Input/Output Technology, Inc. v. United States

44 Fed. Cl. 65, 1999 WL 388149
CourtUnited States Court of Federal Claims
DecidedJune 11, 1999
DocketNo. 98-836C
StatusPublished
Cited by23 cases

This text of 44 Fed. Cl. 65 (Input/Output Technology, 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
Input/Output Technology, Inc. v. United States, 44 Fed. Cl. 65, 1999 WL 388149 (uscfc 1999).

Opinion

OPINION

FIRESTONE, Judge.

This post-award bid protest action comes before the court on the parties’ cross-motions for judgment on the administrative record. Plaintiff, Input/Output Technology, Inc. [67]*67(“IOT”) protests the Department of the Army’s (“Army” or “defendant”) award to Honeywell, Inc. (“Honeywell” or “defendantintervenor”) of a contract for the repair and retrofit of AN/APN-209 Line Replaceable Units (“LRUs”). LRUs are altimeters used in measuring altitude on fixed and rotary wing aircraft. The sole issue for consideration is whether the solicitation required burn-in testing1 for each repaired and retrofitted LRU.

FACTS

The facts are undisputed. On February 23, 1998, the Army issued a Request for Proposals (“RFP”) for the award of a five-year indefinite dehvery/indefinite quantity contract for the repair and retrofit of LRUs. The RFP stated that award was to be made to the best overall proposal that was determined to be the most beneficial to the government. Consideration was to be given to the following factors: (1) technical, (2) performance risk, and (3) priee. The solicitation stated:

Technical is slightly more important than either Performance Risk or Price. ... Offerors are cautioned that an award may not necessarily be made to the lowest price offered.

With respect to the testing of repaired and retrofitted LRUs, which is at issue here, the RFP included several provisions. Attachment 01, paragraph 2.5 of the RFP stated that “upon completion of all repair/retrofit effort, the LRU shall be subjected to and pass the test requirements specified in paragraph 6 of Appendix 1.” Paragraph 6 of Appendix 1 was titled “Test Requirements” and provided that, unless otherwise specified, testing should be performed under the following conditions:

Ambient temperature: 75° ± 15°F
Humidity: Up to 95%
Altitudes: Normal Pressure, Ambient

Appendix 1, paragraph 6.4 also stated that “[e]aeh unit shall be subjected to an acceptance test plan and procedure submitted by the contractor and approved by the Government.” There was no express reference to burn-in testing in Appendix 1, paragraph 6.

“Burn-in” testing, however, expressly was identified in the RFP in connection with first article testing or “FAT.” In particular, Appendix 2 required that first articles be subjected to a “failure-free 24-hour minimum burn-in.” The FAT provision further stated that “all first articles shall be repaired and retrofitted ... using the same parts, materials, and repair/retrofit processes to be employed for subsequent repair and retrofit efforts.” Finally, the FAT provision reserved the Army’s right to waive first article testing for certain offerors. It is not disputed that the Army waived FAT for both IOT and Honeywell in this case.

In addition to the foregoing provisions, Appendix 1, paragraph 2.10 established a “Workmanship” requirement which stated that the LRUs must be “repaired and retrofitted in accordance with the guidance and information contained in the equipment drawings (see Table I).” Table I, in turn, listed four drawings. The caption to Table I stated, “[ujnless otherwise specified in the [RFP], the following drawings and all associated drawings shall be used as references.” One of the drawings listed on Table I, Drawing A3060585, contained a further reference to Drawing A3060587. Paragraph 4 of that second drawing — A3060587—identified certain production-related test requirements including a “Production Run-In” and “Burn-In/Debugging.”

Finally, the RFP required offerors to submit a Quality Assurance (“QA”) Plan with their proposals. The QA provision, paragraph L-7(2)(a)(3), stated:

The offeror shall address its internal QA procedures used for controlling the quality of the contracted items. Specific elements include, but are not limited to repair, retrofit, procurement of material to support repair and retrofit, receipt and control of incoming material, metrology/calibration, burning-in of new selective parts, debugging, ... and other related functions, (emphasis added).

Two offerors, IOT and Honeywell, responded to the RFP. With regard to burn-in [68]*68testing the two offers were very different. In particular, IOT provided for burn-in testing on all repaired and retrofitted LRUs, including both first articles and all subsequent units as part of its proposed testing plan under Appendix 1, paragraph 6. Honeywell, in contrast, provided for burn-in testing only for first articles and proposed a different testing plan for all other units in response to Appendix 1, paragraph 6. IOT’s total cost proposal (not including first article testing costs) was approximately * * * million.2 Honeywell’s total cost proposal was approximately * * * million (not including first article testing costs)3.

In accordance with the RFP, both proposals were sent to the Source Selection Evaluation Board (“SSEB”) for evaluation. Before finalizing its review, the SSEB exchanged information with both offerors, but the issue of burn-in testing was never raised by either party. Because the SSEB did not consider burn-in testing to be required by the RFP, the SSEB never questioned Honeywell’s decision not to include burn-in testing for all LRUs. The SSEB ultimately gave both Honeywell and IOT “outstanding” ratings for their overall technical proposals. Indeed, IOT’s proposal to provide burn-in testing for all repaired and retrofitted units was acknowledged as a “major advantage” to IOT’s technical proposal.

The SSEB reported its final evaluations to the Contracting Officer on June 16, 1998. On June 26, 1998, the Army awarded the contract to Honeywell, finding that Honeywell’s proposal was “the best overall and most beneficial to the government.” Thereafter, pursuant to FAR § 15.506(d), IOT requested a debriefing. The debriefing occurred by telephone on July 9, 1998. At the debriefing IOT learned for the first time that the Army did not require a 24-hour burn-in test for all repaired and retrofitted LRUs. The Army then explained to IOT that it ultimately concluded that Honeywell’s overall offer was superior. The Army made its deeision by relying upon the SSEB’s Source Selection Decision Document, which stated that, “since the proposals submitted by both offerors [were] essentially equal, Honeywell’s proposal offer[ed] a better value to the Government since its price is significantly less than [IOT’s].”

On July 13,1998, IOT filed a bid protest at the General Accounting Office (“GAO”). IOT raised several arguments at the GAO hearing, including its argument that the RFP called for burn-in testing on all repaired and retrofitted LRUs. The Army disputed each of IOT’s contentions and reiterated its view that the RFP did not call for burn-in testing on all units. The GAO sustained the Army’s decision on all grounds. With regard to the burn-in issue, the GAO did not reach the merits of IOT’s argument. Rather, the GAO dismissed the claim on the ground that IOT could not show a reasonable likelihood of receiving the award because its price, even without the burn-in requirement, was more than $6 million greater than Honeywell’s price. On October 21, 1998, the GAO denied IOT’s protest.

On November 2, 1998, IOT filed a post-award bid protest in this court, seeking a preliminary and permanent injunction. Honeywell was granted leave to intervene on November 9, 1998.

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Bluebook (online)
44 Fed. Cl. 65, 1999 WL 388149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inputoutput-technology-inc-v-united-states-uscfc-1999.