Radva Corp. v. United States

35 Cont. Cas. Fed. 75,706, 17 Cl. Ct. 812, 1989 U.S. Claims LEXIS 162, 1989 WL 91318
CourtUnited States Court of Claims
DecidedAugust 9, 1989
DocketNo. 63-89-C
StatusPublished
Cited by83 cases

This text of 35 Cont. Cas. Fed. 75,706 (Radva Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Radva Corp. v. United States, 35 Cont. Cas. Fed. 75,706, 17 Cl. Ct. 812, 1989 U.S. Claims LEXIS 162, 1989 WL 91318 (cc 1989).

Opinion

OPINION and ORDER

TURNER, Judge.

RADVA Corporation participated in negotiations with the Corps of Engineers on a design and construction project during a four-month period in 1988 before the Corps terminated negotiations and cancelled the solicitation. Plaintiff seeks reinstatement of the solicitation or, alternatively, bid preparation costs based on assertions that defendant’s actions were arbitrary and capricious, constituted abuse of discretion, violated statutes and regulations, and breached its implied contract to fully and fairly consider plaintiff’s proposal.

On April 17, 1989, defendant filed a motion for summary judgment which was argued on August 3, 1989. This opinion addresses defendant’s motion.

For reasons stated below, it is concluded that the challenged conduct was not arbitrary and capricious, did not violate any statute or regulation, had a reasoned basis, and fell within the broad discretion accorded government contracting officials in a negotiated procurement. Accordingly, it is further concluded that defendant’s motion should be granted.

I

In February 1988, the U.S. Army Corps of Engineers issued a Request for Proposals (RFP) to design and build 25 units of family housing at Fort A.P. Hill in Caroline County, Virginia. The Corps received two proposals under the solicitation but deemed only one of them — that submitted by RAD-VA — to be responsive.1 Received on June 2, 1988, RADVA’s proposal included a bond backed by individual sureties and offered to do the work described in the solicitation for $2,992,480.

Representatives from the Corps’ Norfolk District Office began negotiations with representatives of RADVA in June 1988. These negotiations concerned, inter alia, revision of the design specifications and reduction in the cost of RADVA’s original proposal since, as originally submitted, RADVA’s proposed project cost had exceeded funds available to the Corps.

Continuation of the parties’ discussions became uncertain, however, when, on June 27, the certifier of the individual sureties of the bonds provided by RADVA telephoned the Corps to repudiate his signature. App. to Def. Motion for Summary Judgment at 15. At this point, the Corps deliberated concerning the appropriate course of action. RADVA was unaware that these deliberations were taking place. An internal memorandum on this subject, dated July 1 [815]*815and prepared by contracting officer representative Jack Beecher, stated:

At this time the Contracting Officer has two options. One, reject the proposal as non-responsible due to insufficient bonds. Two, delay the decision until the contractor submits the revised cost proposal on 15 July 1988. At that time if the revised cost is within range of negotiations, then in accordance with FAR 28.101-4(a), the Contracting Officer, in light of having received only one responsive proposal, may require substitute bonds prior to award.

Def. App. at 15. The contracting officer elected to resume negotiations and to give RADVA an opportunity to cure its defective bond. By letter dated July 24, 1988, the Corps informed RADVA that its original sureties were unacceptable and that a replacement proposal bond “must be submitted with supporting documentation ... by August 24, 1988.” Def. App. at 23.

Major Richard F. Sliwoski was appointed as the contracting officer for this project in early August 1988, soon after his arrival at Norfolk District. Before coming to Norfolk District, Major Sliwoski had experience in another district as a contracting officer’s representative but not as a contracting officer. Shortly after he assumed the post of contracting officer for this project, his commanding officer, Colonel Thomas, recommended that he grant RADVA additional time to obtain an acceptable proposal bond. By letter dated August 30, Major Sliwoski’s office granted RADVA a second extension of its deadline for submission of a proposal bond, but warned: “Failure to submit an acceptable proposal bond by September 14, 1988 could cause your proposal to be found non-responsive.” Def. App. at 24.

No further letters concerning extensions of time for submission of the proposal bond appear in the record. However, the court determined at an evidentiary hearing (conducted on August 3, 1989) that a September 19, 1988 telephone conversation between Major Sliwoski, the contracting officer, and Richard Frizzell, authorized representative of RADVA, addressed this subject. The court found that in this conversation,2 Major Sliwoski expressed to Mr. Fiz-zell (1) that he was concerned over RAD-VA’s failure to submit a bond and provide cost and pricing data, (2) that he was apprehensive about the possible loss of funding for the project, (3) that as a consequence, he (a) was establishing October 3, 1988 as the final deadline for submission of the cost and pricing data as well as the bond and (b) would soon commence action on a concurrent solicitation for the design portion of the project but would stop the concurrent action if RADVA supplied the items requested by October 3. Contracting officer representative Ken Coston was present in Major Sliwoski’s office when the telephone conversation took place and memorialized its contents in a contemporaneous memorandum. Government Exhibit 2 at 8/3/89 evidentiary hearing; Def. Reply App. at 3.

Shortly after the September 19 telephone conversation, Major Sliwoski set in motion the contingency plan that he had described to Mr. Frizzell. In a communication to his superiors dated September 22, 1985, Major Sliwoski stated:

Norfolk District received one proposal in response to [the RFP for 25 units of family housing] on 2 June 1988 which exceeded funds available. I have attempted to negotiate an awardable project based on revisions to the proposal received. Substantial progress has been made but there remain several outstanding issues____ It appears prudent to begin concurrent action for an alternative method of procuring subject housing. Due to the small project size and the large number of different unit types required, we do not feel that another [816]*816turn-key effort will generate the competition required to make this project successful. We recommend and request authority to commence concurrent actions to obtain A-E design services for subject project. We are continuing to seek resolutions to all outstanding issues in the hope that a contract award can be made to the current proposer.

Def. App. at 25. In a communication dated September 26, 1988, Major Sliwoski’s request was approved. Def. App. at 26. RADVA was unaware of these internal communications at the time they occurred.

On October 3, Mr. Frizzell met with Messrs. Jack Beecher and Ken Coston, representatives of the contracting officer. Mr. Frizzell submitted RADVA’s certified cost and pricing data but did not submit any bond documents. Instead, Mr. Frizzell supplied Mr. Beecher with the name of a proposed individual surety. Mr. Beecher checked the name against a list of suspended and debarred individual sureties. Not finding the name on the list, Mr. Beecher stated that he would refer the name to the Corps’ legal department, but “strongly suggested” that RADVA obtain a corporate surety. Def. App. at 27. Mr. Frizzell stated that he would endeavor to submit a bond by the close of business that day, but he failed to do so.

The Corps then proceeded with its contingency plan for procuring the 25 family housing units.

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35 Cont. Cas. Fed. 75,706, 17 Cl. Ct. 812, 1989 U.S. Claims LEXIS 162, 1989 WL 91318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/radva-corp-v-united-states-cc-1989.