State of North Carolina Business Enterprises Program v. United States

110 Fed. Cl. 354, 2013 WL 1635733
CourtUnited States Court of Federal Claims
DecidedApril 17, 2013
Docket12-459C
StatusPublished
Cited by12 cases

This text of 110 Fed. Cl. 354 (State of North Carolina Business Enterprises Program 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
State of North Carolina Business Enterprises Program v. United States, 110 Fed. Cl. 354, 2013 WL 1635733 (uscfc 2013).

Opinion

Pre-award bid protest; Motion to supplement administrative record; Standing; Prejudice

OPINION AND ORDER

Block, Judge.

Before the court are cross-motions for judgment on the administrative record in a pre-award bid protest, in which plaintiffs 1 challenge the terms of a solicitation issued by the United States Army (the “Army”) to provide full food services at Fort Bragg.

Fort Bragg, located in North Carolina, is a significant military facility that plays a vital role in the defense of our nation. It is home to the 82nd Airborne Division, which consists of approximately 90,000 soldiers who comprise 40 percent of the Army’s ten-division active duty force. AR 53. It is also the headquarters of several major Army commands, including the “Green Berets” of the U.S. Army Special Operations Command. Id. During the wars in Afghanistan and Iraq, some units based at Fort Bragg have conducted as many as four deployments to combat zones. Id. But with those wars winding down, the troops are coming home, and as a result the number of American military personnel at Fort Bragg is expected to increase, perhaps dramatically. Id.

This return poses a problem for the Army Food Program, a “comprehensive program developed to ensure soldiers are provided with safe and secure food service and drinking water supply.” Id. The Army Food Program provides “Full Food Services,” which encompass “those activities that comprise the full operation of an Army dining facility which include[], but [are] not limited to, requisitioning, receiving, storing, preparing and serving of food.” Id. Because of the uncertainty as to the number of troops who will be at Fort Bragg, it is unclear how much food will need to be requisitioned, received, stored, prepared, and served in the next few years.

In this pre-award bid protest, plaintiffs challenge the manner in which the Army chose to deal with this uncertainty. Specifically, plaintiffs allege that the Army erred by, inter alia, soliciting prices per meal based on a “MAX QUANTITY” figure for each contract line item number (“CLIN”) *359 when the number of meals (the “headcount”) is so unpredictable. In essence, plaintiffs argue that it is unfair for the Army to ask them to bear the risk of a fluctuating headcount.

More specifically, under the Army’s chosen pricing methodology, offerors must bid a price per meal without knowing what actual headcount will be. Because of economies of scale, an offeror will ordinarily wish to base its price per meal on an estimate of headcount. Selecting a price per meal without knowing headcount is risky: if headcount is unexpectedly high, an awardee who bid a low price per meal could be ruined. Thus, the Army’s pricing methodology requires offer-ors to assume much of the risk.

The Army might have chosen a different methodology that is less of a burden on offerors. But, given the facts of this case, is it required to do so as a matter of law? The question facing the court is whether the chosen pricing methodology that requires offer-ors to assume the risk of a fluctuating headcount is so onerous that it is arbitrary and irrational as a matter of law.

As elaborated below, the answer is no. While the Army must provide offerors with the “best available information” in order to enable them to bid “intelligently,” Glenn Defense Marine (Asia) PTE, Ltd. v. United States, 97 Fed.Cl. 568, 580 (2011), it is not forbidden from soliciting prices in a way that requires offerors to assume the risk of a fluctuating headcount. As risky as performance may be under the contract here, there is no legal basis for enjoining the Army from employing a methodology that solicits a price per meal.

It should be noted at the outset that plaintiffs have also moved to supplement the administrative record and admit evidence to the court’s record. The affidavits with which plaintiffs seek to supplement the administrative record simply detail how the Army’s chosen pricing methodology negatively affects plaintiffs. But they cannot be read to show unlawful or eri’oneous conduct by the Army. Thus, as explained below, the court will grant plaintiffs’ motion with respect to those portions of the affidavits that assist the court in understanding the prejudice to plaintiffs. But the court will deny plaintiffs’ motion with respect to those portions of the affidavits that are offered to show that the Army acted improperly. Nevertheless, and significantly, the affidavits do not change the bottom line: the mere fact that the Army’s methodology places the burden on plaintiffs to calculate price per meal does not demonstrate legal error.

Accordingly, and for reasons explained more fully below, the court will deny plaintiffs’ cross-motion for judgment on the administrative record and grant defendant’s cross-motion.

I. Background

A. The Solicitation

On June 5, 2012, the Army issued Solicitation W91247-12-R-0019 (the “Solicitation”) for full food services at Fort Bragg. The Solicitation was set aside for Historically Underutilized Business Zone (“HUBZone”) small business concerns with a priority afforded to plaintiffs pursuant to the Randolph-Sheppard Act. The Solicitation contemplated the award of a contract for an initial one-year base period and four options for a total potential contract duration of five years. AR 207.

Even before issuing the Solicitation, the Army was well aware of the problem of unpredictable headcount. In its Combined Acquisition Strategy/Plan, issued in May of 2012, the Army acknowledged that the number of meals that would be required at Fort Bragg was “extremely unpredictable.” Id. 70. Indeed, as the Army well understood, there was “no way to accurately forecast the number of meals to be served or to provide interested contractors enough data to submit a reasonable proposal.” Id. The Army went so far as to describe fluctuation in headcount as the “primary element of risk” in supplying meals to Fort Bragg. Id. at 60.

The Solicitation’s pricing methodology reflects the Army’s concerns. The Solicitation calls for an indefinite-delivery indefinite-quantity (“IDIQ”) contract priced on a per meal basis. According to Section B, the Solicitation has a guaranteed minimum payout to the contractor of $10,000 applicable to *360 the base period and an overall maximum quantity of 15,883,475 meals. Id. at 125.

Also in Section B, the Solicitation lists a number of CLINs consisting of various locations at Fort Bragg at which the awardee is to provide full food services. Id. at 125-205. Each CLIN requires an offeror to determine a unit price-that is, a price per meal-and multiply it by a given number of meals called the “MAX QUANTITY” to arrive at a dollar-figure denoted a “MAX AMOUNT.” Id. The Solicitation provides that award will be made “to the offeror whose technically acceptable proposal represents the lowest reasonable price to the Government.” Id. at 251.

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Cite This Page — Counsel Stack

Bluebook (online)
110 Fed. Cl. 354, 2013 WL 1635733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-north-carolina-business-enterprises-program-v-united-states-uscfc-2013.