Limco Airepair, Inc. v. United States

130 Fed. Cl. 544, 2017 U.S. Claims LEXIS 93, 2017 WL 606019
CourtUnited States Court of Federal Claims
DecidedFebruary 2, 2017
Docket16-1576C
StatusPublished
Cited by21 cases

This text of 130 Fed. Cl. 544 (Limco Airepair, 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
Limco Airepair, Inc. v. United States, 130 Fed. Cl. 544, 2017 U.S. Claims LEXIS 93, 2017 WL 606019 (uscfc 2017).

Opinion

Post-Award Bid Protest; Judgment upon the Administrative Record, RCFC 52.1; Price Realism Analysis; Ex Parte Communication.

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, Limco Airepair, Inc. (“Limco”), brought this post-award bid protest matter challenging the United States Ail' Force’s (“Air Force”) decision to award a contract for the remanufacture of F-16 heat exchangers to Wall Colmonoy Corporation (“WCC”). Limco has moved for judgment upon the administrative record, pursuant to Rule 52.1 of the Rules of the United States Court of Federal Claims (“RCFC”). The government and WCC have also moved for judgment upon the administrative record, pursuant to RCFC 52.1. For the reasons set forth below, the Court (1) DENIES Limco’s motion for judgment upon the administrative record; (2) GRANTS the government’s motion for judgment upon the administrative record; and (3) *547 GRANTS WCC’s motion for judgment upon the administrative record.

II. FACTUAL AND PROCEDURAL BACKGROUND 1

A. Factual Background

In this post-award bid protest matter, Limco challenges the Air Force’s decision to award a contract for the remanufacture of F-16 heat exchangers (“Contract”) to WCC. See generally Am. Compl. Limco asserts that the Air Force (1) failed to perform a price realism analysis of WCC’s proposed price, as was required by the Solicitation, and (2) engaged in ex parte communication with WCC, resulting in an unlevel playing field that prejudiced Limco. See id; Tr. at 7:4-6,12:17-23.

Limco seeks declaratory and injunctive relief. PI. Mot. at 19-20. Namely, Limco requests that the Court declare the Air Force’s award to WCC arbitrary, capricious, an abuse of discretion and contrary to law. Id. at 20. In addition, Limco requests the Court: (1) enjoin the Air Force from continuing performance under the Contract; (2) require the Air Force to amend the Solicitation and to provide the same information regarding performance testing to all offerors; and (3) require the Air Force to perform a price realism analysis of WCC’s proposed price and make a new award decision. Id.

1. The Small Business Solicitation

The salient facts in this bid protest matter are undisputed. On February 29, 2016, the Air Force issued a request for proposals for the remanufacture of F-16 heat exchangers as a small business set-aside (the “Small Business Solicitation”). AR at 497-546; Am. Compl. at ¶ 8. WCC submitted an offer under the Small Business Solicitation, which included a proposed price of $17,426.84 per unit. AR at 587-636; Am. Compl. at ¶ 12. After discussions with the Air Force, WCC reduced its proposed price to $15,950.54. AR at 644. During a second round of discussions for the Small Business Solicitation, WCC indicated that performance testing accounted for $1,500 of its proposed price per unit. Id. at 653-54. On June 20, 2016, the Air Force canceled the Small Business Solicitation because it deemed all of the offers to be too high. Id. at 657-58.

2. The Full And Open Solicitation

On June 21, 2016, the Air Force issued a full and open solicitation for the remanu-facture of F-16 heat exchangers (the “Solicitation”). AR at 170-220. The Solicitation contemplates award to the Lowest Price Technically Acceptable offeror. Id at 214. With respect to the Air Force’s price analysis, the Solicitation provides that:

2.3. Factor 2 — Price

Price proposals will be evaluated for (1) completeness, (2) reasonableness, (3) price realism, (4) unbalanced pricing, and (5) Total Evaluated Price....

2.3.2. Price Reasonableness

The proposed prices will be evaluated for reasonableness .... Normally, price reasonableness is established through adequate price competition, but may also be determined through price analysis techniques as described in [Federal Acquisition Regulation] 15.404.

2.3.3. Price Realism

Proposed prices will be evaluated for price realism .... To evaluate price realism, the Government may use one or more of the the [sic] price analysis techniques described in [Federal Acquisition Regulation] 15.404. The Government may also use other evaluation techniques, as needed.

Id. at 219. In this regard, Federal Acquisition Regulation (“FAR”) 15.404 provides that:

(b) Price analysis for commercial and noncommercial items.
(2) The Government may use various price analysis techniques and procedures to ensure a fair and reasonable price, *548 Examples of such techniques include, but are not limited to, the following:
(i) Comparison of proposed prices received in response to the solicitation. Normally, adequate price competition establishes a fair and reasonable price.

48 C.F.R. § 15.404-1.

On June 21, 2016, the Air Force’s contracting officer (“Contracting Officer”) notified WCC that the Solicitation had been posted. AR at 222-23. In response, WCC asked the Contracting Officer whether WCC’s interpretation that performance testing was not required under the Solicitation was correct. Id. at 221-22. The Contracting Officer responded that:

The contractor is correct, with the one exception that performance testing may be required during an IPE. Performance testing will not be required for 100%.

Id. at 221.

In July 2016, Limco and WCC submitted the only offers in response to the Solicitation. Id. at 224-341. Limco’s offer included a proposed price of $13,600.00 per unit, and WCC’s offer included a proposed price of $12,974.21 per unit. Id. at 224, 290; Am. Compl. at ¶¶ 27-28.

3. The Air Force’s Evaluation And Award Decision

As part of the source selection process for the Solicitation, the Air Force documented its price analyses of offerors’ proposed prices in a Proposal Analysis Report (“PAR”) and a Source Selection Decision Document (“SSDD”). AR at 344-51. In the SSDD, the Contracting Officer outlined how the Air Force evaluated WCC’s and Limco’s offers. 2 Id. at 344-46. Specifically, the Contracting Officer assessed both proposals under the technical and price evaluation factors. Id at 344-46. The SSDD provides that both offer-ors were technically acceptable. Id. at 346.

With respect to price, the Contracting Officer considered Limco’s proposed price and WCC’s proposed price and deemed both of-ferors’ proposed prices to be “fair and reasonable and balanced based upon competition.” Id. at 345-46.

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130 Fed. Cl. 544, 2017 U.S. Claims LEXIS 93, 2017 WL 606019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/limco-airepair-inc-v-united-states-uscfc-2017.