Mark Dunning Industries, Inc. v. United States

58 Fed. Cl. 216, 2003 U.S. Claims LEXIS 248, 2003 WL 22429270
CourtUnited States Court of Federal Claims
DecidedAugust 1, 2003
DocketNo. 03-465C
StatusPublished
Cited by9 cases

This text of 58 Fed. Cl. 216 (Mark Dunning Industries, 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
Mark Dunning Industries, Inc. v. United States, 58 Fed. Cl. 216, 2003 U.S. Claims LEXIS 248, 2003 WL 22429270 (uscfc 2003).

Opinion

OPINION

MARGOLIS, Senior Judge.

This post-award bid protest brought by the plaintiff, Mark Dunning Industries, Inc., against the United States is before the Court on plaintiffs motion for summary judgment and defendant and defendant-intervenor’s cross-motions for summary judgment upon the administrative record. Plaintiff asserts that a contract award to defendant-interve-nor, Si-Nor, Inc. (“Si-Nor”), was improper because Si-Nor received a 10% price evaluation preference based on Si-Nor’s Small Business Administration (“SBA”) status as a business located in a historically underutilized business zone (“HUBZone”), and that Si-Nor did not meet the statutory requirements for HUBZone status. Plaintiff argues further that it submitted a timely SBA protest regarding Si-Nor’s HUBZone status to the contracting officer, but that SBA never acted on the protest because it was not forwarded to the SBA by the contracting officer. Plaintiff contends that if the SBA had properly responded to plaintiffs protest of Si-Nor’s HUBZone status, SBA would have upheld the protest, and thus, plaintiff would have been awarded the contract. After careful consideration, the Court remands this matter to the SBA for its determination as to whether SBA would have upheld plaintiffs protest had it been timely received by the SBA.

FACTS

On August 23, 2002, the Army issued Invitation for Bid No. DABT10-02-B-0009 for trash collection services at Fort Benning, Georgia. The solicitation provided that bidders certified by the SBA as small business concerns located in a HUBZone would receive a 10% price evaluation preference, pursuant to 48 C.F.R. §§ 19.1305 and 52.219-4.2

The bid opening for the solicitation was held on October 11, 2002. Plaintiff, the incumbent contractor, submitted the lowest responsive bid. However, Si-Nor, another bidder in the subject procurement, and the defendant-intervenor in this action, was identified as the putative contract awardee based on Si-Nor’s status as an SBA-certified HUBZone business.

Plaintiff alleges that SBA’s certification of Si-Nor as a HUBZone business was based on Si-Nor’s false representation that its principal place of business was located on West Compton Boulevard in Gardena, California, which is a HUBZone location. Plaintiff has submitted documentation that plaintiff asserts is evidence that Si-Nor’s principal place of business is not at the Gardena location. Additionally, Si-Nor has submitted a video that purportedly depicts the Gardena address as merely a trailer deposited at a trash processing facility.

[218]*218Defendant and Si-Nor both counter, however, that Si-Nor’s HUBZone certification was based on its HUBZone application where it stated that its “principal office” was located on Bandini Boulevard, in Vernon, California, which both Defendant and Si-Nor contend is located in a HUBZone. Defendant and Si-Nor assert that, although Si-Nor operates a refuse transfer station on West Compton Boulevard in Gardena, California, it has never represented to SBA that this address serves as the basis for Si-Nor’s HUBZone status. Defendant and Si-Nor assert further that the Gardena address is not even located in a HUBZone.

On October 14, 2003, Phillip Makowski, plaintiffs controller, telephoned Charles Carroll, the contract specialist in the subject procurement. According to Carroll’s affidavit, Makowski claimed that he had evidence indicating that Si-Nor was not eligible for the 10% HUBZone price evaluation preference. On October 17, 2002, Makowski faxed a letter, dated October 16, 2002, along with documents printed from the SBA website, to Carroll reasserting Makowski’s contention that Si-Nor was not located in a HUBZone:

October 16, 2002
Mr. Rodney Carroll
Directorate of Contracting
Bldg. 6, Meloy Hall
Ft. Benning, GA
RE: HUB-Zone, Small Business Advantage
Dear Rodney,
I enjoyed meeting you last Friday at the bid opening; it’s always easier to work with someone when you have met him in person. When we were leaving you mentioned that the other bidders may be entitled to a 10% bid advantage based on Small business and or HUB Zone status, and of course we would be upset about it, as we were the apparent low bidder. I did some preliminary investigation and have found a couple of items, which may or may not have any affect [sic] on the bid/award process, but I have followed this letter with copies for you to review.
Selrico Services claims HUB Zone certification and they are located in a HUB Zone, but their D & B Report shows that their income is to [sic] large to be Small Business which is a requirement for HUB Zone certification. Si-Nor, Inc. also claims HUB Zone certification but according to the SBA HUB Zone locator their address IS NOT in a HUB Zone.
I ask that you verify all certifications before making any determinations and applying any bid advantages. If you have any questions concerning this, please call Mark or myself. Thanks.
Sincerely,
MARK DUNNING INDUSTRIES, INC. [signed]
Phil Makowski
Controller

Pl.’s Mot. for Summ. J., Ex. 1.

Carroll did not forward this letter to the SBA. In his declaration, however, Carroll states that he had 36 telephone conversations with various SBA officials regarding the subject contract, and that on one occasion or more he asked them to verify Si-Nor’s HUBZone eligibility.

On October 25, 2002, George Carbonic, the contracting officer for the subject procurement, submitted to SBA a protest regarding Si-Nor’s size and his concern that Si-Nor’s Rialto, California address-the address listed on its bid-was not located in a HUBZone. On October 31, 2002, the SBA issued a letter denying Carbonic’s protest, concluding that Si-Nor met the size requirement for a HUBZone business. The SBA’s letter did not, however, address Carbonic’s concern that Si-Nor’s listed address was not in a HUBZone.

On November 13, 2002, plaintiff sent a letter to Carroll in which plaintiff reasserted its contention that Si-Nor’s principal office was not located in a HUBZone and that, therefore, Si-Nor was not a proper HUBZone business. Along with the letter, plaintiff provided documents as evidence to support its contention. On November 14, 2002, Carroll faxed plaintiffs November 13, 2002 letter and accompanying documents to the SBA. On November 21, 2002, the SBA responded to plaintiffs November 13, 2002 letter, dismissing plaintiffs protest of Si-[219]*219Nor’s HUBZone status as untimely. In its response, however, the SBA stated that it conducts program examinations of HUBZone certified businesses on an ongoing basis, and that it had requested a program examination of Si-Nor. Plaintiff did not appeal the dismissal of its protest through the SBA administrative appellate process.

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Bluebook (online)
58 Fed. Cl. 216, 2003 U.S. Claims LEXIS 248, 2003 WL 22429270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-dunning-industries-inc-v-united-states-uscfc-2003.