Halter Marine, Inc. v. United States

56 Fed. Cl. 144, 2003 U.S. Claims LEXIS 80, 2003 WL 1868997
CourtUnited States Court of Federal Claims
DecidedApril 7, 2003
DocketNo. 02-105C
StatusPublished
Cited by10 cases

This text of 56 Fed. Cl. 144 (Halter Marine, 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
Halter Marine, Inc. v. United States, 56 Fed. Cl. 144, 2003 U.S. Claims LEXIS 80, 2003 WL 1868997 (uscfc 2003).

Opinion

OPINION

HORN, Judge.

The plaintiff, Halter Marine, Inc. (Halter) filed a post-award bid protest complaint seeking to set aside the award of a contract by the United States Coast Guard (Coast Guard) to the defendant-intervenor, Mari-nette Marine Corporation (Marinette), for a multi-mission Great Lakes Ice Breaker (GLIB). The solicitation for the contract sought the procurement of a multi-purpose vessel that could perform heavy ice breaking missions in the Great Lakes region, service short-range navigational aids, conduct search and rescue missions, provide marine environmental response, and enforce the laws and treaties of the United States in the region.

The plaintiff filed its complaint requesting the court to enjoin the performance of the contract, set aside the award of the contract to Marinette, and direct the award of the contract to Halter. The plaintiffs complaint alleges that the Coast Guard improperly evaluated Marinette’s bid, including the Coast Guard’s' failure to follow the solicitation requirements in the evaluation of the bids, and the Coast Guard’s improper use of price as the determinative factor in awarding the contract to Marinette. The plaintiff alleges that as a result of the action by the Coast Guard, the award of the contract to Marinette was arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law.

The defendant and defendant-intervenor filed motions for summary judgment on the administrative record. The defendant claims that the Coast Guard’s evaluation and procedures for the award of the GLIB contract “complied with the law in every respect” and that Halter cannot show by “clear and convincing evidence” that it is entitled to permanent injunctive relief. Marinette alleges that, in addition to Halter’s failure to establish the elements for injunctive relief, the Coast Guard “conducted a reasonable and rational evaluation” of the proposals. Moreover, defendant-intervenor argues that the Coast Guard’s award of the contract was reviewed and validated by the General Accounting Office, for which reason judgment should be entered against Halter on all counts of its complaint.

FINDINGS OF FACT

Among the responsibilities of the United States Coast Guard is the duty to assist in “keeping open to navigation by means of ice-[147]*147breaking operations” the “high seas and waters subject to the jurisdiction of the United States” for the continued, reasonable requirements of maritime commerce. Exec. Order No. 7521, 1 Fed.Reg. 2527 (Dec. 21, 1936); 14 U.S.C. § 2 (2000). In furtherance of this mandate, the Coast Guard is authorized, in conjunction with the Department of Defense, Department of the Navy, and the Commerce Department, to procure the necessary vessels for the ice-breaking operations. Exec. Order No. 7521, 1 Fed.Reg. 2527. The United States Coast Guard Cutter Mackinaw (USCGC Mackinaw), entering approximately its fifty-eighth year of commissioned service in December 2002, currently provides heavy ice-breaking services on the Great Lakes.

The USCGC Mackinaw is a large, single purpose ice-breaking cutter, restricted to the Great Lakes region by the intolerance of the cutter to salt water. The Coast Guard determined in December 2000, that the aging USCGC Mackinaw was “labor intensive to operate and [had] become a significant maintenance liability due to older, less reliable systems.” The Coast Guard also found that the USCGC Mackinaw experienced excessive maintenance as a result of the cutter’s age and obsolescence and, as consequence, operating costs had increased and reliability had been reduced. According to the Coast Guards findings, “[i]f the MACKINAW is not replaced, unacceptable degradation to heavy icebreaking mission in the Great Lakes will occur.”

The Solicitation

Based on these findings and the scheduled decommission of the USCGC Mackinaw in Fiscal Year 2006, the Commandant of the Coast Guard issued solicitation number DTCG23-01-R-AGL001 on November 21, 2000,2 to “design, build, outfit, deliver, and provide prescribed levels of follow-on support for a multi-purpose Great Lakes Ice Breaker.” The solicitation included a liquidated damages clause that provided that the contractor would be liable in place of actual damages, if performance was not completed within the timeframe specified in the contract, in the amount of $9000.00 per calendar day of delay. In the event the contractor delayed delivery beyond June 30, 2006, an additional $15,000.00 per day would be added to the amount of liquidated damages to cover the direct costs of keeping the USCGC Mackinaw in commission.

The government anticipated the award of a fixed price contract to the responsible offeror whose proposal represented the best value after evaluation in accordance with the factors and subfaetors in the solicitation. In order to be eligible for award, the offeror’s proposal had to comply in all material respects with the requirements of “law, regulation, and the terms and conditions set forth in the solicitation.” The solicitation directed that the Source Selection Authority evaluate the proposals on the following: 1) Technical/Management; 2) Past Performance; and 3) Price. The solicitation specified that “Technical/Management and Past Performance, when combined are more important than Price. Technical/Management is more important than Past Performance. Technical/Management is more important than price.” The solicitation further elaborated on the criteria for the determination of the three factors the Source Selection Authority would use to determine the ultimate awardee of the contract.

The solicitation specified that four evaluation factors would be considered, all of equal importance, in evaluating the Technical/Management proposal. The four factors consisted of the following: 1) Program Management; 2) Design and Construction; 3) Integrated Logistics Support; and 4) Technical Expertise. The solicitation detailed [148]*148the entena that would be used in rating the four evaluation factors for the Technical/Management proposal.

For the Past Performance evaluation, the solicitation stated that “[t]he past performance evaluation will be based on the Offer- or’s Past Performance Questionnaire and information obtained from previous or current customers of the Offeror.” The government, however, reserved the right to verify information from other sources. The Past Performance proposal was designed to provide the government with the demonstrated experience and the capability of the offeror to complete the GLIB. The Past Performance evaluation was based on four factors: 1) Overall Customer Satisfaction, 2) Quality of Product, 3) Timeliness of Performance, and 4) Cost Control.

The solicitation required the Price proposal to provide a breakdown of the proposed price for each contract line item as provided for in the solicitation. The Price proposal, however, was not scored or rated, but was to be “evaluated for compliance with solicitation requirements for completeness, cost realism, price reasonableness and Total Evaluated Price.”

The solicitation for the GLIB also included a list of attachments to the solicitation, as provided in part three, section J of the solicitation. The first attachment listed in part three, section J was the contract’s Performance Specifications.

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Cite This Page — Counsel Stack

Bluebook (online)
56 Fed. Cl. 144, 2003 U.S. Claims LEXIS 80, 2003 WL 1868997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halter-marine-inc-v-united-states-uscfc-2003.