Lockheed Martin Corporation v. United States

124 Fed. Cl. 709, 2016 WL 765722
United States Court of Federal Claims·Decided February 19, 2016·No. 15-1536C·Published·Cited by 9 cases

Opinion

Post-award bid protest; motion for preliminary injunction; likelihood of success; discussions; FAR § 15.306; equal treatment; irreparable injury.

OPINION AND ORDER 1

LETTOW, Judge.

The Army held a competition in three phases for a contract to design, develop pro *712 totypes of, and ultimately manufacture and supply a new armored but agile all-terrain tactical vehicle to be used in combat zones. Oshkosh Defense, LLC (“Oshkosh”) won the last phase of the competition in August 2015, and it was awarded the manufacturing contract. Lockheed Martin Corporation (“Lockheed”), a losing offeror, has filed suit seeking a court order that would require the Army to reopen the competition and give Lockheed another chance. Lockheed generally alleges that the Army violated procurement law by failing to credit Lockheed’s data relating to performance of its proffered prototype, while unfairly crediting Oshkosh’s data relating to its prototype under similar circumstances. The Army disputes these allegations and avers that the performance of the vehicle Lockheed proposed was not as desirable as that proposed by Oshkosh.

It may take time to resolve this case, especially given that the administrative record reportedly is over 300,000 pages in length and numerous fact-intensive issues have been raised. Because of that prospect, Lockheed has requested a preliminary injunction in the form of a stop-work order, which would bar Oshkosh from doing work while this case is pending. This opinion addresses Lockheed’s request. Unfortunately, the court must decide the pending motion without having in hand all of the evidentiary materials in the Army’s procurement record. Instead, for the purpose of resolving Lockheed’s motion, the parties have submitted excerpts of the records of the procurement, along with some materials from aborted protest proceedings that occurred before the Government Accountability Office (“GAO”).

After reviewing the available materials, the court has decided to deny Lockheed’s motion for a preliminary injunction. The court concludes that Lockheed has not made a sufficiently strong showing that it is likely to prevail on the merits of its protest or that it will be irreparably harmed if Oshkosh conducts the initial work due under the awarded contract.

FACTS 2

A. The Army’s Three-Phase Plan to Develop a New Tactical Combat Vehicle

In 2007, the Army and Marine Corps began planning a program to develop a Joint Light Tactical Vehicle (“JLTV’). PI-1155. 3 The JLTV would be light, mobile, and capable of airlift, while still providing strong armor and heavy payload capacity. PI-1558. This vehicle would fill a “critical capability gap” in the military’s combat transport assets. PI-1558, Currently, the military has heavily armored vehicles that are difficult to maneuver off-road, and it has light vehicles that lack strong armor and thus fail adequately to protect soldiers and marines from explosives. PI-1558. The JLTV would fill this gap, being fast, relatively light, and well ■ armored. PI-1558.

The JLTV program has three phases, each of which has been covered by a separate *713 contract. PI-1155. In Phase One, three companies won contracts to design the JLTV. Phase One lasted from 2007 until 2012. PI-1155. Lockheed and two other companies won this design contract. PI-1155. Phase Two began in 2012 and lasted until 2014. PI-1155. The Army awarded the Phase Two contracts to Lockheed, Oshkosh, and AM General, LLC. PI-1155. In Phase Two, the three companies fabricated 22 JLTV prototypes. These prototype vehicles then were extensively field-tested by the Army, being driven roughly 155,000 miles during those field tests. PI-1155. In the tests, the Army collected data to be used during the Phase Three competition. For Phase Three, only the Phase Two contractors were eligible to compete, and only one could win. Phase Three involves production and deployment of the JLTV, which would become operational by 2019. PI-1560.

In December 2014, the Army invited the three companies who had participated in Phase Two to bid for Phase Three, and each submitted bids. PI-1156. The Army selected Oshkosh for the final award on August 24, 2015. PI-1159. Lockheed filed protests of the Army’s decision with GAO in September 2015. PI-1159. Toward the end of the GAO proceeding, the Army located a substantial number of records of its evaluation of the competing offers which had not previously been included in the record of the procurement as provided to GAO. When GAO indi-eáted that it would proceed to render a decision without considering the newly provided materials, Lockheed filed suit in this court on December 16, 2015. The next day, Oshkosh intervened to defend the award. Mot. to Intervene, EOF No. 8. AM General did not intervene, and it is not a party to this case.

B. During Phase Two, the Army Field Tests the Designs of the Contractors

The Phase Two contract required the winners to manufacture 22 prototype JLTVs and turn them over to the government for testing. PI-1155. The contract provided performance benchmarks, which each contractor sought to achieve during testing. For example, the vehicle needed to start within [* * *] in temperatures ranging from [* * *] Fahrenheit, PI-357, accelerate from [* * *] miles per hour in under [• * *], PI-360, ford [* * *] water, PI-376, and provide air conditioning that could lower the crew compartment temperature from [* * *] Fahrenheit within [* * *], PI-447. Most importantly for this case, the government also evaluated the rate at which the vehicle’s functions became impaired or failed. This rate was determined by applying “failure scoring criteria,” which focused particularly on “mission essential function” failures. PI-503, 506 to - 07. 4 A failure was generally defined as an event “in which an item or part of an item does not perform as specified.” PI-504. A failure could be classified as an essential function failure (“EFF”), an operational mission failure (“OMF”), or a hardware mission failure (“HMF”). PI-504.

“An EFF is an event that results in significant degradation of a [mission essential function], yet the vehicle is still partially mission capable.” PI-504. In contrast, “[a]n OMF is an event that results in the loss of a[m]ission [e]ssential [fjunetion ... that reduces its utility to the point that it is deemed ineffective in its role on the battlefield. OMF[s] are failures that cause immediate removal from service in an operational environment or that preclude a vehicle from starting a mission on time.” PI-504. Finally, a HMF “is a subset of OMFs that are chargeable to [the] contractor.” PI-504.

The Army’s field tests counted the mean miles driven between EFFs and the mean miles driven between HMFs. In particular, the vehicle needed to be able to demonstrate 3800 mean miles between hardware mission failures (“MMBHMF”). PI-427.

1. The contractors’ Phase Two demonstrated failure rates.

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Lockheed Martin Corporation v. United States, 124 Fed. Cl. 709, 2016 WL 765722 (uscfc 2016).

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