Marine Hydraulics International, Inc. v. United States

43 Cont. Cas. Fed. 77,465, 43 Fed. Cl. 664, 1999 U.S. Claims LEXIS 92, 1999 WL 274834
CourtUnited States Court of Federal Claims
DecidedApril 27, 1999
DocketNo. 99-107 C
StatusPublished
Cited by13 cases

This text of 43 Cont. Cas. Fed. 77,465 (Marine Hydraulics International, 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
Marine Hydraulics International, Inc. v. United States, 43 Cont. Cas. Fed. 77,465, 43 Fed. Cl. 664, 1999 U.S. Claims LEXIS 92, 1999 WL 274834 (uscfc 1999).

Opinion

OPINION

HEWITT, Judge.

This matter comes before the court on a post-award bid protest. Marine Hydraulics International, Inc. (“MHI” or “plaintiff’) challenges the decision of the Navy (the “Navy” or “government”) to award the fixed price contract under Solicitation N62678-99-R-0058 (“the Solicitation”) for the repair of the USS CARR to Metro Machine Corporation (“Metro” or “intervenor”). MHI specifically complains that the government performed a flawed analysis of MHI’s past performance and an improper trade off analysis between past performance and price. Metro is a party to this litigation as defendant-intervenor.

I. Background

On December 23, 1998, the Navy issued the Solicitation for “miscellaneous repairs and SHIPALTS” on the USS CARR (FFG-52).2 Administrative Record (“AR”) at 281. Section B-2-8 of the Solicitation required offerors to submit offers for the work described in Contract Line Identification Numbers (“CLINs”) 0001 through 0012. AR at 375. The Solicitation stated that offers would be evaluated based on the total offer for all CLINs, including both the work outlined in CLINs 001, 0011, and 0012 (for which the Job Order award would initially be made) and certain other work set forth in CLINs 002 through 0010 (which might be awarded or not at the government’s sole option). Id.

Section M-2 of the Solicitation set forth the basis for the contract award:

The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, cost or price, and other factors specified elsewhere in this section, considered.

[666]*666AR at 578. Section M-6 of the Solicitation stated that offers would be evaluated on the basis of past performance and price. Id. at 579-80. With respect to the relative importance of the factors, the Solicitation stated, “Past Performance is approximately equal to Price, with Past Performance being more important than Price”. Id. at 580.

With respect to past performance, the Navy would give “greater consideration to contracts requiring the same or similar type and complexity of work required by the solicitation.” AR at 579. In evaluating past performance, the Navy would consider three subfactors: (i) technical (quality of product), (ii) schedule, and (iii) management. Id. Section L of the Solicitation informed offerors that the Government would review “Contractor Performance Assessment Reporting System (CPARS) ratings and other existing past performance ratings on relevant contracts” to evaluate the subfactors of past performance. Id. at 567. Section L further informed offerors that the Navy would consider information submitted by offerors in their proposals regarding past performance of similar contracts. Id at 567.3

The Solicitation defined the “most relevant” past work “given the type of effort involved in this solicitation” to be “[p]revious availabilities on U.S. Navy Surface ships involving miscellaneous structural) electrical and mechanical repairs and shipalts on [sic] similar size and complexity with schedule and milestone adherence as critical and performed at a contractor’s facility.” Id. at 579 (emphasis in original). It added that “other types of contracts/work not meeting the most relevant definition ... may be considered ... as well, if aspects of the past performance are deemed to have some bearing on the expected performance of the subject solicitation.” Id

In response to the Solicitation, Metro, the awardee and defendant-intervenor here, submitted a bid on January 26, 1999. Metro’s price for CLINs for the Job Order award (“base price”) was $1,783,658, and its total price including all options was $2,345,974. AR at 505. Metro’s offer included detailed submissions on past performance. Id at 485-797. Specifically, Metro highlighted its past performance on numerous ship repairs and addressed critical comments it had received during Navy debriefings following the non-award of other contracts. Metro also listed the work to be accomplished in the USS CARR specification and identified prior contracts under which Metro performed similar work. Among the ship repair contracts listed were the USS COMTE DE GRASSE, USS SCOTT, and USS YORKTOWN. Id at 633-34.

MHI also submitted a proposal for the USS CARR work on January 26, 1999. AR at 798-930. The bid did not include any past performance data. MHI’s base price was $1,531,142, and its total price including options was $2,340,691. Id at 803.

Two other offerors submitted timely proposals as well. The lowest priced evaluated offers of the four submissions were from Metro and MHI.4

[667]*667As prescribed by the Source Selection Plan (“SSP”), the Navy’s internal guidance on source selection,5 the four member Past Performance Evaluation Team (“PPET”) performed separate evaluations for each of the four offerors on each of the three subfactors of past performance. The evaluators considered the same number of ships in assessing past performance for each offeror. After conducting individual evaluations, the PPET members reached a consensus rating for each offeror and issued a PPET Report.6

Section II of the PPET Report set forth the separate evaluations for each of the offer-ors. In evaluating MHI’s past performance, the PPET considered four prior ship repair jobs. As to each job, the PPET noted the type of work, the contract amount, and the duration of the work: (1) USS THORN (SRA; $3,746,754; 3 mos.); (2) USS NICHOLAS (ROH; $2,143,626; 2 mos.), (3) USS CARTER HALL (PRAV; $1,209,483; 3.5 mos.), and (4) USS BARRY (PRAV; $1,220,-277; 2.75 mos.). AR at 977. The report stated that “[t]he work performed for the [listed] jobs ... is considered to be similar in nature to the work included in the subject solicitation.” Id. The report further stated that “[t]hree of the four jobs evaluated were of smaller scale than the work package for the USS CARR,” and “[o]ne job was of very similar scale.” Id. The consensus of the PPET as to MHI’s ratings for each performance subfactor was: Technical, Very Good; Schedule, Exceptional; and Management, Very Good.

The PPET Report outlined and discussed MHI’s strengths and weaknesses in the technical, schedule, and management areas.7 In summary as to MHI’s past performance, the report stated:

MHI’s past performance of relevant jobs that are similar to the subject availability met contractual requirements and exceeded some to the Government’s benefit. The past performance being assessed was accomplished with some minor problems for which corrective actions taken by the contractor were effective. The contractor’s performance over completed contracts was consistently of high quality. The contractor received a consensus rating of Very Good. The PPET perceives a Low Risk in awarding this job to Marine Hydraulics International, Inc. The contractor’s past performance record leads to a strong expectation of successful performance.

AR at 979.

The evaluation of Metro in the PPET Report also addressed four prior contracts: (1)[ ]; (2)[ ]; (3)[ ]; and (4)[ ]. AR at 979. Each of the contracts evaluated by the PPET members was a fixed price contract. Id.

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Bluebook (online)
43 Cont. Cas. Fed. 77,465, 43 Fed. Cl. 664, 1999 U.S. Claims LEXIS 92, 1999 WL 274834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marine-hydraulics-international-inc-v-united-states-uscfc-1999.