Ryan Co. v. United States

43 Fed. Cl. 646, 1999 U.S. Claims LEXIS 113, 1999 WL 333407
CourtUnited States Court of Federal Claims
DecidedMay 20, 1999
DocketNo. 99-113C
StatusPublished
Cited by15 cases

This text of 43 Fed. Cl. 646 (Ryan Co. 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
Ryan Co. v. United States, 43 Fed. Cl. 646, 1999 U.S. Claims LEXIS 113, 1999 WL 333407 (uscfc 1999).

Opinion

OPINION

ALLEGRA, Judge.

This post-award bid protest action is before the court on the parties’ cross-motions for summary judgment on the administrative [648]*648record. At issue is whether defendant acted arbitrarily and capriciously, and contrary to law, in determining that plaintiffs bid for electrical services was nonresponsive and in awarding the contract, instead, to the second lowest bidder. After carefully reviewing the submissions of the parties, and following oral argument, the court grants the defendant’s motion for summary judgment.

I. Facts

On October 9, 1998, the Lewis Research Center of the National Aeronautic and Space Administration (NASA) in Cleveland, Ohio,1 issued Invitation for Bids (IFB) No. IFB3-107034. The IFB sought bids from contractors for a fixed price amount for “the supervision, labor, equipment, materials and testing to rehabilitate and modify the High Voltage Electrical Power System at the NASA Lewis Research Center.” The IFB contained a bidding schedule, criteria for the bids and specifications for the services requested. The focus of the dispute in this case is the interpretation of section M of the IFB, which sets forth the “Evaluation Factors For Award.”

Section M establishes three bid evaluation criteria: (1) Cost; (2) Preliminary Schedule; and (3) Major Equipment. Subsection M.3.2., Preliminary Schedule, states, in pertinent part:

The Contractor shall submit with his bid a preliminary schedule outlining how he intends to achieve the major task items required to accomplish the contract. The schedule shall show projected task start and end dates. This preliminary schedule shall be used as the basis to generate the actual sequencing of construction tasks should the contractor become the successful bidder. From the contractor’s preliminary schedule the Government will be able to determine the contractor’s understanding of the job tasks and his ability to reasonably plan his tasks minimizing the impact on operations at the Center. The reasonableness of the schedule will be based on a comparison with the Government’s preliminary schedule and a comparison with all other bidders schedule responses.

Subsection M.3.3., Major Equipment, provides, in pertinent part:

The contractor shall provide, with his bid, Manufacturer’s Catalog cuts (showing salient characteristics) for the major equipment which he intends to furnish in response to the specs and drawings. The contractor is also to provide data showing that the proposed manufacturer has been producing the specific class of major equipment for a minimum of 20 years and the same class of major equipment has been in successful service with utilities or Government agencies within the United States for a period of 15 years____ Major Equipment — transformers, breakers, switches, cable, and switchgear.

Subsection M.l further states that there are no Federal Acquisition Regulations (FAR) provisions or NASA FAR Supplement provisions incorporated by reference into section M. However, section L, titled “Instructions, Conditions, and Notices to Officers,” incorporates by reference a number of FAR and NASA FAR Supplement provisions, including FAR 52.214-21, Descriptive Literature. This provision states:

(a) Descriptive literature means information (e.g., cuts, illustrations, drawings, and brochures) that is submitted as part of a bid. Descriptive literature is required to establish, for the purpose of evaluation and award, details of the product offered that are specified elsewhere in the solicitation and pertain to significant elements such as (1) design; (2) materials; (3) components; (4) performance characteristics; and (5) methods of manufacture, assembly, construction, or operation. The term includes only information required to determine the technical acceptability of the offered product. It does not include other information such as that used in determining the responsibility of a prospective Contractor or for operating or maintaining equipment.
(b) Descriptive literature, required elsewhere in this solicitation, must be (1) identified to show the item(s) of the offer to [649]*649which it applies and (2) received by the time specified in this solicitation for receipt of bids. Failure to submit descriptive literature on time will require rejection of the bid, except that late descriptive literature sent by mail may be considered under the Late Submissions, Modifications, and Withdrawals of Bids provision of this solicitation.
(c) The failure of descriptive literature to show that the product offered conforms to the requirements of this solicitation will require rejection of the bid.

48 C.F.R. § 52.214-21 (1998).

NASA received seven bids in response to the IFB. On December 4,1998, Angel Pagan, a contracting officer with NASA at the Lewis Research Center, conducted the bid opening and certified that the bids were opened, read, and recorded. Mr. Pagan asked Sue Gau-dreau, the project manager for this contract, to review the three lowest priced bid packages under the bid evaluation criteria identified in section M of the IFB. Ms. Gaudreau was assisted in the evaluation by Louis Bernhardt, the High Voltage Power System Manager at the Research Center. Ms. Gaudreau and Mr. Bernhardt each independently reviewed the three bids according to the section M evaluation factors — cost, preliminary schedule, and major equipment. Plaintiff, the Ryan Company (Ryan), had the lowest bid at $6,871,900. The Chappy Corporation (Chappy), the intervenor in this action, had the second lowest bid at $7,047,400. Lake Erie Electric (Lake Erie) had the third lowest bid at $7,804,785.

To evaluate the acceptability of the preliminary schedules, Ms. Gaudreau and Mr. Bernhardt reviewed each submitted preliminary schedule to determine the bidder’s understanding of the job tasks and its ability to plan tasks reasonably while minimizing the impact on government operations. They could not evaluate plaintiffs bid because it did not submit a preliminary schedule. Upon review of the other two low bids, they determined that both Chappy’s and Lake Erie’s preliminary schedules were acceptable.

To review the catalog cuts for acceptability, Ms. Gaudreau and Mr. Bernhardt independently compared the bidder’s catalog cuts against the salient characteristics for major equipment identified in the IFB. In so doing, both relied upon their experience with equipment from the same manufacturer identified in the catalog cuts. Thus, in analyzing several products, Ms. Gaudreau and Mr. Bernhardt relied on the catalog cuts to demonstrate certain salient characteristics and on their experience with equipment from the same manufacturer to demonstrate others. Ms. Gaudreau and Mr. Bernhardt each determined that Chappy’s catalog cuts for major equipment satisfied all of the major salient characteristics set forth in the IFB, with no exceptions. Lake Erie’s catalog cuts also were deemed acceptable. They, however, did not evaluate plaintiffs bid in this manner because plaintiff did not submit any catalog cuts with its bid.

On December 7, 1998, Ms. Gaudreau forwarded the results of her review to Mr. Pagan, the contracting officer. Mr.

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Bluebook (online)
43 Fed. Cl. 646, 1999 U.S. Claims LEXIS 113, 1999 WL 333407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-co-v-united-states-uscfc-1999.