Greenland Contractors I/S v. United States

131 Fed. Cl. 216, 2017 U.S. Claims LEXIS 298, 2017 WL 1365125
CourtUnited States Court of Federal Claims
DecidedApril 4, 2017
Docket15-272C
StatusPublished
Cited by14 cases

This text of 131 Fed. Cl. 216 (Greenland Contractors I/S 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
Greenland Contractors I/S v. United States, 131 Fed. Cl. 216, 2017 U.S. Claims LEXIS 298, 2017 WL 1365125 (uscfc 2017).

Opinion

Post-award bid protest; issues previously reserved by the court and not addressed by the Federal Circuit on appeal from the court’s earlier judgment

OPINION AND ORDER 1

LETTOW, Judge.

This post-award bid protest arises from a solicitation by the United States Air Force (“Air Force” or “government”) for the operation, maintenance, and support of Thule Air Base, an Air Force Base located in northwestern Greenland. On October 31, 2Ó14, the Air Force notified Exelis Services A/S (“Ex-elis Services”) that it was receiving the contract award based upon the Air Force’s determination that Exelis Services offered the lowest-priced, technically acceptable proposal. The other three competing offerors, Per Aarsleff A/S (“Per Aarsleff’), Copenhagen Arctic A/S (“Copenhagen Arctic”), and Greenland Contractors I/S (“Greenland Contractors”), the incumbent contractor, each filed protests in this court to challenge the contract award. After consolidating the three protests, the court granted the protesters’ motions for judgment on the administrative record and set aside the Air Force’s award, finding that Exelis Services was ineligible to receive a contract award under the terms of the solicitation. See generally Per Aarsleff A/S v. United States, 121 Fed.Cl. 603 (2015) (“Per Aarsleff I”), rev’d, 829 F.3d 1303 (Fed. Cir. 2016) (“Per Aarsleff IF). 2 The Federal Circuit then reversed the court’s judgment, holding that Exelis Services was eligible for and lawfully received the contract award. Per Aarsleff II, 829 F.3d at 1316.

In accord with the mandate from the court of appeals, the court vacated its prior judgment and dismissed all three protesters’ claims. Subsequently, Greenland Contractors filed a motion for reconsideration and to amend the judgment, noting that the court had expressly reserved ruling on two of Greenland Contractors’ protest grounds in its prior disposition, and that these issues had not been addressed by the Federal Circuit. The' court granted the motion, vacated the dismissal of Greenland Contractors’ claims, ajid severed Greenland Contractors’ case from the consolidated cases. 3 The parties were given the opportunity to submit supplemental briefs and responses, and Greenland Contractors, Exelis Services, and the government have done so. As a consequence, pending before the court are the two remaining claims that Greenland Contractors raised in its previous motion for judgment on *220 the administrative record and restated in its supplemental brief, ie., that (1) the Air Force engaged in misleading discussions regarding Greenland Contractors’ proposed pricing, and (2) the Air Force did not follow the terms of the RFP by failing to evaluate whether the other offerors justified them significantly lower pricing.

For the reasons stated, Greenland Contractors’ motion for judgment on the administrative record with respect to its two remaining claims is denied, and 'the government’s and Exelis Services’ cross-motions are granted.

BACKGROUND AND FACTS 4

A. Thule Air Base

Thule Air Base is located in a remote area of northwestern Greenland. Per Aarsleff I, 121 Fed.Cl. at 607. This location provides “strategic military advantages in the Arctic region” for the Air Force. Id. at 607. The Arctic environment, however, also provides “profound logistical challenges ... in supplying fuel, materials[,] and non-perishable items to individuals working and living on Thule Air Base.” Id. at 608. The base was initially proposed during World War II, initiated in 1946-1961, and reconstructed in 1951-53 upon the adoption by the United States and the Kingdom of Denmark of the 1951 Defense of Greenland Agreement. Id. Greenland is primarily a self-governing entity of the Kingdom of Denmark, but the Danish government controls Greenland’s foreign policy and defense. Id. “Since the inception of Thule Air Base, the United States and Danish governments have engaged in negotiations regarding contractual opportunities to support the base.” Id. In June 1962, an Aide Memoire prepared by the United States Department of State (“State Department”) explicated certain provisions of the 1951 Agreement, particularly with regard to “Danish participation in work in United States defense projects in Greenland.” Id. at 609 (quoting AR 20zf-1465). Then in 1991, the two countries adopted a Memorandum of Understanding, later amended in 2008 and 2009, which emphasized procurement of goods and services from Danish or Greenlandic sources if feasible:

In accordance with their respective laws and regulations, either [pjarty may award contracts to commercial enterprises for goods and services, including construction projects, in Greenland, and shall procure directly from Danish/Greenlandic sources. When procurement from such sources is not feasible, U.S. requirements may be satisfied by procurement from U.S. or other sources. Either [pjarty may use its own military or civilian personnel to perform services or construction projects.

Id.

B. The Thule Air Base Procurement

1. The solicitation.

In 2013, the Air Force and the State Department entered into discussions with the Danish Ministry of Finance regarding eligibility criteria for a solicitation for a contract to support Thule Air Base, and the parties ultimately reached an agreement in December 2013. See Per Aarsleff I, 121 Fed.Cl. at 609-11. 5 On March 28, 2014, the Air Force *221 issued its Request for Proposals (“RFP”), solicitation number No. FA2523-12-R-0006, “to obtain operation, support, and maintenance services at Thule Air Base.” Id. at 613. “The RFP sought a hybrid firm-fixed-priee contract, comprising eeonomic-priee-adjustment and cosh-reimbursable contract line items to be awarded on a low-price, technically acceptable (‘LPTA’) basis.” Id. 6 The RFP’s technical evaluation included seven sub-factors, with an unacceptable rating for any single sub-factor resulting in a rating of technically unacceptable. Id. Additionally, the RFP required that an offeror’s price be “reasonable, affordable[,] and balanced.” Id. Section M of the RFP also “advised [offerors] to clearly show justification for unique practices that significantly lower pricing.” Id

2. The evaluations and award.

Four offerors submitted proposals in response to the Thule Air Base solicitation: Exelis Services, Per Aarsleff, Copenhagen Arctic, and Greenland Contractors, the incumbent and current contractor for the base. Per Aarsleff 7, 121 Fed.Cl. at 615.

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131 Fed. Cl. 216, 2017 U.S. Claims LEXIS 298, 2017 WL 1365125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenland-contractors-is-v-united-states-uscfc-2017.