National Maritime Union v. Commander, Military Sealift Command

632 F. Supp. 409, 27 Wage & Hour Cas. (BNA) 1038, 1986 U.S. Dist. LEXIS 27524
CourtDistrict Court, District of Columbia
DecidedMarch 27, 1986
DocketCiv. A. 86-0089
StatusPublished
Cited by4 cases

This text of 632 F. Supp. 409 (National Maritime Union v. Commander, Military Sealift Command) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Maritime Union v. Commander, Military Sealift Command, 632 F. Supp. 409, 27 Wage & Hour Cas. (BNA) 1038, 1986 U.S. Dist. LEXIS 27524 (D.D.C. 1986).

Opinion

MEMORANDUM OPINION

BARRINGTON D. PARKER, Senior District Judge:

This proceeding, the third in a series of three cases dealing with the same government contract solicitation, presents a challenge to the award of a contract to operate twelve oceanographic vessels owned by defendant Military Sealift Command (“Sealift Command” or “MSC”). Plaintiffs assert that the award of the contract violated applicable provisions of the Service Contract Act of 1965 (“SCA” or “Act”), 41 U.S.C. §§ 351 et seq. (1982). The SCA establishes basic labor standards governing the award and performance of government contracts for services in excess of $2,500 where the principal purpose of the contract is to furnish services to the government through use of service employees. Plaintiffs also contend that the procedures followed after the award was made violated federal and agency procurement regulations.

Plaintiffs filed with their complaint a motion for preliminary injunction. Subsequently, all parties moved for summary judgment. For the reasons set forth below, the Court denies plaintiffs’ motion for preliminary injunction as well as their motion for summary judgment. Defendants’ motions for summary judgment are granted and the complaint is dismissed.

INTRODUCTION

Plaintiffs in this proceeding are three unions. Plaintiff National Maritime Union of North America, AFL-CIO (“NMU”) represents unlicensed seamen on nine of the twelve ships. 1 Plaintiffs District No. 1— Pacific Coast District, MEBA, AFL-CIO (“District 1”) and District No. 3 — Radio Officers’ Union, MEBA, AFL-CIO (“ROU”) represent licensed seamen on all twelve vessels. In addition, all three unions currently represent seamen employed by Marine Transport Lines (“Marine Transport” or “MTL”), the disappointed bidder on the contract at issue here. 2 Also named as a defendant along with Sealift Command is Lavino Shipping Company (“Lavino”), the winning bidder oh the contract. 3 The relationships among the parties, as well as the background of this litigation, will be further explained below.

Plaintiff unions assert three separate interests in an effort to overturn or at least suspend the procurement at issue. First, claiming to represent the interests of future Lavino employees, plaintiffs seek recission of the award as illegal insofar as it does not comply with the SCA. They contend that, because the contract did not contain a wage determination prepared by the Department of Labor (“Labor” or “DOL”) specifying the minimum level of wages to be paid, the contract award was invalid. Second, plaintiffs assert that performance of the contract must at least be suspended *412 for a period of time during which civil service mariners (“CIVMARS”) currently manning the ships and represented by plaintiffs could appeal the decision to contract-out the operation of the vessels to private employers. Finally, plaintiffs seek a declaration that temporary as well as permanent - CIVMARS are entitled to a right of first refusal of employment with Lavino or any other winning bidder.

BACKGROUND

As mentioned previously, the matter presently before the Court is the third in a series of suits directed at the contract for operation of the twelve Sealift Command vessels. The decision to let the contract in the first instance was the result of compliance with Office of Management and Budget (“OMB”) Circular A-76, which mandates that, when feasible, sérvices that can be more cheaply performed by the private sector than in-house should be contracted-out to the lowest bidder. Implementing regulations provide that affected parties may appeal the results of the post comparison procedure established by the Circular. Accordingly, on March 15, 1984, the Sealift Command issued a Request for Proposal (“RFP”) seeking bids on the contract to be compared with the government’s cost estimate. Initial offers were received on or about February 1, 1985, after which a “competitive range” was established that included Lavino, Marine Transport and one other bidder. Best and final offers were received on April 15, 1985, on the basis of which a tentative award was made to Marine Transport. Pursuant to the Navy’s administrative appeal procedure, cost comparison appeals were filed by various parties interested in the procurement; all were denied on July 18, 1985. Because the original RFP did not require compliance with the provisions of the SCA, the Seafarers International Union (“SIU”), which represents unlicensed seamen on three of the twelve vessels, 4 filed suit 5 in this Court on July 29 to enjoin performance of the contract.

Subsequent to the filing of SIU’s complaint, Labor notified Sealift Command that the Act did in fact apply to the solicitation and that corrective action needed to be taken. On August 9, 1985, representatives of the Departments of Justice, Labor, and the Navy met, at which time the Justice Department announced that the official government position was that the SCA applied to solicitations such as the one at issue. Accordingly, on August 16, MSC amended the solicitation (Amendment 0018), rescinding the tentative award to Marine Transport and requesting that new best and final offers be received after the completion of an SCA wage determination by the Labor Department. 6

The wage determination that was to be incorporated into the RFP was requested from the Labor Department on August 28, 1985. At that time and again on September 30, the Sealift Command and the Department of the Navy advised Labor of the need to prepare a wage determination that reflected the current downward trend in wages being paid to seamen by the private sector. On October 4, after it was apparent that such a wage determination could not be prepared within 60 days of its request as required by the applicable regulations, 7 Military Sealift issued an additional amendment to the RFP (Amendment 0019). That amendment, together with subsequent amendments, set a date for the submission of revised best and final offers and provided that the successful bidder would be required to pay SCA wages, in accordance with the wage determination to be issued, *413 retroactive to the date of the contract award.

On the same day that Amendment 0019 was issued, Marine Transport filed suit in the District for New Jersey to enjoin resolicitation of the contract. On October 22, that proceeding, on the government’s motion, was transferred to this District. 8 On November 20, 9 this Court granted defendants’ motion for summary judgment and the proceeding was dismissed. Thereafter, the resolicitation proceeded apace, culminating in the award to Lavino on December 12, 1985.

As of the date of the award to Lavino, no wage determination had been announced by DOL.

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Cite This Page — Counsel Stack

Bluebook (online)
632 F. Supp. 409, 27 Wage & Hour Cas. (BNA) 1038, 1986 U.S. Dist. LEXIS 27524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-maritime-union-v-commander-military-sealift-command-dcd-1986.