Dynalectron Corp. v. United States

31 Cont. Cas. Fed. 72,150, 4 Cl. Ct. 424, 1984 U.S. Claims LEXIS 1487
United States Court of Claims·Decided February 16, 1984·No. No. 635-82C·Published·Cited by 38 cases

Opinion

OPINION

MAYER, Judge.

Plaintiff Dynalectron Corporation is an unsuccessful bidder for a government contract. It claims entitlement to its bid preparation costs because the procurement was tainted by the bias of a procurement official and by the appearance of impropriety. Defendant says plaintiff has not established its proposal was not fairly and honestly considered or that the award of the contract resulted from wrongful government actions. The case is before the court on plaintiff’s motion for partial summary judgment and defendant’s cross motion.

FACTS

On August 13, 1979, the Federal Railroad Administration (FRA) issued a request for proposals (RFP) to operate and maintain the FRA Transportation Test Center in Pueblo, Colorado, which stated that the offeror whose technical/cost relationship was most advantageous to the government would receive the contract. The same day, an employee of plaintiff, the incumbent contractor, was told by the FRA Manager for Safety, Quality Assurance, and Emergency Services (Manager) that he “would help Kentron [a competitor] in obtaining the upcoming contract away from Dynalectron” and “do everything in his power to help Dynalectron lose.” * The FRA, however, received no proposal from Kentron. The only proposals for this competitive negotiated procurement were from Boeing Services International, Inc. (Boeing), Lockheed Corporation (Lockheed), Federal Electric Corporation (FEECO), and plaintiff. All four were reviewed by a technical evaluation team (TET) appointed by the FRA.

The scores assigned to each proposal by the TET were forwarded to a source evaluation board (SEB) which determined that all four proposals were within the competitive range. Negotiations were held with all of the offerors and, in May of 1980, each submitted a final cost and technical proposal for review by cost and technical evaluation teams. One member of the original TET, who became seriously ill, was replaced with the Manager because he was the only [427] person available with the necessary expertise.

The cost and technical evaluation teams each submitted a report to the SEB. The cost evaluation team ranked plaintiffs cost plus fixed fee proposal next to last because its adjusted cost was exceeded only by Lockheed’s. The TET scores showed Lockheed first, Boeing second, plaintiff third, and FEECO last. The point spread between Lockheed and Boeing was 9; the difference between Boeing and plaintiff was less than 4 points. When the Manager’s scores are removed, the difference between Boeing’s and Dynalectron’s score is only .48 of a point, but the relative ranking of the offerors remains the same. If the scores of either of two other members are removed, the ranking also remains the same. Removal of the score of the remaining evaluator, however, would make plaintiff last.

The reports submitted by the cost and technical teams did not purport to recommend who should receive the award, but were used by the SEB in making its determination. The SEB, no members of which had been members of the TET, performed its own analysis of the proposals and prepared its own technical summary charts based on “significant discriminators” used only by the SEB. It found that the final offers of Lockheed and Boeing were of significantly higher technical quality than those of plaintiff and FEECO. While Lockheed’s final weighted technical score exceeded Boeing’s by nine points, the SEB determined that the proposals were technically equal. Detailed charts comparing the costs of each proposal were also prepared and its final report was sent to the source selection official (SSO) who made the decision to award Boeing the contract.

Plaintiff filed a protest with the General Accounting Office (GAO) and a motion for a preliminary injunction in the United States District Court for the District of Columbia, alleging a series of deficiencies in the procurement process and challenging both the cost and technical evaluations. In September of 1980, the district court denied plaintiff’s motion for a preliminary injunction and stayed the proceedings pending the GAO ruling. Ten months later, the Comptroller General denied plaintiffs protest in its entirety. Comp.Gen.Dec. B-199741 (July 31, 1981), 81-2 C.P.D. ¶70. Shortly thereafter, defendant moved for summary judgment in the district court, relying largely on the GAO decision.

In its March 1982 memorandum and order on the motion for summary judgment, the district court agreed with the Comptroller General and defendant on all but one of the contentions. Dynalectron Corp. v. U.S. Department of Transportation, No. 80-2088, slip op. at 9 (D.D.C. Mar. 19, 1982). Contrary to plaintiff’s allegations of arbitrary and capricious actions by procurement officials, the court found no denial of meaningful pre-award discussions guaranteed by regulations covering competitive negotiations; the procurement officials did not materially deviate from criteria and rating methodology discussed in the RFP; the procurement officials’ actions in the technical point scoring area, cost evaluation and weighing, and cost realism analysis were rational; and plaintiff’s procedural claims had no merit. Id. at 5-6. Because of the dispute over whether the Manager had expressed bias toward plaintiff, however, the court deferred ruling on the motion for summary judgment and permitted plaintiff to conduct discovery on that issue.

Plaintiff conducted substantial discovery, but in September of 1982 defendant advised the court that the request for injunctive relief was moot because FRA was terminating the disputed contract with Boeing. On plaintiff’s motion, the court then transferred the case to the United States Claims Court pursuant to 28 U.S.C. § 1631, and denied all pending motions as moot. In this court, plaintiff raises substantially the same issues as were before the district court, but also seeks bid preparation costs.

DISCUSSION

Plaintiff argues that it is entitled to recover its bid preparation costs because the Manager who served as a member of the [428] TET violated a departmental regulation governing employee behavior. 49 C.F.R. § 99.735-7(a) and (b).** It asserts that “regulations, like statutes, have the force and effect of law and violation thereof justifies recovery.” This, however, misconstrues the authority of the court.

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Dynalectron Corp. v. United States, 31 Cont. Cas. Fed. 72,150, 4 Cl. Ct. 424, 1984 U.S. Claims LEXIS 1487 (cc 1984).

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