Southern Foods, Inc. v. United States

76 Fed. Cl. 769, 2007 WL 1805166
CourtUnited States Court of Federal Claims
DecidedJune 21, 2007
DocketNo. 07-210C
StatusPublished
Cited by5 cases

This text of 76 Fed. Cl. 769 (Southern Foods, Inc. 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
Southern Foods, Inc. v. United States, 76 Fed. Cl. 769, 2007 WL 1805166 (uscfc 2007).

Opinion

OPINION

BRUGGINK, Judge.

This is a post-award bid protest action for declaratory and injunctive relief brought by plaintiff Southern Foods, Inc. (“Southern Foods”) against the United States, acting through the United States Army Community and Family Support Center (“USACFSC”)2. The procurement at issue was for a food delivery contract to the U.S. Army Service Area 10. Plaintiff seeks a declaratory judgment that the USACFSC’s decision to award the contract to the U.S. Foodservice (“USF” or “intervenor”) was arbitrary, capricious, an abuse of discretion, or otherwise contrary to law. Plaintiff further requests that we set aside the award of Contract No. NAFBA 1-07-D-0022 to USF and direct the solicitation to be re-opened. USF has intervened.

The parties have filed cross-motions for judgment on the administrative record pur[771]*771suant to Rule 52.1 of the Rules of the United States Court of Federal Claims (“RCFC”). In addition, defendant has moved to dismiss for lack of jurisdiction. The administrative record (“AR”) has been filed and the matter is fully briefed. Oral argument on the parties' motions was heard on May 10, 2007. At the oral argument, the court ordered that a new contracting officer re-evaluate the proposals and submit a new determination and findings (“D & F”). Defendant filed the new D & F as a supplement to the administrative record on May 24, 2007. The parties submitted supplemental briefs on May 31, 2007, by leave of the court. Also, pending is plaintiffs motion to further supplement the administrative record, filed on May 24, 2007, which we deny.3 For the reasons set out below, we deny defendant’s motion to dismiss, deny plaintiffs motion for judgment on the administrative record and request for a permanent injunction, and grant defendant’s cross-motion for judgment.

BACKGROUND

On February 24, 2006, USACFSC issued RFP No. NAFBA1-06-R-0016 for an Indefinite Delivery, Indefinite Quantity contract in support of the Joint Services Prime Vendor Program (“JSPV Program”). The JSPV Program is a series of contracts between various private sector vendors and the Army. Administered under the Army Non-Appropriated Fund contract and policy regulations, the JSPV Program supplies all food and food-related products to the Army Morale, Welfare, and Recreation (“MWR”) activities. USACFSC provides guidance and oversight for the MWR programs. The RFP was for 18 designated Service Areas. Only Service Area 10 is relevant for this action. Service Area 10 includes Fort Knox in Louisville, Kentucky and Fort Campbell near Clarks-ville, Tennessee.

The RFP provided that all contracts awarded were to use nonappropriated funds only. Contracts would be for one base year with an option to extend the term of the contract for up to nine additional years. The RFP contained fourteen categories of food and food-related products. Offerors were to propose a fixed fee for each product category as either a margin or mark-up for one base year and for each of the nine option years.

The RFP required a three-volume proposal consisting of (1) a price proposal, (2) a technical proposal, and (3) a management proposal. The RFP stated that price was the “primary area of consideration” and that it was “significantly more important” than technical or management factors. AR 21. Price was to be evaluated by the contracting officer based on three sub-factors, categorical individual margins or mark-up, private label rebates, and market basket, all equal in importance. The RFP stated that price would be evaluated using the fixed fee proposed by the offerors for each of the fourteen product categories. Price proposals were to be first analyzed by Mr. Chris Nau-mann, whose conclusions were to be validated by the contracting officer. Evaluation on the technical factor was to be based on two sub-factors, customer service and reporting, equal in weight. Evaluation of the management proposal was to be based on two sub-factors, organizational experience and past performance, equal in weight. Technical and management factors were given equal importance, and were to be evaluated by a technical evaluation team (“TET”).

In accordance with the Evaluation Plan, each evaluator was to assess each of the proposals, identifying and documenting strengths, deficiencies, weaknesses, and areas needing clarification. Each evaluator was then to rate each area of the evaluation and give a color-rating of Blue (Exceptional), Green (Acceptable), Yellow (Marginal), or Red (Unacceptable). Then, the TET was to hold group discussions to reach a consensus on an overall color rating for each offeror.

[772]*772On April 17, 2006, Southern Foods submitted a proposal for Service Area 10. USF and Sysco Corporation (“Sysco”) also submitted proposals. The TET noted the following deficiencies and weaknesses in USF’s technical proposal:

DEFICIENCIES:

• Offeror did not specify frequency of new product introduction.

WEAKNESSES:

• No additional charge for emergency orders — ONLY if it is the Offeror’s fault.
• If minimum purchase requirement for proprietary items is not met or if no proprietary items are purchased within 35 days, the items will be considered “dead inventory” and the customer will be required to purchase the remaining stock within 14 days.
• Special orders may táke three to six weeks.
• Must request proprietary items in writing within 30 days — rigid proprietary item restrictions.

AR 1559a. For USF’s management proposal, the TET noted the following deficiencies and weaknesses:

• Did not provide % annual sales.
• Did not provide complete HAACP plan.
• Exception: See attachments. Pages 83 & 84 list multiple exceptions.
• Did not list proprietary items in prodhet mix.
• Did not provide the number of drivers, pallet jacks and fork lifts.
• Did not provide number of dock doors.
• Did not provide customer satisfaction reports.
• Did not state whether equipment is owned or leased.
• Proposal seems rigid.
• Rigid proprietary item requirements.

AR 1559c.

With respect to Southern Foods’ technical proposal, the TET found no deficiencies or weaknesses. The TET found two deficiencies in Southern Foods’ management proposal:

• Did not provide number of drivers.
• Did not provide addresses of their “top 10” accounts.

AR 1559d.

The initial evaluation ratings and price evaluation for the three companies were:

Hi ❖ ❖

AR 1694a, b. The contracting officer reviewed the findings and recommendations of the TET and evaluated the price factor by validating price analyses conducted by Mr. Naumann.

On July 5, 2006, USACFSC sent a letter to USF informing it of the deficiencies and weaknesses identified by the TET. USACFSC recommended that USF re-evaluate its proposed price margins, which the contracting officer calculated to be * * *, gross profit percentage.

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Cite This Page — Counsel Stack

Bluebook (online)
76 Fed. Cl. 769, 2007 WL 1805166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-foods-inc-v-united-states-uscfc-2007.