L3 Technologies, Inc. Communication Systems-West v. United States

CourtUnited States Court of Federal Claims
DecidedJuly 22, 2022
Docket21-1819
StatusPublished

This text of L3 Technologies, Inc. Communication Systems-West v. United States (L3 Technologies, Inc. Communication Systems-West 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
L3 Technologies, Inc. Communication Systems-West v. United States, (uscfc 2022).

Opinion

In the United States Court of Federal Claims No. 21-1819C Filed: January 31, 2022 Redacted Version Issued for Publication: July 22, 20221

* * * * * * * * * * * * * * * * ** * L3 TECHNOLOGIES, INC. * COMMUNICATION SYSTEMS-WEST, * * Protestor, * v. * * UNITED STATES, * Defendant, * * * v. NORTHROP GRUMMAN SYSTEMS * CORPORATION, * Defendant-Intervenor. * * * * * * * * * * * * * * * * * ** * Craig A. Holman, Arnold & Porter Kaye Scholer LLP, Washington, DC, for protestor. With him were Mark D. Colley, Kara L. Daniels, Michael D. McGill, Thomas A. Pettit, Trevor G. Schmitt, and Aime JH Joo, Arnold & Porter Kaye Scholer LLP, Washington, DC. Steven M. Mager, Senior Trial Counsel, Department of Justice, Commercial Litigation Branch, Civil Division, Washington, DC, for defendant. With him were Douglas K. Mickle J., Assistant Director, Commercial Litigation Branch, Patricia M. McCarthy, Director, Commercial Litigation Branch, and Brian M. Boynton, Acting Assistant Attorney General, Civil Division. Theresa M. Francis and Thy Nguyen, Department of the Navy, of counsel. Jason A. Carey, Covington & Burling LLP, Washington, DC, for intervenor. With him were Kayleigh M. Scalzo, J. Hunter Bennett, Andrew R. Guy, Peter B. Terenzio III, and Paul Rowley, Covington & Burling LLP, Washington, DC.

1 This Opinion was issued under seal on January 31, 2022. The parties were asked to propose redactions prior to public release of the Opinion. This Opinion is issued with the redactions that the parties proposed in response to the court’s request. Words which are redacted are reflected with the notation: “[redacted].” The delay in publication of the redacted Opinion was due to related court proceedings. OPINION HORN, J. In the above-captioned bid protest, protestor L3 Technologies, Inc. Communication Systems-West (L3Harris CSW) “challenges the implementation by the Department of the Navy, Naval Air Systems Command of an arbitrary U[nited] S[tates] Government Accountability Office [GAO] decision. The GAO decision, in violation of procurement law and without reasoned basis, sustains, in part, the procedurally and substantively deficient bid protests of Northrop Grumman Systems Corporation-Mission Systems against the lawful Navy awards to L3Harris CSW . . . under Solicitation Nos. N00019-19-R0069 and N00019-19-R0069-A.” (internal references omitted). As discussed below, the Navy declined to fully implement the GAO recommendations, specifically declining to re-open discussions, request revised proposals, evaluate proposals consistent with the evaluation criteria, and make a new source selection decision. L3Harris CSW had filed a bid protest in this court prior to the Navy’s final decision to proceed with its original awards to L3Harris CSW. Thereafter, defendant and intervenor, Northrop Grumman Systems Corp. (Northrop), filed motions to dismiss L3Harris CSW’s protest as lacking standing and as moot.

FINDINGS OF FACT The procurements at issue in this protest have a lengthy procedural history, only some of which is relevant to the motions to dismiss currently under review in this protest and this Opinion. Therefore, only the following limited facts are included below.

By way of background, the GAO explained:

On November 17, 2017, the Navy issued a broad agency announcement (BAA) No. N0019-18-R-0008 for the award of demonstration of existing technologies (DET) contracts to gather information for development . . . . In October 2018, the agency awarded two DET contracts, one to Northrop and a second to L3 Technologies, Inc. . . . The data gathered from both DET contracts aided the Navy in drafting specifications for the NGJ-LB CB-1 procurement at issue in this case. While the contractors were performing the DET contracts, the Navy began drafting the CB-1 specifications. To that end, on May 15, 2019, the Navy released a request for information (RFI) to industry, describing the NGJ-LB program and draft requirements. The RFI was part of the Navy’s market research to evaluate the feasibility of conducting an unrestricted procurement, as well as its continued pursuit of data for the development of the CB-1 specifications.

Northrop Grumman Sys. Corp.--Mission Sys., B-419560.3, 2021 WL 4054164, at *1 (Comp. Gen. Aug. 18, 2021) (footnotes and internal references omitted).

