Data Transformation Corp. v. United States

34 Cont. Cas. Fed. 75,338, 13 Cl. Ct. 165, 1987 U.S. Claims LEXIS 153
CourtUnited States Court of Claims
DecidedAugust 19, 1987
DocketNo. 343-87C
StatusPublished
Cited by15 cases

This text of 34 Cont. Cas. Fed. 75,338 (Data Transformation 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
Data Transformation Corp. v. United States, 34 Cont. Cas. Fed. 75,338, 13 Cl. Ct. 165, 1987 U.S. Claims LEXIS 153 (cc 1987).

Opinion

MEMORANDUM OPINION

LYDON, Senior Judge:

Plaintiff has filed a complaint in this court seeking a preliminary and permanent injunction. Alternatively, plaintiff alleges a taking by the government of its property without the payment of just compensation as required by the Fifth Amendment to the Constitution of the United States.1 Plaintiff has, attendant to this complaint, filed a Motion For A Preliminary Injunction. In this motion plaintiff seeks a preliminary injunction restraining the Small Business Administration (SBA) and/or the Federal Aviation Administration (FAA) from making an award of a contract, identified as an Airport Weather And Information System (AWIS) procurement, to any supplier other than plaintiff. Defendant has responded by filing a Motion To Dismiss, or, in the alternative a Motion For Summary Judgment, as well as an opposition to plaintiff’s motion for injunctive relief. Reply briefs were thereafter filed by the parties. Upon consideration of the submissions of the parties and a hearing on the matter, the court concludes that plaintiff is not entitled to injunctive relief and that its complaint should be dismissed.

Facts

Plaintiff is a minority owned small business corporation, with its principal place of business in Silver Spring, Maryland. It is certified by SBA as a Section 8(a) firm. For a discussion of a section 8(a) firm see Harris Systems Intern., Inc. v. United States, 5 Cl.Ct. 253, 255-56 (1984).

In early 1986, the FAA was in the process of acquiring, through a competitive two-step solicitation, data communication terminals to comprise an AWIS. This procurement involved teleprinter Digital Data Communication terminals, including support and maintenance service. On April 3, 1986 a letter was sent by the New York District Office (NYDO) of the SBA to FAA requesting that the AWIS procurement be set aside for the section 8(a) program. This letter stated in pertinent part:

Pursuant to Section 8(a) of the Small Business Act (15 USC 637(a)), the Small Business Administration is requesting your assistance in the identification of requirements in support of the approved business plan of Apoca Industries. Specifically requested are requirements for Programmed Teleprinter Digital Data Communication Terminals including support and maintenance service.
* * * * * *
The Small Business Administration may provide ongoing management, technical, and financial support to assist this concern to perform any contract which we mutually agree to be within its capability.
* * * * * *
Your support of this concern and the 8(a) program is appreciated.

By letter dated May 22, 1986, the FAA advised SBA it was unable to honor its set-aside request for the AWIS procurement. The FAA stated that its Procurement Center Representative had investigated the feasibility of a set-aside for the section 8(a) program and met with negative results. The FAA May 22,1986 letter concluded as follows:

At this point, we regret that we are unable to honor your request to set this acquisition aside for the 8(a) program. However, we will be glad to provide Apo-ca Industries with a copy of the solicitation package so that they may submit a technical proposal under step one of this two step method. This would also allow the firm the opportunity to gain exposure to the Federal acquisition process from a competitive standpoint.
Thanks for your interest in FAA acquisitions. We will continue to support Small Business Administration programs in any way we can.

[168]*168On June 4,1986, SBA advised FAA of its intent to protest to the Secretary of the Department of Transportation the FAA decision not to set aside the AWIS procurement for the section 8(a) program and Apo-ca Industries (Apoca).

On July 25, 1986, SBA officials, together with Apoca personnel, met with FAA officials in Washington, D.C. concerning section 8(a) procurement of the AWIS and Apoca’s capabilities and how it would handle the AWIS job.

On August 14, 1986, SBA submitted to FAA a list of references for Apoca which had been requested at the July 25, 1986 meeting, and recommended that FAA personnel visit Apoca’s premises before making a final decision with regard to an AWIS set aside for the section 8(a) program. On September 4, 1986, FAA representatives visited Apoca’s plant and heard a detailed on-site presentation of how Apoca would handle the AWIS procurement, according to the specification.

By memorandum dated November 7, 1986, the Administrator, FAA was advised by FAA personnel working on the AWIS section 8(a) set aside as follows:

We have reviewed the technical evaluations of the contractors who are being considered for award of the AWIS contract under the 8(a) program. As you know, APOCA Industries has been instrumental in bringing the AWIS acquisition under consideration for an 8(a) award. Although the Small Business Administration (SBA) recommended APOCA for this work, your staff contacted additional 8(a) firms for a technical evaluation.
Based on our review of the technical evaluations, we believe that APOCA is technically capable of performing the work. In view of all the considerations involved in this selection, we believe that it would be appropriate to provide the technical evaluations to SBA and permit SBA to designate the firm for the award.

On December 9, 1986, the FAA, through its contracting officer advised SBA in pertinent part:

The Federal Aviation Administration (FAA) was in the process of acquiring, through competitive, two-step solicitation, data communications terminals to comprise an airport weather and information system (AWIS). Prior to releasing the solicitation, the FAA was requested by the Small Business Administration’s New York City District Office to set the requirement aside for award to Apoca Industries, Bohemia, NY, under the 8(a) program. The FAA agreed to allow Apoca Industries an opportunity to make a presentation of its technical capabilities to perform the requirement. The FAA then received a request from SBA’s Seattle, Washington District Office requesting that the requirement be set aside for award to G & M Enterprises, Tacoma, WA, under the 8(a) program. FAA agreed to allow G & M Enterprises an opportunity to make a presentation of its capabilities to perform the requirement.
While these firms were being allowed to make technical presentations, three more firms were also allowed to make presentations of their technical capabilities to perform the AWIS requirement. The FAA felt that by assessing the capabilities of these five firms, the FAA Program Office would have a good chance of selecting an 8(a) firm which would have a high potential for successful peiformance with minimal risk to the FAA. In descending order of acceptability, the firms that made technical presentations were:
Data Transformation Corporation, Silver Spring, Maryland
Henderson Industries, West Caldwell, New Jersey
Texas Mil-Tronics Corporation, San Antonio, Texas
Apoca Industries, Bohemia, New York G & M Enterprises, Tacoma, Washington

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Bluebook (online)
34 Cont. Cas. Fed. 75,338, 13 Cl. Ct. 165, 1987 U.S. Claims LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/data-transformation-corp-v-united-states-cc-1987.