Harris Systems International, Inc. v. United States

32 Cont. Cas. Fed. 72,486, 5 Cl. Ct. 253, 1984 U.S. Claims LEXIS 1428
CourtUnited States Court of Claims
DecidedApril 20, 1984
DocketNo. 162-84C
StatusPublished
Cited by16 cases

This text of 32 Cont. Cas. Fed. 72,486 (Harris Systems International, 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 Systems International, Inc. v. United States, 32 Cont. Cas. Fed. 72,486, 5 Cl. Ct. 253, 1984 U.S. Claims LEXIS 1428 (cc 1984).

Opinion

OPINION

LYDON, Judge:

This case comes before the court on plaintiffs application for a temporary restraining order and a motion for a preliminary injunction filed on April 2, 1984. In support of these requests, plaintiff contemporaneously filed a verified complaint, to which was appended a number of exhibits in support of said requests.1 After three days of discovery depositions during the period April 9-11, 1984, a hearing on the merits was held on April 12-13, 1984, at which time the testimony of witnesses was received and exhibits were introduced into evidence.

In its requests and in its verified complaint, plaintiff seeks to enjoin the United States Department of the Air Force (Air Force) from taking any action relative to the procurement and/or performance of janitorial and custodial services at Kelly Air Force Base, Texas, beginning May 1, 1984. Plaintiff is presently performing said janitorial and custodial services at Kelly Air Force Base under the first option year provision of an April 30, 1982, subcontract (No. SB6338(a)-82C-7040) with the Small Business Administration (SBA) in conjunction with a prime contract (No. FA1800-82-R0036) between the SBA and the Air Force relative to said janitorial and custodial services. The subcontract contained a provision which gave the Air Force the unilateral right to exercise the option to extend the subcontract for two successive one-year periods. While the Air Force exercised the option and extended the contract for the first option period (May 1, 1983 — April 30, 1984), it has notified plaintiff, the subcontractor, and the SBA, the prime contractor, that it would not exercise [255]*255the option to extend the subcontract for the second option period (May 1, 1984 — April 30, 1985).

This refusal on the part of the Air Force to exercise the second year option to extend plaintiff’s subcontract, resulted in a decision by the Air Force to issue a Request For Proposal (RFP) relative to the janitorial and custodial services presently being performed by plaintiff under the first option year of its subcontract which will conclude on April 30, 1984.2

The SBA wished to keep the performance of the Kelly Air Force Base janitorial and custodial services under the section 8(a) program. However, the Air Force, dissatisfied with plaintiff’s performance under its existing subcontract, advised the SBA that it would remain in the section 8(a) program only if the SBA designated someone other than plaintiff as the section 8(a) contractor. Under 15 U.S.C. § 637(a)(1)(C), the SBA was authorized to designate the subcontractor in a section 8(a) program undertaking.3 After much discussion with the Air Force, and although the SBA believed plaintiff was an appropriate section 8(a) contractor, the SBA selected another section 8(a) contractor, San Antonio General Maintenance, Inc. (San Antonio), on or about February 16, 1984, as its designated subcontractor and so advised the Air Force. The SBA made this determination because of its desire to keep performance of the Kelly Air Force Base janitorial and custodial services in the section 8(a) program, and because the Air Force convinced the SBA that the Air Force’s dissatisfaction with plaintiff’s performance on the existing contract was justified. After this designation, the Air Force, on or about March 6, 1984, sent to the SBA and San Antonio RFP No. F41800-84-R9998.

Plaintiff interrupted the dealings between the Air Force, the SBA and San Antonio by filing the requests for injunctive relief mentioned above in which it seeks to enjoin the Air Force, the SBA and San Antonio from entering into a prime and subcontract in response to RFP No. F41800-84-R9998 which pertained to the performance of janitorial and custodial services at Kelly Air Force Base. Plaintiff charges the Air Force with bad faith in advising the SBA that it would not accept plaintiff as a section 8(a) contractor relative to the performance of janitorial and custodial services at Kelly Air Force Base and thereby, in effect, prevented plaintiff from being designated by the SBA as the section 8(a) contractor relative to RFP No. F4180084-R9998.

I.

The section 8(a) program is codified in 15 U.S.C. § 637 (1982). This program is designed to develop the ownership of businesses by socially and economically disadvantaged individuals and to provide assistance to those businesses so that they can develop into independent firms capable of competing in the market place without special assistance from the government. See 15 U.S.C. § 631(e)(2)(A) (1982). One of the methods utilized in providing assistance under this program is a section 8(a) contract. 15 U.S.C. §§ 631(e)(2), 637(a) (1982).

In essence, a section 8(a) contract is one in which the SBA contracts with a federal agency having procurement powers for the performance by the SBA of the work required under a so-called prime contract. In turn, the SBA subcontracts the actual performance of the work to a section 8(a) contractor who the SBA determines to be a socially and economically disadvantaged small business concern. 15 U.S.C. § 637(a)(1)(C) (1982). This procedure allows a section 8(a) contractor, either alone [256]*256or together with the SBA, to negotiate the terms of the contract with Air Force rather than being required to bid on the contract. Under this program, the SBA provides technical and managerial support to a section 8(a) contractor in the performance of a subcontract. 15 U.S.C. § 637(a)(7) (1982). It seems fair to say that the sequence of procedures in this tripartite situation can vary in any given circumstance.

Plaintiff is a Texas corporation with its principal place of business in San Antonio. In 1973, plaintiff was determined to be a socially and economically disadvantaged minority-owned small business concern by the SBA. In this regard, plaintiff had submitted to the SBA a business plan which set forth its financial, managerial and performance capabilities and the types of contracts it could perform. Plaintiff first became a section 8(a) contractor at Kelly Air Force Base in March 1973. Plaintiff, under various corporate names, performed as a section 8(a) contractor at Kelly Air Force Base from March 1973 through April 1982 performing janitorial and custodial services.

Throughout the period March 1973— April 1982, plaintiff’s subcontracts were modified from time to time to reflect changes in inspection practices, cleaning schedules and standards, and custodial service needs reflecting variations in facility usage, priorities, weather and other factors. Each of the subcontracts under which plaintiff performed its janitorial and custodial services provided for the deduction of payments to plaintiff in the event of substandard or inadequate work performance by plaintiff. Such deductions were taken after a certain number of work discrepancies were found in the performance of particular categories of required work.

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Bluebook (online)
32 Cont. Cas. Fed. 72,486, 5 Cl. Ct. 253, 1984 U.S. Claims LEXIS 1428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-systems-international-inc-v-united-states-cc-1984.