Tin Mills Properties, LLC v. United States

82 Fed. Cl. 584, 2008 U.S. Claims LEXIS 200, 2008 WL 2853217
CourtUnited States Court of Federal Claims
DecidedJuly 15, 2008
DocketNo. 08-375C
StatusPublished
Cited by3 cases

This text of 82 Fed. Cl. 584 (Tin Mills Properties, LLC 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
Tin Mills Properties, LLC v. United States, 82 Fed. Cl. 584, 2008 U.S. Claims LEXIS 200, 2008 WL 2853217 (uscfc 2008).

Opinion

OPINION

BRUGGINK, Judge.

Pending in this bid protest action are the parties’ cross-motions for judgment on the administrative record. The procurement at issue involves the lease by the General Services Administration (“GSA”) of an office building to be constructed on a designated site in Morgantown, West Virginia. The contract was awarded to the intervenor, Glen-mark Holding, LLC (“Glenmark”). Plaintiff, Tin Mills Properties, LLC (“Tin Mills”), seeks an injunction prohibiting performance of the contract and ordering the reopening of the competition for consideration of plaintiffs offer. The administrative record (“AR”) was filed, and the matter is fully briefed. Oral argument was held on July 10, 2008. For reasons announced at the argument, and as explained further below, plaintifPs motion for judgment on the administrative record is denied and defendant’s cross-motion for judgment on the administrative record is granted.

BACKGROUND

In February 2005, GSA decided to dispose of the Harley O. Staggers Federal Building located in Morgantown, West Virginia. By July 2007, all agencies housed in the building were to be relocated to leased space. The U.S. Department of Agriculture (“USDA”), as the largest tenant, has three separate agencies in the building. These agencies occupy approximately 30,000 square feet of space and must continue to be located in one building. Accordingly, GSA determined that USDA needed approximately 30,000 square feet, that the USDA agencies should not be located on more than two floors, and that at least 163 parking spaces were needed. The plan was to locate a suitable piece of land, obtain a transferable option, and include that option in a subsequent competitive procurement for construction and lease-back of a building.

The first and independent step, therefore, was to obtain the option to purchase a piece of land. On December 4, 2005, GSA advertised for existing space, new construction, and sites within the city limits of Morgan-town. GSA evaluated the responses and identified 13 locations within the city of Mor-gantown to evaluate. A market survey was conducted on January 23, 2006. GSA and USDA officials, including the GSA contracting officer (“CO”), Stacy Keefer, visited the [586]*586properties and gathered pertinent information. A site located at 1920 Earl Core Road, owned by Tin Mills, was among those considered. Tin Mills noted that its site had been completely remediated with one exception: “a building must be constructed on the land and the site must be sealed with asphalt to encapsulate it.” AR 305. The cost was $1.7 million. Ultimately, GSA elected not to pursue the Tin Mills site “due to its cost, surroundings, and environmental concerns.” Id.

The property offered by Glenmark was also among those included within the survey. The property had formerly been the site of a West Virginia Department of Highways (“DOH”) garage and salt barn. The state remained responsible for remediating environmental hazards but was six to nine months behind schedule when GSA conducted its survey. Glenmark proposed demolishing the existing structures and constructing a two-story building with adjacent surface parking. The site cost was either $1.5 million for purchase ($200,000 less than the cost of the Tin Mills site) or $15,000 per month for a ground lease.

The Glenmark site initially was not selected “due to its environmental condition, the time required for remediation, cost, and surroundings.” AR 306. Instead, the CO first decided to pursue a site proposed by West Virginia University (‘WVU”). In April 2007, however, when negotiations with WVU failed to yield a viable ground lease, the CO revisited the market survey for an alternate site. The CO determined that the Glenmark site at 1550 Earl Core Road was the best alternative. By June 2007, DOH had completely remediated the site, and underground monitoring had been initiated to verify that the environmental clean-up was successful. Glenmark expected to have the final certificate of completion from the West Virginia Department of Environmental Protection approving the completion of the clean-up by November 1, 2007. GSA verified that the site satisfied its national and regional environmental requirements and prepared a draft categorical exclusion checklist documenting compliance and giving clearance to move forward with the site. On July 9, 2007, GSA acquired an assignable option to purchase the 1550 Earl Core Road site.

On September 5, 2007, GSA issued solicitation No. 5WV0008 calling for construction and lease to the government of an office building located at the Glenmark site. This Solicitation for Offers (“SFO”) specified the requirements of the building and its location:

1.1 AMOUNT AND TYPE OF SPACE (SEP 2000)
A. The General Services Administration (GSA) is interested in leasing approximately 35,075 rentable square feet of space. The rentable space shall yield a minimum of 30,500 ANSI/BOMA Office Area (previously Usable) square feet, available for use by tenant for personnel, furnishings, and equipment and 165 parking spaces____
B. The Offer shall 1) be for space located in a quality building of sound and substantial construction as described in this SFO, 2) have a potential for efficient layout, 3) be within the square footage range to be considered, and 4) be in compliance with all of the Government’s minimum requirements set forth herein____

1.2 AREA OF CONSIDERATION

The General Services Administration has an executed option to purchase real estate on an approximately 2.425 acre parcel of land located at 1550 Earl Core Road, Morgantown, West Virginia. The option to purchase real estate will be conveyed to the successful offeror for the purpose of construction of an office building. (See attached executed Option.)

AR 847. A copy of the executed option was included in the solicitation package.

The SFO called for a negotiated procurement. It included the language of GSA Regulation (“GSAR”) 552.270-l(c)(7) (2004):

Offerors may submit proposals that depart from stated requirements. Such a proposal shall clearly identify why the acceptance of the proposal would be advantageous to the Government. The proposal must clearly identify and explicitly define any [587]*587deviations from the terms and conditions of the solicitation, as well as the comparative advantage to the Government. The Government reserves the right to amend the solicitation to allow all offerors an opportunity to submit revised proposals based on the revised requirements.

AR 932-38.

The solicitation was issued to 30 interested parties. The SFO originally specified that offers were due by October 4, 2007, although that date was later extended to October 31, 2007. Seven offers were received, including one from intervenor Glenmark and one from plaintiff Tin Mills.

The USDA Source Selection Plan stated that the lease was to be awarded to the offeror whose proposal provided the greatest value to the government based on price and technical award factors. Both technical and price factors would be considered in establishing the competitive range, and only the highest ranking offers would be included. Offers not in the competitive range would be given no further consideration.

During September and October 2007, GSA added three amendments to the SFO regarding the site for the building. All three amendments related to the use of the Glen-mark site.

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Bluebook (online)
82 Fed. Cl. 584, 2008 U.S. Claims LEXIS 200, 2008 WL 2853217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tin-mills-properties-llc-v-united-states-uscfc-2008.