Hydro Engineering, Inc. v. United States

41 Cont. Cas. Fed. 77,135, 37 Fed. Cl. 448, 1997 U.S. Claims LEXIS 51, 1997 WL 112594
CourtUnited States Court of Federal Claims
DecidedMarch 10, 1997
DocketNo. 96-564C
StatusPublished
Cited by35 cases

This text of 41 Cont. Cas. Fed. 77,135 (Hydro Engineering, Inc. 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
Hydro Engineering, Inc. v. United States, 41 Cont. Cas. Fed. 77,135, 37 Fed. Cl. 448, 1997 U.S. Claims LEXIS 51, 1997 WL 112594 (uscfc 1997).

Opinion

OPINION

HORN, Judge.

The complaint in the above-captioned case was filed in this court on September 9, 1996. As originally submitted, the complaint had the names of Leon Rudloff, Esq., and Manfred Sternberg, Esq., typed below the words “Respectfully Submitted,” but only Mr. Rud-loff had signed the complaint. At the time the original complaint was submitted, Mr. Rudloff was not a member of the bar of the United States Court of Federal Claims, although he later perfected his admission. Subsequently, Mr. Sternberg, who was admitted to this court’s bar, submitted a signed copy of the complaint in order to perfect it for filing.

In this government contract action, Hydro Engineering, Inc. (Hydro) seeks to prevent the award of a contract by the United States Army’s Chemical and Biological Defense Command (CBDCOM) to the intervenor, The Centech Group, Inc. (Centech). In its complaint, plaintiff contends that the contracting officer acted in bad faith and that the decision to award the contract to other than the plaintiff was arbitrary and capricious and not in accordance with the law. Among many allegations, the plaintiff asserts that the defendant made the following errors during the procurement process: scoring and analytical errors on the technical and management areas of the evaluations of Hydro’s proposal, failure to credit plaintiff points on its evaluation score for improvements included in its revised proposal, misevaluation of the proposal submitted by the prospective awardee, Centech, reliance on undisclosed evaluation criteria, and performing a flawed cosVtechnical tradeoff analysis. According to the plain[453]*453tiff, the defendant contrived to deny an award to the plaintiff because of Hydro’s suspected involvement with Delta Pacific Group, Inc. (Delta Pacific), a company which had bid on, and protested, a previous, related solicitation. In its complaint, plaintiff seeks a temporary restraining order (TRO), a preliminary injunction, and a permanent injunction, following a trial on the merits, to prevent the award of the contract to Centech, or to anyone other than the plaintiff. Plaintiff also has sued for bid preparation costs and for such other further relief as may be warranted.

Defendant responds by asking the court to deny plaintiffs request for injunctive relief prohibiting an award of the contract to Cen-tech, to dismiss plaintiffs complaint, and to deny plaintiff bid preparation costs or other money damages. Defendant maintains that the selection of Centech for contract award was not arbitrary and capricious, and was grounded in reason. Furthermore, defendant maintains that Hydro has failed to demonstrate that the contracting officer acted in bad faith when selecting Centech. According to the defendant, Hydro has failed to establish entitlement to injunctive relief or to summary judgment, and has failed to identify any genuine issue of material fact to prevent the entry of summary judgment on the merits to the defendant.

The parties designated an administrative record on which the court, as agreed to early in the proceedings by the parties, bases its review of the agency’s action. The defendant has stipulated that the agency will not award the contract until after November 16, 1996, in order to allow this court time to decide plaintiffs motions for a temporary restraining order, preliminary injunction, and permanent injunction, and to consider the parties’ cross-motions for summary judgment.

FACTS

In the procurement at issue, solicitation No. DAAM01-95-R-0073, the United States Army’s Chemical and Biological Command (CBDCOM) requested proposals for the engineering development and production of the XM22 High Pressure Washer (HPW) for the decontamination of military equipment in the field, including removal of gross contaminants, such as mud, dirt, grease, or road film, and rinsing applied decontaminants. The CBDCOM, based at Aberdeen Proving Ground, Maryland, issued the request for proposals (RFP) to 39 firms, including Hydro and Centech, on September 27,1995. Hydro is a Utah corporation with its principal place of business in Salt Lake City, Utah. Cen-tech is a Virginia corporation, which maintains its corporate headquarters in Arlington, Virginia. The terms of the solicitation provided for two phases of work: an engineering phase, during which the contractor would be required to produce 32 XM22 prototypes, and a production phase, which would result in production of up to 1,965 XM22s.

Seven offerors submitted proposals by the January 2, 1996 due date.2 After evaluation by a four-member government team, five of-ferors were found to fall within the competitive range: Centech, Hydro, SFA, Inc. (SFA), Engineering Technology, Inc. (ETI), and Robotics Systems Technology (RST). On February 20, 1996, following notifications of disadvantages and deficiencies to the of-ferors in the competitive range, each was given an opportunity to revise its proposal. The remaining offerors submitted best and final offers (BAFOs) on or before April 19, 1996. After the BAFO round of proposals, Hydro had the lowest price, but finished fourth in the merit rating. Centech had the second lowest price, and was tied for second in the merit rating. The evaluation committee and contracting officer determined that the proposals of Centech, SFA, and ETI offered comparable contributions to the government, that Centech’s proposal was essentially equal in terms of merit to the highest-ranked proposal, and that Centech’s higher merit rating and certain technical advantages outweighed Hydro’s $876,809.42 lower price. Thus, the contracting officer concluded that Centech’s proposal offered the best value to [454]*454the government, and that Centech should be awarded the contract.

Procedural History

Prior to bringing this action, Hydro filed a bid protest action with the General Accounting Office (GAO) challenging the procurement at issue in the above-captioned case. Because the offerors’ proposals and the agency documents evaluating them contained proprietary information, the GAO entered its standard protective order applicable to all materials identified by any party as protected, unless GAO provided otherwise. As counsel for plaintiff, Leon Rudloff and Manfred Sternberg, applied for admission to the protective order. In addition, Andrew MePhate applied for admission to the protective order as a technical expert for the plaintiff.

On September 5, 1996, the GAO denied Mr. McPhate’s application for admission to the protective order because it found that he had been a senior mechanical advisor to a company which was a proposed subcontractor to Delta Pacific. On a prior solicitation for the HPW, Delta Pacific had filed a bid protest action against the prior solicitation in the United States Court of Federal Claims, although that solicitation was subsequently canceled.

The GAO denied Manfred Sternberg’s application for admission to the protective order. The GAO opinion stated:

With regard to Mr. Sternberg, the record establishes that he has communicated with the agency on behalf of Delta concerning the procurement which is the subject of this protest. In his October 13, 1995, letter to the agency, Mr. Sternberg inquired about how Delta was to respond to and comply with various specifications in the solicitation. Further, Mr. Sternberg did not disclose this relationship in his application.

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41 Cont. Cas. Fed. 77,135, 37 Fed. Cl. 448, 1997 U.S. Claims LEXIS 51, 1997 WL 112594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hydro-engineering-inc-v-united-states-uscfc-1997.