FAS Support Services, LLC v. United States

93 Fed. Cl. 687, 2010 WL 3038713
CourtUnited States Court of Federal Claims
DecidedAugust 4, 2010
DocketNo. 10-289 C
StatusPublished
Cited by13 cases

This text of 93 Fed. Cl. 687 (FAS Support Services, LLC 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
FAS Support Services, LLC v. United States, 93 Fed. Cl. 687, 2010 WL 3038713 (uscfc 2010).

Opinion

OPINION

MEROW, Senior Judge.

Plaintiff, FAS Support Services, LLC, commenced this procurement protest action, pursuant to 28 U.S.C. § 1491(a) and (b)(1), contesting the award of a United States Air Force contract for base operations and maintenance located in Turkey and Spain. The successful offeror for the contract intervened in this action. Defendant and the intervenor have filed motions to dismiss and all parties have filed motions for judgment on the administrative record of the procurement pursuant to RCFC 52.1. See Bannum, Inc. v. United States, 404 F.3d 1346, 1356 (Fed.Cir.2005). Oral argument on the pending motions was held on July 13, 2010.

FACTS

This procurement protest litigation was initiated by the Complaint for Injunctive and Declaratory Relief filed by FAS Support Services, LLC on May 13, 2010. The relevant portion of the procurement commenced with the Solicitation (No. FA 5613-08-R-5010), dated February 13, 2009, issued by a unit of the United States Air Force located in Kais-erslautern, Germany. (Administrative Record (“AR”) 000056.) The solicitation sought offers to perform base operation and maintenance services at six facilities located in Turkey and Spain — the Turkey/Spain Base Maintenance Contract (“TSBMC”). The estimated cost of the procurement approached $400,000,000. (AR 000403.) The procurement was designed to obtain operational efficiencies and savings by consolidating in one contract the functions then being performed under two separate contracts, the Turkey Base Maintenance Contract (“TBMC”) and the Spain Base Maintenance Contract (“SBMC”). (AR 00363.) The incumbent contractors were Vinnell Brown & Root, LLC (“VBR”) for the TBMC and Spain Agility First Support LLC (“AFS”) for the SBMC. (AR 000788, 001469.)

On May 22,2009, the extended closing date for offers, two offerors submitted proposals to the Air Force in response to the February 13, 2009 Solicitation. A proposal was submitted by VBR, the TBMC incumbent, comprised of a joint venture between Northrop Grumman Enterprise Management Services Corp. and Kellogg Brown & Root Services, Inc. (AR 000473.) AFS, the SBMC incumbent, also submitted a proposal. AFS was comprised of a joint venture between First Support Services, Inc. (“FSS”) and Taos Industries (“Taos”), a subsidiary of Agility Defense and Government Services (“Agility”). (AR 001789.) The proposal for the TSBMC was submitted by FAS Support Services, LLC (“FAS”), a Delaware limited liability company whose owners were First Support Services, Inc., a Texas corporation (51%) and Taos Industries, Inc., a Delaware corporation (49%). (AR 002681.) The proposal explained the arrangement stating, “Agility and First Support have previously teamed together as AFS JV on the Spain Base Maintenance Contract. For the TSBMC, we have organized differently with First Support as the managing partner and Taos-Agility as the minority JV partner, now named FAS.” (AR 001789.)

The proposals were evaluated by the Air Force Source Selection Evaluation Team (“SSET”) with the past performance portion of the proposals being evaluated by the Performance Confidence Assessment Group (“PCAG”). (AR 002574-75; 002592-93; 002607-13.) The contracting officer provided the Source Selection Authority (“SSA”) with the initial results of all evaluations on July 20, 2009. (AR 2065-2106.) It was determined that both VBR and FAS were in the competitive range and discussions were commenced with both offerors. (AR 002145-50.) Discussions were closed on September 30, 2009. (AR 002158.) On October 9, 2009, Final Proposal Revisions (“FPR”) were requested from the offerors, and each offeror was furnished its pre-FPR ratings. (AR 00046, 002168.) The ratings for the “Technical Acceptability” factors were “Acceptable” for both and both received “substantial confidence” as the rating for the “Past Performance” factor. The “Price” factor showed [690]*690VBR’s offer to be slightly below FAS’s offer. (AR 002168.)

In response to the Air Force request for FPRs, FAS reported no further changes to its proposal (AR 002062), but VBR changed several pages in its technical proposal comprising an employee severance approach. (AR 001238, 001342.) The Air Force had previously notified VBR that this approach was unacceptable. (AR 002597.) This change resulted in an “unacceptable” rating for VBR’s FPR under the Subfactor 1, Phase-In for Technical Acceptability. In its FPR, VBR also revised its pre-FPR pricing for all contract line items reducing the total offer price by approximately 5.9 percent. (AR 001239-59; 002599.)

The contracting officer presented a final decision briefing to the SSA on November 16, 2009. As FAS did not change its proposal the FPR ratings were unchanged — “Acceptable” for “Technical Acceptability” and “Substantial Confidence” for “Past Performance.” (AR 002245.) VBR’s ratings changed in that for “Technical Acceptability” the FPR was rated “Unacceptable” for “Subfactor 1-Phase-In” and “Acceptable” for “Subfactor 2-Teehnical Proposal.” VBR’s FPR received a “substantial confidence” for “Past Performance.” Based on these ratings the SSET recommended that the contract be awarded to FAS as the only technical acceptable offer- or (AR 002303) and preparation of the necessary documents to obtain a Source Selection Decision from SSA commenced. (AR 000047.)

On November 16, 2009, the Defense Logistics Agency (“DLA”), pursuant to Federal Acquisition Regulation (“FAR”) Subpart 9.4, suspended Agility Defense Government Services, Inc. and Taos Industries, Inc. from government contracting as affiliates of Public Warehousing Company (“PWC”), a company organized under the laws of Kuwait, which had been indicted on November 9, 2009, for criminal conspiracy, major procurement fraud and wire fraud by a federal grand jury in the United States District Court for the Northern District of Georgia. (AR 002627-28.)

The news that PWC, Agility and Taos were suspended from government contracting and placed on the FAR 9.404 Excluded Parties List System (“EPLS”) reached the Air Force Contracting Officer for the pending TSBMC procurement on the morning of November 17, 2009. (AR 000047.) The contracting officer became concerned that these suspensions might impact the award of the TSBMC because Taos held a 49 percent ownership interest in FAS. (Id.) This concern was particularly addressed to the FAR 9.104-9.105 responsibility determination the contracting officer would have to make in connection with a contract award. (Id.) On November 24, 2009, DLA contacted the TSBMC Contracting Officer with an inquiry as to the ownership and control of FAS. (AR 002682-84.) The TSBMC Contracting Officer responded to DLA on November 25, 2009, providing the following interpretation, which comprised an excerpt from a FAS response to a July 20, 2009 Air Force inquiry as to foreign ownership which occurred during discussions. (AR 002615, 002681.):

The offeror, FAS Support Services, LLC (FAS) is a Delaware limited liability company. FAS will be the prime contractor responsible for all performance under the Turkey Spain Base Maintenance Contract. The members (owners) are First Support Services, Inc. (a Texas corporation), the Managing Member and majority (51%) owner and Taos Industries, Inc. (a Delaware corporation), which owns the remaining 49% interest.

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Cite This Page — Counsel Stack

Bluebook (online)
93 Fed. Cl. 687, 2010 WL 3038713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fas-support-services-llc-v-united-states-uscfc-2010.