2 On September 9, 2019, the Navy issued Solicitation No. N00019-19-R0069 (CB-1 RFP),2 for the design, development, and manufacture of prototypes for the Navy. As noted by the GAO, “[t]he resulting contract will require the successful firm to ‘design, develop, build, integrate, test, and maintain’ operational prototypes” for the Navy. Id.

The CB-1 RFP contemplated “the award of a single cost-plus-incentive-fee contract to the offeror that provides the best value to the government considering two factors: technical and cost.” id., and with the Technical factor being significantly more important than the Cost factor. The winning proposal, according to the CB-1 RFP, “must demonstrate to the Government’s satisfaction that the Offeror will provide a program that will ensure the successful accomplishment of the solicitation requirements and overall program objectives.”

The Technical factor consisted of eleven elements that “are not individually weighted and will be evaluated as a whole.” The CB-1 RFP described the Technical Rating as “an assessment of compliance with the solicitation requirements and merit which considers the benefits and detriments related to program performance and operations.”

The CB-1 RFP also provided that the “[f]ailure to address part or parts of the technical factor caused by a lack of information may be assessed as a weakness, significant weakness or multiple significant weaknesses,” and a “combination of significant weaknesses that increase the risk of unsuccessful contract performance to an unacceptable level may be considered a deficiency.” “The Cost factor included a determination of total evaluated cost, which would be calculated by adding together various cost plus incentive fee and firm fixed price CLINs, plus the total evaluated cost from the RFP addendum.”

Two offerors, the protestor L3Harris CSW and the intervenor Northrop, submitted proposals in response to the CB-1 RFP and the Addendum RFP, and on February 25, 2020, the Navy established a competitive range that included both L3Harris CSW and Northrop. As indicated in the protestor’s complaint: “Between February 2020 and October 2020, the Agency conducted ten rounds of discussions with L3Harris CSW and Northrop, issuing a total of 971 evaluation notices (‘ENs’) ‘with an additional 350 ENs issued for the’ Addendum RFP and requesting multiple revised proposals. The Agency closed discussions on October 29, 2020.” Subsequently on November 5, 2020, L3Harris CSW and Northrop submitted their final proposal revisions.

2 The parties, as well as the GAO, refer to Solicitation No. N00019-19-R0069 as “CB-1 RFP.” Similarly, the parties and the GAO refer to Solicitation No. N00019-19-R0069-A as the “Addendum RFP.” The court adopts the same terminology in this Opinion, and refers to Solicitation No. N00019-19-R0069 as the CB-1 RFP, and Solicitation No. N00019-19- R0069-A as the Addendum RFP. The GAO noted that the Navy issued the Addendum RFP as a separate solicitation; “however, the RFP provided that the Navy would award contracts for the CB-1 RFP and the Addendum RFP to one offeror.” Northrop Grumman Sys. Corp.--Mission Sys., 2021 WL 4054164, at *1. 3 In the January 21, 2021 debriefing the Navy provided the following chart comparing the L3Harris CSW and Northrop proposals:

Factor L3Haris CSW Northrop

Rating Outstanding Unacceptable Technical Risk Moderate Unacceptable

Price $544.4 Million $496.0 Million

Terms and Conditions No issues No issues

Awardability Awardable Not Awardable

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hertz Corp. v. Friend
559 U.S. 77 (Supreme Court, 2010)
County of Los Angeles v. Davis
440 U.S. 625 (Supreme Court, 1979)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
United States v. Cotton
535 U.S. 625 (Supreme Court, 2002)
Arbaugh v. Y & H Corp.
546 U.S. 500 (Supreme Court, 2006)
Abraxis Bioscience, Inc. v. NAVINTA LLC
625 F.3d 1359 (Federal Circuit, 2010)
Henderson v. Shinseki
131 S. Ct. 1197 (Supreme Court, 2011)
Labatt Food Service, Inc. v. United States
577 F.3d 1375 (Federal Circuit, 2009)
Weeks Marine, Inc. v. United States
575 F.3d 1352 (Federal Circuit, 2009)
Rick's Mishroom Service, Inc. v. United States
521 F.3d 1338 (Federal Circuit, 2008)
Rex Service Corp. v. United States
448 F.3d 1305 (Federal Circuit, 2006)
Ingersoll-Rand Company v. United States
780 F.2d 74 (D.C. Circuit, 1985)
Todd Construction, L.P. v. United States
656 F.3d 1306 (Federal Circuit, 2011)
Digitalis Education Solutions, Inc. v. United States
664 F.3d 1380 (Federal Circuit, 2012)
Pikulin v. United States
425 F. App'x 902 (Federal Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
L3 Technologies, Inc. Communication Systems-West v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l3-technologies-inc-communication-systems-west-v-united-states-uscfc-2022.