Mark Dunning Industries, Inc. v. Perry

877 F. Supp. 1541, 1995 WL 91350
CourtDistrict Court, M.D. Alabama
DecidedFebruary 2, 1995
DocketCiv. A. 95-D-29-S
StatusPublished

This text of 877 F. Supp. 1541 (Mark Dunning Industries, Inc. v. Perry) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mark Dunning Industries, Inc. v. Perry, 877 F. Supp. 1541, 1995 WL 91350 (M.D. Ala. 1995).

Opinion

MEMORANDUM OPINION AND ORDER

De MENT, District Judge.

Before the court is the plaintiff Mark Dunning Industries, Inc.’s motion for a preliminary injunction filed January 20, 1995. Contemporaneously therewith, the plaintiff filed a brief and tendered evidence in support of its motion. The defendants responded in opposition on January 25, 1995, to which the plaintiff replied on January 26, 1995. The court held a hearing on January 25, 1995, at 10 a.m. in Montgomery, Alabama, said transcript of which is part of the record. After careful consideration of the arguments of counsel and the evidence and briefs submitted by the parties, the court issues the following memorandum opinion and order.

JURISDICTION AND STANDING

28 U.S.C. § 1331 confers subject matter jurisdiction on district courts in disputes arising under the Competition in Contracting *1542 Act, 31 U.S.C. § 3551, et seq., and the regulations promulgated thereunder. See 31 U.S.C. § 3556, which recognizes “the right of any interested party 1 to file a protest with the contracting agency or to file an action in a district court of the United States or the United States Claims Court.”

The plaintiffs legal standing to appeal the General Accounting Office’s (hereafter “GAO”) decision lies in the Administrative Procedure Act, 5 U.S.C. § 702, et seq.. Section 702 provides that “[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof.” The plaintiff, as an “unsuccessful bidder” clearly has standing to challenge GAO’s procurement decision to award the contract to a third party. See Choctaw Mfg. Co., Inc. v. United States, 761 F.2d 609, 615-16 (11th Cir.1985) (holding that the losing bidder has standing to challenge the award of a government contract). 2

PARTIES

(1) Plaintiff Mark Dunning Industries, Inc. is a corporation organized and existing under the laws of the State of Alabama with its principal place of business in Dothan, Alabama.

(2) Defendant William J. Perry is the United States Secretary of Defense.

(3) Defendant John H. Dalton is the Secretary of the United States Navy.

(4) Defendant B.J. Anderson is the contracting officer for the United States Navy.

FINDING OF FACTS

In this action the plaintiff challenges the United States Navy’s termination of its refuse removal contract and the award of the contract to another bidder. The plaintiff requests the court to enjoin the implementation of the Navy’s contract “pending the final hearing and determination of this case.” Pl.’s Mot. for Preliminary Injunction at ¶ 1. This lawsuit arises out of the following undisputed facts:

(1) For fourteen years, the plaintiff has performed the trash collection and refuse removal work at the Pensacola, Florida Naval Air Station. During these fourteen years, the plaintiff has performed the work satisfactorily, without complaint by the Navy.

(2) The plaintiffs contract will expire on January 31, 1995. The Navy has extended the current contract on various occasions due to this procurement dispute. The plaintiff is willing to continue to perform its work on the same terms upon which it is currently performing. Id. at ¶ 8.

(3) Browning Ferris Industries, Inc. is a large waste company. One of its subsidiaries, BFI of Florida, Inc., performs refuse removal work in Florida. Id. at ¶ 14.

(4) The Department of the Navy issued Solicitation No. N65114-93-B-2146 for refuse removal and trash collection at the naval facility in Escambia County, Florida. Defendant B.J. Anderson was the contracting officer for this solicitation. Id. at ¶ 15.

(5) Solicitation No. N65114-93-B-2146 was an invitation for bids, wherein the bidder *1543 providing the lowest price would receive the award of the contract as long as its bid was responsive to the material requirements of the solicitation. Id. at ¶ 16.

(6) The solicitation was for a base year plus four one-year options. Various line items were included in the bid. The only line item in dispute in this action is Number 0002 entitled “REFUSE DISPOSAL FEE.” Id. at ¶ 17.

(7) Line item number 0002 (and other similar line items for each of the four option years) required the contractors to quote a price for the “REFUSE DISPOSAL FEE” in accordance with paragraphs C.22 and C.23 of the solicitation. In the solicitation, the Navy estimated that its volume of refuse would total 14,400 tons annually. The solicitation required the bidder to include a unit price and total amount for that particular line item. Id. at ¶ 18.

(8) Paragraph C.22 provides in part: “Contractors must base their bid for the disposal fee that will be in effect on 1 October 1994. Future changes in landfill disposal fees shall be reported to the Contracting Officer and adjustments to the disposal fee unit prices will be made in accordance with the Economic Price Adjustment Clause.” Id. at ¶ 19. Paragraph C.22 further provides as follows:

The disposal fee on this contract will be invoiced separately as indicated in paragraph G.4. The disposal fee will be paid monthly based on the total cumulative tonnage delivered to the landfill each month as shown on the landfill’s certified weight tickets multiplied by the unit cost for the Refuse Disposal Fee on Line Item 0002 in the Bid Schedule. The disposal fee payment shall not exceed the actual fee charge shown on the landfill receipts or other evidence of payments to the landfill.

Id. at ¶20.

(9) The Economic Price Adjustment clause referred to in paragraph C.22 is printed in paragraph 1.7 and states, in pertinent part, as follows:

(a) The Contractor shall notify the contracting officer, at any time during contract performance, the disposal fee unit prices shown in the schedule in section B either increase or decrease as a result of new landfill/disposal fees set by the Escambia County Commissioners.
(e) Any price adjustment under this clause is subject to the following limitations:
(1) Any adjustment shall be limited to the effect on unit prices as a result of new landfill/disposal fees set by the Escambia County

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877 F. Supp. 1541, 1995 WL 91350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-dunning-industries-inc-v-perry-almd-1995.