Hewlett-Packard Co. v. United States

42 Cont. Cas. Fed. 77,318, 41 Fed. Cl. 99, 1998 U.S. Claims LEXIS 128, 1998 WL 352817
CourtUnited States Court of Federal Claims
DecidedMay 28, 1998
DocketNo. 98-406 C
StatusPublished
Cited by8 cases

This text of 42 Cont. Cas. Fed. 77,318 (Hewlett-Packard Co. 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
Hewlett-Packard Co. v. United States, 42 Cont. Cas. Fed. 77,318, 41 Fed. Cl. 99, 1998 U.S. Claims LEXIS 128, 1998 WL 352817 (uscfc 1998).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge.

This case presents a question of first impression for the Court of Federal Claims, on April 27, 1998, plaintiff, Hewlett-Packard Company (“HP”), filed this post-award bid protest action under the Tucker Act, 28 U.S.C.A. § 1491(b) (West Supp.1998). Plaintiff contests the United States Postal Service’s (“USPS” or “Postal Service”) award of a contract for “mid-range scaleable [sic] computer platform equipment” to intervenor, Sun Microsystems Federal, Inc. (“Sun”). Plaintiff seeks declaratory and injunctive relief on the grounds that the USPS violated the terms of the solicitation and failed to follow the USPS Procurement Manual. On May 5, 1998, Sun filed a motion to dismiss for failure to state a claim, pursuant to Rule 12(b)(4) of the Rules of the Court of Federal Claims (“RCFC”).1 Sun argues that this court is without power to grant equitable relief in a bid protest action brought against the USPS and, in the alternative, that the court lacks subject matter jurisdiction over the controversy. Neither the parties nor the court have found a case directly addressing the question. During a hearing held May 26, [101]*1011998, the court denied Sun’s motion. This order memorializes that ruling.

BACKGROUND

On September 30, 1997, the USPS issued Solicitation No. 102590-97-A-0141 (“Solicitation”) for its “Mid-Range Scaleable [sic] Computer Platform” procurement. The procurement is designed to create a middle layer of computers between the USPS’s mainframe systems and its local servers. The Solicitation contemplated the award of an Indefinite Delivery/Indefinite Quantity contract for standardized scalable midrange computers, software, systems configuration, installation, maintenance, programming, support personnel, and training. The Solicitation specified a base performance period of five years plus four, one-year options. The minimum value of the contract is $3 million and its maximum aggregate value is $500 million. Four bidders, including plaintiff and intervenor, submitted proposals. On April 10, 1998, the USPS awarded the contract to Sun.

In its amended complaint, HP alleges the following defects in the procurement process: (1) that the USPS failed to evaluate the proposals in accordance with evaluation criteria specified in the Solicitation; (2) that the USPS awarded the contract to a proposal that was technically noncompliant; (3) that the USPS improperly relaxed the Solicitation requirements; (4) that the USPS did not apply the evaluation criteria equally; (5) that the USPS’s evaluation of HP’s technical proposal was improper; (6) that the USPS failed to conduct meaningful discussions with HP; (7) that the USPS held improper discussions with Sun; (8) that the Contracting Officer engaged in auction techniques in violation of the Procurement Manual; (9) that the USPS did not treat the offerors equally during discussions; (10) that the USPS improperly leaked source selection information; and (11) that the USPS’s “best value” determination was based on a flawed technical evaluation, inconsistent with the Solicitation, and otherwise unreasonable. Plaintiff asks the court to enjoin performance under the contract, declare the award invalid, require the USPS to terminate the contract with Sun, and either award the contract to HP or require the USPS to re-compete the award consistent with applicable legal requirements.

Sun’s Motion to Intervene was allowed on May 5, 1998, and Sun immediately filed a Motion to Dismiss for Failure to State a Claim. Sun argues that this court does not have the power under 28 U.S.C. § 1491(b) to grant equitable relief in a bid protest action brought against the USPS, and in the alternative, that the court lacks subject matter jurisdiction over this action.

DISCUSSION

All federal courts are courts of limited jurisdiction. They possess only that power specifically authorized by Constitution and statute. Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994); See Willy v. Coastal Corp., 503 U.S. 131, 136-137, 112 S.Ct. 1076, 117 L.Ed.2d 280 (1992). The jurisdiction of this court is particularly limited as it exists to hear claims against the United States. “The United States,-as sovereign, is immune from suit save as it consents to be sued, and the terms of its consent to be sued in any court define that court’s jurisdiction to entertain the suit.” United States v. Sherwood, 312 U.S. 584, 586, 61 S.Ct. 767, 85 L.Ed. 1058 (1941) (citations omitted). Waivers of sovereign immunity are to be narrowly construed in favor of the sovereign. McMahon v. United States, 342 U.S. 25, 27, 72 S.Ct. 17, 96 L.Ed. 26 (1951).

The Tucker Act waives the United States’ immunity from suit with respect to the claims identified by the act. United States v. Mitchell, 463 U.S. 206, 212, 103 S.Ct. 2961, 77 L.Ed.2d 580 (1983). “If a claim falls within the terms of the Tucker Act, the United States has presumptively consented to suit.” Mitchell, 463 U.S. at 216, 103 S.Ct. 2961. The Tucker Act grants the court “jurisdiction to render judgment upon any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States....” 28 U.S.C A. 1491(a)(1) (West Supp.1998). This provision has been construed to allow the court to hear challenges [102]*102brought by disappointed bidders to proposed government contract awards alleging impropriety in the procurement process. Central Arkansas Maintenance, Inc. v. United States, 68 F.3d 1338, 1341 (Fed.Cir.1995); CACI, Inc.-Fed. v. United States, 719 F.2d 1567, 1572-1573 (Fed.Cir.1983). Jurisdiction in such cases is premised on the existence of an implied contract between the government and the bidder “to have the involved bids fairly and honestly considered.” United States v. John C. Grimberg Co., 702 F.2d 1362, 1367 (Fed.Cir.1983) (in banc); See Central Arkansas, 68 F.3d at 1341. If court finds that the government’s bid-evaluation process was arbitrary and capricious, the government has breached this implied contract. Keco Indus., Inc. v. United States, 203 Ct.Cl. 566, 492 F.2d 1200, 1203 (1974)

Federal district courts traditionally exercise jurisdiction over hid protests under the Scanwell doctrine. See Scanwell Laboratories v. Shaffer, 424 F.2d 859 (D.C.Cir.1970). In Scanwell. the Court of Appeals for the D.C.

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42 Cont. Cas. Fed. 77,318, 41 Fed. Cl. 99, 1998 U.S. Claims LEXIS 128, 1998 WL 352817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hewlett-packard-co-v-united-states-uscfc-1998.