Risc Management Joint Venture v. United States

69 Fed. Cl. 624, 2006 U.S. Claims LEXIS 51, 2006 WL 465842
CourtUnited States Court of Federal Claims
DecidedFebruary 17, 2006
DocketNo. 05-488C
StatusPublished
Cited by10 cases

This text of 69 Fed. Cl. 624 (Risc Management Joint Venture 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
Risc Management Joint Venture v. United States, 69 Fed. Cl. 624, 2006 U.S. Claims LEXIS 51, 2006 WL 465842 (uscfc 2006).

Opinion

[626]*626OPINION AND ORDER1

LETTOW, Judge.

Plaintiff, RISC Management Joint Venture (“RISC”), filed this action to challenge a decision by the U.S. Air Force to select intervenor-defendant, Health Sanitation Service, Inc. (“HSS”), for award of a contract to provide solid waste management services at Vandenberg Air Force Base (“Vandenberg”) in California.2 RISC is a joint venture between Red River Service Corporation and Inland Service Corporation (“Inland Service”). AR 380 (RISC Volume III: Oral Technical Proposal (undated)).3 HSS is a wholly owned subsidiary of Waste Management, Inc., which purchased HSS in 1999. Hr’g Tr. 38:17 to 39:18, 102:3-7 (Apr. 29, 2005).4 RISC and HSS were the only bidders on the Air Force contract that encompassed the solid waste, refuse, and recycling services, as well as the environmental management of the Class III unlined sanitary landfill, at Vandenberg. HSS was selected for the award notwithstanding the fact that it proposed a higher contract price than RISC, primarily on the basis of HSS’s higher past performance and confidence ratings.

After a hearing on April 29, 2005 on RISC’s application for a temporary restraining order, the court denied that application. Since May 1, 2005, HSS has been fulfilling the requirements of the contract at issue.

Pending before the court are the government’s and HSS’s motions and RISC’s cross-motion for judgment on the administrative record. On January 19, 2006, the court completed the record for decision by hearing arguments on the motions and conducting a trial concerning equitable issues. For the reasons set forth below, the court concludes that the government erred in certain respects in acting on the procurement but that those errors were not significant and did not prejudice RISC’s posture in the procurement. In short, the Air Force’s decision to award the pertinent contract to HSS was not “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law,” 5 U.S.C. § 706(2)(A), and it should not be set aside.

FACTS5

On May 19, 2004, the Air Force announced that it intended to issue a solicitation for all solid waste management services and for the operation of the Class III landfill at Vanden-berg. AR 5-6 (Presolicitation Notice (May 19, 2004)). Previously, two separate contracts had been issued for the landfill’s operation, waste collection, and attendant environmental sampling and reporting. See AR 250 (Pre-Proposal Conference/Site Visit (Aug. 31, 2004)), 257 (Pre-Proposal Conference/Site Visit Handout (Aug. 31, 2004)) (comment by Mr. Patrick Maloy, Environmental Advisor and Solid Waste Manager at Vandenberg, that two different contractors had previously been retained to provide the required environmental sampling, analysis, and reporting that was encompassed by the Solicitation). Under the first of these two [627]*627contracts, RISC had provided solid waste management services that included “refuse, recycling, green waste and bulk pickup,” operation of the Class III landfill at Vanden-berg, and “operation and maintenance of the [g]roundwater [reclamation & [conditioning [sjystem.” AR 281 (Summary of RISC’s Vandenberg Contract (Jan. 17, 2005)); see AR 455-457 (Contractor Performance Assessment Report (April 15, 2004)). The second contract was performed by Tetra Tech, Inc. (“Tetra Tech”) and largely encompassed “environmental sampling, monitoring, reporting and compliance efforts.” AR 957 (Proposal Evaluation Report § 4.1(b)(1) (Mar. 15, 2005)); see Hr’g Tr. 22:17 to 23:3. The two contracts required coordination by the Air Force to provide the requisite environmental management for the landfill, AR 957 (Proposal Evaluation Report § 4.1(b)(1)), and the Air Force sought to consolidate responsibilities for those services in a single contract. Id.; see also Hr’g Tr. 41:2-14.

A. Scope of the Solicitation

The Air Force issued Solicitation No. FA4610-04-R-0006 on August 20, 2004 for waste management services and operation and management of the unlined Class III sanitary landfill at Vandenberg. AR 7 (Solicitation (Aug. 20, 2004)). Ten amendments were subsequently issued to revise aspects of the Solicitation, including the response date, see, e.g., AR 215-16 (Solicitation Amendment 0008 (Jan. 3, 2005)), various terms, AR 123-131 (Solicitation Amendment 0009 (Jan. 10, 2005)), and estimated quantities for some items. AR 120-121 (Solicitation Amendment 0010 (Jan. 18, 2005)).

The Solicitation contemplated that a firm-fixed price contract would be awarded for a term of six months, from April 1, 2005 through September 30, 2005, AR 1 (Request for Purchase (Dec. 14, 2004)); see AR 123-131 (Solicitation Amendment 0009),6 with four additional single-year options. AR 124-26, 128-29 (Contract Line Item Numbers (“CLINs”) 0001, 1001, 2001, 3001, 4001). The Solicitation called for a contractor to “collect, transport, recycle, and dispose of municipal solid wastes” at the Class III landfill at Vandenberg in compliance with local, state and federal regulations. AR 59 (Statement of Work § 1.0); see AR 59-67 (Statement of Work §§ 1.1-4.5.3) (itemizing and describing all of the contractor’s responsibilities). The contractor would provide all personnel, tools, materials, supplies, equipment, and supervision necessary to perform the duties under the contract excepting only items listed in an appendix to the Solicitation. AR 59 (Statement of Work § 1.0); see AR 65 (Statement of Work §§ 3.0-3.3), 78 (Appendix #2: Government-Furnished Facilities and Equipment).

The Statement of Work set out six main areas of responsibility under the contract. See AR 59-67 (Statement of Work §§ 1.1-4.5.3). The first, operation of the base municipal solid waste landfill, required that the contractor “manage, operate, monitor and control the” landfill. AR 59 (Statement of Work § 1.1); accord AR 9 (CLIN 0001). Under the applicable Solid Waste Facility Permit, issued by the California Regional Water Quality Control Board, the landfill could accept a maximum of 400 tons of solid waste per day although it had averaged 50 tons per day. AR 59 (Statement of Work § 1.1). Moreover, besides Vandenberg, the landfill also accepted refuse and waste from the Lompoc Federal Correction Institute, the U.S. Penitentiary, and various affiliated Van-denberg organizations which included authorized contractors. Id. In addition to properly disposing of various types of solid waste, the contractor would be required to “sample the groundwater, soil pore liquid, soil pore gas and surface water at specific locations in and around the landfill” and report the results in accordance with all relevant permits. AR 60 (Statement of Work § 1.1.20); see also AR 61 (Statement of Work § 1.1.22) (stating that the contractor would perform “gas and water sampling and submit all required reports”).

Second, the contractor would be responsible for “providing] refuse, recycling, and green waste collection services to” Vanden-berg. AR 61 (Statement of Work § 1.2); see AR 9-11 (CLINs 0002-0005), 79 (Appendix # 3: Recyclable Materials)(listing categories [628]*628of recyclable materials).

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Bluebook (online)
69 Fed. Cl. 624, 2006 U.S. Claims LEXIS 51, 2006 WL 465842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/risc-management-joint-venture-v-united-states-uscfc-2006.