Hero, Inc. v. United States

31 Cont. Cas. Fed. 71,578, 3 Cl. Ct. 413, 1983 U.S. Claims LEXIS 1617
CourtUnited States Court of Claims
DecidedSeptember 27, 1983
DocketNo. 573-83C
StatusPublished
Cited by11 cases

This text of 31 Cont. Cas. Fed. 71,578 (Hero, 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
Hero, Inc. v. United States, 31 Cont. Cas. Fed. 71,578, 3 Cl. Ct. 413, 1983 U.S. Claims LEXIS 1617 (cc 1983).

Opinion

OPINION

WHITE, Senior Judge.

In this unusual ease, one who wishes to bid on a proposed government contract, but has not yet done so, seeks equitable relief under 28 U.S.C. § 1491(a)(3), as amended by section 133(a) of the Federal Courts Improvement Act of 1982 (Pub.L. 97-164, 97th Cong., 96 Stat. 25, 40).

In the complaint, which was filed on September 14,1983, the plaintiff sought a temporary restraining order, a preliminary injunction, a declaratory judgment, and a permanent injunction prohibiting the Government (represented by the Washington Area Contract Center, Department of the Air Force) from opening bids, and from awarding any contract under, invitation for bids No. F49642-83-B1018 (the IFB).

The defendant filed a motion to dismiss the complaint or, in the alternative, for summary judgment.

After a hearing on the plaintiff’s application for a temporary restraining order, which resulted in the denial of the application, the defendant’s motion to dismiss the complaint or, in the alternative, for summary judgment was consolidated with the plaintiff’s motion for a preliminary injunction and the plaintiff’s complaint for a declaratory judgment and permanent injunction. A trial on all aspects of the case was held on September 19 and 20, 1983.

Background Material

The IFB was issued on August 22, 1983. It sought bids on a proposed contract for the maintenance and repair of military family housing units at Andrews Air Force Base, located near Washington, D.C., for the period beginning November 1,1983, and extending through September 30, 1984. The contract, if awarded, will grant the Department of the Air Force an option to extend the contract for 2 additional years.

The plaintiff spent several thousand dollars in attempting to prepare a prudent bid in response to the IFB, and concluded that defects in the IFB make the bidding procedure unfair.

The plaintiff’s principal objections to the IFB are summarized as follows: (1) the contract specifications contained in the IFB are defective, in that they do not set out estimated quantities of the Government’s needs, as required by Defense Acquisition Regulation (DAR) 3-409.2, and (2) the contract, if awarded under the IFB, will contain a Davis-Bacon Act wage determination in violation of DAR 12-106.2.

The plaintiff’s contention that the contract specifications contained in the IFB improperly fail to state estimated quantities is based upon items 1 and 4.

[415]*415Item 1 will require the contractor to furnish services and material, and to provide all labor, transportation, equipment, and supervision for the maintenance of 2,084 family housing units. All work is to be done on an “as required” or an “as needed” basis. The IFB requires that bidders quote a firm, fixed price for the performance of the work under item 1. The specifications set forth the nature of the repair and maintenance work to be accomplished under item 1, but they do not give any estimates as to the extent of the work that will probably be required. The plaintiff objects especially to the failure of the specifications to furnish an estimate concerning the amount of painting on windowsills and frames, an estimate as to the amount of painting on doors and door frames, an estimate of the extent of the damaged or deteriorated government-owned fencing that must be replaced, an estimate of the extent to which the contractor will be required to repair deteriorated shower and bathtub enclosure walls, including the replacement of ceramic tiles, and an estimate of the extent to which the contractor will be required to repair or replace oil storage tanks.

Bid item 4 requires a unit-price bid on floor finishing. Floor finishing will consist of refinishing wood floors, replacing resilient floors, and replacing linoleum. This item gives a total estimate of 110,000 square feet for all three kinds of floor work, but does not attempt to break this total figure down into the three different kinds of floors. Evidence in the record shows that work on wood floors is much more expensive than work on resilient floors or linoleum.

The plaintiff argues that “due to the lack of any estimated requirements for the various services required, bidders are reduced to guessing the anticipated requirements for maintenance and repair of major items involving major costs,” and that “[t]he absence of such estimates precludes bidders from preparing reasonable, intelligent bids.”

The plaintiff’s other principal objection to the IFB is that the contract, if awarded, will contain two wage rate determinations, one under the Services Contract Act of 1965 and the other under the Davis-Bacon Act. They will apply to different items of work under the contract.

The plaintiff says that, because of the attachment of two wage determinations to the contract, the contractor will be obligated to pay a minimum wage of at least $9.66 per hour for carpenters and for painters performing work under item 1, whereas the minimum wage for painters working under item 3 will be only $6.74 per hour, and the minimum wage for carpenters working under item 4 will be only $6.32 per hour. The plaintiff argues “that the inclusion of these varying wage rates for the same class of employee working on the same project creates * * * confusion as to the price to be bid,” and that “[i]t would be virtually impossible to hire an employee at two different wage rates depending on what the employee is doing at a particular time on a particular day.”

Discussion

The jurisdiction of this court’s predecessor, the United States Court of Claims, included “jurisdiction to render judgment upon any claim against the United States founded * * * upon any express or implied contract with the United States * * *.” 28 U.S.C. § 1491 (1976). The Court of Claims held, in connection with the grant of jurisdiction to consider and render judgment on claims founded upon implied contracts, that it is an implied condition of each invitation for bids or request for proposals issued by the Government on a proposed contract that each bid or proposal will be fairly and honestly considered and the bid or proposal which, in the honest opinion of the contracting officer, is most advantageous to the Government will be accepted; that an implied contract guaranteeing fair consideration arises when a person submits a bid or proposal; and that if the Government breaches its obligation to consider»bids or proposals on their merits, one who is a victim of the breach may maintain an action to recover funds needlessly expended in [416]*416preparing the bid or proposal. Heyer v. United States, 135 Ct.Cl. 63, 69-71, 140 F.Supp. 409, 412-14 (1956); Keco v. United States, 192 Ct.Cl. 773, 779-80, 428 F.2d 1233, 1237 (1970).

The Court of Claims did not have jurisdiction to consider suits by unsuccessful bidders for equitable relief under the grant of jurisdiction to adjudicate claims based on contracts implied in fact.

This court has the same jurisdiction under 28 U.S.C. § 1491

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Bluebook (online)
31 Cont. Cas. Fed. 71,578, 3 Cl. Ct. 413, 1983 U.S. Claims LEXIS 1617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hero-inc-v-united-states-cc-1983.