J & H Reinforcing & Structural Erectors, Inc. v. United States

50 Fed. Cl. 570, 2001 U.S. Claims LEXIS 199, 2001 WL 1265393
CourtUnited States Court of Federal Claims
DecidedOctober 19, 2001
DocketNo. 01-546C
StatusPublished
Cited by2 cases

This text of 50 Fed. Cl. 570 (J & H Reinforcing & Structural Erectors, 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
J & H Reinforcing & Structural Erectors, Inc. v. United States, 50 Fed. Cl. 570, 2001 U.S. Claims LEXIS 199, 2001 WL 1265393 (uscfc 2001).

Opinion

OPINION

MILLER, Judge.

This post-award bid protest is before the court after argument on defendant’s motion for summary judgment. A contractor challenges award of a sealed-bid contract. The issue to be decided is whether the solicitation itself and/or the contracting officer, through other contracting personnel, misled plaintiff into believing that the solicitation was a special set-aside, thus preventing the contractor from filing a timely complaint in federal district court claiming that, at the outset, the solicitation should have been issued a set-aside.

FACTS

1. Regulatory background

In 1997 Congress passed the Historically Underutilized Business Zone (“HUBZone”) Act, Pub.L. No. 105-135, §§ 601-607, 111 Stat. 2592, 2627-36 (codified at 15 U.S.C. § 657a (1994 & Supp. V 1999)). The Act established the HUBZone program, the purpose of which “is to a provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones, in an effort to increase employment opportunities, investment, and economic development in those areas.” 48 C.F.R. (FAR) § 19.1301(b) (2000). The Small Business Administration (the “SBA”) is responsible for certifying qualified firms as HUBZone small business concerns (“HUBZone businesses”). FAR § 19.1303(a). Once a firm is HUBZone certified and its name appears on the SBA’s List of Qualified HUBZone Small Business Concerns, the firm is eligible for HUBZone program preferences. FAR § 19.1303(b).

The HUBZone program provides three mutually exclusive measures to assist HUBZone businesses obtain federal contracts: 1 (1) HUBZone set-asides; (2) HUBZone sole source awards;2 and (3) HUBZone price evaluation preferences. FAR §§ 19.1305-07. Under the set-aside procedures, where the contracting officer has a reasonable expectation that (1) two or more HUBZone businesses will submit offers, and (2) award will be made at a fair market price, [572]*572the contracting officer “shall” set the acquisition aside, restricting competition to HUBZone businesses. FAR § 19.1305(a), (b). When a competition is set aside for HUBZone businesses, the contracting officer must so specify in the solicitation by inserting FAR clause 52.219-3, Notice of Total HUBZone Set-Aside. FAR § 19.1308(a).

Alternatively, the contracting officer may give HUBZone businesses price preferences. In full and open competitions, the “contracting officer shall give offers from HUBZone small business concerns a price evaluation preference by adding a factor of 10 percent to all offers, except ... [those from other small business concerns.]” FAR § 19.1307(a), (b). When acquisitions are made on the basis of full and open competition, the contacting officer must insert into the solicitation, the clause at FAR § 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns. FAR § 19.1308(b).

2. The solicitation

The facts are drawn from the administrative record and the pleadings on file. J & H Reinforcing and Structural Erectors, Inc. (“plaintiff’), is a HUBZone-certified construction company. On September 26, 2001, plaintiff filed this suit protesting the U.S. Department of Agriculture, Forest Service’s (the “Forest Service”) award of the Vesuvius Dam rehabilitation project to T-C, Inc. (“in-tervenor”). Plaintiff seeks preliminary and permanent injunctions halting contract performance and terminating the present contract, as well as an order awarding plaintiff the contract or an order mandating that the solicitation be re-bid and set aside for HUBZone businesses.

The Forest Service’s rehabilitation project consists of several structural improvements to the Vesuvius Dam, including installation of roller compacted concrete on the dam’s crest and downstream face, removal and replacement of dam topsoil, and removal and reconstruction of the dam’s concrete spillway. The project also entails replacing two pedestrian bridges.

On April 2, 2001, the Forest Service published a notice in the Commerce Business Daily (the “CBD”) announcing that the Wayne National Forest anticipated contracting for rehabilitation of the Vesuvius Dam. The notice described the project’s requirements and stated: “All responsible sources may submit a bid for consideration.” Aso on April 2, 2001, the contracting officer sent a letter to several prospective offerors, which contained the same information sent out in the CBD, notifying the offerors of the anticipated solicitation. The letter stated: “A1 responsible offerors may receive an Invitation for Bids.”

The Forest Service issued Solicitation R9-21-01-19 on April 23, 2001. The solicitation was consistent with the CBD notice in its work performance requirements. Box 25 of the solicitation indicated that competition would be pursuant to full and open competition and that the solicitation was not a sole-source procurement.

The solicitation referred to HUBZone set-asides and preferences. Solicitation section I incorporates into the contract specified FAR clauses. Section 1.2 refers to FAR § 52.212-5, Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items, which incorporates by reference several other FAR clauses. As it appears in the solicitation, FAR § 52.212-5(a) states: “The Contractor shall comply with the following FAR clauses, which are incorporated in this contract by reference ...” and lists two FAR clauses. FAR § 52.212-5(b) states: “The Contractor shall comply with the FAR clauses in this paragraph (b) which the Contracting Officer has indicated as being incorporated in the contract by reference____” (Emphasis added.) The solicitation then lists 28 FAR clauses, several of which, as plaintiff admits, are “mutually exclusive.” Pl.’s Statement of Genuine Issues filed Oct. 10, 2001, H17. Included in this list are FAR § 52.219-3, Notice of HUBZone Small Business Set-Aside; FAR § 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns; FAR § 52.219-5, Very Small Business Set-Aside; and, FAR § 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns.

[573]*573FAR § 52.212-5(b) was reprinted in its entirety in the solicitation, with the exception of one bracketed sentence, “[Contracting Officer must check as appropriate.],” which appears above the list of FAR clauses. Also not reproduced in the solicitation are the blank lines that appear in the regulation on which the contracting officer is to indicate which of the 28 clauses apply. The contracting officer thus is required to place a check on the lines next to those FAR clauses that she intends to incorporate into the contract. In the present solicitation, absent along with the instructive sentence and the blank lines are checks indicating that any of the listed FAR clauses has been incorporated.

Contracting Officer Mary E. Saint Louis held a pre-bid meeting on May 2, 2001, during which she was asked whether the project would be set aside for HUBZone businesses. Ms. Saint Louis responded, “No,” without further explanation. Plaintiff did not attend this meeting.

Following the pre-bid meeting, the solicitation was twice amended. The first amendment, issued on May 7, 2001, contained two lists: a Planholders List and a list of those firms and individuals present at the pre-bid conference.

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Bluebook (online)
50 Fed. Cl. 570, 2001 U.S. Claims LEXIS 199, 2001 WL 1265393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-h-reinforcing-structural-erectors-inc-v-united-states-uscfc-2001.