DYN Logistics Services, Inc. v. United States

32 Cont. Cas. Fed. 72,944, 6 Cl. Ct. 353, 1984 U.S. Claims LEXIS 1299
CourtUnited States Court of Claims
DecidedSeptember 26, 1984
DocketNo. 444-84C
StatusPublished
Cited by7 cases

This text of 32 Cont. Cas. Fed. 72,944 (DYN Logistics Services, 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
DYN Logistics Services, Inc. v. United States, 32 Cont. Cas. Fed. 72,944, 6 Cl. Ct. 353, 1984 U.S. Claims LEXIS 1299 (cc 1984).

Opinion

OPINION

REGINALD W. GIBSON, Judge:

Subject case is before the court on Inter-venor-Defendant’s (intervenor) Motion To Dismiss and To Impose Sanctions, against plaintiff, with prejudice.

This pre-award bid protest case was filed by plaintiff, DYN Logistics Services, Inc. (DLSI) on August 30,1984 and supplemented thereafter, infra, to temporarily, preliminarily, and permanently enjoin the Department of the Navy from awarding a contract other than on a multiple award basis. It also sought a declaratory judgment against the award of a single aggregate contract because the lowest overall cost to the government would be achieved by awarding multiple contracts..1 On September 5, 1984, plaintiff and defendant reached an agreement pursuant to which the award would be made on a multiple basis and plaintiff would move to dismiss with prejudice after the award of the contract on September 7, 1984. As a result of said agreement, the court issued an order vacating the previously scheduled September 7, 1984 trial date.

On September 10, 1984, Systems Engineering Associates Corp. (SEACOR), the lowest responsible/responsive bidder under the subject solicitation filed a Motion to Intervene,2 together with a panoply of motions for dismissal, sanctions, temporary, preliminary, and permanent injunctive relief and a declaratory judgment. Conversely, SEACOR sought an order restraining an award under the solicitation, infra, on a multiple contract basis. The motion to dismiss is premised on two grounds — first, the equitable doctrine of unclean hands, and second, RUSCC 41(b) for failure to comply with RUSCC 65(f)(2).

Jurisdiction in this court is premised on section 133(a)(3) of the Federal Courts Improvement Act of 1982, 28 U.S.C. § 1491(a)(3).

The issue presented by the subject motion to dismiss is whether DLSI and its counsel knowingly misrepresented to the court and the Navy, by its certification, that it gave notice, as required by RUSCC 65(f)(2), of its intended filing of a pre-award bid protest application to SEACOR, the apparent lowest aggregate bidder, or to SEA-COR’s duly appointed attorney.

Premised on the pleadings and other submissions of the parties, including but not limited to affidavits and depositions, and following oral argument, the court granted intervenor’s motion to dismiss with prejudice and allowed appropriate sanctions, infra.

[355]*355FACTS

Background:

On May 11, 1984, the Navy disseminated Solicitation No. N00600-84-B-3626 (solicitation) for support services under the Intra-Fleet Supply Support Operations Program (ISSOP) for the Atlantic region, which included Portsmouth, Virginia; Philadelphia, Pennsylvania; Charleston, South Carolina; and Jacksonville, Florida. Pursuant to the ISSOP program, the successful contractor provides a wide variety of material support services to Navy ships and shore activities. Such activities include but are not limited to material offload, onload, backload, identification, inventorying, location audit, and a host of other service activities. DLSI is the incumbent, under an aggregate award contract which expires on September 30, 1984, and, with its predecessor in interest, has performed same for the past 12 years.

The solicitation was an advertised procurement3 for an indefinite quantity service contract. Pursuant to such contract, the Navy orders all, a portion, or none of the estimated quantity for each line item in the solicitation. The basic contract year was 1985 (Lot I); in addition, there were two option years, 1986 (Lot II) and 1987 (Lot III). Within each of said lots there were the following service locations — Philadelphia, Portsmouth, Charleston, and Jacksonville.

The solicitation was issued to 90 firms and in response the Navy received three bids, all of which were deemed responsive by the agency. At bid opening, the three bidders ranked as follows:

Rank Bidder Amount
1 SEACOR $23,785,410
2 DLSI $24,942,038
3 MCI $32,701,815.

[Each aggregate bid, supra, embraces Lots I, II, and III, for all four locations.]

While SEACOR’s aggregate bid was the lowest, on a separate location basis it was the lowest only with respect to the Philadelphia and Portsmouth locations for all lots. On the other hand, DLSI’s bid, on a separate location basis was lowest with respect to the Charleston and Jacksonville locations by approximately $770,000. The following summarizes the foregoing results:

Location SEACOR’s Bid Lots I, II, III DLSI’s Bid Lots I, II, III
Portsmouth, VA $10,664,571 $12,420,014
Philadelphia, PA $ 4,720,926 $ 4,898,795
Charleston, SC $ 6,665,519 $ 6,112,959
Jacksonville, FL $ 1,724,393 $ 1,514,107

[The court notes that there are minor discrepancies between the totals of these two columns and the aggregate total amounts of SEACOR’s and DLSI’s bid, respectively.]

Split Award — Proposed-.

#1 Contract — SEACOR
Location All three lots
Philadelphia $ 4,720,926
Portsmouth 10,664,571
$15,385,497
#2 Contract — DLSI
Location All three lots
Charleston $ 6,112,959
Jacksonville 1,514,107
$ 7,627,066
Total Costs Per Split Award $23,012,563

Savings Calculation

SEACOR — Lowest aggregate
- bid $23,785,410
- Total — Split Award 23,012,563
- Cost Savings — Per Split Award $ 772,847.

Operative Facts:

Anticipating that the Navy would award a contract prior to August 31, 1984, respecting all lots under the solicitation to SEACOR, the lowest aggregate bidder, DLSI filed its complaint in this court for injunctive relief on August 30, 1984.4 In [356]*356its Application for a Temporary Restraining Order, filed on August 31, 1984, the following certification appears at pages 1 and 2, purporting to comply with the mandatory obligation in RUSCC 65(f)(2):5

Plaintiff certifies that its attorneys have given notice to the attorneys for Systems Engineering Associates Corporation, the apparent low aggregate bidder under the Solicitation, of the intended filing of this application. (Emphasis added.)

On September 5, 1984, the Contract Review Board (the Board) approved the contracting officer’s recommendation for a split award which would effect a $770,000 cost savings.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dubinsky v. United States
44 Fed. Cl. 509 (Federal Claims, 1999)
Miller-Holzwarth, Inc. v. United States
44 Fed. Cl. 156 (Federal Claims, 1999)
Blackwell v. United States
37 Cont. Cas. Fed. 76,164 (Court of Claims, 1991)
Lemelson v. United States
14 Cl. Ct. 318 (Court of Claims, 1988)
Thornton-Trump v. United States
12 Cl. Ct. 127 (Court of Claims, 1987)
NKF Engineering, Inc. v. United States
33 Cont. Cas. Fed. 74,264 (Court of Claims, 1986)
Drexel Heritage Furnishings, Inc. v. United States
32 Cont. Cas. Fed. 73,203 (Court of Claims, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
32 Cont. Cas. Fed. 72,944, 6 Cl. Ct. 353, 1984 U.S. Claims LEXIS 1299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyn-logistics-services-inc-v-united-states-cc-1984.