MG Altus Apache Co. v. United States

111 Fed. Cl. 425, 2013 WL 3064808
CourtUnited States Court of Federal Claims
DecidedMay 30, 2013
DocketNo. 11-538C
StatusPublished
Cited by11 cases

This text of 111 Fed. Cl. 425 (MG Altus Apache Co. 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
MG Altus Apache Co. v. United States, 111 Fed. Cl. 425, 2013 WL 3064808 (uscfc 2013).

Opinion

Post-award Bid Protest; Supplementation of the Court Record; Nonresponsibility Determination; Joint Venture; De Facto Debarment; Due Process; National Security.

OPINION AND ORDER

WILLIAMS, Judge.

In this post-award bid protest, MG Altus Apache Company (“MG AA”) challenges its [430]*430nonresponsibility determination and exclusion from the competition in the National Afghan Trucking (“NAT”) multiple-award procurement for trucking services in Afghanistan. MG AA alleges that the Department of the Army (“the Army”) (1) relied upon a classified “vendor vetting” rating process that illegally applied a de facto debarment standard, (2) misapplied the vendor vetting program’s procedures, and (3) “blacklisted” the HNT prime contractors, precluding MG AA from receiving an award.

This matter comes before the Court on the parties’ cross-motions for judgment on the Administrative Record (“AR”) and Plaintiffs request for injunctive relief. Because Plaintiff has failed to demonstrate that MG AA’s nonresponsibility determination was arbitrary, capricious, or illegal, the Court grants Defendant’s motion for judgment on the AR.

Findings of Fact 2

The Solicitation

On February 22, 2011, the Army issued solicitation number W91B4N-11-R-5000 for NAT services in Afghanistan. The purpose of the NAT contract was to provide a secure and reliable means of distributing reconstruction material, security equipment, fuel, miscellaneous dry cargo, and life support assets to operating bases and distribution sites throughout the combined joint operations area in Afghanistan. The Army anticipated the award of indefinite delivery/indefinite quantity contracts for trucking services in three suites: Suite 1 for bulk fuel, Suite 2 for dry cargo, and Suite 3 for heavy cargo. AR 390. The NAT procurement was essentially a follow-on procurement to the prior Host Nation Trucking (“HNT”) contract, which had covered substantially the same mission requirements. The Army awarded NAT contracts to 20 contractors, none of whom had been HNT prime contractors.3

The solicitation stated that the Army would make awards based on “lowest price technically acceptable” proposals in accordance with Federal Acquisition Regulation (“FAR”) 15.101-2.4 Proposals were to be evaluated using two criteria: technical capability and price. AR 391. The solicitation stated that the Government would evaluate offerors for responsibility in accordance with FAR 9.1. AR 393. FAR 9.104-1 provides:

To be determined responsible, a prospective contractor must—

(a) Have adequate financial resources to perform the contract, or the ability to obtain them (see 9.104-3(a));
(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments;
(e) Have a satisfactory performance record (see 48 CFR 9.104 — 3(b) and part 42, subpart 42.15)-
(d) Have a satisfactory record of integrity and business ethics (for example, see Sub-part 42.15).
(e) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors) (see 9.104-3(a));
(f) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (see 9.104-3(a)); and
[431]*431(g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations....

FAR 9.104-1(2010).

Submission of Proposals and MG AA’s Responsibility Evaluation

MG AA is a joint venture comprised of MG Services Limited (“MG”), Altus Supply and Services (“Altus”), and Apache Defense, LLC (“Apache”). Compl. ¶ 12. MG is an American-owned and managed firm that operates exclusively within Afghanistan. Compl. ¶¶ 12, 14. MG had previously been in a joint venture with an Afghan company, Ettefaq-MeliaWHai-Afghan Consulting, Inc. (“EMA”), and the MG EMA joint venture was an HNT prime contractor. Compl. ¶ 2. MG employees [redacted] and [redacted] were project managers for the MG EMA joint venture. As project managers for MG EMA, [redacted] corresponded with the HNT contracting officer regarding MG EMA’s performance issues on behalf of the MG EMA joint venture. Specifically, [redacted] responded to a February 1, 2010 letter of concern from the HNT contracting officer, and [redacted] responded to cure notices and letters of concern between December 2009 and August 2011. See AR 16275 ([redacted] response to February 1, 2010 letter of concern), 16284 ([redacted] response to July 5, 2011 cure notice), 21263 ([redacted] response to Dee. 22, 2009 letter of concern), 21265 ([redacted] response to September 1, 2010 letter of concern), 21267 ([redacted] response to July 10, 2011 cure notice rejection), 21272 ([redacted] response to August 9, 2011 letter of concern), 21275 ([redacted] response to August 12, 2011 letter of concern rejection).

MG formed a new entity for the NAT procurement, MG AA, with Altus and Apache. Compl. ¶ 12. Altus is an Afghan-Ameriean owned firm specializing in trucking operations, and Apache is an American corporation specializing in Afghanistan-based security services. Compl. ¶¶ 19-21. MG was to provide trucking operations management services for the NAT contract. AR 4092.

MG AA timely submitted its proposal for all three NAT suites. AR 4049-332. As part of its proposal, MG AA included the Joint Venture Agreement creating MG AA, which designated MG as the Lead Member. AR 4066-91. The Agreement provided that the Lead Member is responsible for “[e]on-traets-level Program Management, Contracts Administration and Accounting, and Financial Administration_” AR 4068. In addition, the Lead Member serves as the primary point of contact with customers on contractual matters and provides general program management and contracts finance and accounting functions on behalf of the joint venture, including processing deliverables and timely notifying joint venture members of all client communications regarding joint venture performance issues, problems, and resolutions. Id. The Agreement further stated:

“Joint Venture Manager” shall be a MG representative ... who shall manage day-to-day operations. In addition to other duties, the Joint Venture Manager shall be the primary point of Contractual contact with clients and responsible for directing resolution of all Contractual matters of the Joint Venture and providing regular oversight of performance on behalf of the Joint Venture.

AR 4068-69.

MG AA’s proposal further indicated that “MG provides significant positive and negative financial incentives down to the individual driver level which keep loading and delivery timely, ensure proper ITV utilization, and minimize the possibility of theft.” AR 4092.

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Cite This Page — Counsel Stack

Bluebook (online)
111 Fed. Cl. 425, 2013 WL 3064808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mg-altus-apache-co-v-united-states-uscfc-2013.