Phoenix Air Group, Inc. v. United States

46 Fed. Cl. 90, 2000 U.S. Claims LEXIS 21, 2000 WL 225895
CourtUnited States Court of Federal Claims
DecidedFebruary 18, 2000
DocketNo. 98-602C
StatusPublished
Cited by22 cases

This text of 46 Fed. Cl. 90 (Phoenix Air 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
Phoenix Air Group, Inc. v. United States, 46 Fed. Cl. 90, 2000 U.S. Claims LEXIS 21, 2000 WL 225895 (uscfc 2000).

Opinion

[91]*91OPINION

HORN, Judge.

The above-captioned case comes before the court on the parties cross-motions for judgment upon the administrative record. Plaintiff, Phoenix Air Group, Inc., alleges that “[t]he government clearly and prejudicially violated and continues to violate 10 U.S.C. § 2304(a)(1)(A) by its sole-source acquisition of training flight services in Hawaii and the Far East pursuant to the Flight contract without any competition.” In essence, the complaint alleges that the government violated federal requirements for competition in contracting when the Navy failed to use certain contract line items to acquire training flight services in Hawaii and the Far East, and exercised an option year of the contract to acquire the services under other contract line items. The government argues that the procured services were within the scope of the contract, and that the contracting officer’s decision to use particular contract line items to acquire the services was an issue of contract administration, which Phoenix cannot challenge as a subcontractor.

The parties encountered considerable difficulty in working together and while assembling the administrative record in this case. The process included numerous requests by the plaintiff for documents during discovery, and a number of evasive responses by the government, at least one of which appears to have been incorrect. The court was forced to become actively involved and ultimately insisted on an affidavit from an employee of the defendant to verify responses offered by the Navy in court. To the court’s chagrin, information supplied orally in court by counsel for the Navy and relayed, the court believes, too innocently, by DOJ counsel, proved to be inaccurate. Athough the court believes it ultimately has been able to ferret out the accurate facts from the overly voluminous administrative record submitted, the difficulties encountered in discovery and the high-handed rhetoric and counter-accusations offered orally and in writing to the court slowed down the discovery process and forced the court to review each statement made by the parties and each document submitted with extra caution. The court believes that, had the Navy been easier to work with and more forthcoming early in the discovery process, both the court and perhaps even the plaintiff would have been less incredulous of the discovery responses and the in-court statements made by and on behalf of the defendant. Ultimately, the issues in this case presented a less complicated picture than the web that either the plaintiff or the defendant spun for the court. After carefully examining the briefs submitted by both parties, the extensive administrative record, and the contentions put forth at oral arguments, the court holds that the procurement of services at issue was within the scope of the contract, and that there was no violation of federal law.

FINDINGS OF FACT

The plaintiff, Phoenix Air Group, Inc. (Phoenix), is a provider of training flight services to both the private sector and the government, including the United States Navy. The Navy uses training support from outside contractors such as Phoenix, as well as its own assets, to train its fleet units to be ready for combat. The Navy’s Commercial Air Services (CAS) Program coordinates world-wide training support for the Navy’s fleet combat readiness training and also for Naval Air Systems Command (NAVAIR) research and development activities. Commercial air services are acquired and managed for the Navy by the NAVAIR Program Manager Air 207 (the Program Manager), based in Patuxent River, Maryland.

The Program Manager solicits and receives the Navy’s CAS requirements from various naval entities, and the Program Manager then works with a supporting NAVAIR contracting officer to establish a contract under which the Navy may acquire CAS. NAVAIR Instruction 5400.151, dated June 24, 1997, issued the charter for the Program Manager position. According to the charter, the Program Manager’s primary mission is to:

(1) Manage the acquisition and life cycle support of assigned aircraft programs.
(2) Acquire and manage commercial flight services as requested by the Chief of [92]*92Naval Operations (OPNAV), and assigned by the Deputy Commander for Acquisition and Operations (AIR-1.0).
(3) Lead the development and maintenance of strategies to utilize Commercial Off The Shelf (COTS) aircraft and commercial support concepts benefiting [sic] Naval Aviation.

One of the naval entities for which the Program Manager procures CAS is the Commander-in-Chief, Pacific Fleet (CINCPACFLT). CINCPACFLT is the Navy entity responsible for the operational readiness of the Navy’s Pacific Fleet.

In 1995, CINCPACFLT began to obtain CAS for training Pacific Fleet units in Hawaii and the Far East under a previously-existing contract, numbered DAHA90-93-D0002 (ANG Contract 0002). ANG Contract 0002 was a five-year contract which had been competitively bid and awarded in 1992, and, under the contract, plaintiff Phoenix was providing training flight services to the Air National Guard Program Office. The contract had excess guaranteed hours because it had been set up to support a larger Air Force structure, and the Air National Guard was able to modify the contract to add the CINCPACFLT work for Hawaii and the Far East. CINCPACFLT continued to obtain CAS in this manner for Hawaii and the Far East until ANG Contract 0002 expired on March 31,1998.1

In 1995, the Program Manager met with representatives of the Navy’s Atlantic and Pacific Fleets to identify CINCPACFLT’s requirements, including the projected need for contractor air services for fiscal years 1996 through 2001. A meeting was held on May 31 and June 1, 1995, to define Navy-wide requirements for fiscal year 1997. At this meeting, discussions were also held concerning commercial air services needed in the areas denominated as the “middle of the Pacific,” or MIDPAC, and the “western Pacific,” or WESTPAC. It was decided that the Air National Guard would provide the commercial air services for the MIDPAC and WESTPAC areas in fiscal year 1996, and that there would be a separate Memorandum of Understanding that the Navy and the Air National Guard would share assets for accelerated requirements.

For base year 1997, with options for four years to 2001, NAVAIR issued Request for Proposals (RFP) N00019-97-R-0026 on March 1, 1996. According to the solicitation, its purpose was “to obtain the services of aircraft, which are properly equipped, maintained, fueled, and operated by qualified contractor personnel, for use in a wide range of United States (U.S.) Government Commercial Air Services programs.” The solicitation stated that the aircraft would be required “to perform operational services in support of the U.S. Navy, DOD, and other Government programs worldwide.”2

The solicitation originally provided that offerors were to submit prices on contract line item numbers (CLINs) 0X35 and 0X36 relating to MIDPAC, and CLIN 0X37 relating to WESTPAC, which were under Part E of the solicitation, entitled “Requirements-MID-PAC/WESTPAC.” Amendment 01 to the solicitation, however, changed these line items to Part E — Cost Reimbursement. A government-estimated price was provided, and offerors were instructed not to submit a price for these line items.

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Bluebook (online)
46 Fed. Cl. 90, 2000 U.S. Claims LEXIS 21, 2000 WL 225895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-air-group-inc-v-united-states-uscfc-2000.