DeMat Air, Inc. v. United States

30 Cont. Cas. Fed. 70,980, 2 Cl. Ct. 197, 1983 U.S. Claims LEXIS 1809
CourtUnited States Court of Claims
DecidedMarch 25, 1983
DocketNo. 143-83C
StatusPublished
Cited by31 cases

This text of 30 Cont. Cas. Fed. 70,980 (DeMat Air, 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
DeMat Air, Inc. v. United States, 30 Cont. Cas. Fed. 70,980, 2 Cl. Ct. 197, 1983 U.S. Claims LEXIS 1809 (cc 1983).

Opinion

OPINION

GIBSON, Judge:

This is a pre-award bid protest action which was commenced upon plaintiff’s filing its Complaint for Declaratory and In-junctive Relief and its Motion for Temporary Restraining Order (TRO) on March 14, 1983. An expedited hearing was held on the TRO on March 14, 1983. Based on the pleadings of the parties, and oral argument as a supplement thereto, the court found that the plaintiff made the requisite minimum showing and granted the TRO upon the defendant’s representation that it could not maintain the status quo pending a hearing (on March 21, 1983) on the prayer for a preliminary injunction. By order dated March 15, 1983, the court ordered that the trial on the merits be consolidated with that hearing pursuant to RUSCC 65(a)(2) and scheduled the same for March 21, 1983.

[198]*198Upon the consideration of the testimony of the witnesses and the documentary evidence received at the trial on March 21 and 22, 1983, the court finds that the contracting officer was arbitrary and unreasonable, thereby abusing his discretion, in that he improperly refused to consider plaintiff’s timely filed, unsigned proposal, submitted pursuant to the defendant’s Request for Proposals, as would have been consistent with the spirit and the tenor of applicable regulations. Therefore, the defendant is permanently enjoined as prayed for in plaintiff’s Complaint and as stated hereinafter.

FACTS

The basic facts in this case are uncomplicated, not in dispute, and can be briefly stated. The Defense Fuel Supply Center (DFSC)1 issued Solicitation No. DLA600-83-R-0002 (hereinafter R-0002) under the Defense Acquisition Regulations (DAR)2 for a procurement by negotiation, i.e., Requests for Proposals (RFPs) for the purchase of Into-Plane fuel and service for various military, civilian agency, and U.S, designated aircraft at various (70) airports throughout the United States and in Samoa. The Solicitation, Offer, and Award form initially set November 16, 1982, at 3 p.m., as the deadline for the submission of responsive offers. Plaintiff submitted a proposal, pursuant to the RFP, to supply the aviation fuel requirements at the Acadi-ana Regional Airport, New Iberia, Louisiana. The initial offer due date was extended from November 16, 1982, to November 23, 1982, by an Amendment of Solicitation/Modification of Contract No. 0001, dated November 1, 1982. The evidence is undisputed that plaintiff’s offer was timely filed under the original deadline.

The multi-page offer filed by plaintiff contains, on the face page, a block # 12 which was duly filled in as to the name of the persons authorized to sign the offer. However, block # 13, the signature block, was not filled in. In other words, plaintiff’s offer was not signed, although timely submitted. However, elsewhere in plaintiff’s offer, at page 8, paragraph B33 requests the names, title, and telephone numbers of persons authorized to conduct negotiations, and the following appears there:

“Philip J. Devine
President (318) 365-7334
Edward G. Matulat (318) 365-7334.”

For no apparent reason other than that the plaintiff’s offer was submitted unsigned, the contracting officer summarily rejected it and refused to give it any consideration whatsoever.

The original award date for the subject contract was scheduled for March 1, 1983; however, in view of the protest raised by plaintiff and this litigation, the contracting officer apparently has reset said award date for March 31, 1983, and performance thereunder is scheduled to commence April 1, 1983. The contracting officer has held negotiations with respect to other offers under the RFP at the Acadiana Regional Airport; however, plaintiff was not included inasmuch as its unsigned offer was deemed not to be an offer.

The testimony of Philip J. Devine, president and only witness for the plaintiff, may be summarized as follows. Mr. Devine stated that he resides in Iberia, Louisiana; that DeMat Air, Inc. began operations about a year ago at the Acadiana Regional Airport; that he and his non-participating partner have authority to bind DeMat; that they have just constructed a small hangar and an underground fuel facility, and for his initial year of operation his gross receipts approximated $100,000 with a resulting net [199]*199loss. He stated that 50% to 75% of his gross receipts is from a verbal contract with the military installation at the airport; that there are two other fuel companies that service the airport, however, his company can provide better service to the Government in that they are only three minutes away from the points of service to military aircraft whereas his competitors are approximately four miles away (one way).

With respect to the preparation and the mailing of DeMat’s unsigned offer to the DFSC, Mr. Devine testified that initially he was contacted by the commander of the military facility at the airport inquiring whether DeMat wished to be included on a vendors list to receive a proposal to bid on a fuel contract. He concurred, and shortly thereafter he received the proposal forms in the mail sometime in October 1982. He further testified that he prepared a pencil copy of his proposal with the assistance of his secretary; that he reviewed the completed pencil copy which was given to the typist for typing; that the typed final offer was placed on his desk in an envelope with other outgoing mail and his secretary, thinking that said offer had been signed, caused it to be mailed. When asked to explain why he did not sign, he stated: “It was an extreme oversight on my own behalf. I really can’t answer why it was not signed. I thought I had signed it.” (Tr. 17). He further testified that he intended DeMat to be bound by the terms of the unsigned proposal which he submitted; and that he always believed that he had signed his proposal and was simply waiting to hear from the DFSC with respect to his offer.

Mr. Devine testified that sometime in January he heard that one of the fuel facility operators at the airport was undergoing an inspection, which is a preliminary procedure prior to a possible award. About the same time, Mr. Devine heard a rumor that one of the proposals had been submitted unsigned. He stated, “It didn’t even ring a bell with me, ....” (Tr. 22). He fully believed that plaintiff’s offer had been signed. At that time he telephoned the DFSC inquiring with respect to his offer and he was advised by the contracting officer (Mr. Munns) that it was submitted unsigned. He stated that this was the first time he had heard that his submitted offer was not signed and Mr. Munns was that person who informed him. Mr. Devine also testified that prior to filing his offer with the DFSC he had a telephone conversation with Mr. Munns regarding the preparation of the proposal, when the contract could be expected to be awarded, and the requirements to qualify as a bidder (Tr. 21, 39); that he does not know the terms of any other offeror’s proposal; that his present verbal contract with the military at the airport will become part of the present proposal; and, if plaintiff is not successful, he will lose at least 75% of his present business.

Mr. E.J. Munns, the contracting officer for the DFSC, based in Alexandria, Virginia, testified as the only witness for the defendant. His testimony may be summarized as follows:

The Acadiana Airport was one of 70 locations included in Solicitation R-0002.

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Bluebook (online)
30 Cont. Cas. Fed. 70,980, 2 Cl. Ct. 197, 1983 U.S. Claims LEXIS 1809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demat-air-inc-v-united-states-cc-1983.