Durable Metals Products, Inc. v. United States

38 Cont. Cas. Fed. 76,471, 27 Fed. Cl. 472, 1993 U.S. Claims LEXIS 276, 1993 WL 12391
CourtUnited States Court of Federal Claims
DecidedJanuary 26, 1993
DocketNo. 687-89C
StatusPublished
Cited by13 cases

This text of 38 Cont. Cas. Fed. 76,471 (Durable Metals Products, 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
Durable Metals Products, Inc. v. United States, 38 Cont. Cas. Fed. 76,471, 27 Fed. Cl. 472, 1993 U.S. Claims LEXIS 276, 1993 WL 12391 (uscfc 1993).

Opinion

OPINION

ROBINSON, Judge:

This matter is before the court on defendant’s motion to dismiss, or in the alternative, for summary judgment. Defendant moves the court to dismiss this action, pursuant to RCFC 12(b)(1) and 12(b)(4), on the grounds that this court lacks subject matter jurisdiction and that plaintiff fails to state a claim upon which relief can be granted. Alternatively, pursuant to RCFC 56, defendant moves this court for summary judgment on the ground that there is no genuine issue as to any material fact and that defendant is entitled to judgment as a matter of law. Plaintiff seeks a contract award, bid preparation costs, attor[474]*474ney’s fees, and litigation costs. Plaintiff alleges entitlement to such relief based on the Government’s failure to fairly and honestly consider plaintiff’s bids for two separate government contracts.

Factual Background

Plaintiff has been a small business government contractor for nearly thirty years. Through early 1987, the business successfully completed numerous government contracts. Plaintiff alleges that circumstances changed in April of 1987 when Dennis Kraft was assigned by defendant to plaintiff as plaintiff’s Quality Assurance Representative (QAR). During the period between April 1987 and January 1988, plaintiff charges, Mr. Kraft embarked on a course of action “to degrade, delay, disrupt, and destroy plaintiff’s business.” Plaintiff contends that this course of action ultimately led to it being placed on two lists of deficient contractors: the Contractor Alert List and Contractor Improvement Program. As a result, plaintiff became ineligible for awards of government contracts involving more than $25,000.00, unless it first passed a pre-award survey. Between the spring of 1987 and the end of 1989, plaintiff failed to attain the award of a government contract involving more than $25,000.00. Plaintiff’s allegations relating to Mr. Kraft’s conduct, as well as that of his immediate superiors, are the basis of Durable Metals Products. v. United States, No. 427-89C.1 The instant action, however, arises out of plaintiff’s charges that defendant failed to fairly and honestly consider plaintiff’s bids on two separate government contracts in 1989.

On September 15, 1989, the United States Army Tank Automotive Command (TACOM) issued Request for Quotation No. DAAE07-89-Q-Y282 (hereinafter “solicitation Y282”) to procure fifty-two hub and spindle assemblies. Plaintiff submitted the lowest responsive quotation to TACOM’s request.

Shortly after submission of its quotation, plaintiff received a letter from the United States Small Business Administration (SBA) notifying it that the procuring contracting officer determined that plaintiff was non-responsible and, therefore, proposed to reject plaintiff’s bid. Plaintiff responded to the notice by applying for a Certificate of Competency (COC). On December, 7, 1989, the SBA informed plaintiff that it had declined to issue plaintiff a COC for solicitation Y282, because plaintiff failed to “demonstrate satisfactory past and present production performance sufficient to give [the] agency a reasonable assurance that the requirements of the solicitation [could] be met.”

On or about December 3, 1989, plaintiff received another solicitation from TACOM: No. DAAE07-89-B-L374 (hereinafter “solicitation L374”) for 583 center bearing drive shafts. Before submitting a bid, however, plaintiff filed the instant action on December 20, 1989, seeking an order of this court to: (1) enjoin defendant from awarding a contract under either solicitation Y282 or L374; (2) award damages against defendant for its improper finding that plaintiff was non-responsible and for refusing to issue a COC; (3) award plaintiff contracts under solicitations Y282 and L374, or, in the alternative, award plaintiff its bid preparation costs relating to solicitation Y282; and (4) award plaintiff reasonable attorney’s fees and costs. This court issued an order, filed December 22, 1989, enjoining the Government from proceeding with any contract award under either of the solicitations. This court suggested that the parties consider participating in a preaward survey of plaintiff’s establishment. The parties entered an agreement allowing for a survey to be conducted in February 1990, shortly after plaintiff submitted the lowest responsive bid to solicitation L374. Consistent with the prior findings by the contracting officer and the SBA, the survey concluded that plaintiff was non-responsible for solicitation Y282, “based upon the proximity in time of the proposed delivery schedule of plaintiff’s suppliers and the date delivery was required in the solicitation.” The survey concluded further, how[475]*475ever, that plaintiff was a responsible bidder for solicitation L374.

On March 12, 1990, prior to an award of a contract under solicitation Y282, defendant cancelled the solicitation on the ground that such action was “in the best interest of the Government.” This action was taken pursuant to Federal Acquisition Regulations (FAR) 14.404-l(c)(3): “[t]he supplies being contracted for are no longer required.” Id.

Subsequently, plaintiff notified TACOM that it declined to extend the bid acceptance period for solicitation L374, and that it was withdrawing its bid. TACOM later informed plaintiff by written correspondence that solicitation L374 was cancelled “in the best interest of the Government and no award [would] be made.” This action, like TACOM’s action with respect to solicitation Y282, was taken pursuant to FAR 14.404-1(c)(3).

On January 16, 1992, defendant filed its motion to dismiss, or in the alternative, for summary judgment. This court heard oral arguments relating to the motion on January 15, 1993.

DISCUSSION

Defendant moves to dismiss this action on the grounds that this court lacks subject matter jurisdiction and that plaintiff fails to state any claim upon which relief can be granted. Alternatively, defendant moves for summary judgment, arguing that there is no genuine issue as to any material fact and that it is entitled to judgment as a matter of law.

Defendant first contends that, pursuant to RCFC 12(b)(1), this court lacks subject matter jurisdiction to entertain plaintiffs claim for equitable relief — injunctive and declaratory relief — for defendant’s alleged breach of an implied contractual obligation to consider fairly and honestly plaintiff’s bid submitted in response to solicitation L374. Citing RCFC 12(b)(4), defendant contends further that each of plaintiff’s last three claims fails to state a cause of action upon which relief can be granted; that is:

1. That plaintiff fails to state a cause of action upon which equitable relief can be granted for defendant’s alleged breach of its implied contractual obligations with respect to solicitation Y282;

2. That plaintiff fails to state a cause of action upon which bid preparation costs can be awarded for defendant’s failure to consider fairly and honestly plaintiff’s bid submitted in response to solicitation Y282; and

3. That plaintiff fails to state a cause of action upon which an award of attorney’s fees and costs can be granted pursuant to the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412 (1992).

Defendant moves for the dismissal of the complaint under RCFC 12, or, alternatively, for summary judgment under RCFC 56.

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Bluebook (online)
38 Cont. Cas. Fed. 76,471, 27 Fed. Cl. 472, 1993 U.S. Claims LEXIS 276, 1993 WL 12391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durable-metals-products-inc-v-united-states-uscfc-1993.