Shamrock Foods Co. v. United States

92 Fed. Cl. 339, 2010 U.S. Claims LEXIS 112, 2010 WL 1675512
CourtUnited States Court of Federal Claims
DecidedApril 22, 2010
DocketNo. 10-109 C
StatusPublished
Cited by5 cases

This text of 92 Fed. Cl. 339 (Shamrock Foods 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
Shamrock Foods Co. v. United States, 92 Fed. Cl. 339, 2010 U.S. Claims LEXIS 112, 2010 WL 1675512 (uscfc 2010).

Opinion

OPINION AND ORDER

BUSH, Judge.

Shamrock Foods Company (Shamrock) filed its post-award bid protest complaint on February 18, 2010, challenging the award of a contract to U.S. Foodservice, Inc. (Food-service), through which Foodservice will provide certain food and beverage supply and [341]*341delivery services to Fort Bliss, Texas. Compl. ¶¶ 11, 34. Shamrock is the incumbent contractor for these services at Fort Bliss. The procuring agency is the Defense Supply Center Philadelphia, Defense Logistics Agency, United States Department of Defense (Supply Center). The complaint also brings various contract claims against the United States which the court will not address in this opinion.2

Plaintiffs bid protest is now before the court on motions to dismiss brought by defendant and intervenor-defendant Foodser-vice, and cross motions for judgment on the administrative record brought pursuant to Rule 52.1(c) of the Rules of the United States Court of Federal Claims (RCFC). The administrative record (AR) was filed on February 23, 2010, and briefing was filed according to an expedited schedule.3 Oral argument was held on March 8, 2010. For the reasons set forth below, defendant’s and intervenor-defendant’s motions to dismiss plaintiffs bid protest are granted.

BACKGROUND

1. Shamrock’s Prime Vendor Contract Including Fort Bliss

Shamrock was awarded Contract No. SPM300-07-D-3220 by the Supply Center on or about February 28, 2007.4 Compl. ¶ 21; AR at 269. That contract is an indefinite quantity, fixed price contract for the supply and delivery of food and beverages to various federal military and civilian installations in New Mexico and western Texas, including Fort Bliss. AR at 269-71, 273-78, 295. More than half of the value of the contract is attributed to services provided to Fort Bliss. Pl.’s Mot. at 2; AR at 10-11. As “prime vendor,” Shamrock provides a “ ‘one-stop’ shopping environment from commercial food service vendors” to the federal installations listed in its contract. Def.’s Bid Protest Mot. at 4.

The contract includes one base year, with four possible option years. AR at 271. Two option years were exercised by the government Id. at 293-94, 296-98; Pl.’s Mot. at 3. Shamrock’s contract is due to expire on April 10, 2010. AR at 298. It is undisputed that the government has met the minimum purchase requirements of the current option year. Pl.’s Mot. at 3.

11. Solicitation of a Back-Up Prime Vendor for Fort Bliss

A. Relevant Contract Clauses

Shamrock’s contract, and similar prime vendor contracts with the Supply Center, contain three clauses related to the addition of customers to a prime vendor contract, or the requirement that a prime vendor serve as baek-up prime vendor to a different prime vendor contract.5 The relevant portion of the baek-up prime vendor clause is reproduced here: “The offeror(s) awarded the prime vendor contract for this area may become a potential backup supplier for other area should a prime vendor in an adjacent or nearby area, be unable to support one, some, or all of the customers in that assigned area.” AR at 15. To invoke this clause, the Supply Center would negotiate “a bilateral agreement/modification to the contract” with its prime vendor in an adjacent area that would [342]*342add the new customers to that vendor’s contract. Id.

Shamrock’s contract also contained two related clauses titled “additional customers” and “addition of customers.” AR at 22-23, 288-89. The original clause states, in relevant part, that “[t]he Government reserves the right to add [Defense Department] and non-[Defense Department] customers in the solicited area to the Prime Vendor contract based on a mutually agreed upon implementation plan.” AR at 22. The revised “addition of customers” clause contemplates that customers in one prime vendor’s service area may be added to an “adjacent or proximal” prime vendor’s contract “in the event that the contract performance of the prime vendor contractor providing foodservice support to the existing customer installation(s) is determined unsatisfactory.” AR at 288.

Foodservice, the intervenor-defendant in this suit, was awarded and holds the prime vendor contract for Las Vegas, Nevada and surrounding areas, Contract No. SPM300-05-D-3123.6 See AR Tabs 9-10. Awarded in 2005, Foodservice’s prime vendor contract includes one base year, and four option years, and is otherwise similar to Shamrock’s prime vendor contract. Foodservice is currently within its fourth option year which expires on September 3, 2010. Id. at 591. Foodservice’s prime vendor contract contains “back-up prime vendor,” “additional customers” and “addition of customers” contract clauses that are identical to the clauses in Shamrock’s prime vendor contract. Id. at 312, 319, 584-85.

B. The Supply Center Decides to Invoke the Back-Up Prime Vendor Clause and Remove Fort Bliss from Shamrock’s Prime Vendor Contract

For reasons not relevant here, the Supply Center found Shamrock’s contract performance at Fort Bliss to be unsatisfactory. On June 9, 2009, at a meeting including representatives from Fort Bliss, the Supply Center and Shamrock, the government decided that the Supply Center “would start the process to invoke the back-up Prime Vendor provision of the contract to find Ft. Bliss another foodservice supplier.” PL’s Mot. Ex. 6 at 3; Def.’s Mot. Att. D at 3. On July 14, 2009, counsel for Shamrock contacted the contracting officer by letter and expressed plaintiffs opposition to the removal of Fort Bliss from Shamrock’s prime vendor contract. PL’s Mot. Ex. 8; Def.’s Contract Claims Mot. Ex. A.

C. Solicitation and Award to Foodser-vice

According to the government, the Supply Center researched “neighboring” prime vendors and concluded that four vendors could potentially provide back-up prime vendor services to Fort Bliss. AR at 624. These vendors were located in Phoenix, San Antonio, Las Vegas, and Little Rock. Id. Of the four contractors contacted during the summer of 2009, three responded with proposals. Id. Shamrock’s Phoenix-based operation, the prime vendor on Contract No. SPM300-10-D-3335, declined to submit a bid even though it was solicited by the Supply Center. Id.; Def.’s Mot. at 8. Sometime in December 2009, the Supply Center selected Foodservice to become the back-up prime vendor for Fort Bliss. AR at 628-30.

The Supply Center first modified Foodser-vice’s prime vendor contract to add Fort Bliss to that contract, with a place of performance in Albuquerque. AR at 592-93. This modification is dated December 22, 2009. Id. at 592. On January 28, 2010, Foodserviee’s prime vendor contract was further modified by issuing an “administrative contract” for Foodservice’s back-up prime vendor services at Fort Bliss, Contract No. SPM300-08-D-3354.7 Id. at 594. Monday, February 22, 2010 was identified as the date when back-up prime vendor seivices at Fort Bliss would commence. Id. at 592.

III. Procedural History

Shamrock and three other prime vendors were initially contacted on July 30, 2009 and [343]*343were informed of the opportunity to bid on the work at Fort Bliss. AR at 606-08, 623.

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Cite This Page — Counsel Stack

Bluebook (online)
92 Fed. Cl. 339, 2010 U.S. Claims LEXIS 112, 2010 WL 1675512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shamrock-foods-co-v-united-states-uscfc-2010.