Iap Worldwide Services, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedFebruary 15, 2019
Docket18-400
StatusPublished

This text of Iap Worldwide Services, Inc. v. United States (Iap Worldwide Services, 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
Iap Worldwide Services, Inc. v. United States, (uscfc 2019).

Opinion

In the United States Court of Federal Claims Nos. 17-1959C, 18-179C, and 18-400C Filed: January 29, 2019 Revised for Publication: February 15, 2019 1

* * * * * * * * * * * * * * * IAP WORLDWIDE SERVICES, INC., * * Protestor, * Bid Protest; Motion to Alter or * Amend Judgment; Motion for Relief v. * from Judgment; Bid and Proposal * Costs. UNITED STATES, * * Defendant. * * * * * * * * * * * * * * * * *

J. Alexander Ward, Morrison & Foerster, LLP, Washington, D.C., for protestor. Of counsel were Daniel E. Chudd, Ethan E. Marsh, James A. Tucker, Catherine L. Chapple, and R. Locke Bell, Morrison & Foerster, LLP, Washington, D.C.

Rebecca S. Kruser, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for defendant. With her were Douglas K. Mickle, Assistant Director, Commercial Litigation Branch, Robert E. Kirschman, Jr., Director, Commercial Litigation Branch, and Joseph H. Hunt, Assistant Attorney General, Civil Division, Department of Justice. Of counsel were Margaret P. Simmons and Steven Feldman, United States Army Engineering and Support Center, Huntsville, AL.

ORDER

HORN, J.

At issue before the court is protestor IAP Worldwide Services, Inc.’s (IAP) motion to alter or amend the judgment, pursuant to Rule 59(e) (2018) of the Rules of the United States Court of Federal Claims (RCFC), in IAP’s most recently filed protest, Case No. 18-400C, which is part of a series of related protests. In its RCFC 59(e) motion, IAP seeks

1 This Order was issued under seal on January 29, 2019. The parties were given the opportunity to propose redactions to the January 29, 2019 Order to the court. No redactions were proposed. The Order, therefore, is unsealed and issued for publication. to recover bid and proposal costs from two of IAP’s prior protests, Case Nos. 17-1959C and 18-179C. Case Nos. 17-1959C, 18-179C, and 18-400C are all related to contract awards for the repair of the electrical system in Puerto Rico after Hurricane Maria. IAP’s protest in Case No. 18-4C, regarding IAP’s protest of a modification to a contract for the repair of the electrical system in Puerto Rico, is a protest which is not at issue in this Order. IAP also does not seek to alter or amend the court’s decision on the underlying merits of Case No. 18-400C, nor does IAP seek bid and proposal costs stemming from Case No. 18-400C. 2 Filed at the same time as IAP’s RCFC 59(e) motion, and also at issue before the court, are IAP’s two, almost identical, motions for relief from judgment brought pursuant to RCFC 60(b)(5) (2018) and RCFC 60(b)(6), in both Case No. 17- 1959C and Case No. 18-179C. IAP is seeking to recover bid and proposal costs from those two protests. IAP filed its motions for relief in Case Nos. 17-1959C and 18-179C in the alternative to its RCFC 59(e) motion to alter or amend the judgment in Case No. 18-400C. The issues raised by IAP are fact based, complex and specific to the protests at issue in this series of related protests filed by IAP concerning multiple award opportunities for the same project.

BACKGROUND

As noted above, the associated protest actions at issue were all related to contracts awarded by the United States Army Corps of Engineers (Army Corps) for repair to the Puerto Rican electrical system after Hurricane Maria made landfall on Puerto Rico in September 2017. In the aftermath of the storm and the tragic impacts of that storm on the citizens of Puerto Rico, on October 12, 2017, the Army Corps issued a Justification and Approval pursuant to Federal Acquisition Regulation 6.302-2 (2018), based on Unusual and Compelling Urgency, to expedite its procurement for the repair and reconstruction of the electrical system of Puerto Rico and to limit competition to holders of the Resilient Power and Mechanical System Basic Ordering Agreement (Resilient Power and Mechanical System BOA), a contract for the “sustainment, restoration and modernization of electrical and mechanical systems in critical infrastructure.” The Resilient Power and Mechanical System BOA was initially competed under full and open competition in 2013 and resulted in various contractors being qualified holders of the Resilient Power and Mechanical System BOA. At the time that Hurricane Maria hit Puerto Rico, there were nine holders of the Resilient Power and Mechanical System BOA, including IAP. The Army Corps, therefore, had authority to issue orders to the nine current holders of the Resilient Power and Mechanical System BOA for the repair and restoration of the electrical power grid in Puerto Rico up to a total price ceiling of $1.336 billion.

The Army Corps issued a request for proposals for a time and material order under the Resilient Power and Mechanical System BOA (BOA Order # 1) on October 8, 2017, for the repair and replacement of electrical transmission and distribution lines in Puerto

2 In Case No. 18-400C, IAP’s protest of the Army Corps’ evaluation of IAP’s final, revised proposal, the court ruled against IAP on the merits of that protest on April 9, 2018. Thus, as discussed below, IAP is not entitled to recovery of bid and proposal costs stemming from that case. 2 Rico. Both IAP and Fluor Enterprises Inc. (Fluor), two of the nine Resilient Power and Mechanical System BOA holders, submitted timely proposals. On October 16, 2017, the Army Corps awarded BOA Order # 1 to Fluor initially in the amount of $240.0 million. IAP did not challenge the award of BOA Order # 1 to Fluor.

On November 7, 2017, the Army Corps solicited proposals for a second time and material order under the Resilient Power and Mechanical System BOA (BOA Order # 2), again for the repair and restoration of services to the electrical grid in Puerto Rico. BOA Order # 2 had a price ranging from $1.096 million to $831.0 million. Proposals were due on November 14, 2017. IAP and Fluor were the only two offerors to submit timely proposals. On December 1, 2017, the Army Corps awarded BOA Order # 2 to Fluor, with a maximum price ceiling amount not to exceed $831.0 million.

On December 5, 2017, the Army Corps modified BOA Order # 1 to add $261.0 million in funds to the already $240.0 million allocated to BOA Order # 1, bringing the total BOA Order # 1 value to $501.0 million. IAP filed a protest at the Government Accountability Office (GAO) on December 14, 2017, related to the Army Corps’ modification of BOA Order # 1, alleging that the modification was out-of-scope.

On December 15, 2017, IAP filed its first protest before this court, Case No. 17- 1959C, unrelated to IAP’s December 14, 2017 GAO protest of the modification of BOA Order # 1, but which challenged the Army Corps’ handling of the BOA Order # 2 procurement. IAP protested the Army Corps’ decision to hold discussions solely with Fluor on BOA Order # 2, the Army Corps’ failure to notify IAP of its exclusion from the competitive range until the day after the lapse of IAP’s right to file for an automatic stay at the GAO, therefore, not allowing IAP to have protested the December 1, 2017 award of BOA Order # 2 to Fluor at the GAO, the Army Corps’ allegedly arbitrary and capricious assignment of numerous deficiencies and weaknesses to IAP’s proposal on BOA Order # 2, and the Army Corps’ allegedly unequal treatment of IAP. IAP requested that this court direct the Army Corps to cancel the award of BOA Order # 2 to Fluor and make an award to IAP or “in the alternative, cancel the award, open discussions with IAP, and reevaluate proposals reasonably and in accordance with the terms of the Solicitation.” IAP also filed a motion for a temporary restraining order and preliminary injunction in Case No. 17- 1959C on December 15, 2017, which, after a hearing, the court denied on December 18, 2017.

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