Glenn Defense Marine (Asia), PTE Ltd. v. United States

720 F.3d 901, 2013 WL 3185536, 2013 U.S. App. LEXIS 12944
CourtCourt of Appeals for the Federal Circuit
DecidedJune 25, 2013
Docket2012-5125
StatusPublished
Cited by219 cases

This text of 720 F.3d 901 (Glenn Defense Marine (Asia), PTE Ltd. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Glenn Defense Marine (Asia), PTE Ltd. v. United States, 720 F.3d 901, 2013 WL 3185536, 2013 U.S. App. LEXIS 12944 (Fed. Cir. 2013).

Opinions

Opinion for the court filed by Circuit Judge WALLACH.

Dissenting opinion filed by Circuit Judge MOORE.

WALLACH, Circuit Judge.

Glenn Defense Marine (Asia), PTE Ltd. (“GDMA”) appeals from the order of the United States Court of Federal Claims granting the motions of the government and MLS-Multinational Logistic Services Ltd. (“MLS”) for judgment on the administrative record. Glenn Defense Marine (Asia), PTE Ltd. v. United States, 105 Fed.Cl. 541, 583 (Fed.Cl.2012).1 Because [904]*904GDMA failed to establish that the award of the contract to MLS was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law, we affirm the Court of Federal Claims.

BACKGROUND

The United States Navy, Naval Supply Systems Command, Fleet Logistics Center Yokosuka (“Navy”) solicited bids on November 3, 2009 for maritime husbanding support services to Navy ships visiting ports in four regions in the Western Pacific and Indian Ocean for separate negotiated procurements. Offerors were instructed to submit separate proposals for each region in which they sought a contract. The contract for each region would be “Firm-Fixed-Price Indefinite-Delivery, Indefinite-Quantity (IDIQ) type contract,” with a twelve-month base period and four one-year options. Solicitation No. N62649-09-R-0041 (“Solicitation'’). The Solicitation stated the Navy would award contracts to those proposals that would be “most advantageous to the Government.” Id. ¶ OP-1.1. The solicitation also stated that, “[t]he following factors, in order of importance, shall be used to evaluate acceptable offers: Technical Approach, Past Performance, and Price. The non-price factors, when combined, are significantly more important than price.” Id. ¶ OP-1.8. The Navy stated it “may accept other than the lowest priced proposal.” Id. ¶ OP-1.5.

Offerors were instructed to submit a Past Performance Matrix, Past Performance Reference Information Sheets, and other past performance information.2 In its Past Performance Matrix an offeror was required to list “all directly related or similar Government or commercial contracts or subcontracts currently being performed, or completed in the past three years which are similar in scope, magnitude!,] and complexity to that which is detailed in this Solicitation.” Solicitation ¶ 5.2. Offerors were also instructed to submit a Past Performance Reference Information Sheet identifying three to five individuals from the contracts listed in the Past Performance Matrix to provide references. The Technical Evaluation Board and the Past Performance Evaluation Team (“Evaluation Team”) evaluated the offers using an adjectival rating accompanied by a narrative to explain the basis for the adjectival rating selected: “Outstanding,” “Better,” “Satisfactory,” “Less than Satisfactory,” or “Neutral.” These reports would be provided to the Procuring Contracting Officer/Source Selection Authority who would compare the strengths and weaknesses and make a source selection decision. After all proposals were assigned a set of adjectival ratings, the Navy would engage in negotiations with the of-ferors. After these negotiations the Navy would determine which proposal provided the best value to the Navy by engaging in a trade-off process. The contract would [905]*905be awarded to the best value proposal.3

On August 12, 2010, GDMA and MLS submitted their proposals for the Region 1, South Asia, contract. The Evaluation Team received responses to reference questionnaires from four of GDMA’s references and from one contracting officer on a relevant contract. Each past performance questionnaire asked the reference to provide an overall rating of GDMA’s performance, a rating for various subfactors, and left space for the reference to provide additional comments. The Evaluation Team determined that one of GDMA’s reference contracts was highly relevant while the other three were moderately relevant. For the highly relevant contract, reviewers gave overall evaluations of “Better” or “Satisfactory.” The Husbanding Branch Chief for the highly relevant contract assessed GDMA’s overall performance as “Satisfactory.” However, he gave GDMA a “Less than Satisfactory” rating for several subfactors, including ease of communication, timely response to problems and ability to find effective solutions, and performance within negotiated price. J.A. 613. In the narrative comments the Husbanding Branch Chief noted that a number of pre-visit estimates were received late, government specialists routinely needed to request corrections, and email responses were routinely delayed. The review also noted two past performance letters sent to GDMA: one for not providing force protection barriers and the other for failing to provide a proposed pricing plan. A reviewer of one of the moderately relevant contracts indicated an overall evaluation of “Outstanding,” but noted that GDMA had received a past performance letter about their customer service not being responsive.

In its initial summary report, the Evaluation Team assigned GDMA an overall past performance rating of “Satisfactory.” J.A. 536. In its report it cautioned that although the references all gave GDMA overall ratings of “Satisfactory” or better, those rating were not substantiated with narrative comments, which instead provided more support for the “Less than Satisfactory” ratings assigned for several subfactors. The report referenced the negative comments identified in the reviewers’ narratives: non-responsiveness by customer service representatives, late or incomplete pre-port visit estimates, a negative past performance letter regarding force protection barriers, failure to provide a pricing plan, delinquent payments, and general non-responsiveness in communications.

On November 4, 2010, the Evaluation Team forwarded its assessments to the primary contracting officer who, that same day, forwarded a draft of the pre-negotiation Business Clearance Memorandum to a [906]*906member of the Contract Review Board (“Board”). The memorandum assigned GDMA an overall performance rating of “Satisfactory” but also reflected the concerns raised in the past performance questionnaires. Glenn Defense Marine, 105 Fed.Cl. at 551. A Board member raised concerns with the primary contracting officer over the “Satisfactory” rating which, in his opinion, “appear[ed] dubious at best.” Id. (internal quotation marks omitted). After discussing the matter with the Evaluation Team, the primary contracting officer responded that it was a borderline decision. Id. The Evaluation Team Chairman indicated to the other reviewers that, in light of the Board member’s concern about the “Satisfactory” rating, “[i]t may be easier for us to adjust the ratings downward based on the currently available negative” comments, rather than attempt to substantiate the “Satisfactory” rating. Id. (internal quotation marks omitted).

Thereafter two Evaluation Team members submitted revised ratings for GDMA, reporting an overall rating for GDMA’s past performance as “Less than Satisfactory.” Id. at 551-52. Their comments were similar to those in their initial reviews, adding that the information was highly relevant to the region and substantiated by specific and detailed comments, and that the “[l]ack of effective management of subcontractors’ performance and controlling contract cost had an overall effect on substandard business practices of which savings to the Government was [sic] not always maximized during port visits.”

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720 F.3d 901, 2013 WL 3185536, 2013 U.S. App. LEXIS 12944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glenn-defense-marine-asia-pte-ltd-v-united-states-cafc-2013.