MVM, Inc. v. United States

46 Fed. Cl. 126, 1999 U.S. Claims LEXIS 300, 2000 WL 204429
CourtUnited States Court of Federal Claims
DecidedOctober 21, 1999
DocketNo. 99-137C
StatusPublished
Cited by16 cases

This text of 46 Fed. Cl. 126 (MVM, 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
MVM, Inc. v. United States, 46 Fed. Cl. 126, 1999 U.S. Claims LEXIS 300, 2000 WL 204429 (uscfc 1999).

Opinion

OPINION

DAMICH, Judge.

I. Introduction

The Court finds that the government violated Federal Acquisition Regulations (“FAR”) 15.206 by not issuing an amendment to a solicitation after the government changed the requirements of that solicitation. The Court, however, cannot resolve this case entirely because a genuine dispute about material facts precludes the Court from determining, on cross motions for summary judgment, whether the change in requirements prejudiced the disappointed bidder. Accordingly, additional proceedings are necessary to resolve this bid protest.

II. Facts

A. Solicitation

The United States Marshals Service (“the agency”) issued a Request for Proposals (“the solicitation”) No. MS-98-R-0008 for Court Security Officers in seven judicial circuits in the United States. The agency ensures the safety of all federal courts and court employees against unauthorized, illegal, and potentially life-threatening activities.

Although the solicitation permitted the offerors to submit prices on any of the seven circuits involved, the agency treated each circuit as a separate bid and awarded a separate contract for each circuit. This protest concerns the Eleventh Circuit, for which Akal was awarded the contract. MVM, the plaintiff, is an unsuccessful bidder.

The solicitation informed bidders that the agency would consider three factors in reaching its decision: (1) technical skill, (2) price, and (3) past performance. They are listed in order of importance; technical skill is most important. The solicitation also states: “Between substantially equal technical proposals, the proposed price will be the determining factor in selection of a proposal for award.” Administrative Record (hereinafter “AR”), Vol. 2, Tab 5, page 882. This case presents an issue involving prices; technical skill and past performance are not relevant.

The Eleventh Circuit as identified in the solicitation comprises nine separate judicial districts. One of those districts is the Northern District of Florida.

Amendment A003 modified Section B-2(e) of the solicitation. This amendment notified offerors that the agency reserved the right to set-aside the Northern District of Florida for a Section 8(a)1 procurement at a later date.

B. Bidding Process and Evaluation of Prices

After the various offerors submitted their initial price proposals and before the offerors submitted their final and best offers, on January 14, 1999, the contracting officer (“CO”) orally informed all bidders including MVM that the agency “anticipates making an 8a award for the Northern District of Florida which will reduce the Eleventh Circuit requirement.”2 AR, Vol. 19, Tab 44, page 7507. The CO’s notes say “[MVM’s response].” Id. In a price proposal, dated [128]*128January 20, 1999, MVM submitted prices that reflected an allocation of overhead expenses among eight districts; that is, no overhead was allocated to the Northern District of Florida.3

Best and final offers for the Eleventh Circuit were due from all offerors on February 17, 1999. At this time, the agency had not notified the offerors that the Northern District of Florida had been eliminated.

Both MVM and Akal submitted timely proposals. MVM and Akal offered different plans for addressing the Northern District of Florida. (As will be seen, a primary issue is whether Akal submitted a proper proposal.)

On February 26, 1999, the CO performed two price evaluations. When Florida was kept in the contract, MVM had the lowest price.4 The United States and Akal stipulated to the fact that MVM had the lowest price.5

Another price evaluation was done with the Northern District of Florida having been removed from the contract. The CO determined that Akal had the lowest price. The CO determined the prices for all offerors by deducting the amount for the Northern District of Florida from the total bid price for the entire contract. This subtraction is the crux of the dispute.

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C. Award and Protest

The agency decided to remove the Northern District of Florida from the contract. No one has challenged the agency’s decision to set aside the Northern District of Florida in any way. After a small glitch was resolved,6 the agency awarded the contract to Akal. The contract was awarded based on the total price Akal proposed minus the price that Akal allocated to the Northern District of Florida. MVM filed this protest.

MVM has narrowed this dispute to two concrete issues. First, did the agency violate FAR 15.206 by not resoliciting the contract after it removed the Northern District of Florida? Second, did the agency reasonably compare the prices from Akal and MVM?

D. Procedural Posture

The original complaint in this case was filed on March 17, 1999. It contained many allegations and legal theories that were later dropped. The parties proceeded through [129]*129various stages, including the filing of the administrative record and the filing of requests for supplements to the administrative record.

The parties filed motions for summary judgment on June 10, 1999, and objections to the motions were filed on July 9, 1999.7 Previously, the parties had agreed to waive their rights to file reply briefs. MVM’s briefs contained two new items. First, MVM included an affidavit from Terry Carlson, who presented an evaluation of Akal’s bid based upon his experience in the treatment of costs in government contracts. Second, MVM raised the question of whether the agency violated FAR 15.206.

The Court intended to hold oral argument on the pending motions for summary judgment on July 20, 1999. In this hearing, the Court determined that the record needed correction and/or clarification. Further argument was postponed.

On July 23, 1999, MVM filed a motion to supplement the administrative record with Carlson’s affidavit and a motion for leave to amend the complaint. Despite opposition from both the United States and Akal on both motions, the Court granted both.

The Court permitted all parties to file supplemental briefs on the motions for summary judgment. The supplemental briefs addressed the two remaining issues, which are discussed in this opinion. Finally, the Court heard oral argument on these two issues in the cross-motions for summary judgment on September 13,1999.

III. Standard in Ruling on Motions for Summary Judgment

Summary judgment is appropriate when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. RCFC 56(c); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986); Jay v. Secretary, DHHS, 998 F.2d 979 (Fed.Cir.1993). A fact is material if it might significantly affect the outcome of the suit under the governing law. Anderson v.

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Bluebook (online)
46 Fed. Cl. 126, 1999 U.S. Claims LEXIS 300, 2000 WL 204429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mvm-inc-v-united-states-uscfc-1999.