Monchamp Corp. v. United States

36 Cont. Cas. Fed. 75,833, 19 Cl. Ct. 797, 1990 U.S. Claims LEXIS 80, 1990 WL 33682
CourtUnited States Court of Claims
DecidedMarch 27, 1990
DocketNo. 523-89C
StatusPublished
Cited by5 cases

This text of 36 Cont. Cas. Fed. 75,833 (Monchamp Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monchamp Corp. v. United States, 36 Cont. Cas. Fed. 75,833, 19 Cl. Ct. 797, 1990 U.S. Claims LEXIS 80, 1990 WL 33682 (cc 1990).

Opinion

ORDER

NETTESHEIM, Judge.

This case is before the court over plaintiff’s opposition on defendant’s motion to dismiss pursuant to RUSCC 12(b)(4) on the ground that the complaint fails to state a claim upon which relief can be granted. Argument is deemed unnecessary.

FACTS

All well-pleaded facts in the complaint pertinent to defendant’s motion have been accepted as true. In fall 1987 five bidders submitted bids on contract No. 055268, a sale of Black Forest Fire Salvage Timber by the United States Department of Agriculture’s Forest Service (the “Forest Service”), Lassen, California. Monchamp Corporation (“plaintiff”) was the third highest bidder. Following the nonresponsibility determination of the highest bidder, Bill Rice (“Rice”), the Forest Service on March 30, [799]*7991988, issued an award of the contract to Sierra Fiber Fuels, Inc. (“Sierra”), the second highest bidder, at the price bid by the highest bidder. On that same day, Sierra and Wayne Neatherlin, Sierra’s President, individually as assignor, assigned to Paul Warner Enterprises (“Warner”), in trust as security for indebtedness, all of Mr. Neatherlin’s interest, rights, and obligations under and by virtue of the Black Forest Fire Salvage Timber sale contract No. 055268 between assignor as purchaser and the Forest Service as seller. The assignee, Warner, had also bid on the contract, but ranked as the fourth highest bidder. Plaintiff alleges, and the court accepts as true for purposes of ruling on defendant’s motion, that Sierra did not have the financial ability to perform the contract and that both Sierra and Warner lacked a timber harvest license in 1988 or 1989.

On March 30, 1988, this assignment in trust was approved by the contracting officer pursuant to clause BT8.4 of the contract awarded to Sierra, which in pertinent part provided:

Performance by Other than Purchaser: The acquisition or assumption by another party under an agreement with Purchaser of any right or obligation of Purchaser under this contract shall be ineffective as to Forest Service until Forest Service has been notified of said agreement and has given written approval by the forest officer who approved this contract, his successor or superior officer____

On June 8, 1989, plaintiff filed a claim with the contracting officer arguing that the Forest Service had made a de facto award to the fourth highest bidder, since Mr. Neatherlin of Sierra lacked financial ability and was being assisted by Warner. The contracting officer denied the claim and plaintiff appealed to the United States Department of Agriculture Board of Contract Appeals (the “Board”). The Board dismissed the appeal (which plaintiff had attempted to withdraw), describing plaintiff as a disappointed bidder and not as a contractor, because the Board’s jurisdiction was limited to appeals by contractors. Plaintiff filed a similar suit in this court on September 25, 1989, to recover lost profits of $2,809,000.00. In response to defendant’s motion, plaintiff restated its projected profits at $3,150,509.00 and asks as an alternative measure to recover an unspecified amount as its costs of preparing its bid proposal.

DISCUSSION

Plaintiff asserts a breach of the Forest Service’s duty to fairly consider its bid under the solicitation. As the Court of Claims stated in Excavation Construction, Inc. v. United States, 204 Ct.Cl. 299, 494 F.2d 1289 (1974), any recovery in such a case is “dependent upon a showing of arbitrary and capricious action by the Government in awarding the contract to another and thus failing to give honest consideration to the disappointed bidder’s bid____” Id. at 302, 494 F.2d at 1290. (citing Keco Industries, Inc. v. United States, 192 Ct.Cl. 773, 784, 428 F.2d 1233, 1240 (1970)). According to plaintiff, the approval of the assignment in trust from Sierra to Warner constituted a breach of a binding legal obligation on the part of the Forest Service to award the timber sale contract to plaintiff. As a result of the Forest Service’s decision not to award the contract to plaintiff, it claims losses in the form of anticipatory profits.

Defendant has understandable difficulty in identifying plaintiff’s theory of recovery. Plaintiff’s action cannot be considered a bid protest, since this court may entertain a challenge to the proposed award of a contract only if filed before contract award. United States v. John C. Grimberg Co., 702 F.2d 1362, 1368 (Fed.Cir.1983).

Defendant argues that the existence of a binding contract between plaintiff and the Forest Service is a prerequisite to a claim seeking future profits. Defendant further contends that plaintiff is not a “contractor” under the Contract Disputes Act of 1978, 41 U.S.C. §§ 601(4), 609(a)(1) (1982) (the “CDA”), since plaintiff is not a party to the Forest Service contract and thus may not base its action upon the CDA. Defendant is correct. The Federal Circuit [800]*800has held that the CDA does not embrace the contract to fairly consider a bid. Coastal Corp. v. United States, 713 F.2d 728 (Fed.Cir.1983).

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Cite This Page — Counsel Stack

Bluebook (online)
36 Cont. Cas. Fed. 75,833, 19 Cl. Ct. 797, 1990 U.S. Claims LEXIS 80, 1990 WL 33682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monchamp-corp-v-united-states-cc-1990.