Mike Hooks, Inc. v. United States

42 Cont. Cas. Fed. 77,191, 39 Fed. Cl. 147, 1997 U.S. Claims LEXIS 201, 1997 WL 602721
CourtUnited States Court of Federal Claims
DecidedSeptember 26, 1997
DocketNo. 97-181C
StatusPublished
Cited by42 cases

This text of 42 Cont. Cas. Fed. 77,191 (Mike Hooks, 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
Mike Hooks, Inc. v. United States, 42 Cont. Cas. Fed. 77,191, 39 Fed. Cl. 147, 1997 U.S. Claims LEXIS 201, 1997 WL 602721 (uscfc 1997).

Opinion

[149]*149OPINION

MEROW, Judge.

This is a pre-bid protest in which plaintiff Mike Hooks, Inc. (“Hooks”) objects to a solicitation issued by the United States Army Corps of Engineers (the “Corps”). The solicitation seeks bids for the rental of a dredge to perform maintenance dredging in New Orleans Harbor. Hooks alleges that the solicitation is arbitrary and capricious because it favors bidders offering a certain type of dredge in violation of the Corps’ duty under the Competition in Contracting Act to “obtain full and open competition.” 41 U.S.C. § 253(a)(1)(A) (1994); 10 U.S.C. § 2304(a)(1)(A) (1994). Hooks asks the court to declare the solicitation invalid and enjoin the Corps from proceeding with the procurement until the alleged improprieties are corrected.

The matter is currently before the court on defendant’s motion for judgment on the basis of the “administrative record.” Plaintiff opposes the motion on the ground that factual issues regarding the propriety of the administrative record as well as substantive factual issues necessitate a trial. No bids have been submitted and the Corps has agreed to postpone the due date for bids pending resolution of this action.

For the reasons stated below, it is determined, based on all of the materials offered by both parties, that there are no genuine issues of material fact and that defendant’s motion must be granted as a matter of law.

BACKGROUND

Unless otherwise stated, the following facts are not in dispute. On December 18, 1996, the New Orleans District of the Corps issued solicitation no. DACW29-97-B-0035 inviting bids for the hourly rental of á manned dredge to perform maintenance dredging in the New Orleans Harbor reach of the Mississippi River. The solicitation allows bidders to offer a 16" water injection dredge (“WID”) or one of seven different sizes of cutterhead dredges ranging from 20" to 30". The WID and the cutterheads function quite differently. A cutterhead uses a rotating blade to cut and loosen shoal material on the channel floor. A suction pipe attached to the cutterhead vacuums up the loosened material which is then pumped through a pipeline directly to the disposal site.

In contrast, the WID pumps large amounts of water directly onto the channel floor through orifices along a horizontal pipe. This creates a mixture of water and shoal material which is denser than the surrounding water. The difference in density, or “density gradient,” along with gravity, currents, and the slope of the channel bottom cause the mixture to move to deeper waters where it will not interfere with navigation. WID technology was developed in the 1980’s by a Dutch corporation and only one company, Gulf Coast Trailing Co. (“Gulf Coast”), is licensed to use the technology in the United States.

Because natural forces rather than pumps and pipelines are used to transport dredged materials, the WID has the potential to be more financially advantageous than the eut-terheads. However, the WID often must perform “rehandling,” i.e., re-dredging shoal materials which have fallen back to the channel floor prior to reaching sufficiently deep waters. Cutterheads generally do not need to perform rehandling because the dredged materials are transported directly to the disposal area through a pipeline.

The Corps’ previous contracts for maintenance dredging in New Orleans Harbor have been performed by cutterhead dredges. The solicitation at issue is the first which allows WID operators (i.e., Gulf Coast) to compete for the work. Hooks, who operates a 24" cutterhead, performed the last contract for the work awarded by the Corps in 1996 and intends to submit a bid in response to the solicitation.

The solicitation contains eight bid lots, one for each of the eight permissible dredges. Bidders are instructed to complete and submit one lot for the dredge they intend to offer. The lots contain several bidding items but only item 0003, “Dredging,” is relevant to [150]*150the present dispute.1 Item 0003 contains the estimated hours of “effective dredging time” each dredge will need to complete the work. The estimates vary considerably from a low of 267 hours for the 30" cutterhead to a high of 797 hours for the 20" cutterhead. Both the 16" WID and the 24" cutterhead Hooks intends to offer have the same estimated effective dredging time, 553 hours.

To compute its bid price for item 0003, each bidder must specify its proposed hourly rental rate and multiply that rate by the estimated effective dredging hours. “Award will be made to the lowest responsive, responsible bidder, regardless of the bid lot used.” Solicitation § 00010 f 2(c). Hence, in order to be competitive, a bidder offering a dredge with a high number of estimated effective dredging hours must bid a low hourly rate.

Effective dredging hours are defined in the solicitation as periods “[w]hen the cutterhead dredge or water injection dredge is operating with the cutterhead/injection head effectively moving material out of the dredging template except rehandling costs.” § 01100 If 8(d). A “dredging template” is the specified slope, width, and depth of the dredging area. The contractor must dredge the template, which the Corps will assign after contract award, and dispose of all dredged materials below the -50 foot National Geodetic Vertical Datum (“NGVD”) contour in the Mississippi River (i.e., a place in the river more than 50 feet below the waterline).

Effective dredging hours constitute “100% Pay Time Hours,” § 01100 H 8(d), meaning that the contractor will be paid at the hourly rate specified in item 0003 for 100% of its effective dredging time, subject to an adjustment described below. Work performed in support of effective dredging (aptly described as “non-effective dredging time”) constitutes fractional or 0% pay time. For instance, time spent changing locations or removing debris from the cutterhead or injection head constitutes 70% pay time while time spend in idle standby status constitutes 35% pay time. In addition, and of particular relevance to the present dispute, rehandling is an example of 0% pay time. Solicitation § 01100 UK 8(b)(2) & (g)(ll). Time spent performing non-effective dredging work is multiplied by the appropriate fraction (70%, 35% or 0%) and the contractor is paid for the reduced time at the hourly rate in item 0003.

Although the contractor will be paid at a fractional rate for some non-effective dredging work, the bid lots do not contain an item for such work and the solicitation makes clear that the estimates in item 0003 are estimates of effective dredging time only. § 00010 11 2(a) & (d). Payable non-effective dredging time is simply not an evaluation criterion.

The Corps estimated the effective dredging hours for the different dredges by dividing the estimated total amount of shoal materials to be dredged by the dredges’ estimated minimum production rates. Solicitation § 00010 If 2(a). The production rates were estimated by Mr. Edmond Russo, an engineer for the New Orleans District of the Corps, based on “historical dredging data” in the region. § 00010 112(b). The estimates vary from a high of 2100 cubic yards of shoal material per hour (“cy/hr”) for the 30" cutter-head to a low of 703 cy/hr for the 20" cutter-head. § 02482 1114.

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Bluebook (online)
42 Cont. Cas. Fed. 77,191, 39 Fed. Cl. 147, 1997 U.S. Claims LEXIS 201, 1997 WL 602721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mike-hooks-inc-v-united-states-uscfc-1997.