TRW Environmental Safety Systems Inc. v. United States

35 Cont. Cas. Fed. 75,639, 16 Cl. Ct. 520, 1989 U.S. Claims LEXIS 49, 1989 WL 26026
United States Court of Claims·Decided March 22, 1989·No. No. 747-88C·Published·Cited by 10 cases

Opinion

OPINION

REGINALD W. GIBSON, Judge:

Introduction

This pre-award bid protest case comes before the court on petitioner’s, TRW Environmental Safety Systems, Inc.’s (TESS), motion to preliminarily enjoin the Department of Energy (DOE) from awarding a contract or disbursing funds under Re[521]*521quest for Proposal No. DE-RP0188RW00134 (the RFP). Said RFP seeks an offeror for negotiation leading to the award of a management and operating (M & 0) contract for systems engineering, development, and management of the nuclear waste management system for the Office of Civilian Radioactive Waste Management (OCRWM), Department of Energy. In short, it requires the successful bidder to manage the development of, and to operate, the nation’s first nuclear waste depository site to be located in the Yucca Mountains of Nevada. The operating budget of said contract is expected to exceed $1 billion, in that its performance period is ten (10) years at approximately $100 million per year.

Bechtel Systems Management, Inc. (BSMI), on or about December 9,1988, was selected by DOE, through OCRWM, to begin negotiations leading to award of said contract. TESS claims that DOE’s Source Evaluation Board (SEB), in selecting BSMI, failed to adhere to the established criteria set forth in the RFP, thereby treating its bid unfairly. Additionally, TESS charges that the chairperson of the SEB violated a federal statute, § 7216 of Title 42, by participating in a DOE proceeding within one year after terminating employment with a particular energy concern that was substantially involved in said proceeding, again causing its bid to be unfairly treated.

The testimony given at the four-day hearing on the present motion supports TESS’s contention that grave issues were raised and the balance of hardships tips sharply in its favor. This is particularly true where, as here, in the court’s opinion, a possible violation of § 7216 raises serious questions compelling further litigation. Therefore, TESS’s motion for a preliminary injunction is GRANTED.

Facts

Seeking to attract proposals from the most qualified entities both inside and outside of the nuclear industry, DOE placed a notice in the Commerce Business Daily (CBD) on February 13,1987, of its intent to issue a solicitation for a “Systems Engineering and Development Contractor for the First Geological Repository Program. This notice was the first public announcement of what has come to be known as the procurement for Systems Engineering, Development and Management of the Nuclear Waste Management System for the Office of Civilian Radioactive Waste Management (OCRWM), i.e., the “SEDM contract.” Under the SEDM contract the contractor shall be the Systems Engineering, Development and Management Contractor for the Nuclear Waste Management System for OCRWM and shall perform work and services associated with the OCRWM Program as indicated in the Scope of Work. Said work shall include but is not limited to — coordinating the design of a repository to dispose of high-level nuclear waste; obtain a license from the Nuclear Regulatory Commission (NRC) for the construction and operation of such repository; manage and maintain appropriate facilities, and to ensure that the system is optimized, that the interfaces between the systems elements are clearly specified and controlled including considerations relating to transportation; and that the initial repository site candidate is properly characterized consistent with the Nuclear Waste Policy Act of 1982 (NWPA). 42 U.S.C. § 10101 et seq.

The SEDM contract is of a ten-year duration with a five-year renewal option in DOE. The overall contemplated time frame envisioned with respect to the four phases of the repository program is as follows:

Activity Year(s)
(i) Site Characterization (and licensing) 1988-1998
(ii) Construction 1998-2003
(iii) Operations 2003-2053
(iv) Closure and Decommissioning 2053-2060.

In summary, construction of the repository is presently scheduled to begin in 1998 and to be completed by the year 2003. For the next fifty (50) years thereafter, the repository is to be filled with high-level nuclear waste and spent fuel. Sealing and securing the repository will take another seven years thereafter. At this posture, the repository must be capable of protecting the earth from exposure to the deposited radioactive waste for a period of 10,000 years [522]*522—a truly staggering length of time when one considers that history itself is only about 6,000 years old.1 Moreover, the foregoing objective emphatically underscores the criticality of this procurement program.

On June 3,1987, DOE provided all potential offerors with a document referred to as the “Draft Statement of Work,” which outlined the tasks and responsibilities expected of the successful contractor. A pre-solicitation conference was held, thereafter, on June 16, 1987, so as to brief prospective offerors on the OCRWM Program Background and the Statement of Work.

DOE had, by this time, assembled a Source Evaluation Board (SEB), a team of DOE officials who were to issue the RFP, evaluate all the proposals, and make a recommendation to the Source Selection Official (SSO), i.e., the DOE Assistant Secretary for Management and Administration, as to which entity should be awarded the SEDM contract. The SEB members were selected by Mr. Ben Rusche, Director of OCRWM. Testifying at the hearing on the present motion, Mr. Rusche was not able to recall the exact date that the SEB was “constituted officially,” but did state that it was perhaps in April, May, or June of 1987. The SEB was chaired by Mr. Sam Rousso, who was also appointed by Mr. Rusche on May 1, 1987. According to his own testimony, Mr. Rousso terminated employment with Science Applications International Corporation (SAIC), a subcontractor on the BSMI team under the current procurement,2 sometime in May or June of 1986 in order to join DOE.

Following thereon, the SEB, of which Mr. Rousso was chairman, issued a copy of the RFP on October 5, 1987, to all parties that had requested it.3 The RFP contained, inter alia, a detailed description of the following evaluation criteria to be considered by the SEB in making the recommendation to the SSO as to whom should be the awardee:

General Management Evaluation Criteria
1. Key Personnel
a. key lead managers
b. key managers
c. selected lower-level managerial and nonmanagerial personnel
2. Corporate Capability
a. corporate experience
b. corporate commitment
Business Management Evaluation Criteria
1. Project Management Approach
2. Transition Plan
3. Organization

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TRW Environmental Safety Systems Inc. v. United States, 35 Cont. Cas. Fed. 75,639, 16 Cl. Ct. 520, 1989 U.S. Claims LEXIS 49, 1989 WL 26026 (cc 1989).

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