Space Exploration Technologies Corp. v. United States

68 Fed. Cl. 1, 2005 U.S. Claims LEXIS 326, 2005 WL 2811892
CourtUnited States Court of Federal Claims
DecidedOctober 28, 2005
DocketNo. 05-1053C
StatusPublished
Cited by2 cases

This text of 68 Fed. Cl. 1 (Space Exploration Technologies Corp. 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
Space Exploration Technologies Corp. v. United States, 68 Fed. Cl. 1, 2005 U.S. Claims LEXIS 326, 2005 WL 2811892 (uscfc 2005).

Opinion

OPINION

CHRISTINE O.C. MILLER, Judge.

This case is before the court after argument on defendant and intervenors’ motions to dismiss. Plaintiff, a promising entrant into the Government’s missile launch program seeks to enjoin the award of a contract to two established players that have performed as sole-source awardees in the past and have combined to do so in the future. The solicitation contemplates “support,” or crucial preparatory development for future launches. The protester fears that, if the procurement proceeds, it will be at a compet[2]*2itive disadvantage when it is fully qualified to submit a proposal for future launches. Moreover, it charges that the subject procurement effectively has allocated future launches to the two sole-source contractors through fiscal year (“FY”) 2011, thereby foreclosing any realistic opportunity to compete.

FACTS

The undisputed facts that follow come from the parties’ filings. No administrative record has been submitted.2 In 1995 the United States Air Force (the “Air Force”) implemented its Evolved Expendable Launch Vehicle (“EELV”) Program. Developed to achieve affordable, assured access to space, the EELV Program relies on two families of launch vehicles to launch the Government’s national security satellites into their designated orbits.

Boeing Launch Services, Inc. (“Boeing”), and Lockheed Martin Corporation (“Lockheed”), which were awarded pre-engineering and manufacturing contracts as part of the EELV Program, manufacture the Delta IV and the Atlas V, respectively. The selection of the Delta IV and the Atlas V concluded a competitive procurement process that began in 1995 and took over three years, during which time Boeing and Lockheed were extensively scrutinized to determine whether they could meet the EELV Program requirements.3 “The awarded contracts required the contractors to complete engineering and manufacturing development of the launch vehicle system, launch pads, satellite interfaces, and support infrastructure, as well as to demonstrate that the system met all Government requirements.” Pl.’s Mem. filed Sep. 30, 2005, at 5.

Although the initial acquisition strategy called for a down-select to one contractor for final development and production, both Boeing and Lockheed were retained in order to maintain competition throughout the life of the program and prevent reliance on any one contractor. A June 9, 1998 Justification and Approval document (“J & A”) authorized the limited competition.

The competition between the two contractors was intense throughout the first and second installments of rocket launches to be awarded, known as “Buy 1” and “Buy 2.” This lawsuit arises out of the conditions surrounding “Buy 3.”

On March 22, 2005, the Air Force published a Pre-Solicitation Notice for Buy 3, announcing its intention to solicit Requests for Proposal (“RFPs”) to Boeing and Lockheed for contracts in support of the EELV Program. The Notice, which was published in Federal Business Opportunities (“FedBizOpps”), the Government-wide publication that communicates its requirements to potential suppliers, announced that the Air Force intended to award the contracts to Boeing and Lockheed. However, “[a]ny other interested parties” that “believe[d] they [could] compete as prime contractors in the EELV effort [were] encouraged to submit a statement of capability and qualification ... within seven (7) calendar days____” Plaintiff, a Delaware corporation, engaged in the business of designing, developing, manufacturing and launching EELVs for commercial and government application, did not submit any statement of capability or interest to the Air Force. Plaintiff subsequently acknowledged that it “did not intend to compete for the initial launch awards given the apparent two to three year period of performance ____” SpaceX Response to Motion to Dismiss Protests of Space Exploration Tech. Corp. B-[3]*3297046, B-297047, Under Solicitation Nos. FA8816-05-R-0004 and FA8816-05-R-0005, Sept. 6, 2005, at 10, filed with the Government Accountability Office (the “GAO”).

The Air Force, on April 21, 2005, issued to Boeing and Lockheed RFPs for the EELV Buy 3 ELS contracts, encompassing only the Air Force’s FY06 requirements. The cover memorandum to the RFPs reserved the Government’s “right to award, reallocate, and/or reschedule these un-awarded launch service missions, or to not make any launch service awards,” Mem. for: Evolved Expendable Launch Vehicle (EELV) Contractors, Apr. 21, 2005, at 2, and included a notional chart containing projections of various EELV launches for FY04 through 2011.

On June 17, 2005, plaintiff submitted an agency-level protest with regard to the Air Force’s decision “to award multi-year-like contracts for launch services related to the ... EELV ... without competition ____” Pre-Award Protest of Space Exploration Tech. Corp.; Under Solicitation Nos. FA8816-05-R-0004 and FA8816-05-R-0005, June 17, 2005, at 1 (emphasis omitted). Plaintiff asserted that (1) the Air Force improperly structured its solicitations to limit competition to Boeing and Lockheed Martin and (2) the Air Force’s J & A was not supported by reasonable justification. The Air Force denied this claim by decision dated August 5, 2005, insisting that plaintiff had misconstrued the solicitation and that the Government’s J & A was not defective. In the same document, the Air Force clarified that the RFPs would result in awards for FY06 missions only; FY07 and beyond missions were not being awarded. Evolved Expendable Launch Vehicle (EELV) Program — Pre-Award Protest by Space Exploration Tech. Corp. (SpaceX); Under Solicitation Nos. FA8816-05-R-0004 and FA881605-R-0005, Aug. 5, 2005, at ¶ 2(a).

Following the Air Force’s denial of the agency-level protest, plaintiff on August 15, 2005, submitted its protest to the GAO. The protest was based on two grounds:

First, Air Force’s current structure of the RFPs violates full and open competition requirements. [The Competition in Contracting Act, 31 U.S.C. § 3551(2) (2000) (the “CICA”)] generally requires that solicitations permit full and open competition and contain restrictive provisions and conditions only to the extent necessary to satisfy the needs of the agency ... Second, the required justification and approval (“J & A”) is not supported by reasonable justification for awarding sole source contracts to Boeing and Lockheed Martin that extend the performance period indefinitely.

Protest of Space Exploration Tech. Corp. Under Solicitation Nos. FA8816-05-R-0004 and FA8816-05-R-0005, Aug. 15, 2005, at 2-3 (emphasis omitted).

In response the Air Force revised the RFPs to clarify further that the FY06 launch requirements were awarded to Boeing and Lockheed Martin for launches anticipated to take place in FY08 and that additional missions would be awarded on an annual basis and synopsized in FedBizOpps. Following this clarification, the GAO requested that plaintiff show cause as to why its protest should not be dismissed as moot. Plaintiff failed to respond and, instead, initiated this court challenge.4 On October 4, 2005, the GAO dismissed plaintiff’s protest.

DISCUSSION

The United States Court of Appeals for the Federal Circuit has described injunctive relief as “extraordinary relief.” FMC Corp. v. United States,

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Space Exploration Technologies Corp. v. Boeing Co.
281 F. App'x 769 (Ninth Circuit, 2008)
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Bluebook (online)
68 Fed. Cl. 1, 2005 U.S. Claims LEXIS 326, 2005 WL 2811892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/space-exploration-technologies-corp-v-united-states-uscfc-2005.