DSD Laboratories, Inc. v. United States

46 Fed. Cl. 467, 2000 U.S. Claims LEXIS 65, 80 Empl. Prac. Dec. (CCH) 40,571, 2000 WL 419811
CourtUnited States Court of Federal Claims
DecidedApril 14, 2000
DocketNo. 00-177C
StatusPublished
Cited by11 cases

This text of 46 Fed. Cl. 467 (DSD Laboratories, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DSD Laboratories, Inc. v. United States, 46 Fed. Cl. 467, 2000 U.S. Claims LEXIS 65, 80 Empl. Prac. Dec. (CCH) 40,571, 2000 WL 419811 (uscfc 2000).

Opinion

OPINION

HORN, Judge.

FINDINGS OF FACT

The plaintiff, DSD Laboratories, Inc. (DSD), filed a complaint and request for a temporary restraining order and a motion for preliminary injunction with this court on April 3, 2000, protesting the decision of a United States Air Force contracting officer to exclude DSD from a procurement, based on an alleged organizational conflict of interest (OCI). In addition, the government alleges that the absence of the plaintiff on the General Services Administration (GSA) Federal Supply Schedule (FSS) selected for use in the procurement also makes the plaintiff ineligible to compete for the procurement. The court held an initial hearing on April 4, 2000, and directed the parties to simultaneously brief the pertinent issues identified, including the GSA Schedule issue, which was not raised in the complaint. The agency has [469]*469advised the court that it intends to make award in the procurement at issue on April 17, 2000. The parties provided their points and authorities on April 7, 2000, and their response briefs on April 10, 2000. The court held a hearing on the plaintiffs request for injunctive relief on April 11, 2000, and issued a bench decision as well as this decision on April 14,2000.

By way of background, the government awarded an earlier contract, known as a Contract Advisory and Assistance Services (CAAS) contract, to B3H Corporation in 1996 (the 1996 CAAS contract). Pursuant to the contract, B3H provided consultant services to the Air Combat Command at Langley Air Force Base, Virginia. The 1996 CAAS contract was an indefinite-delivery, indefinite-quantity (IDIQ) contract, with the agency issuing task orders as work was needed. The prime contractor, B3H, in turn, subcontracted work on the CAAS contract to the plaintiff, DSD.

In April 1999, the agency issued a task order (the 1999 task order) under the 1996 CAAS contract for “Establishment of Air Expeditionary Force (AEF) Central Sourcing Team” (the new scheduling organization). The 1999 task order, with a very similar follow-on year 2000 task order, provided for the development of

all aspects of planning, organizing and establishing the central sourcing team; planning, preparing and implementing AEF personnel sourcing, tasking and accountability guidance, requirements, and systems; ensuring these new procedures and requirements are in compliance with ongoing ACC [Air Combat Command] reengineering efforts; completing required analysis; development of an automated AEF schedule; and providing] follow on support.

B3H subcontracted work under the 1999 and year 2000 task orders to the plaintiff, DSD. The specific tasks under the 1999 task order included, among others, the following:

4.3 Design and Assist Central Sourcing Team Stand Up: Based on the central sourcing team’s mission, responsibilities, and processes, the contractor shall produce a written plan, which recommends what is required to organize, establish and man such an organization____ This plan shall include the agency mission statement, specific responsibilities, flow charts and descriptions of the processes necessary to efficiently execute this mission, as described in Para. 4.2, an organizational structure, the expertise (AFSCs [Air Force Specialty Codes] and grades) and manpower required, manpower data to justify new billets, and the automated systems necessary____Additionally, the contractor shall not only help design and organize this new agency, but shall also follow implementation through at least one full deployment cycle (15 months) and the cross-over to the second cycle in order to trouble shoot and fix process oversights,' errors or needed revisions.

The year 2000 task order called for, among other tasks, continuing “to refine the written stand up plan” described above.

In March 2000, the agency issued a solicitation (the year 2000 solicitation). The plaintiffs proposal has been excluded from that competition by the contracting officer. The contracting officer advises that she chose, as the advantageous manner of obtaining the required services, to use a General Services Administration Federal Supply Schedule contract. She selected Schedule 874, entitled “Management, Organization, and Business Improvement Services” as the appropriate schedule. The year 2000 solicitation is designed to obtain contract support for the subject of the task orders, the Expeditionary Combat Support Scheduling Team. As procedurally permitted, the contracting officer sent out three Requests for Quotations to prospective contractors, and did not include DSD in that group. The plaintiff advises that another contractor, Science Applications International Corporation (SAIC), asked if DSD was interested in teaming with SAIC for the year 2000 solicitation. Although DSD had not originally been sent a copy of the solicitation, as a result of the SAIC inquiry to it, the plaintiff requested a copy of the solicitation from the agency. The year 2000 solicitation was sent to DSD by e-mail on March 15, 2000 by someone other than the contracting officer. The agency advises that SAIC [470]*470inquired the next day, March 16, 2000, whether DSD and B3H were precluded from working on the year 2000 solicitation by virtue of an OCI stemming from the 1999 task order work.

On March 20, 2000, the agency informed DSD orally by telephone and by e-mail that it could not compete under the year 2000 solicitation because of a conflict of interest. DSD advises that, nevertheless, it submitted its proposal in response to the year 2000 solicitation the next day, on March 21, 2000. On March 30, 2000, DSD met with the agency contracting officer, and was informed that, in addition to the OCI problem, the procurement contemplated placing a task order with a General Services Administration (GSA) Federal Supply Schedule (FSS) contract, using Schedule 874, “Management, Organization, and Business Improvement Services” (MOBIS). The agency explains that GSA has separate contracts with various vendors, and lists those vendors on “schedules” for different goods and services. DSD, in fact, has a GSA contract which is listed on Schedule 70, for “General Purpose Commercial Information Technology Equipment, Software, and Services,” but does not have a contract under GSA Schedule 874. DSD, therefore, submitted its proposal in response to the year 2000 solicitation under Schedule 70. As noted above, the contracting officer advises she used GSA Schedule 874 for the year 2000 solicitation.

The prime contract, noted above, between the government and B3H — the 1996 CAAS contract — contained a reference to FAR 9.5, “Organizational Conflict of Interest,” and contained a series of clauses which laid out restrictions, including:

3.16.1 Concurrent/Future Contract Restrictions: In order that the Government may prevent conflicting roles which might bias the Contractor’s judgment or objectivity and afford an unfair competitive advantage to the Contractor, the parties to this contract agree that the Contractor, its parent company, subsidiaries, and affiliates, if any, shall be restricted in its’ concurrent or future contracting to the extent described herein. 3.16.1.1 The Contractor shall be required to perform studies that will directly impact future Government requirements. In support of these studies, the Contractor may have access to certain proprietary information and data. The Contractor is precluded from award of any contract or subcontract or from acting as a consultant to other contractors for those programs resulting form the recommendations of these studies.

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46 Fed. Cl. 467, 2000 U.S. Claims LEXIS 65, 80 Empl. Prac. Dec. (CCH) 40,571, 2000 WL 419811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dsd-laboratories-inc-v-united-states-uscfc-2000.