Honeywell Technology Solutions, Inc. v. Department of the Air Force

779 F. Supp. 2d 14, 2011 U.S. Dist. LEXIS 45174, 2011 WL 1595161
CourtDistrict Court, District of Columbia
DecidedApril 19, 2011
DocketCiv. 05-1772 (TFH)
StatusPublished
Cited by1 cases

This text of 779 F. Supp. 2d 14 (Honeywell Technology Solutions, Inc. v. Department of the Air Force) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Honeywell Technology Solutions, Inc. v. Department of the Air Force, 779 F. Supp. 2d 14, 2011 U.S. Dist. LEXIS 45174, 2011 WL 1595161 (D.D.C. 2011).

Opinion

Memorandum Opinion

THOMAS F. HOGAN, District Judge.

Pending before the Court are the parties’ cross motions for Summary Judgment and a Motion to Strike by HTSI. This is a “reverse-FOIA” suit in which plaintiff Honeywell Technology Solutions, Inc. (“HTSI”) asks the Court to permanently enjoin the Air Force from disclosing certain information contained in and related to a contract between the two parties pursuant to a FOIA request that the Air Force received. After carefully considering the motions and the record of this case the Court remands in part, grants HTSI’s summary judgment motion in part, denies the Air Force’s summary judgment motion in part, orders production of certain documents, and holds the Motion to Strike in abeyance.

I. Background

A. The Air Force-HTSI Contract

The Air Force has procured technical services for its satellite and other space-systems and their associated ground systems for decades. One such system is the Air Force Satellite Control Network (the “AFSCN”). In 2000, the Air Force wished to contract a company to assist with maintaining and evolving the AFSCN, so it issued a Request for Proposals No. F04701-00-R-0006 (the “RFP”). The RFP included a performance-based statement of work (the “PB-SOW”), which only described desired outcomes of the contract. It also provided the “color” of money (i.e., procurement, research and development, etc.), identified applicable contract line items (“CLINs ”), and the award fee percentage for each CLIN.

HTSI thus developed its own Statement of Work (“NOW”). Integrated Master Plan (“IMP ”) and Integrated Master Schedule (“IMS”) that described its own unique technical solutions showing how to achieve the outcomes described in the PB-SOW. HTSI then allocated costs among various CLINs that the Air Force provided. The RFP apparently broke down the CLINs substantially as follows:

*17 [[Image here]]

Compl. ¶ 13. The CLIN breakdowns support HTSI’s SOW, IMP, and IMS. The PB-SOW also contained a section describing the criteria that would be used in evaluating the bidders’ proposals (“Section S.l ”). The RFP indicated that bidders could propose amendments to Section 3.1. Admin. R. (“AR ”) 60. HTSI apparently amended Section 3.1 to make it better conform to its proposals.

The RFP designated some work activities as “core” requirements. Core requirements were those “necessary to maintain the AFSCN at its minimum operational level without impacting the AFSCN mission.” PB-SOW ¶ 1.1; AR 5814. Non-core work was apparently anything beyond core work and “may be authorized” under the Contract. Id.

The Air Force awarded HTSI Contract No. F04701-02-D-0006 (the “Contract”) effective December 21, 2001 for supplies and services to sustain and evolve the AFSCN. The Contract consists of a base period of six years and three option periods of three years each.

B. The FOIA Request and Initial Responses

On January 20, 2005 the Air Force received a FOIA request from The FOIA Group, Inc. seeking a copy of the Contract (the “FOIA Request ”), including the PB-SOW, loaded rates, all modifications, delivery orders, and task/delivery orders. AR 13. The FOIA Group apparently gathers competitive information for government contractors like Lockheed Martin — i.e., HTSI’s competitors.

The Air Force notified HTSI of the FOIA Request via letter on February 2, 2005. AR 17. On February 28, 2005, HTSI responded, objecting to the release of several types of information. AR 20-24. HTSI considered such information protected under FOIA Exemption 4, which prohibits disclosure of “trade secrets and commercial or financial information obtained from a person and privileged or confidential.” 5 U.S.C. § 552(b)(4). Specifically, HTSI claimed that release of the information would cause “substantial competitive harm [to HTSI] and give an unfair business advantage to the FOIA request- or/competitor.” AR 21.

HTSI argued that the release of labor rates would allow competitors to underbid HTSI in future competitions. Also, estimated labor hours and other price information would allow competitors to formulate a total contract price which would allow competitors to underbid HTSI in future bidding scenarios. Finally, HTSI argued that release of Section 3.1 would cause HTSI harm because “these specific performance objectives were part of our proposal effort and are distinct HTSI-generated objectives.” AR 23.

The Air Force responded on June 15, 2005, opining that HTSI had not met its burden to demonstrate that release of the information would likely cause substantial *18 competitive harm. AR 26-29. The Air Force rejected HTSI’s position that releasing labor rates would result in competitive harm because the “labor rates in themselves ... do not reveal [HTSI’s] overhead, profit margins, skill levels, labor mix or other sensitive information that might, if released, cause substantial harm to your competitive position.” AR 27. The Air Force rejected HTSI’s argument that releasing pricing information (estimated labor hours, rate information, line item pricing and total price information in the Contract, delivery orders, modifications and work authorization) would cause HTSI substantial competitive harm because the “total contract and program value [were] already public information.” Id. The Air Force also argued that “there are so many variables used in calculating these figures that competitors cannot derive actual labor or material costs, indirect costs, or profit from obtaining this information.” Id. The Air Force rejected HTSI’s objection to the release of Section 3.1 because “[although offerors were able to make comments to and thereby affect the PB SOW, the PB SOW was funded and developed by the government. Even if the PB SOW were developed by mixed funding, you have not demonstrated that you have retained a legitimate proprietary interest in this data, necessary to prevent its release.” Id. Thus, the Air Force indicated it would release

[T]he price information, rate information, estimated labor hours, line item prices, and [Section 3.1] contained within the basic contract, and the labor hours, labor costs, material costs, rate information, total price and task descriptions contained within the work authorizations .... Only loaded rates, also referred to as “wrap rates” will be released, however. To the extent such information is further broken down into individual cost elements such as direct costs, labor skill mixes, overhead rates, and profit margins, this [information] will be withheld.

Id.

On June 21, 2005, HTSI asked the Air Force for permission to submit a more detailed response due July 30, 2005. AR 28. The Air Force Agreed. AR 30.

C. HTSI’s Final Response

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
779 F. Supp. 2d 14, 2011 U.S. Dist. LEXIS 45174, 2011 WL 1595161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/honeywell-technology-solutions-inc-v-department-of-the-air-force-dcd-2011.