Treadwell Corporation v. United States

133 Fed. Cl. 371, 2017 U.S. Claims LEXIS 968, 2017 WL 3497950
CourtUnited States Court of Federal Claims
DecidedJuly 19, 2017
Docket17-287C
StatusPublished
Cited by5 cases

This text of 133 Fed. Cl. 371 (Treadwell Corporation 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
Treadwell Corporation v. United States, 133 Fed. Cl. 371, 2017 U.S. Claims LEXIS 968, 2017 WL 3497950 (uscfc 2017).

Opinion

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, Treadwell Corporation (“Tread-well”), brought this post-award bid protest matter challenging the United States Navy’s (“Navy”) decision to award a contract for low pressure electrolyzer (“LPE”) oxygen-generating systems (the “LPE Contract”) to Hamilton Sundstrand Corporation (“Hamilton”). Treadwell has moved for a preliminary injunction and seeks a stay of Hamilton’s performance under the LPE Contract, pursuant to Rule 65 of the Rules of the United States Court of Federal Claims (“RCFC”). For the reasons discussed below, the Court DENIES Treadwell’s motion for a preliminary injunction.

*375 II. FACTUAL AND PROCEDURAL BACKGROUND 1

A. Factual Background

In this post-award bid protest matter, Treadwell challenges the Navy’s decision to award a contract for low pressure electrolyzer oxygen-generating systems for use in Navy submarines to Hamilton, in connection with the Navy’s Solicitation No. N64498-16-R-5003 (the “RFP”). See Compl.; see also AR at 159. Treadwell is an unsuccessful of-feror in connection with the RFP for the LPE Contract. Compl. at ¶7; Pl. Mot. Treadwell also manufactures a LPE oxygen-generating system that is currently in use by the Navy. Compl. ¶ 11.

In its motion for a preliminary injunction, Treadwell requests that the Court set aside the Navy’s decision to award the LPE Contract to Hamilton and stay further performance of that contract for the following seven reasons: (1) Hamilton’s proposal was non-responsive; (2) even if Hamilton’s proposal was responsive, the Navy’s determination that Hamilton’s proposal was technically acceptable was arbitrary and capricious; (3) the Navy failed to evaluate all proposals on an equal playing field; (4) the Navy’s post-award modification of the LPE Contract constituted a material and cardinal change; (5) the Navy’s decision to grant Hamilton the change to the delivery schedule for the LPE Contract that Treadwell previously requested was arbitrary and capricious; (6) the Navy unlawfully awarded the LPE Contract with the intent to modify; and (7) the Navy failed to conduct meaningful discussions. 2 See Pl. Mem. at 5-11; Pl. Reply at 15-30. Treadwell further alleges that it has been prejudiced by each of the aforementioned alleged errors, because Treadwell would have been awarded the LPE Contract but for these errors. PL Reply at 21, 28-29. And so, Treadwell requests that the Court set aside the Navy’s award decision and enjoin Hamilton from further performance under the LPE Contract. See Compl. at Prayer for Relief.

1. The Request For Proposals

On December 28, 2015, the Navy issued a request for proposals to design, manufacture, test and deliver low pressure electrolyzer oxygen-generating systems which involve a self-contained oxygen generator to be used in submarines. AR at 159-245;. Compl. ¶ 10. The RFP contemplates the award of an indefinite-delivery, indefinite-quantity contract, based upon a lowest-priced, technically acceptable basis. Compl. ¶ 12; AR at 208-09, 243.

Specifically, the RFP provides that proposals will “be evaluated by a team of Government personnel in accordance with” an established valuation plan, which would rate offerors’ proposals based on “Technical Capability, Corporate Experience, and Past Performance, and on an overall basis.” AR at 242. With respect to the technical capability factor, the RFP provides that “offerors shall furnish information on its capability to furnish a Low Pressure Electrolyzer that will meet or exceed all the requirements set forth in the Specification.” AR at 234. In addition, the RFP provides that “[t]he Government reserves the right to judge which proposals show the required capability.” AR at 243.

The RFP also contains several requirements regarding the delivery schedule for the first article testing unit, and the first article test for the low pressure electrolyzer oxygen-generating systems. In this regard, the RFP requires that the awardee of the LPE Contract provide the Navy with a first article testing unit, LPE simulators and LPE production units. AR at 160-64. The state *376 ment of work for the RFP also describes the tests and procedures that the awardee must complete in order for the government to approve the first article testing unit. AR at 181-89. For instance, the RFP outlines the requirements for the quality conformance and visual inspections, as well as the various testing requirements associated with first article. testing, such as an endurance test, a vibration test and a shock test. Id.

In addition, the RFP incorporates Federal Acquisition Regulation (“FAR”) 52.209-3, which provides, in relevant part, that:

Before first article approval, the acquisition of materials or components for, or the commencement of production of, the balance of the contract quantity is at the sole risk of the Contractor. Before first article approval, 'the costs thereof shall not be allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government.

AR at 207, 353 (quoting 48 C.F.R. § 52.209-3(g)). The prescriptive language for this FAR clause, located at FAR 9.305, provides that:

Before first article approval, the acquisition of materials or. components, or commencement of production, is normally at the sole risk of the contractor. To minimize this risk, the contracting officer shall provide sufficient time in the delivery schedule for acquisition of materials and components, and for production after receipt of first article approval. When Government requirements preclude this action, the contracting officer may, before approval of the first article, authorize the contractor to acquire specific materials or components or commence production to the extent essential to meet the delivery schedule (see Aternate II of the clause at 52.209-3, First Article Approval—Contractor Testing, and Aternate II of the clause at 52.209-4, First Article Approval—Government Testing. Costs incurred based on this authorization are allocable to the contract for (1) progress payments and (2) termination settlements if the contract is terminated for the convenience of the Government.

48 C.F.R. § 9,305, Lastly, Amendment 0002 to the RFP requires that the awardee deliver the first article testing unit “15 months after award of delivery order.” AR at 252.

The RFP also contains several provisions relevant to the delivery schedule for the LPE simulators and LPE production units. AR at 197. In this regard, the RFP provides that:

Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery order or task orders by the individuals or activities designated in the Schedule.

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Bluebook (online)
133 Fed. Cl. 371, 2017 U.S. Claims LEXIS 968, 2017 WL 3497950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/treadwell-corporation-v-united-states-uscfc-2017.