Guam Industrial Services, Inc. v. United States

122 Fed. Cl. 546, 2015 U.S. Claims LEXIS 986, 2015 WL 4607572
United States Court of Federal Claims·Decided August 3, 2015·No. 15-588 C·Published·Cited by 3 cases

Opinion

Administrative Procedures Act (“APA”), 5 U.S.C. § 706; Bid Protest, 28 U.S.C. § 1491; Competition In Contracting Act (“CICA”), 31 U.S.C. § 3551(2)(A); Federal Acquisition Regulations (“FAR”), 1.102 (Guiding Principles), 1.102-2 (Performance Standards), 1.602-2 (Responsibilities), 3.101-1 (Safeguards); Federal Acquisition Streamlining Act (“FASA”), 41 U.S.C. § 4106(f)(1); Preliminary Injunction, RCFC 65(a)(1).

MEMORANDUM OPINION AND FINAL ORDER

SUSAN G. BRADEN, Judge.

I. RELEVANT FACTUAL BACKGROUND. 2

On June 29, 2012, the Military Sealift Command (“MSC” or “Government”) awarded Guam Industrial Services, Inc. d/b/a Guam Shipyard (“Guam Shipyard”) an Indefinite Delivery Indefinite Quantity (“IDIQ”) multiple award contract- (“MAC”) to provide “ship repair services on MSC vessels in Guam ... including,] but ... not limited to: pipefitting, welding, machinists, electrical work, boiler making and repairing, and diesel mechanics, etc.” AR 7.

On May 17, 2013, MSC awarded Cabras Marine Corp. (“Cabras”) an IDIQ contract to “perform major ship repair availabilities that, owing to operational and mission requirements, are restricted to performance under [its] contract.” AR 39, 53. 3

*549 On March 23, 2015, MSC issued a Request For Quotes (“RFQ”) to Guam Shipyard and Cabras, containing thirty-one work items for maintenance and repair work on the USS Frank Cable from June 1-30, 2015. AR 111— 16. Over the subsequent weeks, MSC accepted Requests For Clarifications (“RFCs”) and issued Questions and Answers (“Q & As”) in response. AR 316-20, 330, 391-92, 522-23, 540-41, 596-679. During that same time, MSC issued nine amendments to the RFQ. AR 312-523, 536-63, 571-89.

On April 6, 2015, Joe Cruz, President of Cabras, emailed Peter DeSimone, a supervisory mechanical engineer for the special mission ship program, to inquire why the RFQ was being competed instead of negotiated directly with Cabras. AR 1306. On April 7, 2015, Neil Lichtenstein, Director of the N75 Life Cycle Engineering Division, emailed Mr. DeSimone that he “d[id]n’t think there is much that we can do about this upcoming award [of the RFQ].... [He was] worried it would draw too much attention to cancel the current solicitation and issue the work as a delivery order to Cabras.” AR 1305. That same day, Michael Jensen, a port engineer, emailed Mr. DeSimone and Mr. Lichtenstein to list potential dangers of eliminating competition: “they will get complacent, greedy, not finish Availabilities] on time and we end up with another [Guam Shipyard] by a different name.” AR 1303. On April 8, 2015, Mr. Lichtenstein replied that it was “[t]oo late ... for the upcoming” RFQ, but that similar future contracts “should be planned for award under the Single Source Ship Repair contract with Cabras.” AR 1302.

On April 14, 2015, Stephen Hughes, a MSC contracting officer (“CO”), replied that MSC “should be using [Cabras’s IDIQ contract] for all long duration and/or complex work packages.” AR 1296.

On April 16, 2015, Guam Shipyard and Cabras both submitted initial quotes in response to the March 23, 2015 RFQ. AR 680-737.

On April 23, 2015, Christina Martinez, a contract specialist administering the RFQ, emailed Mr. Hughes that she believed the work was miscategorized as a VRA, and that it would take more than thirty days to complete the work. AR 775. She suggested either cancelling the solicitation or reducing the work. AR 775. On April 24, 2015, Mr. Lichtenstein replied that, if MSC “believe[d] that the present solicitation under the GSR IDIQ can be cancelled at this stage and awarded under the single source ship repair IDIQ without jeopardy of delaying the performance period or causing a contract protest situation, then we have no issues with following that course of action.” AR 789.

On April 27, 2015, Ms. Martinez stated that MSC “will be doing more harm than good in cancelling this solicitation and starting over with a different strategy!;] therefore^] we will be proceeding with making award [in accordance with] the current solicitation.” AR 840.

On April 28,2015, MSC opened discussions with Guam Shipyard and Cabras. AR 848-55.

On May 1, 2015, MSC issued a tenth amendment to the RFQ, closed discussions, and requested final quote revisions. ■ AR 904-14.

On May 3, 2015, MSC reviewed Guam Shipyard’s and Cabras’s records in the Federal Awardee Performance and Integrity Information System and System for Award Management. AR 931-34. On May 4, 2015, Ms. Martinez prepared a draft IDIQ/Re-quirements Delivery/Task Order Award Documentation Record that found “[b]oth quotes” to be “technically acceptable.” AR 941. Ms. Martinez recommended that Guam Shipyard be awarded the delivery order for $[REDACTED]. AR 940.

On May 19, 2015, Henry Bijak, another CO, signed the Award Documentation Record recommending Guam Shipyard for the award. AR 948. That same day, Mr. Bijak submitted the Contract Review Board (“CRB”) Summary Sheet. AR 949.

*550 The CRB was scheduled for May 20, 2015. AR 949. Prior to the CRB, the RFQ was cancelled. AR 949 (handwritten note stating that “[t]he CRB was cancelled and N10 directed this ‘VR’ be cancelled and reissued as an MTA to CABRAS [in accordance with] with the current contract language for the [Ship Repair Facility] contract”).

On May 20, 2015, Michelle Siebeking-Knox, another contracting officer, wrote a memorandum justifying the cancellation. AR 1009-10. That same day, MSC notified Guam Shipyard and Cabras that the RFQ had been cancelled. AR 1011. Also on May 20, 2015, MSC issued a delivery order to Cabras under its IDIQ contract that involved the same thirty-one work items as the can-celled RFQ. AR 115-16, 1020-24. “Shortly after” the cancellation, Guam Shipyard learned that. Cabras had been awarded the work. Compl. ¶ 21.

On June 1, 2015, Cabras began work on the USS Frank Cable. AR 1022.

On June 2, 2015, Ms. Martinez confirmed via telephone that MSC awarded the task order to Cabras. AR 1222.

On June 4, 2015, MSC sent Guam Shipyard a letter justifying its cancellation of the RFQ. AR 1282-83.

II. PROCEDURAL HISTORY.

On June 10, 2015, Guam Shipyard (“Plaintiff’) filed a Complaint (“Compl.”) in the United States Court of Federal Claims. That same day, Plaintiff filed a Motion For Preliminary Injunction And Permanent Injunction, and the court convened a telephonic status conference.

On June 11, 2015, the Government filed a Notice stating that it “will voluntarily stop work on the USS Frank Cable delivery order until the next conference with the [c]ourt, currently scheduled for Wednesday, June 17, 2015, excepting any work necessary to ensure the safety of the crew or vessel.” Dkt. No. 8, at 1.

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Guam Industrial Services, Inc. v. United States, 122 Fed. Cl. 546, 2015 U.S. Claims LEXIS 986, 2015 WL 4607572 (uscfc 2015).

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