Chapman Law Firm v. United States

63 Fed. Cl. 25, 2004 U.S. Claims LEXIS 308, 2004 WL 2676335
CourtUnited States Court of Federal Claims
DecidedNovember 23, 2004
DocketNo. 04-1553 C
StatusPublished
Cited by16 cases

This text of 63 Fed. Cl. 25 (Chapman Law Firm 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
Chapman Law Firm v. United States, 63 Fed. Cl. 25, 2004 U.S. Claims LEXIS 308, 2004 WL 2676335 (uscfc 2004).

Opinion

OPINION AND ORDER

HEWITT, Judge.

Before the court is the post-award bid protest of Chapman Law Firm Company, LPA (Chapman). Chapman alleges that the Small Business Administration (SBA) failed to conduct a good faith investigation of Chapman’s protest of the size status of the intended awardee of a Department of Housing and Urban Development (HUD) contract set [27]*27aside for small businesses. For the following reasons, plaintiffs protest is DISMISSED.

I. Background

On August 6, 2003, HUD issued a solicitation for the Management and Marketing of Single Family Homes under Request for Proposals Number R-OPC-22505 seeking proposals for the provision of

Management and Marketing services to successfully monitor mortgagee compliance with the Department’s property conveyance requirements, to successfully manage single family properties owned by, or in the custody of, the Department of Housing and Urban Development (HUD), to successfully market those single family properties which are owned by HUD, and to successfully oversee the sales closing activity, including proper accounting for HUD’s sales proceeds.

Complaint (Compl.) 118; Administrative Record (AR) at 2 (Solicitation). The solicitation sought management and marketing services for multiple geographic regions around the United States, including a region comprising Indiana and Illinois. AR at 17 (Solicitation). The solicitation stated that the award would be made to an eligible small business unless the competition was inadequate among small businesses. Id. (Solicitation). HUD determined that the proposal submitted by Chapman was “within the competitive range” for the contract award. Id. at 24 (Letter from HUD to Chapman dated 4/2/04).

On July 7, 2004, the contracting officer issued a pre-award notice to Chapman advising it of HUD’s intent to award the portion of the contract for management and marketing services in Illinois and Indiana to Harrington, Moran, Barksdale, Inc. (HMBI), the defendant-intervenor in this action. See id. at 60 (HUD’s Pre-Award Notice of Intent dated 7/7/04). The following day, July 8, 2004, Chapman filed a size protest with SBA challenging HMBI’s eligibility for the award based on its affiliation with a large business, Cathedral Rock, Inc.1 Id. at 28 (Chapman’s Size Protest dated 7/8/04).

The procedures for challenging a business concern’s eligibility for a small business contract award are set forth in Subpart 19.3 of the FAR, titled “Determination of Small Business Status for Small Business Programs,” and Part 121 of Title 13 in the Code of Federal Regulations, titled “Small Business Size Regulations.” These regulations permit an offeror to protest the small business representation of another offeror in a specific offer. See FAR § 19.302(a) (addressing who may file a protest challenging the small business status of an offeror for “a specific offer”); 13 C.F.R. § 121.1007(a), (b) (providing that only a protest challenging, on specific factual grounds, a “particular procurement” will be acted upon by SBA). To be timely under the regulations, a protest must be received by the contracting officer before the close of the business on the 5th business day after the contracting officer has notified the protester of the identity of the prospective awardee. See FAR § 19.302(d)(1); 13 C.F.R. § 121.1004(a)(2). Upon receipt of a protest, the contracting officer shall promptly forward the protest to the proper SBA Government Contracting Area Office. FAR § 19.302(c)(1). Upon making a formal size determination, the SBA Area Office promptly notifies the contracting officer and the protestor of its decision. See FAR § 19.302(g)(1); 13 C.F.R. § 121.1009(f).

The regulations provide that an “[a]ward ... made on the basis of [the SBA’s] determination ... is final unless it is appealed in accordance with [the regulations] and the contracting officer is notified of the appeal before award.” FAR § 19.302(g)(2) (emphasis added); see also 13 C.F.R. § 121.1009(g)(1) (“A formal size determination becomes effective immediately and remains in full force and effect unless and until reversed by [SBA’s Office of Hearings and Appeals (OHA) ].”). The regulations state that “i[f] an award was made before the time the contracting officer received notice of the appeal, the contract shall be presumed to be [28]*28valid.” FAR § 19.302(g)(2). The regulations are clear that a ruling by SBA’s OHA will apply to the “pending acquisition” only if the decision is received by the contracting officer before the contract is awarded. FAR § 19.302(i); see also 13 C.F.R. § 121.1009(g)(3) (stating that a decision by SBA’s OHA “will apply to the pending procurement or sale if the decision is received before award”).2 Otherwise, a ruling by SBA’s OHA received after the award of the contract “shall not apply to that acquisition.” FAR § 19.302(i); see also 13 C.F.R. § 121.1009(g)(3) (“OHA decisions received after contract award will not apply to that procurement or sale, but will have future effect, unless the contracting officer agrees to apply the OHA decision to the procurement or sale.”).

In this case, nearly two weeks after filing a timely size protest with SBA challenging HMBI’s eligibility for the HUD contract award, on July 21, 2004, Chapman supplemented its size protest with SBA with evidence to support a new allegation that HMBI had “formed an illegal partnership with Best Assets,” a large business and the incumbent HUD management and marketing services contractor “for the states of Atlanta, Georgia and Missouri.” Id. at 90 (Chapman’s Supplement to Size Protest dated 7/21/04). On July 23, 2004, SBA’s Area Office in Fort Worth, TX issued its size determination concluding that HMBI was a small business. Id. at 144-52 (SBA’s Size Determination Decision).

Chapman received SBA’s size determination decision on July 26, 2004. Plaintiffs Brief on Jurisdiction and Justiciability (Pl.’s Br.) at 5; Defendant’s Brief With Respect to Jurisdiction and Justiciability (Def.’s Br.) at 2. Four days later, on July 30, 2004, HUD awarded the portion of the contract providing management and marketing services in Illinois and Indiana to HMBI. AR at 153-54 (Letter from HUD to Chapman advising of award to HMBI dated 7/30/04). Ten days after the contract award to HMBI and two weeks after it received notice of SBA’s Size Determination Decision, on August 9, 2004, Chapman appealed the size determination decision to SBA’s Office of Hearings and Appeals (OHA).3 Id. at 132-319 (Chapman’s Appeal of Size Determination Decision dated 8/9/04). OHA affirmed SBA’s size determination decision and denied Chapman’s appeal by a decision of October 7, 2004. Id. at 467-74 (SBA’s OHA Decision of 10/7/04 affirming size determination).

Chapman filed this action on October 14, 2004. Compl. at 1.

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Cite This Page — Counsel Stack

Bluebook (online)
63 Fed. Cl. 25, 2004 U.S. Claims LEXIS 308, 2004 WL 2676335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-law-firm-v-united-states-uscfc-2004.