National Air Cargo Group, Inc. v. United States

126 Fed. Cl. 281, 2016 U.S. Claims LEXIS 353, 2016 WL 1719258
CourtUnited States Court of Federal Claims
DecidedApril 28, 2016
Docket16-362C
StatusPublished
Cited by15 cases

This text of 126 Fed. Cl. 281 (National Air Cargo Group, 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
National Air Cargo Group, Inc. v. United States, 126 Fed. Cl. 281, 2016 U.S. Claims LEXIS 353, 2016 WL 1719258 (uscfc 2016).

Opinion

Bid protest; multiple awards of indefinite-delivery/indefinite-quantity contracts; challenge by one of the awardees to a later award of an additional contract; statutory prerequisites for a bid protest; 28 U.S.C. § 1491(b)(1); standing; dispute over applicability of the Competition in Contracting Act to the later award

OPINION AND ORDER

LETTOW, Judge.

The United States Transportation Command (“TRANSCOM” or “government”) awarded five indefinite-delivery/indefmite-quantity contracts in June 2016 for multi-modal international shipping of Department of Defense and other government-approved cargo. Plaintiff National Air Cargo Group, Inc. (“National”) was one of the awardees. The following month, the government awarded a sixth contract to United Air Lines, Inc. (“United”). National then submitted protests regarding the sixth award to the Government Accountability Office (“GAO”) and this court, resulting in TRANSCOM’s agreement to take corrective action to reevaluate past performance for all TRANSCOM offer-ors. Subsequently, TRANSCOM reaffirmed the awards made to each of the six successful offerors. That action prompted this renewed protest.

At this juncture, National alleges that the government’s decision to award a contract to United violated terms of the solicitation limiting awardees, as well as applicable statutes and regulations, and was also irrational because United lacks past performance history in multi-modal international shipping. Compl. at 1. The government has filed a *285 motion to dismiss pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (“RCFC”), arguing that National, as an awardee, lacks standing to protest an award of a contract to another offeror in this multiple-award indefinite-delivery/indefinite-quantity procurement. Def.’s Mot. to Dismiss (“Def.’s Mot.”), ECF No. 11. National has filed a cross-motion for a preliminary injunction and an application for a temporary restraining order pursuant to RCFC 65. PL’s Mot. for Injunctive Relief (“Pl.’s Mot.”), ECF No. 12. 1 United was granted leave to defend the award. Order of Mai’. 24, 2016, ECF No. 10. A hearing was held on April 13, 2016. 2

FACTS AND BACKGROUND 3

A. TRANSCOM Requests Proposals for an Indefinite-Quantity Contract for International Shipping Services, Selects Five Contractors for Award, and then Later Makes a Sixth Award

On February 12, 2015, the government issued a request for proposals (“RFP”) for international multi-modal transportation of government cargo. Compl. ¶5. 4 The RFP provided that “[tjhis is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated.” Compl. Ex. 1 (setting out a 90-page excerpt of the RFP) (“RFP”) at 9, ECF No. 1-1 to 1-3. 5 An “indefinite-quantity” contract, also known as an indefinite-delivery/indefinite-quantity (“IDIQ”) contract, is a contract by which the government promises to buy a stated minimum and the contractor agrees to sell or provide a stated maximum. 48 C.F.R. (“Federal Acquisition Regulation” or “FAR”) § 16.504(a)(1); see also John Cibinic, Jr., et al., Formation of Government Contracts 1386 (4th ed. 2011). Once an IDIQ contract is awarded, the government issues task or delivery orders to the IDIQ contract holder to fulfill its requirements. In some instances, the government awards one IDIQ contract to one contractor. But in many cases, the government awards multiple IDIQ contracts under one solicitation, thereby creating a pool of contractors who compete with each other for task orders. See, e.g., FAR § 16.504(c)(l)(i) (requiring the contracting officer to “give preference” to making multiple awards); FAR § 16.505(b)(l)(i) (providing that each awardee under a multiple-award contract must have an opportunity to compete for any order exceeding $3,500).

The RFP in this instance established that the government would award multiple IDIQ contracts to bidders offering the “best value” to the government, based on four factors: quality of business proposal, technical ability, price, and past performance history. RFP at 87-88. With respect to past performance, the government would give each offeror a “confidence assessment” of either substantial confidence, satisfactory confidence, limited confidence, or no confidence. RFP at 89. If an offeror had “no recent/relevant performance” of record, then the offeror would receive an “unknown confidence” rating, which *286 would be “treated neither favorably nor unfavorably.” Id.

Using this evaluation scale, TRANSCOM advised that it would “award approximately four (4) IDIQ contracts,” which would' give the government “flexibility of choice and service coverage.” RFP at 87. The selection of these winners would “initially establish the awardee pool.” RFP at 62. This pool of awardees would then compete for task orders issued by TRANSCOM. Id.

Pursuant to FAR § 16.504(a)(1), which requires a minimum task order for each winner, the RFP provided that the government would purchase a minimum of $2,500 of international shipping services from each awar-dee. RFP at 4. The solicitation set the maximum total dollar amount for all task orders at $296,448,852.21. Id. In essence, each winner thus would, compete for up to $296 million in task orders.

The RFP set out a condition bearing on additional awards. In certain circumstances, the RFP permitted the government to “reopen” the competition to add additional contractors to the pool:

1. Recompetition
1.1 The Government will initially establish the awardee pool by competitively awarding multiple-award IDIQ contracts. As future task order requirements within the program ceiling totals materialize, over the life cycle of this program, the Government will compete those requirements amongst all existing IDIQ contract holders to determine if the contract holders can adequately fulfill the needed capability. The Government reserves the right to reopen the competition under this solicitation if there is [a] shortfall 'in meeting the requirements among the existing IDIQ contract holders or if it is in the Government’s best interest to add new contractors to the original pool of IDIQ contract holders. When/if the Government decides to reopen the solicitation, an announcement will be posted via FedBizOps allowing new ... offerors the opportunity to compete in a full and open competition for an IDIQ contract and task orders to meet the new requirements. Any existing IDIQ contract holder will not re-compete for an IDIQ contract. The competitions will use the same evaluation methodology and documentation (updated to reflect changes in regulatory provisions, requirements and certifications) as the original competition.

RFP at 52.

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126 Fed. Cl. 281, 2016 U.S. Claims LEXIS 353, 2016 WL 1719258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-air-cargo-group-inc-v-united-states-uscfc-2016.