Laboratory Corp. of America v. United States

108 Fed. Cl. 549, 2012 WL 6861487
CourtUnited States Court of Federal Claims
DecidedJanuary 14, 2013
Docket12-622C
StatusPublished
Cited by37 cases

This text of 108 Fed. Cl. 549 (Laboratory Corp. of America 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
Laboratory Corp. of America v. United States, 108 Fed. Cl. 549, 2012 WL 6861487 (uscfc 2013).

Opinion

Pre-award bid protest; Cross-motions for judgment on the administrative record; Standard of review — Bannum; Spoliation — GSA’s failure to maintain full record of procurement; Sanction imposed; Website information not incorporated into solicitation; Blue & Gold Fleet; Plaintiff did not waive claim that offer was timely; No patent ambiguity; Agency refusal to accept proposal was arbitrary, capricious and contrary to law; Injunction issued.

OPINION

ALLEGRA, Judge.

‘If you knew Time as well as I do, ‘ said the Hatter, ‘you wouldn’t talk about wasting IT. It’s HIM.’”

“ ‘I don’t know what you mean, ’ said Alice. ”

“ ‘Of course, you don’t, ’ the Hatter said, tossing his head contemptuously. T dare say you never even spoke to Time!’ ”

“ ‘Perhaps not, ’ Alice cautiously replied: ‘but I know I have to beat time when I learn music. ’ ”

“ ‘Ah! that accounts for it, ’ said the Hatter. ‘He won’t stand beating. Now, if you only kept on good terms with him, he’d do almost anything you liked with the clock. For instance, suppose it were nine o’clock in the morning, just time to begin lessons: you’d only have to whisper a hint to Time, and round goes the clock in a twinkling! Half-past one, time for dinner!’ 2

Defendant, regrettably, has injected an Alice-in-Wonderland quality into this preaward bid protest case. In this case, Laboratory Corporation of America (LabCorp) protests the refusal of the U.S. Department of Veterans Affairs (the VA) to accept its quotation for a blanket purchase agreement. According to the solicitation, the quotation was due on May 31, 2012, at 2:00 p.m. Central Standard Time (CST), which both parties took to mean 2:00 p.m. Central Daylight Time *554 (CDT). 3 As instructed by an amendment to the solicitation, plaintiff loaded its quotation onto the U.S. General Services Administration’s e-Buy website. At 1:03 p.m. CDT, a LabCorp employee hit the “continue” button on the website, only to receive a message that that the submission had been refused because the website was programmed to accept offers only until 2:00 p.m. Eastern Daylight Time (EDT).

In arguments worthy of the Mad Hatter, defendant now admits (begrudgingly) that the VA made a mistake — that the contracting officer never intended to adjust the time for submitting proposals when he filed the amendment to the solicitation. Nevertheless, the proposal was still properly refused, defendant contends, because, whether the contracting officer intended to or not, the amendment incorporated the website into the solicitation, which, according to defendant, displayed the time for submitting the proposals as 2:00 p.m. EDT. Hence, according to defendant, the quotation was late. Now, in fact, we do not know what LabCorp actually saw because the data corresponding to that webpage was automatically purged by the e-Buy website immediately after the closing of the procurement. True, LabCorp admits to seeing the time on its screen. But, it also indicates that, in the early afternoon of the day on which the procurement closed, it contacted the contracting officer to point out the problem with the time listed on the website, and was told that the proposals were due at the time listed in the solicitation, i.e., 2:00 p.m. CDT. Despite this communication, defendant argues that LabCorp waived its objections regarding the timeliness of its quotation because it failed effectively to object to what defendant views as a patent ambiguity stemming from the difference between the deadline in the solicitation and the time listed on the webpage LabCorp saw.

Fortunately, unlike the Mad Hatter’s unsolvable riddle for Alice (“Why is a raven like a writing desk?”), 4 the solution to defendant’s contorted arguments is readily found in the Federal Acquisition Regulations and binding precedent. Both establish that the VA’s refusal to accept plaintiffs quotation here was arbitrary, capricious, and contrary to law. For the reasons that follow, the court GRANTS plaintiffs motion for judgment on the administrative record and DENIES defendant’s cross-motion for judgment on the administrative record. An appropriate injunction is entered.

I. BACKGROUND

The administrative record in this case reveals the following:

On May 1, 2012, the VA issued Solicitation VA255-12-Q-0268 (solicitation or RFQ) for establishing a Blanket Purchase Agreement to provide laboratory testing services to the Veteran Integrated Services Network’s fifteen medical centers located in Kansas, Missouri, and Illinois. The solicitation described the due date for submitting a quotation in a box which indicated: “OFFER DUE DATE/LOCAL TIME 05-31-2012 2:00 pm CST.” 5 It said that offers would be submitted to a VA Contracting Office in Leavenworth, Kansas, but did not specify a method for submitting an offer. The VA posted the solicitation on the e-Buy website run by the General Services Administration (GSA).

On May 17, 2012, the VA amended the solicitation via Amendment P00001. The amendment indicated that “[t]he hour and date specified for receipt of Offers ... is not extended.” An addendum to the amendment provided answers to questions that had been submitted by potential offerors. One of the questions was “[sjhould proposals be uploaded in the GSA e-Buy system or submitted via email?,” to which the contracting officer responded that “[sjubmission through GSA e-Buy is required.” A second question posed was “[djoes VISN 15 require a hard copy of *555 all signed documents?,” to which the contracting officer responded, “VISN 15 will only accept documents through e-Buy.” All told, the addendum to the amendment answered eight questions.

On May 31, 2012, at 11:30 a. m. CDT, Stephen Harbaugh, a contracting specialist for LabCorp, began to upload the company’s offer onto e-Buy. At this point, he noticed, for the first time, that the e-Buy website listed the closing time for receipt of proposals as 2:00 p.m. EDT. Mr. Harbaugh experienced technical difficulties in trying to upload the offer, and, at approximately 12:10 p.m. CDT, called Sean Jackson, the contracting officer at the VA. The two discussed the fact that the e-Buy system listed the bid closing time as 2:00 p.m. EDT. Mr. Jackson confirmed that he was located in the Central Time Zone and that the bid was due at 2:00 p.m. CDT that day. 6

Notwithstanding Mr. Jackson’s representation, at 1:00 p.m. CDT (2:00 p.m. EDT), e-Buy shut down the bidding system for this solicitation. At 1:03 p.m. CDT, Michelle Bal-lentine (another LabCorp employee who had been enlisted to help upload the bid) completed uploading all of the files constituting the offer to e-Buy, and then clicked “continue” on the e-Buy screen. She received a message from e-Buy stating “Sorry, the RFQ closed on Thursday, May 31, 2012 at 2:00PM. No additional quotes can be accepted at this time.” At 1:02 p.m. CDT, Mr.

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108 Fed. Cl. 549, 2012 WL 6861487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laboratory-corp-of-america-v-united-states-uscfc-2013.