Flightsafety International Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedAugust 29, 2016
Docket16-336
StatusUnpublished

This text of Flightsafety International Inc. v. United States (Flightsafety International 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
Flightsafety International Inc. v. United States, (uscfc 2016).

Opinion

In the United States Court of Federal Claims No. 16-336C (Filed: August 5, 2016) FILED UNDER SEAL REISSUED NOT FOR PUBLICATION AUGUST 29, 2016 1

************************************ * FLIGHTSAFETY INTERNATIONAL, * INC., * * Plaintiff, * * * v. * Post-Award Bid Protest * Motions for Summary Judgment on THE UNITED STATES, * the Administrative Record; * Honeywell v. United States, 870 F.2d 644 Defendant, * (Fed. Cir. 1989); Arbitrary, capricious, * abuse of discretion, or not in accordance and * with law. CAE USA, INC., * * Defendant-Intervenor * * *************************************

OPINION AND ORDER DAMICH, Senior Judge:

Plaintiff, FlightSafety International Inc. (“FSI”) brings this bid protest challenging a contract award made by the U.S. Department of Army (“the Army”) to CAE USA Inc. (“CAE”) under Solicitation No. 911S0-13-R-0009 (“the Solicitation”). The Solicitation sought Fixed Wing Flight Training, Flight Training Support, and Flight Training Service for aircrew personnel at Fort Rucker, Alabama. FSI challenges the award as arbitrary and capricious, or otherwise inconsistent with applicable law and seeks a permanent injunction of award performance. FSI further asks that the injunction require the Army to take corrective action to amend the

1 The original Opinion was filed under seal. The parties have advised as to the necessary redactions and those redactions have been made in this public opinion. Redacted sections appear with brackets as follows: “[. . .].” 1 Solicitation to inform the offerors as to the Army’s actual requirements and conduct a competition based on those requirements.

Before the Court are the parties’ Cross Motions for Judgment on the Administrative Record. Oral argument limited to certain issues was held on August 4, 2016. For the reasons set forth below, the Government’s and Intervenor’s Cross Motions for Judgment on the Administrative Record are granted, and FSI’s Motion for Judgment on the Administrative Record is denied. The Court further denies as moot Plaintiff’s Motion for Injunctive Relief

I. History

Previously, on June 3, 2015, the Army awarded the contract to CAE. In the previous case, FSI claimed that the Army erred in awarding the contract to CAE without holding discussions with the other bidders. Specifically, FSI argued that the Army unreasonably assigned two “Unacceptable” ratings to FSI’s proposal and without any regard to DFARS 215.306(c)(1), which was included in the Solicitation, requiring the contracting officers to hold discussions and perform a best value analysis. FSI also argued that ‘innovation’ was erroneously factored into the evaluation process. FlightSafety Int’l Inc. v. United States, CFC Dkt. No. 15-1010. The Court agreed with FSI and granted FSI’s motion for a preliminary injunction. See Order, Sept. 15, 2015, Docket No. 12.

The Army then took corrective action by conducting written discussions with CAE and FSI. During this time, it was necessary to extend the existing contract with FSI, as the incumbent contractor. The contract was extended by modification dated September 29, 2015, for a period of 12 months (“the bridge contract”). The modification indicated, in an item labeled “SAVINGS CLAUSE,” that, if FSI were to receive the new contract, the cost of the bridge contract would be reduced by $8,972,240.00, which is the sum of two cost items that would no longer be required in that event. In its bid, FSI did not reduce its pricing by this amount, but it did place in a footnote to the “OVERALL GRAND TOTAL” price a reminder of price reduction recited in the savings clause.

II. Facts

A. The Solicitation’s Terms

On October 20, 2014, the Army issued the Solicitation seeking aircraft training services to be provided at Fort Rucker. 2 The Solicitation required the awardee to provide “all personnel, supervision, as well as certain aircraft, flight simulators, and real property facilities in addition to supporting equipment and materials necessary.” Administrative Record (“AR”) 96. The Solicitation further provided that the awardee would train Army pilots to fly Beechcraft C-12U

2 The final Solicitation was amended seven times, with the final Amended Solicitation being issued on December 23, 2014. 2 and C-12V aircraft, AR 96-97, 111, and Air Force pilots would be trained on simulators to fly the Air Force C-12 C/D configuration, AR 550, 740.

The Solicitation specified that the award would be made based on the best value tradeoff. AR 203. To that end, the Solicitation described eight evaluation factors: (1) Facilities; (2) Quality Control; (3) Management; (4) Staffing, Recruitment, and Retention; (5) Aircraft and Simulators; (6) Past Performance; (7) Small Business Participation; and (8) Price. AR 204. Evaluation factors 1-3 were to be rated acceptable or unacceptable and would not be included in the trade-off consideration. AR 203. The evaluation factors 4-7, when combined, were to be weighed “approximately equal to price.” Id.

Notwithstanding the eight factors listed above, the Solicitation further advised offerors that:

[t]he Government is looking for innovative ideas in training methodology and innovation in the equipment for training. A proposal that has better training processes/procedures/simulators that ensures the best possible qualified pilots may be worth more to the government that than a proposal that just meets the minimum needs.

AR 202.

With regard to Price (Factor 8) the Solicitation read in pertinent part:

Price will not be scored or rated. Evaluation of price will be performed using one more of the price analysis techniques in FAR 15.404-1(b). Through these techniques the Government will determine whether prices are reasonable, complete and balanced. . . .

AR 210.

B. The Savings Clause in the Bridge Contract

The bridge contract that extended FSI’s training services for 12 months (to September 30, 2016) included the following item:

SAVINGS CLAUSE . . . In the event [FSI] is awarded the follow-on-7 year contract for the Flight Training Services, costs for FY 16 under this contract for additional ODC Asset Costs of $6,366,382 and the Employee Retention Incentive Plan of $2,605,858 would no longer be required.

Thus the negotiated price of Mod P00157 would be reduced by $8,972,240 ...

Compl. Ex. 3.

3 C. The Award

March 1, 2016, the Army again awarded CAE the flight training contract, the reasons being documented in a Source Selection Decision Document (“SSDD”). The Source Selection Authority (“SSA”) compared the strengths and weaknesses of each proposal as previously scored by the Source Selection Evaluation Board (“SSEB”) to determine the best value.

In sum, the SSA assigned the following number of strengths and weaknesses to CAE’s and FSI’s proposals as follows:

Factor 4 (Staffing, Factor 5 (Aircraft Factor 4 & 5 Offeror Recruitment, and and Simulations) (Technical Risk) Retention) Strengths 11 14 1 CAE Weaknesses 0 0 0 Strengths 3 4 2 FSI Weaknesses 1 1 2

Pl. MJAR at 7.

In his report, the SSA explained that CAE’s proposal took an innovative approach. AR 2597. He then assigned various strengths to CAE’s proposal. These included a new facility that would include classrooms, [. . .], and training spaces. AR 2585, 2587. Also included was that training and services would be housed at one location. AR 2585, 2588. In addition, CAE offered [. . .]. AR 2597. The SSA also assigned strengths based on the staff proposed, the use of specific subcontractors, and for the training offered by this staff. AR 2584, 2586. He also assigned strengths to CAE for its use of the G120TP aircraft.

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