Contract Custom Drapery Service, Inc. v. United States

32 Cont. Cas. Fed. 73,105, 6 Cl. Ct. 811, 1984 U.S. Claims LEXIS 1243
CourtUnited States Court of Claims
DecidedDecember 5, 1984
DocketNo. 31-84C
StatusPublished
Cited by19 cases

This text of 32 Cont. Cas. Fed. 73,105 (Contract Custom Drapery Service, Inc. 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
Contract Custom Drapery Service, Inc. v. United States, 32 Cont. Cas. Fed. 73,105, 6 Cl. Ct. 811, 1984 U.S. Claims LEXIS 1243 (cc 1984).

Opinion

OPINION

LYDON, Judge:

This case comes before the court on defendant’s motion for summary judgment, which is supported by a contracting officer’s affidavit and other pertinent eviden-tiary materials. Plaintiff opposes said motion solely on the ground that a previous denial of a government motion for summary judgment by the Veterans Administration Board of Contract Appeals (VABCA) constitutes res judicata which serves to bar the granting of defendant’s present motion for summary judgment. Plaintiff has submitted no responding affidavit in support of its opposition to defendant’s motion for summary judgment. However, plaintiff did submit an affidavit it had previously submitted to the VABCA in opposition to the government’s motion for summary judgment filed with the VABCA.

Plaintiff’s complaint was filed in this court on January 23, 1984, seeking primarily the award from the Veterans Administration (VA) of a contract based on a proposal it had submitted in response to a VA Solicitation which had been issued but subsequently was cancelled. In the alternative, plaintiff claims it is entitled to an award of bid preparation costs and lost profits as a disappointed bidder in not receiving the contract in question. Plaintiff alleges that defendant’s cancellation of the solicitation of bids was unreasonable, arbitrary, capricious and without foundation in law or fact. Plaintiff further alleges that defendant cancelled the solicitation in order to subsequently award the contract to another bidder which had performed a similar contract with VA the previous year but had not submitted the low bid on the solicitation in question.

After consideration of the briefs of the parties, and without oral argument, the court concludes that plaintiff’s res judicata defense must be rejected and defendant’s motion for summary judgment should be granted.

I.

The following facts are deemed established by the pleadings and the parties’ affidavits and other uncontradicted eviden-tiary material which accompanied defendant’s motion for summary judgment and plaintiff’s opposition thereto.

On December 14, 1981, Invitation for Bids (IFB) no. 632-08-82 was issued soliciting bids to supply and install draperies, [814]*814curtain cubicles and accessory hardware and to service such products for the Veterans Administration Medical Center, North-port, New York, for the period from January 1, until September 30, 1982. Seven contractors, including plaintiff, submitted bids.

The bids were opened on January 8, 1982. The contracting officer thereafter contacted plaintiff regarding a problem of non-responsiveness in plaintiff’s bid due to its format. The contracting officer arrived at no conclusions on the responsiveness of plaintiff’s bid. She did, however, examine all the bids and concluded that it was impossible to ascertain the lowest bidder. She then found the solicitation to be inadequate and ambiguous.

The contracting officer also determined that, when the solicitation was issued, the VA was classified on the Federal Supply Service Schedule as a mandatory user. Such a designation required that the drapery service contract be awarded to a vendor listed as a Federal Supply Service contractor. Prior to the issuance of the IFB, the contracting officer was unaware that the VA was classified as a mandatory user of the Federal Supply Service for drapery services. The submissions of the parties do not indicate that plaintiff was a Federal Supply Service contractor. However, whether plaintiff was or was not such a contractor is immaterial in this case.

Based upon her determinations that the solicitation was ambiguous and that the VA was classified as a mandatory user, the contracting officer sent a letter, dated February 1, 1982, to each bidder cancelling the solicitation for drapery services pursuant to 41 C.F.R. § l-2.404-l(b)(l) (1982). These letters advised the bidders of the above reasons for the cancellation of the solicitation. The VA subsequently proceeded to procure the items under the Federal Supply Schedule contract as mandated by 41 C.F.R. § 101-26.401-1 (1982).

Prior to receiving the February 1, 1982, letter informing it of the cancellation of the solicitation, plaintiff, on January 26, 1982, submitted to the contracting officer a protest letter concerning her treatment of plaintiff’s bid and the impending cancellation. In a decision dated February 2, 1982, the contracting officer rejected plaintiff’s protests, reiterated the bases for her decision to cancel the solicitation, and stated that no final decision had been made to reject plaintiff’s bid as non-responsive. The contracting officer’s final decision on the matter was based solely on the cancellation of the solicitation. This final decision also informed plaintiff of its right to appeal to the VABCA within 90 days.

An appeal by plaintiff was docketed by the VABCA on March 18, 1982, followed by plaintiff’s submission of its complaint on April 13, 1982. Defendant answered on May 7, 1982, and on June 28, 1982, filed a motion for summary judgment. On August 24, 1982, the VABCA denied this motion for summary judgment. This denial is the basis of plaintiff’s claim that defendant is barred by res judicata from raising a similar motion before this court. Subsequent to the VABCA’s denial of defendant’s motion for summary judgment, it dismissed plaintiff’s appeal for lack of jurisdiction based on the holding in Coastal Corp. v. United States, 713 F.2d 728 (Fed.Cir.1983) (board does not have jurisdiction over bid protest claims seeking damages for bid preparation costs). Plaintiff, on January 23, 1983, filed the instant suit in this court.

II.

In opposition to defendant’s motion for summary judgment, plaintiff asserts that this court is barred from considering such a motion because the VABCA previously considered a motion for summary judgment by defendant relative to similar claims. The VABCA denied defendant’s motion for summary judgment in a decision dated August 24, 1982. Plaintiff contends that this decision constitutes res judicata and operates to bar defendant’s attempt to bring in this court its motion for summary judgment directed at issues previously before VABCA.

[815]*815After considering the parties’ arguments concerning res judicata and the case law thereon, the court must reject plaintiff’s argument that this motion for summary judgment is barred by res judicata. Res judicata is designed to prevent repetitious suits involving the same cause of action. See Commissioner v. Sunnen, 333 U.S. 591, 597, 68 S.Ct. 715, 719, 92 L.Ed. 898 (1948). The United States Supreme Court added in Sunnen that res judicata “rests upon considerations of economy of judicial time and public policy favoring the establishment of certainty in legal relations.” Id. Most importantly, as far as this case is concerned the Supreme Court added:

The rule provides that when a court of competent jurisdiction has entered a final judgment on the merits

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Bluebook (online)
32 Cont. Cas. Fed. 73,105, 6 Cl. Ct. 811, 1984 U.S. Claims LEXIS 1243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contract-custom-drapery-service-inc-v-united-states-cc-1984.