JWK International Corp. v. United States

52 Fed. Cl. 650, 2002 U.S. Claims LEXIS 123
CourtUnited States Court of Federal Claims
DecidedMay 3, 2002
DocketNo. 01-685C
StatusPublished
Cited by51 cases

This text of 52 Fed. Cl. 650 (JWK International Corp. 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
JWK International Corp. v. United States, 52 Fed. Cl. 650, 2002 U.S. Claims LEXIS 123 (uscfc 2002).

Opinion

OPINION

ALLEGRA, Judge.

This bid protest action is before the court on the parties’ cross-motions for judgment on the administrative record. In this case, defendant initiated an evaluation, under OMB Circular A-76, of whether certain services at a military base should be provided by a private contractor as opposed to government employees. As part of this process, it solicited proposals from private contractors— plaintiff was the only firm to respond to this solicitation. Plaintiff avers that defendant acted in arbitrary and capricious fashion, and otherwise contrary to law, in evaluating its proposal and conducting the A-76 process. After careful consideration of the briefs filed by the parties, the oral argument, and for the reasons discussed below, the court DENIES plaintiffs motion for judgment on the administrative record and GRANTS defendant’s cross-motion for judgment on the administrative record.

I. BACKGROUND

On December 21, 2000, the Naval Facilities Engineering Command (NFEC) issued Solicitation Number N62470-00-R-5205 (the Solicitation), seeking proposals for the performance of maintenance and motor transport services at Marine Corps Air Station Cherry Point (Cherry Point) in Havelock, North Car-[652]*652olma. The Navy issued the Solicitation in support of a cost comparison study it was conducting under OMB Circular A-76 and 32 C.F.R. § 169a.l5(d) (2001).2 The Solicitation envisioned a negotiated procurement and, toward that end, sought cost comparison information for an array of services3 to be provided at up to nine different sites in the Cherry Point area. It proposed a contract with a base period of one year and a maximum of two one-year options. The Solicitation cautioned that: “The Government intends to evaluate proposals and award a contract without discussions with offerors (except clarifications as described in FAR 15.306(a)). Therefore the offeror’s initial proposal should contain the offeror’s best terms from a cost or price and technical standpoint.”

The Source Selection Plan (the Plan) described the process the NFEC was to use in reviewing proposals received in response to the Solicitation. Consistent with the A-76 Circular, the Plan first required the NFEC to assess and evaluate the commercial sector proposals. The best of the commercial proposals would then be compared to the government’s most efficient organization (MEO). Responsibility for conducting the initial review of the commercial proposals was split between two boards. A Technical Evaluation Board (TEB) was to evaluate the offeror’s technical and management proposals, as well as its past performance and corporate experience, while a Price Evaluation Board (PEB) conducted a review of the price offered. Under the Solicitation, the two factors reviewed by the TEB were approximately equal in weight to each other and, when combined, were of equal importance to price. Paragraph VIII of the Plan indicated that “[a]n ■unacceptable rating for either the technical and management factor or the past performance and corporate experience factor will constitute an unacceptable rating for the entire technical proposal.”

The TEB and the PEB were to conduct their reviews separately, but concurrently, and then submit separate reports to the Source Selection Board (SSB). After reviewing these reports, the SSB was to recommend to the Source Selection Authority (SSA) the action to be taken on the proposal. The function of the SSB also included determining whether to conduct any further information exchanges (e.g., clarifications or discussions) with offerors. The ultimate selection of the successful commercial offeror was to be made by the SSA, who would then compare that proposal with the MEO. The SSA also appointed the members of the SSB, TEB, and PEB. The final member of the source selection team was the Contracting Officer (CO), who was responsible for conducting any exchanges deemed appropriate by the SSB and for implementing the final decision of the SSA.

On September 24, 2001, JWK International Corporation (JWK), a minority-owned small business, submitted an initial private sector competitive proposal in response to the Solicitation — the only proposal received. The TEB report, submitted October 31, 2001, assessed JWK’s technical and management proposal as poor with high risk for the government. For both of the key factors reviewed, the TEB identified numerous specific weaknesses (instances where the proposed methods were less than desirable) and deficiencies (instances where the proposal did not conform with the solicitation requirements). For example, the report identified 10 weaknesses and 7 deficiencies in connee[653]*653tion with JWK’s proposed staffing plan and organizational chart. These included failing to identify overhead/support personnel and fully allocate equipment, as well as under-staffing certain key functions, including operating the central heating plant and conducting necessary safety and environmental protection programs. Overall, the TEB report identified 68 weaknesses, 19 deficiencies and 12 unsubstantiated strengths (favorable assertions made by the offeror with no supporting data provided) in JWK’s technical proposal.

The TEB also reviewed references submitted by JWK to ascertain its past performance and corporate experience. In accordance with the Solicitation, the desired focus was on contracts similar in magnitude and complexity to that anticipated by the Solicitation, in which the work was similar in type, volume and quantity to that being sought. The TEB, however, determined that none of the references JWK submitted were relevant in size or scope to assessing its past performance experience and corporate experience. In this regard, its report stated:

Of the four contracts submitted by JWK, none of the four are considered particularly relevant. They appear to range from $600K/year to $8M/year. The offeror’s largest project they offer as a prime contractor is slightly less than half the size of our project. In the smallest contract ($600K/yr), JWK performs services similar to our housing requirements but only at 246 houses which is less than 10% of our the houses in our contract. In their largest contract ($81V17yr at 7 bases in Korea), they appear to have performed some of the same type of work (HVAC, boilers, QC, grounds maintenance, generator maintenance, Motor T work). However, the of-feror has not provided sufficient information to convince the TEB that the work is really similar to the work in our project (size and capacities of equipment, limits of liabilities, etc.). For example, the three boilers operated in Korea together are smaller than one boiler at the CHP in our solicitation. The offeror also did not provide sufficient information to show how some of the other work that they mention in their brief narrative (such as runway lighting, pavement sweeping, HVAC, boilers) might be like the work at MCAS Cherry Point.

The TEB also noted that the evaluations submitted by JWK’s previous customers showed performance problems. Hence, JWK received a “poor” rating from the TEB for both past performance experience and relevant corporate experience.4

JWK’s cost proposal fared no better with the PEB. The PEB determined that JWK’s proposal suggested that it had misconstrued the Solicitation. Discrepancies occurred within the line items for specific tasks, typically involving the number of labor hours allocated5 and the direct material costs anticipated.6

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Cite This Page — Counsel Stack

Bluebook (online)
52 Fed. Cl. 650, 2002 U.S. Claims LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jwk-international-corp-v-united-states-uscfc-2002.