Fire-Trol Holdings, LLC v. United States

68 Fed. Cl. 281, 2005 U.S. Claims LEXIS 285, 2005 WL 2451993
United States Court of Federal Claims·Decided October 4, 2005·No. Nos. 05-205C, 05-20501C·Published·Cited by 3 cases

Opinion

OPINION and ORDER

SMITH, Senior Judge.

Fire-Trol Holdings, LLC (“Fire-Trol”), one of two domestic manufacturers of wild-land fire retardant, protests the award by the United States Department of Agriculture, Forest Service (“Forest Service”) to Astaris, LLC (“Astaris”) of contracts to “furnish, store, mix and load long-term fire retardant into airtankers.” AR 308. Fire-Trol submitted two bids in response to Invitation for Bid No. 49-05-02. (“IFB”) The first bid (“Bid No. 1”) was deemed non-responsive because it bid fire retardants not on the Qualified Products List (“QPL”) as required by the solicitation. Fire-Trol’s second bid (“Bid No. 2”) was first rejected as being an alternate bid, and then subsequently for being non-responsive to the invitation requirements. Fire-Trol alleges that both bids were responsive and that the Forest Service decision was arbitrary, capricious, or otherwise not in accordance with law.

Once again, the Court is faced with somewhat sympathetic facts presented by this Plaintiff. The Court did not find the testimony of the contracting officer, Ms. Colleen Hightower, to be convincing. It was at times confusing and contradictory as to her reasons for finding Fire-Trol’s bid non-responsive. However, Plaintiff cannot prevail on this protest. While the Court is impressed with the creative bid provided by Fire-Trol, the Court finds that the bid was too creative and thus too difficult to allow Ms. Hightower, to determine a firm, fixed bid price. The purpose of soliciting firm, fixed price bids is so that the contracting officer is not left with ambiguous data upon which to decide what is the best deal for the government. The goal of government procurement law is to keep the system honest so that government officials can either make rational decisions or so that administrators and judges, when necessary, can deal with irrational ones. Because the formula provided by Fire-Trol was too complicated, Ms. Hightower was unable to determine a fixed, firm price, even though Plaintiff believes otherwise. Plaintiff insists its formula requires numbers that are easily ascertainable by the contracting officer, but the Court is not so persuaded. Throughout this litigation, freight price has routinely been addressed as a fluctuating cost by both Defendant and Intervenor Astaris. Plaintiff has not provided this Court with a definitive cost of freight at any time. If the Court cannot determine the price after the contract award, then it would seem that the contracting officer would also have difficulty in obtaining the price and therefore her decision to reject the bid was not arbitrary and capricious.

The IFB clearly indicated that a firm, fixed price was necessary for a bid to be considered. After careful review of the pleadings, the administrative record, the testimony of Ms. Hightower, and oral argument the Court finds that Bid No. 1 did not satisfy the IFB requirement of bidding a product found on the QPL,2 and that Bid No. 2 did not contain a firm, fixed price. Therefore, the Court hereby GRANTS Defendant’s and Intervenor’s motions for summary judgment upon the administrative record.

Procedural History

In February of 2005, Plaintiff Fire-Trol filed a pre-award bid protest arising from the Forest Service’s decision to amend its requirements for fire retardants used in the fighting of wildland fires. This Court found that the Forest Service acted within its discretion in deciding not to purchase fire retardant containing a particular chemical (YP Soda) and to purchase fire retardant containing a gum thickener. Fire-Trol Holdings, LLC, v. United States, 66 Fed.Cl. 36 (2005) (Fire-Trol I).

[283]*283Subsequently, in May of 2005, Fire-Trol amended its complaint as a post-award bid protest challenging the Forest Service’s decision to reject its bids as non-responsive. Fire-Trol asks the Court to set aside the Forest Service’s decision that its bids are non-responsive, to set aside the decision that Astaris’s bid is proper, and to hold that Astaris is not a responsible bidder. Second Amended Compl. 41.

Defendant and Intervenor filed motions for summary judgment or in the alternative motions for summary judgment upon the administrative record and Plaintiff responded. On July 21, 2005 the Court conducted a hearing in which the Contracting Officer, Ms. Colleen Hightower, testified. Thereafter, the Court invited the parties to submit supplemental briefs based on Ms. Hightower’s testimony and the Court heard oral argument on September 19, 2005. The Court issued its oral ruling on September 26, 2005. This opinion explains that ruling in more detail.

Factual Background

The Forest Service purchases a wide variety of fire retardant products to help in fighting wildland fires on public lands, national forests, and grasslands in the United States. Second Amended Compl. 5. To purchase these products, the Forest Service issued IFB No. 49-05-02, on January 28, 2005, seeking bids for the supplies and services to “furnish, store, mix and load long-term fire retardant into airtankers” at eight airtanker bases within the United States. AR 308. The government would award a one-year requirements contract with a one year option. AR 317, 341. On March 15, 2005, Fire-Trol submitted two bids in response to the IFB. In Bid No. 1, Fire-Trol based its pricing on its own products. In Bid No. 2, Fire-Trol based the pricing on Astaris products. AR 6011-350. In addition, Bid No. 2 contained two “caveats” or alternative methods of providing the retardant. Id.

On May 5, 2005, the Forest Service rejected both Fire-Trol bids as non-responsive. AR 6006. In its rejection letter, the contracting officer, Ms. Hightower, explained that Fire-Trol’s Bid No. 1 was rejected because the products were not offered products on the QPL and that Bid No. 2 was rejected as an impermissible alternate bid.3 Id. Five days later, on May 10, 2005, Ms. Hightower drafted a memorandum memorializing a meeting she had regarding the bid made by Fire-Trol’s sole competitor, Astaris. Ms. Hightower was concerned because the price bid by Astaris seemed high and posed a “possible hardship to some bases.” Id. However, she concluded that the prices were “within the acceptable range for previous years of operation and considered reasonable” and the bid was ultimately awarded to Astaris. Id.

On May 11, in response to a letter from Fire-Trol to the Forest Service, Ms. High-tower drafted a second letter to Fire-Trol. In this draft letter, Ms. Hightower corrected the previously cited FAR sections and also clarified her original reasoning for rejection of Bid No. 2. AR 6007. With regard to Bid No. 2, she now reasoned that the bid imposed conditions modifying the requirements of the invitation. She held firm, however, that Fire-Trol’s bids were still non-responsive to the IFB. This letter was never sent to FireTrol. Ms. Hightower testified that the letter was forwarded to the legal department for approval, and that approval was never given. Hightower Testimony p. 24.

Discussion

Jurisdiction and Standard of Review

This Court has jurisdiction over post-award bid protests pursuant to the Tucker Act, 28 U.S.C. § 1491, as amended by the Administrative Dispute Resolution Act of 1996 (ADRA), Pub.L. No. 104-320, § 12, 110 Stat. 3870, 3874.

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Fire-Trol Holdings, LLC v. United States, 68 Fed. Cl. 281, 2005 U.S. Claims LEXIS 285, 2005 WL 2451993 (uscfc 2005).

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