Cubic Applications, Inc. v. United States

41 Cont. Cas. Fed. 77,075, 37 Fed. Cl. 345, 1997 U.S. Claims LEXIS 65, 1997 WL 76781
United States Court of Federal Claims·Decided February 25, 1997·No. No. 97-29C·Published·Cited by 69 cases

Opinion

OPINION

BRUGGINK, Judge.

This bid protest case is presently before the court on the parties’ cross-motions for summary judgment on all counts of the complaint. Oral argument on Count I was heard on February 3, 1997. Oral argument on Counts II, III, and IV was heard on February 14, 1997. For the reasons set forth herein, plaintiffs motion for summaiy judgment is denied and the Government’s motion for summary judgment is granted.

Background

On April 24, 1996, the United States Department of the Army (“Army”) formally issued Solicitation DAJA22-95-R-0083. The solicitation sought bids from contractors to “conduct computer driven battle simulation exercises”- for the Battle Simulation Centers of the 7th Army Training Command, located in the Army’s European Command. The “Scope of Work” clause in the solicitation provides that the work is to include:

operation of simulation facilities; framing of exercise controllers and observer controllers; input and maintenance of exercise data; continuous computer system coverage during configuration of hardware software simulation exercises; conducting command post exercises for contingency operations using simulation models in an [348]*348analytical environment; participation in and conducting after action reviews of exercises ...; and, exploitation of new developments in simulation technology.

Plaintiff, Cubic Applications, Inc. (“Cubic”), and intervenor, Logicon RDA (“Logicon”), are the only two firms that bid on the contract. The resulting contract is a follow-on contract for these same battle simulation exercise services, which have been continuously performed since 1990 under two previous contracts.1 The contract itself is to be a requirements contract with cost-plus-award-fee task orders for one year, with options for three additional years. The Army’s acquisition plan states that the total expected cost over the four year period will approach $82.3 million.

The Army set forth the procedures it would follow for procuring the needed services in the Source Selection Plan (SSP). The SSP provided that a Source Selection Authority (SSA) would approve the release of the solicitation and would make the final award decision by utilizing “all evaluation reports, summaries, scores and analyses to determine the offeror whose proposal offers the best value to the Government.” The SSA was to be advised by the Source Selection Advisory Council (SSAC) which, in turn, was to review the analyses of the Source Selection Evaluation Board (SSEB) and the Cost Realism Report prepared by the Contracting Officer (CO). The SSEB was charged with evaluating the technical and management factors, while the CO, with assistance from the Financial Services Office (FSO) and the Defense Contracting Audit Agency (DCAA), was to evaluate the offer- or’s cost proposals. In addition, the CO was to prepare an analysis of the past performance factor based on questionnaires sent to other agencies for whom the bidder had performed similar contracts.

Under the terms of the solicitation, offers are to be evaluated on the basis of four factors and their respective subfactors:

1) Technical Factors:
(a) Staffing
(b) Operational Organization
(c) Qualifications and Training of Proposed Personnel
(d) Simulation Knowledge and Experience
(e) Quality Control Plan
2) Management Factors:
(a) Contract Management
(b) Mobilization Plan
(e) Contract Experience
(d) Personnel Management
(e) Demobilization Plan
3) Past Performance Factors:
(a) Quality of Services
(b) Cost Control
(c) Timeliness of Performance
(d) Customer Satisfaction
4) Cost Factors

The solicitation further provided that the “technical [factor] is more important than management which, in turn, is more important than past performance. Technical, management and past performance together are significantly more important than cost.” “Significantly more important” is defined by the solicitation as being at least twice as important. Thus, cost was not a primary determinate. Indeed, Logicon’s costs, after “normalization by the FSO,” were estimated to be approximately * * million more than those of Cubic. However, Logicon scored higher than Cubic in all technical and management subfactors (except for contract experience, on which both offerors received perfect scores), and each offeror received an equal score on the past performance factor.

Following the competitive bid process, on September 16, 1996, the Army awarded Contract DAJA22-96-D-0069 to Logicon.2 Cubic, the incumbent contractor, then filed a protest before the General Accounting Office (GAO) pursuant to 31 U.S.C. § 3551-3556 (1994). As a result of the GAO protest, [349]*349Cubic’s contract, which was set to expire in October 1996, was extended to a new expiration date of February 28, 1997. On January 2, 1997, the GAO issued its decision denying Cubic’s protest. At that point, Logicon began the start-up and transition phase of its contract with the Army. However, on January 15, 1997, Cubic filed its present protest action in this court. The court held a hearing on January 16, 1997, to consider Cubic’s application for a temporary restraining order, which was denied. See Order of January 17, 1997. The court agreed to hear the cross-motions for summary judgment under an expedited schedule in view of the Government’s interest in maintaining uninterrupted access to training services for soldiers in Europe, and because of the approaching expiration of Cubic’s current contract on February 28,1997.

Discussion

An unsuccessful bidder on a federal procurement contract may challenge the contracting agency’s actions in the United States Court of Federal Claims. See 28 U.S.C. § 1491(b) (1994), as amended by Administrative Dispute Resolution Act of 1996, Pub.L. No. 104-320, 110 Stat. 3870, 3874-74 (1996). Prior to this recent amendment, post-award bid protest actions were only reviewable by the federal district courts under the standards set forth in the Administrative Procedure Act (APA), 5 U.S.C. §§ 701-706 (1994). Under the amended version of the statute, this court must also apply the standards set out by the APA in reviewing the agency’s award decision. See Cubic Applications, Inc. v. United States, 37 Fed.Cl. 339 (1997).

In Count I of its complaint, Cubic complains of a defect in the solicitation and the resulting contract that was not brought to the attention of either the agency or the GAO.

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Cubic Applications, Inc. v. United States, 41 Cont. Cas. Fed. 77,075, 37 Fed. Cl. 345, 1997 U.S. Claims LEXIS 65, 1997 WL 76781 (uscfc 1997).

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