Self-Powered Lighting, Ltd. v. United States

492 F. Supp. 1267, 27 Cont. Cas. Fed. 80,472, 1980 U.S. Dist. LEXIS 9174
CourtDistrict Court, S.D. New York
DecidedJune 10, 1980
Docket79 Civ. 6795
StatusPublished
Cited by5 cases

This text of 492 F. Supp. 1267 (Self-Powered Lighting, Ltd. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Self-Powered Lighting, Ltd. v. United States, 492 F. Supp. 1267, 27 Cont. Cas. Fed. 80,472, 1980 U.S. Dist. LEXIS 9174 (S.D.N.Y. 1980).

Opinion

OPINION

EDWARD WEINFELD, District Judge.

This is an action by Self-Powered Lighting, Ltd. (“Self-Powered”), a New York corporation engaged in the manufacture of armaments and military equipment against the United States and various officers of the U. S. Army Armament Materiel Readiness Command (the “Army ) for a declaratory judgment that a contract entered into on July 31, 1979 between the Army and Saunders-Roe Developments, Ltd. (“Saunders Ltd.”) is void, and enjoining payments thereunder:

Jurisdiction is alleged under (1) the Administrative Procedure Act 1 and violations are charged of (2) the Armed Services Procurement Act; 2 (3) the Buy American Act; 3 and (4) various defense acquisition regulations. 4

Plaintiff was an unsuccessful bidder on the above-named contract. The complaint alleges various irregularities in the process used by the Army to solicit bids for the contract; that the winning bid was unresponsive to the terms of the solicitation, and thus, that the decision to award the contract to Saunders Ltd. was an arbitrary, capricious, and unreasonable action by the Army; and that the award to a foreign corporation unlicensed in the United States to handle the hazardous nuclear materials called for in the contract, and not subject to other federal regulatory provisions and the federal labor laws, violates federal law.

On December 14, 1979 plaintiff moved to enjoin payments by the government to Saunders Ltd. pending final determination of the contract’s legality. The government cross-moved for summary .judgment. After hearing the parties, the Court denied preliminary relief because plaintiff had failed to prove either “possible irreparable harm” or “a balance of hardships tipping decidedly in [its] favor.” 5 The Court reserved decision on the government’s summary judgment motion pending administrative review of plaintiff’s protest by the Office of the Comptroller General of the United States (the “Comptroller”), which has jurisdiction under the Bid Protest procedures to review the agency action at issue here and to ren *1270 der a non-binding determination. 6 In an opinion dated March 13, 1980 the Comptroller denied plaintiffs protest and concluded that the Award to Saunders Ltd. was in accordance with requisite administrative procedures and did not violate applicable procurement statutes or regulations. 7 Upon an independent consideration of the legal and factual issues the Court reaches the same conclusion.

I. The Facts

Although plaintiff’s response pursuant to Local Rule 9(g) alleged no fewer than twenty-two controverted issues of fact, in its latest submission, plaintiff concedes “there do[ ] not seem to be any issues of fact now that both parties have submitted voluminous papers and exhibits.” We take this statement as an admission that the matter is properly before the Court for summary judgment. 8 Thus is appears the parties are in accord that the matter is ripe for summary judgment disposition.

The undisputed facts indicate that on July 20, 1978, the Army mailed a Request for Proposal, or solicitation, to fifteen American firms, including the plaintiff and the Minnesota Mining and Manufacturing Company (“3M”), in which it solicited bids for 82,750 front sight-post assemblies for use on the M16/M16A1 rifle. Previously, all past procurements for low-light post assemblies had been awarded to 3M, which was the only known manufacturer of promethium, the radioactive material in such low-light sights. After the solicitations had been issued, the Army decided, for safety reasons, to use in the sights tritium, a radioactive gas which disperses if accidently released, rather than promethium, a radioactive liquid which contaminates the rifle user and environs if the sight is damaged. Either type of sight affords a rifleman so equipped the ability to sight and shoot at night. Accordingly, the request for proposals required that the sights contain a spherical-ended luminescent bead containing tritium, a nuclear by-product; this required that offerors be licensed by the Nuclear Regulatory Commission to handle such materials. Offerors intending to use government-furnished property were required to submit written permission from the contracting officer having jurisdiction over the property. The solicitation did not contain a “notice of potential foreign source competition.”

Prior to the issuance of the solicitation, the Army had determined, pursuant to an exception to the Armed Forces Procurements Act, 9 to conduct the procurement by negotiation, rather than formal advertising. Pursuant to the Act, the contracting officer charged with obtaining the procurement had determined on June 9, 1978 that it was “impracticable to obtain competition by formal advertising,” since the only known *1271 manufacturer of the requisite nuclear materials was 3M, which, as already noted, in the past had been awarded all similar procurement contracts for low-light, front sight-post assemblies. The contracting officer reasoned that “in the event that only one proposal was received, the best interests of the government would be served by having the ability to obtain cost and pricing data and negotiate [the] price.” That course of action would not be possible if the procurement had been obtained through formal advertising. The negotiation procedure permits great flexibility. To protect the government’s interest, the contracting officer determined that the solicitation would be “unrestricted,” and that “any interested company” would be allowed to participate in it.

Ultimately, a total of 47 solicitations were issued by the Army. Five proposals were received by the date set for receipt of proposals. Plaintiff’s offer was the lowest of these. The offer of Saunders Ltd., a United Kingdom corporation, was second low and was accompanied by an engineering change proposal seeking approval for the provision of flat-ended rather than spherical-ended beads. Saunders Ltd.’s initial proposal also indicated that it intended to use government-furnished equipment, but did not include the required written permission to do so.

By letter dated September 18, 1979, the Army asked plaintiff to confirm its bid, which was substantially lower than those of its competitors to which it responded by increasing its unit price by almost fifty percent, raising it above Saunders Ltd.’s offer. However, although Saunders’ offer was then the lowest, its bid could not be considered because its initial proposal did not include the written permission for use of government-furnished equipment. As a result, plaintiff up to that point remained the low offeror eligible for award.

Thereafter, negotiations were reopened and best and final offers were requested from each offeror on November 22, 1979.

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492 F. Supp. 1267, 27 Cont. Cas. Fed. 80,472, 1980 U.S. Dist. LEXIS 9174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/self-powered-lighting-ltd-v-united-states-nysd-1980.