H & S Manufacturing, Inc. v. United States

66 Fed. Cl. 301, 2005 U.S. Claims LEXIS 210, 2005 WL 1705494
CourtUnited States Court of Federal Claims
DecidedJuly 18, 2005
DocketNo. 01-381C
StatusPublished
Cited by8 cases

This text of 66 Fed. Cl. 301 (H & S Manufacturing, 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
H & S Manufacturing, Inc. v. United States, 66 Fed. Cl. 301, 2005 U.S. Claims LEXIS 210, 2005 WL 1705494 (uscfc 2005).

Opinion

OPINION

CHRISTINE O.C. MILLER, Judge.

This case is before the court subsequent to trial after the Government terminated a contract for failure to deliver timely Aircrewman Survival vests used by downed flyers from helicopters and fixed-wing aircraft in survival and rescue situations. Plaintiff contractor claims the Government provided deficient specifications that caused it to incur additional expense and delay; conducted arbitrary and capricious inspections of the product; and, as a result, improperly terminated the contract. Trial revealed that despite its exhaustive demonstrations and discussion regarding the fabrication of the equipment, plaintiff could not demonstrate any inappropriate government action.

FACTS

1. The solicitation and contract

The Defense Logistics Agency, Defense Supply Center, Philadelphia (“DSCP”) issued Solicitation SP0100-97-R-2001 (the “Solicitation”) on February 24, 1997. The subsequent contract called for the production of 10,968 Type I Aircrewman Survival vests (the “Airsave vest” or the “vest”), 2,834 Type [302]*302II1 Airsave vests, 1,022 knife pockets, 1,022 radio pockets, 2,595 general pockets, a total of 3,951 heed pockets, and 233 pistol pockets, which were to be used by the United States Navy (the “Navy”) and the United States Army (the “Army”). On May 21, 1998, H & S Manufacturing, Inc. (“plaintiff’), was awarded Contract No. SP0100-98-C-6001 in the amount of $1,813,648.70. Plaintiff manufactures textile products for the Government and was engaged in manufacturing projects prior to the contract at issue.

The Solicitation was specific to a number of issues pertinent to this matter. First, it emphasized the required submission of a Product Demonstration Model (the “PDM”) with each offeror’s bid. Page four of the Solicitation recited that the PDM was “to demonstrate the offeror’s ability to translate from the specification to an actual end item____The PDM is considered to be the most important factor because it will demonstrate the offeror’s capability to produce the end item free of defects and in conformance with the specification.” In order to judge offerors’ submissions based on this standard, the Solicitation limited offerors to one submission of a PDM, with no acceptance of subsequent submissions to correct deficiencies.

The Solicitation contained a Technical Data Package (“TDP”), which consisted of, “among other items, specifications, purchase descriptions, patterns and drawings.” Once it received the contract, plaintiff was required to submit a “first article”2 at the beginning of the production process. Of significance was DSCP’s disclaimer of responsibility for any faults in the TDP after plaintiff had completed the first article. Plaintiff was responsible for reviewing the entire TDP and alerting DSCP to any deficiencies or changes that needed to be addressed. This review was to “include identification and recommended changes to correct deficiencies which may adversely affect production, fabrication or assembly of the contract items, in the quantities specified, in accordance with all of the technical data.” Although any changes made as a result of this review would be at “no cost” to plaintiff, section 52.210-9P06 of the Solicitation informed plaintiff that once it produced the first article it “warranted] that it is responsible for any deficiencies it fails to uncover during production of the first article and in its detailed review and analysis of the [TDP].” John E. Holland, now employed as a manager at JHRD LLC, was president of plaintiff and testified that this clause informed plaintiff of its “responsibility to review the technical package, and give DSCP technical information that needed to be changed, if any, before presenting the first articles.” Transcript of Proceedings, H & S Mfg., Inc. v. United States, No. 01-381C, at 54 (Fed.Cl. May 26, 2005) (“Tr.”). Mr. Holland strictly defined this responsibility, however, and distinguished it from the functionality of the vests: “We looked at our responsibility to ... be able to manufacture the item as [DSCP] had put together, not to make the item function.” Tr. at 55. Plaintiffs responsibility thus was to identify production problems.

Prior to plaintiffs submission of the first article, plaintiff communicated with DSCP on a variety of issues. It was apparent that plaintiff did nothing short of conduct a letter-writing campaign 3 to DSCP during the time surrounding the submission of the first article. While plaintiff elaborated on numerous issues at trial, only those pertinent to the resolution of the present matter will be discussed in detail. Plaintiff had many concerns in preparation of the first article, including the flame retardant requirement for the nylon webbing on the vests; the heed pockets and the hose pocket patterns; the [303]*303color of the vests; the harness type on the Type I vests; the’velcro placement on the heed pockets; the placement of the bartack on the heed pockets; the cut length of the general and radio pockets; the cut angles on the pistol pocket; and the use of a plastic heed gauge, as opposed to a wooden gauge, to check pocket dimensions.

After plaintiff submitted the first article for inspection in early March 1999,4 it was quickly rejected on March 9, 1999, in a report provided by DSCP (the “First Article Report”). The First Article Report listed visual and dimensional defects for the products in the first article. These defects were classified as “critical,” “major,” or “minor.”5 The First Article Report noted thirty-six visual defects (including nine critical and nineteen major defects) and eleven dimensional defects. One of the primary defects that became problematic throughout the production process was evidenced by notations for defects in Type I vests: “Operation not properly performed, W-stitching ... don’t extend to end of webbing,” and “[ojperation not properly performed, W-stitehing points, not evenly aligned[.]”6 The latter defect speaks to the requirement that demands the spacing between the “Ws” be equally aligned. DSCP categorized these as major defects.

Mr. Holland responded with a March 15, 1999 memorandum addressing the defects in the First Article Report of March 9, 1999. Specifically, he argued that thirty of the conditions cited by DSCP were not defects. Regarding the WW-stitching, listed at Item 14 in his memorandum, he noted that the defect marked as “unequal spacing” was not a defect because “[tjhere is no plus or minus tolerance for typical dimensions and there is no defect listed for ‘not evenly aligned.’ ” This lack of tolerance remained an issue throughout production, as both Mr. Holland and Major Edward Langwinski, currently an instructor with the Army Logistics Management College and formerly the Contracting Officer at DSCP during the time pertinent to this matter, indicated at trial that no such tolerance existed or could be recalled.

Mr. Holland followed this memorandum with a March 16,1999 letter to Albert Gatica, also a Contracting Officer at DSCP, in which he addressed further the problems listed in the First Article Report and in his previous memorandum. Mr. Holland then wrote a March 17, 1999 letter concerning the template location of components during the manufacturing process. In a March 26, 1999 letter, Mr. Gatica denied a request by Mr.

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66 Fed. Cl. 301, 2005 U.S. Claims LEXIS 210, 2005 WL 1705494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-s-manufacturing-inc-v-united-states-uscfc-2005.