued to provide its views of the case and the parties’ respective positions based upon the limited facts before it. At no time did the court make findings with regard to the merits of these protests.8

Over the next two months, the proceedings were suspended as the parties engaged in contentious settlement negotiations.

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Bluebook (online)
43 Fed. Cl. 680, 1999 U.S. Claims LEXIS 103, 1999 WL 301791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ccl-service-corp-v-united-states-uscfc-1999.