Omni Corp. v. United States

41 Fed. Cl. 585, 1998 U.S. Claims LEXIS 206, 1998 WL 525445
CourtUnited States Court of Federal Claims
DecidedAugust 20, 1998
DocketNo. 96-86C
StatusPublished
Cited by12 cases

This text of 41 Fed. Cl. 585 (Omni Corp. 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
Omni Corp. v. United States, 41 Fed. Cl. 585, 1998 U.S. Claims LEXIS 206, 1998 WL 525445 (uscfc 1998).

Opinion

OPINION

FUTEY, Judge.

This contracts case is before the court on defendant’s motion for summary judgment and the cross-motion for summary judgment filed by plaintiff, Omni Corporation (“Omni”).1 Defendant argues that plaintiff was contractually obligated to staff equipment mechanics at each of two locks and dams plaintiff operated and maintained for defendant. Defendant asserts that the failure to staff equipment mechanics specifically resulted in the receipt of deficient services for which defendant alleges it justifiably withheld funds due under the contract. Plaintiff responds that the contract contained no such requirement, and any obligations were addressed to the performance of work rather than the staffing of specific positions. Plaintiff maintains that as its performance was not deficient, defendant’s withholding of funds was unjustified.

Factual Background

On June 2, 1992, the United States, acting through the Department of the Army Corps of Engineers, Vicksburg District (“Army Corps”), issued Request for Proposal No. DACW38-92-R-0029 for the operation and maintenance of two government-owned locks and dams located on the Red River Water[587]*587way in Louisiana. The two locks and dams are known as the John H. Overton Lock & Dam (“Overton L & D”) and Lock and Dam No. 3 (“L & D No. 3”).

The solicitations contain several sections at the heart of this case. Section H.1.1, Minimum Personnel Requirements, states, “The Contractor shall provide the personnel necessary to accomplish all of work [sic] required by this specification within the time limits specified.”2 The solicitation later states at section H.1.1.1.2, following sections labeled Historical Personnel Information and Typical Work Schedule, that “[t]he above information is provided for informational purposes only and is not intended to reflect a mandatory staffing level nor a warranty by the Government that this staffing level will always be sufficient to accomplish the required work.”3

Another section is labeled “DEDUCTIONS FOR DEFICIENT WORK.” That portion of the solicitations, H.26, provides that

[deductions ... will be made for services that have been cited as not clearly meeting the standards set forth in the ... “Performance Requirements” in Section C, the Performance Requirements tables in the appendices of Section C or any other portion of the contract specifications.4

Procedures are given for handling deductions for “documented defects” in the following situations: “[e]ach service found deficient and performed by the Government;” “[e]ach service found deficient and performed by another contractor;” and “[e]ach service found deficient and not reperformed by anyone, or work not performed at all.”5

Section C provides a description and specification of the work to be performed. The scope of work is defined as “operation and routine maintenance of [the Overton L & D and L & D No. 3].”6 Appendix A of Section C, in describing the contractor’s duties related to dam operation, states, “The Contractor shall provide all plant, labor, equipment, materials, and supplies necessary to perform”7 the enumerated duties. All subsequent appendices in Section C, including Appendix D concerning “Lock and Dam Maintenance and Repair,” repeat the above-quoted language in listing the contractor’s requirements for performance of the listed duties.

Section L contains instructions, conditions, and notices to offerors. In Section L.30.2.1, offerors are instructed, in the manpower section of their proposals, to “[i]nclude all discussion of manpower proposed for accomplishment of work included [sic] travel, organization chart and seasonal nature of work.”8 At section L.31.1.2, concerning technical requirements, proposals are required to “[p]rovide an analysis of the manpower proposed to accomplish all work. For each appendix, the manpower effort shall be given by work level and skill group, i.e., ... lock and dam equipment mechanic....”9

Section M details the evaluation factors for award of the contract. The solicitation informs offerors that in the evaluation of the proposal’s technical capability (among other categories), manpower is the most important factor.10 Section M.4 states: “Award will be made to the highest evaluated offeror whose offer conforms to the solicitation and has been evaluated as most advantageous to the Government considering all factors including technical and Management capability and cost.”11 Section M.5 is titled “Relationship of Accepted Proposal content to the Contractor Requirements.” Section M.5 advises offerors that

by the submission of an offer pursuant to this solicitation, you, as the offeror, [588]*588agree that the capability presented in your proposal which is in excess of the minimum capability requirements of this solicitation, as accepted by the Government, and upon award of a contract, thereby becomes an additional contract requirement for equivalent capability. Subsequently, a failure to provide such additional capability which results in deficient contract performance, can place the contract in jeopardy of default.12

On October 6, 1992, Omni submitted its best and final offer, with accompanying technical and cost proposals. In the cover letter to its proposal, Omni offered:

The owners and officers of Omni Corporation commit the resources and capabilities of the Company, and the personal efforts of our professional managers, engineers, and administrators to the realization of the goals established by the Vicksburg District through this procurement. These are not just words in a proposal — this is a firm commitment — backed by integrity and a reputation of excellence in performance.
... Our staffing approach helps us retain flexibility as additional work is assigned or less work is required.... We firmly believe that if a competitor proposes a lesser staffing level ... it would result in critical work not getting accomplished to the standards desired by the Corps.13

In the Manpower section of its proposal, Omni discussed its staffing plan. Among the support personnel Omni planned for the Overton L & D and L & D No. 3 was an equipment mechanic.14 Later in its proposal, Omni stated that “[t]he Equipment Mechanic assigned to each lock and dam is responsible for performing all maintenance, preventive and corrective, with the assistance of the Lock and Dam Operators and Mechanic Helper.”15 In its cost proposal, which is stated as prepared in accordance with instructions given in section L of the solicitations, Omni factors in an equipment mechanic at each lock and dam for the potential five-year life of the contract.

Omni’s bid was accepted by the Army Corps, and Contract No. DACW38-93-D0002 was awarded to Omni on October 28, 1992. The contract is characterized as a competitively negotiated firm-fixed-price contract. On November 30,1993, November 28, 1994, December 4, 1995, and November 29, 1996, respectively, Contract Modification Nos.

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Bluebook (online)
41 Fed. Cl. 585, 1998 U.S. Claims LEXIS 206, 1998 WL 525445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omni-corp-v-united-states-uscfc-1998.