Compliance Corp. v. United States

36 Cont. Cas. Fed. 75,991, 22 Cl. Ct. 193, 1990 U.S. Claims LEXIS 478, 1990 WL 205528
CourtUnited States Court of Claims
DecidedDecember 12, 1990
DocketNo. 90-3896C
StatusPublished
Cited by36 cases

This text of 36 Cont. Cas. Fed. 75,991 (Compliance Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Compliance Corp. v. United States, 36 Cont. Cas. Fed. 75,991, 22 Cl. Ct. 193, 1990 U.S. Claims LEXIS 478, 1990 WL 205528 (cc 1990).

Opinion

OPINION

LYDON, Senior Judge:

This pre-award bid protest action arises from plaintiffs verified complaint seeking injunctive and declaratory relief relative to its disqualification from the bidding process during a bid solicitation for administrative support services conducted by the Navy. Plaintiff’s complaint, filed October 31, 1990, is accompanied by a motion for temporary injunctive relief to prevent the Navy from awarding the contract until the dispute over plaintiff’s disqualification has been resolved. Plaintiff’s request for temporary injunctive relief was rendered moot when the Navy subsequently agreed to postpone awarding the contract until December 14, 1990. Defendant has answered and has moved for summary judgment. On December 11, 1990, a hearing was held on the merits of plaintiff’s complaint and motion for injunctive relief. Based on the arguments presented at the hearing, and the documentary evidence before the court, the court finds the contracting officer’s decision to disqualify plaintiff to be reasonable and rationally based in fact and law. Therefore, the court grants defendant’s motion for summary judgment and denies plaintiff’s request for injunctive and declaratory relief.

FACTS

The material facts surrounding this dispute are uncomplicated and uncontroverted. Plaintiff Compliance Corporation (Compliance) is a small, minority-owned business corporation with its principal place of business in Lexington Park, Maryland. Defendant Department of the Navy (Navy), acting through the Naval Air Test Center in Patuxent River, Maryland, issued a Request for Proposals No. N00421-89-R-0114 on April 5, 1989, for administrative support services to be performed at the Naval Electronic Systems Engineering Activity (NES-EA) in St. Inigoes, Maryland. From 1986 to the present, administrative support services have been provided to NESEA by the incumbent contractor, Eagan McAllister Associates (EMA).

The Request for Proposals was a total small business set-aside procurement worth approximately $3.2 million, and the contract performance period was to extend from October 1, 1989 through September 30, 1994, including all options. The Request for Proposals stated that the bids submitted would be evaluated on the basis of the bidder’s technical approach, management approach, personnel, corporate experience, and cost realism. The contract would be awarded to the bidder that submitted a technically acceptable proposal with the lowest evaluated total estimated cost-plus-fixed-fee.

The Navy’s deadline for the submission of cost and technical proposals was originally May 8, 1989, but the deadline was subsequently extended to June 16, 1989. Before the June 16th deadline, on June 2, 1989, a representative of EMA, the incumbent contractor who was also a competing contractor in the present bid solicitation, contacted the contracting officer alleging that certain Compliance- employees had attempted to obtain information from EMA employees regarding EMA’s bid proposal. The contracting officer referred EMA’s complaint to the Naval Investigative Service (NIS) for investigation on June 3,1989. Due to the pending investigation, the contracting officer on June 7, 1989, extended the deadline for receipt of proposals indefinitely until further notice.

Compliance first learned of EMA’s allegations and the Navy’s investigation when NIS agents contacted Compliance employees in June of 1989. The NIS did not contact or interview any officers of Compliance, and did not contact or interview any Compliance employees who prepared cost and technical aspects of the bid proposal.

[195]*195On July 18, 1989, the contracting officer designated August 8, 1989 as the new deadline for submission of bid proposals. Compliance had not been notified as of July 18, 1989 that it might be or would be disqualified from bidding. Compliance timely submitted its bid on August 8, 1989. On that date, the Navy also received bids from EMA (the incumbent contractor) and two other corporations.

On August 9,1989, the NIS investigation results were released to William Mohn, who was at the time procurement counsel for NESEA.

The following facts were uncovered by the NIS investigation. About two weeks before the May 8, 1989 original bid closing date, on April 23, 1989, Compliance’s program director in charge of contracts, Norm Martin, approached Gloria Bailey, who was a word processor and assistant security manager for EMA, for information concerning EMA’s bid proposal, as well as for information concerning EMA’s current NESEA contract, including salary data. Martin, in his affidavit, advised that prior to April 23, 1989, he had lunch with Bailey at which time he discussed EMA’s current contract with the Navy. Martin and Bailey were close personal friends who had previously worked together at Tracor, Inc., a Maryland defense contractor. In 1986, when Tracor lost the predecessor NESEA contract to EMA, Tracor terminated some employees, including Martin, who went to work for Compliance, and Bailey, who went to work for EMA. Bailey is related to the president of Compliance by marriage.

Bailey’s position as a word processor at EMA gave her access to all proposal information, and at the time of her April 23, 1989 meeting with Martin, she was assigned to type and proofread EMA’s bid proposal for the NESEA solicitation. Martin asked Bailey for EMA salary information, for a list of government-owned property used by EMA to perform the administrative support services contract at NES-EA, and whether any EMA employees were interested in working for Compliance if Compliance received the contract at NES-EA. Martin denies that he asked Bailey for a copy of EMA's proposal. Bailey and Martin also discussed the possibility of Bailey coming to work for Compliance, in view of Bailey’s admitted unhappiness with working conditions at EMA.

On April 24, 1989, another EMA employee, Bruce Davidson, discovered a packet of information concerning EMA’s technical proposal for the NESEA solicitation on Bailey’s desk, which Davidson turned over to the president of EMA, James McAllister. The packet of information found on Bailey’s desk consisted of EMA’s technical data and capabilities, Bailey’s personal resume, a blank performance review preparation sheet, a marked “Statement of Work” for the NESEA solicitation, an uncompleted “Supplies or Services and Prices” worksheet, a copy of EMA’s bid proposal for the NESEA solicitation, handwritten notes of Bailey’s April 23rd meeting with Martin concerning EMA salaries, and a handwritten memo by Marie Madden, another EMA employee and a close friend of Martin’s and Bailey’s.1

On April 25, 1989, according to EMA officials, Bailey told them she had been “compromised” on the NESEA solicitation as a result of her communications with Martin. According to her affidavit, Bailey told EMA officials on that date that she had been “solicited concerning the reports processing contract," but denied that she had been “compromised” in that regard. Bailey admitted to compiling the information Martin requested, but she denied that she ever intended to turn it over to him. However, Bailey admitted she gave Martin information on EMA salaries from three years ago. Bailey was unable to explain the presence of all the information discovered by Davidson in one package.2 EMA [196]*196immediately placed Bailey on administrative leave. Shortly thereafter, EMA asked Bailey to resign, and she was terminated from EMA’s employ.

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Bluebook (online)
36 Cont. Cas. Fed. 75,991, 22 Cl. Ct. 193, 1990 U.S. Claims LEXIS 478, 1990 WL 205528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/compliance-corp-v-united-states-cc-1990.