J.C.N. Construction, Inc. v. United States

107 Fed. Cl. 503, 2012 U.S. Claims LEXIS 1361, 2012 WL 5395889
CourtUnited States Court of Federal Claims
DecidedOctober 29, 2012
DocketNo. 12-353C
StatusPublished
Cited by19 cases

This text of 107 Fed. Cl. 503 (J.C.N. Construction, 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.C.N. Construction, Inc. v. United States, 107 Fed. Cl. 503, 2012 U.S. Claims LEXIS 1361, 2012 WL 5395889 (uscfc 2012).

Opinion

OPINION AND ORDER1

LETTOW, Judge.

This post-award bid protest is before the court on plaintiffs motion for judgment upon [507]*507the administrative record and the government’s cross-motion for judgment. Plaintiff, J.C.N. Construction, Inc. (“JCN”), contends that the United States Postal Service (“Postal Service” or the “agency”) improperly evaluated proposals in connection with the award of a firm, fixed-price contract for replacement of the heating, ventilation, and air conditioning system (“HVAC system”) in the principal post office in Portland, Maine. See Mem. in Support of PL’s Mot. for Permanent Injunctive Relief, Declaratory Relief and Judgment on the Admin. Record (“Pl.’s Mem.”) at 1-2. Specifically, JCN claims that the Postal Service treated offerors unfairly by allowing the chosen offeror, Paul J. Rogan Co., Inc. (“Rogan”), to have inside information concerning the scope and timing of work to be performed, misapplying the solicitation evaluation criteria, and providing an improper advantage to Rogan by breaching its implied duty to consider proposals fairly and honestly in an earlier solicitation for the same work. See id.

FACTS2

A. The First Solicitation

In preparing to award a contract to replace the HVAC system at the Postal Service’s main office in Portland, Maine, a 250,000-square-foot facility, the agency first solicited bids and proposals for the award on July 1, 2011. See AR 1-2.3 That solicitation, No. 082530-1l-A-0042 (“Solicitation I”), was issued by its Northeast Facilities Service Office, located in Connecticut. Id. Besides detailed design drawings, the solicitation set forth a summary of the scope of work to be performed, including removal of asbestos and the replacement and maintenance of the post office’s HVAC system, AR 1-54, as well as a phasing schedule that suggested the order in which the work should be performed, AR 1-699; see also AR 1-14 (stating that the offeror could suggest an “ ‘alternate’ proposal with a revised performance time, shorter or longer” to the Postal Service). Proposals were due August 2, 2011, AR 1-2, and the contract was to be awarded to “the firm providing the best value based on the combination of qualifications provided in the [firm’s required] Qualification Statement and the contractor’s cost proposal.” AR 1-379. The Qualification Statement consisted of three parts: the contractor’s experience, as evidenced by its completion of at least two comparable projects within the previous five years; its bonding capability; and its safety record. AR 1-379 to -83. The solicitation stated that “[o]ffers or modifications of offers received at the address specified for the receipt of offers after the exact time specified for receipt of offers will not be considered unless determined to be in the best interests of the Postal Service.” AR 1-12.4

[508]*508JCN submitted its bid of $2,624,370 and other required materials, on August 2, 2011. AR 3-811. Rogan submitted its proposal, with a price of $2,683,488 on August 1, 2011. AR 2-758. On August 3, 2011, one day after the solicitation had closed, Rogan, however, submitted via facsimile, a bid adjustment that lowered its price by $60,000 — to $2,623,-488 — which was $882 less than JCN’s bid. AR 8-963 to -64. The Postal Service thereafter awarded the contract (“Contract I”) to Rogan, ranking the firm’s proposal as the “best value” for the Service. AR 10-985; see also AR 11-986.

JCN was notified of the award on September 9, 2011. AR 13-1007. Soon after, it began the process of disputing the award with the Northeast Facilities Service Office, orally and in writing. AR 15-1013; AR 18-1021 to -25. After receiving no ameliorating responses from the contracting officer at that office, on October 7, 2011, JCN lodged an appeal with the Postal Service’s supplier disagreement resolution division in Washington, D.C. AR 20-1031 to -35. In the appeal, JCN alleged that Solicitation I was not conducted properly because (1) the agency inadequately “debriefed” JCN after the contract was awarded; (2) the “slight price discrepancy” of $882 between JCN’s and Rogan’s bids made it likely “that discussions between [the Postal Service] and Rogan [had] occurred subsequent to proposal submission;” (3) the Postal Service conducted an improper evaluation of JCN because it “did not consider all aspects of JCN’s technical proposal;” and (4) the Postal Service awarded Rogan the contract even though “JCN believefd] that Ro-gan [could not] comply with the requirement to directly perform 12% of the [c]ontraet work.” AR 20-1033 to-34.

JCN’s appeal was sustained on October 19, 2011 by the Postal Service’s Supplier Disagreement Resolution Official Trent Ensley, who found that “the evaluation of offers does not appear to have been conducted in accordance with the terms of the solicitation and does not appear to have been properly documented.” AR 25-1049. He ordered the Northeast Facilities Service Office to “conduct a new evaluation of all of the offers received in a manner that is consistent with the solicitation’s stated evaluation criteria to determine which offer presents the best value to the Postal Service.” Id.

The Postal Service reevaluated the proposals, see AR 26-1050 to -79, and again awarded the contract to Rogan. See AR 27-1080; see also AR 28-1081. JCN repeated the appeal process. This time, it alleged that (1) officials of the Postal Service had provided JCN’s bid price to Rogan, allowing Rogan to underbid JCN by a very slight amount, and (2) the Postal Service did not conduct a proper reevaluation of the proposals. AR 36-1094 to -95. Mr. Ensley again suspended the contract on December 6, 2011, and asked the Northeast Facilities Service Office to inform interested parties — “actual or prospective offerors whose direct economic interests would be affected by the award of, or failure to award, the contract” — of JCN’s appeal, but cautioned “not [to] send a copy of the disagreement or any additional material to the interested parties.” AR 40-1120. That same day, the Postal Service issued to Rogan a notification of the suspension, providing a communication that made no mention of the details of JCN’s allegations. AR 41-1121. Three days later, Rogan sent a letter to Mr. Ensley, commenting that the company “thought it might be appropriate at this time to explain [its] normal procedure for bidding local Postal Service projects that require the bid to be submitted [to the Northeast Facilities Service Office in Connecticut].” AR 42-1126. According to the letter, Rogan customarily provides the Postal Service with a bid package that includes “budgeted] values,” but completes the final bid package “almost always after the bid time ... [and] then send[s] the face of the bid via fax to the Postal Service with the appropriate add or deduct, if needed, which represents [its] hard bid final price.” AR 42-1126 to -27. Rogan added that “[t]he procedure is a one[-]sided exercise” in which it “is not in contact with the Postal Service in any way.” AR 42-1127.

On December 13, 2011, Mr. Ensley issued a decision to terminate the first contract, finding that neither Rogan nor JCN submitted “information establishing that they met [509]*509the Minimum Company Performance Requirements,” thus raising “serious doubts as to whether the evaluation team conducted an effective evaluation, either in the initial evaluation or the reevaluation.” AR 43-1130 to - 31. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
107 Fed. Cl. 503, 2012 U.S. Claims LEXIS 1361, 2012 WL 5395889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jcn-construction-inc-v-united-states-uscfc-2012.