L-3 Communications Integrated Systems, L.P. v. United States

91 Fed. Cl. 347, 2010 WL 605161
CourtUnited States Court of Federal Claims
DecidedFebruary 16, 2010
DocketNo. 06-396C
StatusPublished
Cited by30 cases

This text of 91 Fed. Cl. 347 (L-3 Communications Integrated Systems, L.P. 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
L-3 Communications Integrated Systems, L.P. v. United States, 91 Fed. Cl. 347, 2010 WL 605161 (uscfc 2010).

Opinion

OPINION AND ORDER GRANTING IN PART PLAINTIFF’S RENEWED MOTION TO SUPPLEMENT THE ADMINISTRATIVE RECORD

MARY ELLEN COSTER WILLIAMS, Judge.

In this post-award bid protest, L-3 Communications Integrated Systems, L.P. (“L-3”) challenges the Air Force’s award of two contracts to Lockheed Martin Aeronautics Company (“Lockheed Martin”) to modernize the C-5 Galaxy aircraft (“C-5 AMP”), and seeks its bid preparation and proposal costs.2 This protest was filed in the wake of the former Principal Deputy Secretary of the Air Force’s conviction for violating conflict of interest laws. Specifically, the former Principal Deputy Secretary, Darleen Druyun, admitted that she allowed her personal interest to influence her procurement decisions with respect to the Boeing Company' — she, her daughter and son-in-law negotiated for employment with Boeing while she was a top Air Force procurement official.3

Plaintiff has raised several grounds of protest, claiming that through Druyun’s unauthorized assumption of the SSA duties and her change of evaluation ratings to justify the selection of Lockheed Martin’s higher cost proposal, the Air Force improperly compromised the integrity of the procurement process, breached its implied contract to treat proposals fairly, honestly, and in good faith, and violated a panoply of procurement statutes and regulations.4 L-3 further [351]*351claims that Druyun was biased in favor of Lockheed Martin and acted in bad faith in the C-5 AMP procurement. Finally, L-3 asserts that the Air Force acted arbitrarily and capriciously in making award to Lockheed Martin.

This matter comes before the Court on Plaintiffs renewed motion to supplement the administrative record (“AR”). At issue are 40 documents which Plaintiff asserts are necessary for the Court to adjudicate claims of bad faith, bias, and regulatory violations in the C-5 AMP procurement.5

For the reasons stated below, the Court grants Plaintiffs motion in part.

Background6

On August 18, 1998, the United States Air Force issued solicitation number F33657-98-R0006, requesting proposals to assist with a program to modernize the C-5 Galaxy aircraft. Am. Compl. ¶ 2. More specifically, the solicitation sought proposals for the Engineering and Manufacturing Development (“EMD”) and Contractor Operated Supply Support (“COSS”) phases of the C-5 Avionics Modernization Program (“C-5 AMP”). Id. The C-5 AMP had two components: the All-Weather Flight Control System and Global Air Traffic Management compliance. L-3’s predecessor-in-interest, Raytheon E-Systems Inc. (“Raytheon”), and Lockheed Martin were the only contractors that submitted proposals. Am. Compl. ¶3.

On January 22, 1999, the Air Force informed Raytheon that the C-5 AMP contracts had been awarded to Lockheed Martin. On January 28, 1999, the Air Force provided a debriefing to Raytheon at its plant. Raytheon was advised at the debriefing that Darleen Druyun, then the Principal Deputy Assistant Secretary of the Air Force Acquisition and Management,7 acted as the Source Selection Authority (“SSA”) for the C-5 AMP acquisition. Am. Compl. ¶¶ 6-7. As the SSA, Druyun was responsible for the proper and efficient conduct of the entire source selection process encompassing proposal solicitation, evaluation, selection, and contract award.

During the summer of 2002, Druyun “ ‘reached the decision that she would retire from the Air Force late that year.’ ” 79 Fed. Cl. at 457 (quoting J.A at 59). She did not disclose her decision publicly. In order to explore employment opportunities, Druyun [352]*352disqualified herself in writing from all Air Force matters involving Lockheed Martin and Raytheon on August 26, 2002. Id. Dru-yun then entered into discussions with Lockheed Martin, resulting in her verbal agreement to accept a position at Lockheed Martin which would begin after her retirement. Am. Compl. ¶ 14; J.A. at 60. Plaintiff alleged that Druyun had a prior history of dealings with Lockheed Martin, citing her involvement in the 1999 $10.1 billion public-private partnership between Lockheed Martin and the Air Force’s Oklahoma City depot for engine repair work, her 1999 advocacy of the F/A-22 manufactured by Lockheed, and her 2001 supervision of the award of a $200 billion contract to Lockheed Martin, over its competitor, Boeing, to produce the F-35 Joint Strike Fighter Aircraft. An. Compl. ¶¶ 11-13.

Between September and November, 2002, Druyun, unbeknownst to the Mr Force, engaged in private discussions with a senior Boeing employee regarding her future employment by that company. Am. Compl. ¶ 14; J.A. at 60. While these meetings with Boeing were tailing place, Druyun was overseeing Mr Force negotiations with Boeing to lease 100 Boeing KC-767A tanker aircraft. J.A. at 60. Subsequently, on November 5, 2002, Druyun disqualified herself from any matters involving Boeing and advised the Mr Force that she intended to enter into employment negotiations with Boeing. J.A. at 67. Druyun retired from the Mr Force in November, 2002, and began working for Boeing on January 2, 2003. J.A. at 68.

On April 20, 2004, Druyun pled guilty to conspiring to violate 18 U.S.C. § 208(a). Am. Compl. ¶ 16. At the sentencing hearing on October 1, 2004, the judge found that Druyun breached her original plea agreement “by not providing full, complete and truthful cooperation as required by that plea agreement,” and said that Druyun was “less than candid” and “that came out, in part, because she was polygraphed.” J.A. at 85, 92. The Court sentenced Druyun to nine months in prison, followed by seven months of community confinement, and imposed a $5,000 fine. J.A at 104.

Once the Mr Force was made aware of Druyun’s improper personal negotiations with Boeing, the Acting Under Secretary of Defense for Acquisition, Technology, and Logistics commissioned a study of all acquisitions involving Druyun during her nine years as the Mr Force’s top civilian acquisition official. Am. Compl. ¶ 22; 79 Fed.Cl. at 458; A Report to the Under Secretary of Defense for Acquisition, Technology and Logistics, The Druyun Study, February 2005 (“The Druyun Study”) at 2. The purpose of this Druyun Study was to identify all acquisition actions involving Druyun that might warrant investigation. The Druyun Study at 9. The Study, which was conducted from December 2004 to February 2005, examined 407 acquisitions. Id. at 1, 13. Ultimately, the Study concluded that of those 407 acquisitions, eight, including the C-5 AMP procurement at issue here, were “anomalies” that required further investigation. Id. at 1.

The Acting Under Secretary of Defense for Acquisition, Technology, and Logistics then requested that the Department of Defense Inspector General review these eight actions for further investigation. Under Secretary of Defense, Memorandum for Inspector General of the Department of Defense, Referral of Contracts for Review, Feb. 11, 2005 at 1. On February 28, 2006, the IG published his report on the source selection procedures for the C-5 AMP. Dep’t of Def., Office of Inspector General, Acquisition Management: Source Selection Procedures for the C-5 Avionics Modernization Program, (February 28, 2006) (“The Inspector General’s Report”).

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Cite This Page — Counsel Stack

Bluebook (online)
91 Fed. Cl. 347, 2010 WL 605161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-3-communications-integrated-systems-lp-v-united-states-uscfc-2010.