National Air Cargo Group, Inc. v. United States

127 Fed. Cl. 707, 2016 WL 4490838
United States Court of Federal Claims·Decided August 26, 2016·No. 16-362C·Published·Cited by 6 cases

Opinion

Post-award bid'protest following corrective action; challenge by a successful offeror to addition of another awardee to an IDIQ contract; jurisdiction; standing; “firm offer” rule; “best value” determination

OPINION AND ORDER 1

LETTOW, Judge.

In this bid protest, National Air Cargo Group, Inc. (“National”) alleges a violation of statutes and regulations “in connection with a procurement” conducted by the United States Transportation Command (“TRANS-COM” or “government”). 28 U.S.C. § 1491(b)(1). TRANSCOM awarded five indefinite-delivery/indefinite-quantity contracts on June 11, 2015 for multi-modal international shipping of government cargo. National was one of the awardees. That same day, TRANSCOM notified another offeror, United Air Lines, Inc. (“United”), that it would not receive an award. United then filed an agency-level bid protest, which ultimately led the agency to award a contract to United, bringing the total number of contracts awarded to six. In response, National submitted protests regarding United’s award, first to the Government Accountability Office (“GAO”) and then to this court, arguing that this sixth award violated languagé in the solicitation that limited the number of awardees and required recompetition before awarding further contracts beyond the original awardees. National also alleged that United lacked relevant past performance. National’s protests resulted in TRANSCOM’s agreement to take corrective action to reevaluate past performance for all six TRANSCOM offerors. Subsequently, TRANSCOM reaffirmed the awards made to each of the six successful offerors. That action prompted this renewed protest. The matter is now before the court on cross-motions for judgment on the administrative record. A hearing was held on July 27, 2016. For the following reasons, National’s motion for judgment is DENIED, the government’s and United’s motions are GRANTED.

FACTS AND BACKGROUND 2

A TRANSCOM Identifies a Need for an Indefinite-Quantity Contract for Inter- ' national Shipping Services, to be Awarded to “Approximately Four” Contractors

TRANSCOM determined in 2014 that it needed international shipping services to *710 move government cargo to and from Afghanistan. AR 1-6. 3 Owing to the government’s drawing down of military operations in that country, TRANSCOM contemplated a contract with a base period of one year, followed by two one-year option periods. AR 1-6 to -7. TRANSCOM proposed using an indefinite-quantity contracting vehicle for this procurement. AR 12-305 (citing 48 C.F.R. (“Federal Acquisition Regulations” or “FAR”)' § 16.504(c)). 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, 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 one or more of the IDIQ contract holders to fulfill its requirements. In some instances, the government awards one IDIQ contract to one contractor, but in most cases the government awards multiple IDIQ contracts under one solicitation, thereby creating a pool of contractors who compete with each othér 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 awar-dee under a multiple-award contract must have an opportunity to compete for any order exceeding $3,500).

TRANSCOM planned to award “approximately four” IDIQ contracts. AR 12-305. To justify that number of awards, a contracting official wrote a memorandum-to-file explaining that

logistical/operational constraints in the [United States Central Command (“CENTCOM”) area of Responsibility] are a significant consideration in determining the efficient number of contract awards. Due to airfield limitations at the CENT-COM aerial ports (which are worsening as the drawdown continues), frequent Prior Permission Requests (PPR) denials have resulted in cargo delays. Limiting the number of prime contractors to approximately four will provide relief for this PPR problem as there will be fewer carriers submitting requests.

AR 12-305. 4

B. TRANSCOM Issues a Request for Proposals

On February 12, 2015, the government issued a request for proposals (“RFP”). AR 14-321 to -520. 5 The RFP established four factors that the government would consider in making its awards: quality of business proposal, technical ability, price, and past performance history. AR 14-407 to -09. As an initial matter, the government would determine whether an offeror’s business and technical proposals were “acceptable.” AR 14-407. *711 If so, the government would then “make an integrated assessment” of the price and past performance factors to determine which bidder offered the “best value” to the government. Id. Past performance and price would be given “equal” weight in that evaluation. Id. 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. AR 14-408 to -09. If an offeror had “no reeent/relevant performance” of record, then the offeror would receive an “unknown confidence” rating, which would be “treated neither favorably nor unfavorably.” AR 14-409.

The RFP further provided that “[t]his is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated.” AR 14-329. “The [g]overnment intends to award approximately four (4) IDIQ contracts resulting from this solicitation to provide [government shippers flexibility of choice and service coverage.” AR 14-407. Pursuant to FAR § 16.504(a)(1), which requires a minimum task order for each winner, the RFP guaranteed that the government would purchase a minimum of $2,500 of international shipping services from each awardee. AR 14-324. The solicitation set the maximum total dollar amount for all task orders over three years at $296,448,852.21. Id. In essence, each winner thus would compete for up to $296 million in task orders.

Offers were due on March 16, 2015. AR 14-321. In the RFP, TRANSCOM asked each offeror to “agree[J to hold .the prices in its offer firm for 180 calendar days from the date specified for receipt of offers.” AR 14-406 (quoting FAR § 52.2124(c), but replacing “30” in that regulation with “180”). Pursuant to FAR § 52.212-2(c), the RFP further specified that

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National Air Cargo Group, Inc. v. United States, 127 Fed. Cl. 707, 2016 WL 4490838 (uscfc 2016).

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