Harris Data Communications, Inc. v. United States

30 Cont. Cas. Fed. 70,994, 2 Cl. Ct. 229, 1983 U.S. Claims LEXIS 1792
CourtUnited States Court of Claims
DecidedApril 6, 1983
DocketNo. 83-83C
StatusPublished
Cited by25 cases

This text of 30 Cont. Cas. Fed. 70,994 (Harris Data Communications, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris Data Communications, Inc. v. United States, 30 Cont. Cas. Fed. 70,994, 2 Cl. Ct. 229, 1983 U.S. Claims LEXIS 1792 (cc 1983).

Opinion

OPINION

NETTESHEIM, Judge.

Plaintiff Harris Data Communications, Inc. (“Harris”), filed its motion for a preliminary injunction on February 18, 1983, accompanied by a complaint for a declaratory judgment that the Automatic Data Processing Selection Office (“ADPSO”) of the United States Department of the Navy violated applicable federal procurement regulations by determining that Harris’ proposal in response to Request for Proposal No. 66032-82-R-0011 (the “RFP”) was unacceptable and by excluding it from further competition. Harris alleged that ADSPO wrongfully failed both to advise Harris of certain deficiencies in its proposal and to allow Harris to revise its proposal before making its determination. A declaratory judgment also was sought that, in excluding Harris’ proposal, the contracting officer departed from the evaluation plan under the RFP and exceeded his discretion. In addition, Harris requested declaratory relief reinstating its proposal for the award of the contract under the RFP and requiring consideration of its proposal under the terms of the RFP, as well as a preliminary injunction restraining the ADPSO from taking any further action with respect to award of the contract, including consideration of other proposals, pending Harris’ reinstatement.

By telephone conference status call with the court held on February 24, 1983, the parties agreed that defendant would file its opposition on March 8, Harris would reply on March 15, and a hearing would be held on March 23. Defendant moved on March 8 for summary judgment, coupled with its opposition to the request for injunctive relief. On March 9 the court entered its order scheduling the hearing for March 23, 1983, and advising that, after the court had an opportunity to review Harris’ response to the summary judgment motion, the par[230]*230ties would be alerted if an evidentiary hearing were required. The hearing on the preliminary injunction was consolidated with trial on the merits on March 17. To complete the record on summary judgment, Harris on March 22, 1983, cross-moved for summary judgment in its favor.

Trial was conducted on March 23, 1983. Each side proffered two witnesses, and eleven exhibits were admitted into evidence, including the original Harris proposal which on March 24 was ordered to be maintained under seal by the Clerk of the Court.

At the conclusion of the March 23 proceedings, Harris was permitted to file a closing brief on March 28 addressing any additional issues developed at trial. When defendant resisted additional briefing, the court invited defendant to rest on the record, but noted that its brief would be accepted if filed by March 31. Both parties submitted timely post-trial briefs. Closing argument was heard on April 1, 1983.

FACTS

The events preceding exclusion of Harris’ proposal from further consideration for award under the RFP are not controverted. However, the justification for excluding the proposal is disputed, and the following recitation of facts includes the court’s findings after trial and review of Harris’ proposal as to the disputed decision-making process. These findings necessarily stem from credibility determinations. Harris presented James A. Graves, Harris’ Branch Manager for Computer Systems Division, and G. Phil Steel, its Director of Federal Marketing. The testimony of these gentlemen was given due weight; each was forthcoming and accommodating to questions by counsel and the court.

Defendant’s witnesses were David Francis Orszak, the Contract Specialist in charge of evaluating all proposals received under the RFP and the team leader for conducting negotiations leading to the ultimate contractual award. His supervisor, John J. Koehne, the Contracting Officer, also testified. The testimony of these defense witnesses has been given full weight, because under extensive examination by Harris’ counsel, as well as questioning by the court, they provided detailed explanatory evidence of the process by which Harris’ proposal was eliminated from further consideration. Based on the demeanor of Messrs. Orszak and Koehne, as well as the content of their testimony, the court finds, as discussed more fully herein, that the decision to exclude Harris was made dispassionately, evenhandedly, reluctantly, and — most important — rationally.

The solicitation document (RFP) entitled Computer Systems for the Pay/Personnel Administrative Support Systems/Source Data Systems (“PASS/SDS”) was issued on July 6, 1982. This indefinite-delivery, indefinite-quantity contract called for a source data system (“SDS”), a computer system installed to support the Navy’s program of consolidating, modernizing, and improving the provision of pay, personnel, and transportation support to its service members. The program to achieve these goals was designated the Pay/Personnel Administrative Support System (“PASS”). To be acquired via negotiation were computer systems, including hardware, software, maintenance, training, and documentation to implement PASS/SDS at 27 sites, with possible implementation in up to 400 individual locations. Revenues flowing to the successful bidder were projected at $100 million over the ten-year system life, although the contract minimum guarantee was four systems at three locations.

The RFP called for submission of proposals in three volumes, and it is undisputed that Harris on December 13, 1982, timely submitted its proposal.1 Volume I of Har[231]*231ris’ proposal contained, as required by the RFP, “Contractual Information.” The contents of this volume are not at issue. Volume II, the critical volume entitled “Cost Information,” was submitted in one binder. Volume III, Harris’ submission on “Technical,” consisted of two binders.

The RFP contained instructions for the required submissions on each volume. In pertinent part, the instructions for Volume II provided, “The offeror shall complete applicable exhibits to this solicitation and return these exhibits as Volume II of the proposal.” These instructions also contained language, as follows: “These exhibits shall contain any and all cost information and shall be returned in the offeror’s proposal.... Offerors are required to submit their cost data in the format specified for each exhibit.... All cost exhibits shall be submitted as required. All costs shall be submitted as Volume II of the offeror’s proposal.” There followed detailed instructions for each of the 15 alphabetically designated cost exhibits.

Section M of the RFP, Evaluation Factors for Award, ¶ 2, “Fixed Prices,” provided in ¶ 2.1.c. in full:

1. Fixed Prices. To be considered acceptable under the solicitation, offerors shall offer (i) fixed prices for the initial contract period for the initial system or items being procured, (ii) fixed prices or prices that can be finitely determined for each separate option renewal period, and (iii) fixed prices or prices that can be finitely determined for all required option quantities.
2. Evaluation of Prices. Offers will be evaluated for purposes of award by adding the total price of all optional periods and all stated optional quantities to the total price for the initial contract period covering the initial system or items. These prices will be adjusted by the appropriate discount factors shown in Exhibit Q of the solicitation document. Evaluation of option prices will not obligate the Government to exercise these options.

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30 Cont. Cas. Fed. 70,994, 2 Cl. Ct. 229, 1983 U.S. Claims LEXIS 1792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-data-communications-inc-v-united-states-cc-1983.