Magnavox Electronic Systems Co. v. United States

38 Cont. Cas. Fed. 76,414, 26 Cl. Ct. 1373, 1992 U.S. Claims LEXIS 465, 1992 WL 277980
CourtUnited States Court of Claims
DecidedOctober 9, 1992
DocketNo. 92-527C
StatusPublished
Cited by34 cases

This text of 38 Cont. Cas. Fed. 76,414 (Magnavox Electronic Systems Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magnavox Electronic Systems Co. v. United States, 38 Cont. Cas. Fed. 76,414, 26 Cl. Ct. 1373, 1992 U.S. Claims LEXIS 465, 1992 WL 277980 (cc 1992).

Opinion

OPINION

ROBINSON, Judge:

This matter is before the court on plaintiff’s application for a preliminary injunction, pursuant to Rule 65 of the Rules of the United States Claims Court (RUSCC); and defendant’s motion to dismiss, pursuant to RUSCC 12(b)(1), for lack of subject matter jurisdiction or, in the alternative, for summary judgment, pursuant to RUSCC 56. Alleging violations of the Competition in Contracting Act (CICA), 10 U.S.C. § 2301 et seq.; the Federal Acquisition Regulation (FAR), 48 C.F.R. §§ 6.3 et seq.; and the policy of “full and open competition”, plaintiff seeks to enjoin defendant from awarding a sole-source contract under solicitation No. DAAA09-91-R-0924. This court held oral argument on the two motions on September 4, 1992, in Washington, D.C. The motions were taken under advisement.

At an informal status conference conducted on September 8, 1992, this court strongly suggested that the matter might be resolved if the parties agreed to postpone the sole-source acquisition scheduled to be awarded to Motorola on or about September 29, 1992, and participate in a pre-award survey of plaintiff’s establishment. Though plaintiff readily agreed to the court’s suggestion, defendant requested a short period of time to consider it. After nearly one week, defendant’s counsel advised that her client would not agree to postpone the acquisition schedule. She further advised that the Government was unwilling to perform any type of survey to evaluate plaintiff’s capabilities to manufacture the FMU-140/B fuze within particularized time and cost constraints.

This court then conducted a formal status conference on September 21, 1992. De[1375]*1375fendant, again, rejected the court’s recommendation to postpone the award and conduct a pre-award survey. Consequently, the court issued a bench ruling preliminarily enjoining the award to Motorola through October 31, 1992. This written opinion was to follow.

Upon full consideration of the parties’ arguments, briefs, and supporting documentation, defendant’s motion to dismiss is denied; this court finds that it does have subject matter jurisdiction over this suit for the reasons stated in Standard Manufacturing Co. v. United States, 7 Cl.Ct. 54 (1984).1 Furthermore, the court finds that plaintiff has convincingly demonstrated the need for a preliminary injunction. The court’s reasoning follows.

Factual Background

The FMU-140/B is a sophisticated, electronic bomb fuze that is used in air-delivered munitions by the Navy. The fuze was developed by Motorola, Inc., (Motorola) in conjunction with the Department of the Navy (DON or Navy). The fuze was intended to replace an older fuze that required aircraft to fly very low over enemy targets to deliver weapons, subjecting the aircraft to intense ground fire. The FMU-140/B allows flexibility in delivery, including high altitude and loft tactics, thus improving weapon effectiveness and the chances of aircrew and aircraft survival.

Early in 1991, the Department of the Navy, through the Naval Air Systems Command (NAVAIR), began planning for an upcoming procurement of FMU-140/B fuzes. Responsibility for the FMU-140/B fuze and the procurement at issue in this case was transferred to the U.S. Army Armament, Munitions and Chemical Command, Rock Island, Illinois, (AMCOM or Rock Island) as the Single Manager for the Conventional Ammunition contracting agency. Consideration was given to the production capacity of the existing producer, Motorola, based upon confidential information provided by it. Additional information was offered by Motorola on or about April 2, 1991. During the period between April 29 and May 3, 1991, the information provided by Motorola was verified by an on-site review, referred to as a Command Review of Industrial Base (CRIB) Survey, of its facility.

On April 29, 1991, NAVAIR sent a statement relating the urgency of the procurement to Leslee LaMere (Ms. LaMere), the Contracting Officer at Rock Island. On or about August 20, 1991, Ms. LaMere received the first procurement work directive concerning the FMU-140/B fuze; this document requested the procurement of certain units and announced the required delivery schedule, with deliveries beginning in January 1993. Ms. LaMere began preparation of a Justification and Approval (J & A), proceeding under the “only one responsible source” exception, 10 U.S.C. § 2304(c)(1) (Supp.1992), FAR 6.302-1, to procure the FMU-140/B fuzes. At that time, a technical data package (TDP) suitable for competition did not yet exist.

On December 12, 1991, Fred Taube (Mr. Taube), a Magnavox representative, met with Ms. LaMere and Jeanne Smith (Ms. Smith), who was, at that time, the AMCOM Competition Advocate. He informed them that Magnavox was interested in bidding on the procurement. He confirmed the company’s intentions with a letter sent to Ms. Smith dated December 13, 1991. By a second letter, dated December 11, 1991, Magnavox’s contract administrator, Larry Smith (Mr. Smith), requested a technical data package (TDP) for the fuze. The first time that a certified TDP became available for competition was on January 24, 1992. On February 6, 1992, Mr. Smith renewed his request for the TDP. AMCOM complied with neither of these requests.

On March 26, 1992, Stephen K. Conver, Army Senior Procurement Executive, approved the J & A for the sole-source procurement (from Motorola) of up to 31,194 total units of the FMU-140/B fuze. In the J & A, in addition to invoking the “only one [1376]*1376responsible source” exception at 10 U.S.C. § 2304(c)(1), Rock Island relied upon the grant of authority at FAR § 6.302-1(a)(2)(h) that implements 10 U.S.C. § 2304(d)(1)(B).2

On or about April 2, 1992, a notice of market survey was published in the Commerce Business Daily (CBD). The notice stated, “[T]he purpose for this market survey is to solicit producers who have the qualifications /abilities to produce the FMU-140/B.”3 As a result of the market survey, Magnavox and three other producers expressed an interest in the FMU-140/B program. Of the producers responding, the agency determined that only Magnavox had the established expertise in the production of proximity type fuzes. On April 10, 1992, Magnavox responded to the market survey in a five page document outlining Magnavox’s capabilities to produce the FMU-140/B fuze.

By internal memorandum dated April 23, 1992, Jack Jordan (Mr. Jordan), Contract Specialist, concluded, with the concurrence of Ms. LaMere, that while it was logical to conclude that Magnavox would be able to produce the FMU-140/B fuze, in light of its expertise in the production of proximity fuzes through its FZU-39/B program, differences between the two fuzes, such as, the degree of complexity (the FMU-140/B being more complicated), the addition of another electronic board in the FMU-140/B, the size of electronic boards, and the wiring and components existed. The memorandum concluded that “in regards to ...

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38 Cont. Cas. Fed. 76,414, 26 Cl. Ct. 1373, 1992 U.S. Claims LEXIS 465, 1992 WL 277980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnavox-electronic-systems-co-v-united-states-cc-1992.