Ceres Gulf, Inc. v. United States

94 Fed. Cl. 303, 2010 WL 3511558
CourtUnited States Court of Federal Claims
DecidedSeptember 7, 2010
DocketNo. 10-319C
StatusPublished
Cited by21 cases

This text of 94 Fed. Cl. 303 (Ceres Gulf, 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
Ceres Gulf, Inc. v. United States, 94 Fed. Cl. 303, 2010 WL 3511558 (uscfc 2010).

Opinion

OPINION AND ORDER1

WHEELER, Judge.

In this bid protest, Plaintiff, Ceres Gulf, Inc. (“Ceres Gulf’), challenges the decision of the Department of the Army, Military Surface Deployment and Distribution Command (“Army”), to rescind a contract award to Ceres Gulf and to solicit revised proposals as corrective action following a protest filed at the Government Accountability Office (“GAO”) by a competing offeror, Coastal Maritime, LLC (“Coastal Maritime”). The procurement involves stevedoring work at three ports in Texas for vessels carrying Defense Department cargo. Among other tasks, the contract calls for the loading and unloading of inoperable equipment weighing up to 150,000 pounds. Ceres Gulf was the contract awardee, but Coastal Maritime, the lowest priced offeror, filed a protest at the GAO challenging the Army’s evaluation of its proposal and contending that the Army failed to conduct meaningful discussions with it. On April 29, 2010, the Army responded to Coastal Maritime’s protest by stating that it would terminate the contract with Ceres Gulf and allow offerors to submit revised proposals based upon an amended solicitation. Ceres Gulf then protested the Army’s proposed corrective action at the GAO. While the Army’s motion to dismiss Ceres Gulf’s GAO protest was pending, Ceres Gulf filed suit on May 25, 2010 asking this Court to enjoin the Army from inviting revised proposals because the proposed corrective action allegedly lacked a rational basis. (Compl. 5.)

The Court considered this protest on an expedited basis. Defendant submitted a certified copy of the administrative record on June 7, 2010, and added certain omitted materials on July 7, 2010. On June 21, 2010, Ceres Gulf filed a motion for judgment on the administrative record pursuant to Rule 52.1 of the Court of Federal Claims (“RCFC”). On July 6, 2010, Defendant filed a motion to dismiss under RCFC 12(b)(1), or in the alternative, a motion for judgment on the administrative record. Defendant contends that the Court lacks jurisdiction over the protest because Ceres Gulf is not challenging a solicitation, a proposed award, an award, or an “alleged violation of statute or regulation in connection with a procurement [308]*308or a proposed procurement” in accordance with 28 U.S.C. § 1491(b)(1) (2006). (Def.’s Mot. 12-18.) Defendant further asserts that Ceres Gulfs complaint regarding a “non-final agency action” is not ripe for review. Id. at 14. On the merit s, Defendant argues that the Army acted rationally in taking corrective action and soliciting revised proposals. Id. at 17-24. On July 6, 2010, Defendant-Intervenor, Coastal Maritime, also filed a motion for judgment on the administrative record arguing that the Army had a rational basis for taking corrective action to clarify the technical requirements in the solicitation. (Def. Intervenor’s Mot. 15-19.) The Court heard oral argument on the parties’ motions on August 17, 2010.

For the reasons stated below, the Court finds that it has jurisdiction to hear Ceres Gulfs claims. Contrary to Defendant’s assertions, Ceres Gulf is challenging the Army’s decision to rescind the contract and solicit revised proposals under an amended solicitation. Protests involving a challenge to a solicitation clearly are under this Court’s purview pursuant to 28 U.S.C. § 1491(b)(1). Defendant’s argument that this ease is not yet ripe for review also lacks merit. Ceres Gulfs allegation that it was harmed by the Army’s decision to issue an amended solicitation, in essence, is a protest relating to an agency’s pre-award conduct. Were the Court to deny Ceres Gulf the opportunity to contest alleged errors in the procurement now, Ceres Gulf potentially could be precluded from later asserting those claims, should it fail to win the award under the amended solicitation. See Blue & Gold Fleet, L.P. v. United States, 492 F.3d 1308 (Fed.Cir.2007); Weeks Marine, Inc. v. United States, 575 F.3d 1352 (Fed.Cir.2009). Accordingly, Defendant’s motion to dismiss for lack of subject matter jurisdiction is DENIED.

The Court, however, finds that Defendant’s motion for judgment on the administrative record has merit. A review of the record demonstrates that the Army's decision to take correct action by amending the solicitation to add new and material requirements was reasonable under the circumstances. Indeed, the amended solicitation addresses the very basis of Coastal Maritime’s protest before the GAO and ensures that the submit-tal of revised proposals is fair to all offerors involved. Accordingly, the Court DENIES Ceres Gulfs request for a permanent injunction and its motion for judgment on the administrative record, and GRANTS Defendant’s and Defendant-Intervenor’s cross-motions for judgment on the administrative record.

Background

A. The Solicitation

On September 8, 2009, the Army issued Solicitation No. W81GYE-09-R-0034 (“Solicitation”) seeking stevedoring and related terminal services involving the “receipt, processing, and/or loading/discharging” of Department of Defense cargo at three ports in Texas: Beaumont, Port Arthur, and Corpus Christi. Administrative Record (“AR”) 29, 132-33, 139. The Army identified the contract as providing “essential contractor services in support of mission essential functions.” AR 189. Potential offerors would be required, among other things, to move critical equipment, weapon systems, and supplies in direct support of Operations Enduring Freedom and Iraqi Freedom. (Def.’s Mot. 3.) Specifically, the contractor would be responsible for providing qualified labor, equipment, and materials necessary to load and unload certain “deadline” or inoperable military equipment. AR 132, 139.

The Army intended to award a firm fixed price indefinite delivery/indefinite quantity contract with one base year and three one-year options. AR 7. The lowest priced, technically acceptable offeror would receive the contract in accordance with Federal Acquisition Regulation (“FAR”) 15.101-2 and 52.212-2. AR 87. Thus, if the Army found the lowest priced offeror to be technically acceptable, the evaluation process would stop and an award would be made to that offeror. Id.

The Solicitation included five technical factors that an offeror’s proposal had to pass in order to be considered technically acceptable. See AR 88-92. Failure to satisfy any one of the five factors would render the entire proposal technically unacceptable. AR 92. At issue in this bid protest is Technical Factor 1 for “Equipment.” AR 88-89. Technical [309]*309Factor 1 provides that the offerors’ proposals would be evaluated “to determine their ability to perform required stevedoring-related terminal services in accordance with the Performance Work Statement (PWS).” AR 88. Technical Factor 1 is divided into three sub-factors: Sub-factor la, entitled “Types, mix and quantities of equipment;” Sub-factor lb, entitled “Equipment condition;” and Sub-factor lc, entitled “Specialized Equipment.” AR 88-89. Sub-factor la lists the number and types of specialized equipment offerors were required to possess at each of the three port locations. Id.

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Bluebook (online)
94 Fed. Cl. 303, 2010 WL 3511558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceres-gulf-inc-v-united-states-uscfc-2010.