Tyler Constr. Group v. United States

83 Fed. Cl. 94, 2008 U.S. Claims LEXIS 233, 2008 WL 3852154
CourtUnited States Court of Federal Claims
DecidedAugust 14, 2008
DocketNo. 08-94C
StatusPublished
Cited by4 cases

This text of 83 Fed. Cl. 94 (Tyler Constr. Group 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
Tyler Constr. Group v. United States, 83 Fed. Cl. 94, 2008 U.S. Claims LEXIS 233, 2008 WL 3852154 (uscfc 2008).

Opinion

OPINION

WIESE, Judge.

Plaintiff, a small-business general contractor, sues here to enjoin the United States Army Corps of Engineers (“the Corps”) from proceeding with a negotiated procurement for the award of an Indefinite Delivery/Indefinite Quantity (“IDIQ”) contract for the design and construction of various types of military facilities in the southeastern United States. Plaintiff contends that the procurement is unlawful in two fundamental respects: first, because the use of IDIQ procurement procedures for major construction is not permitted by law or regulation, and second, because the solicitation violates a statutory prohibition against consolidating projects that would otherwise be available for competitive award to small business concerns.

The case is now before the court on the parties’ cross-motions for judgment on the administrative record. The court heard oral argument on June 25, 2008, and the parties completed supplemental briefing on July 30, 2008. For the reasons set forth below, defendant’s motion is granted and plaintiffs cross-motion is denied.

FACTS

On October 30, 2007, the Corps issued Solicitation No. W9126G-07-R-0122, for the design and construction of advanced individual training, basic training, and warrior-in-transition facilities throughout an eight-state region in the southeastern United States. According to the Corps, the solicitation is part of a fundamental change in military construction strategy designed to transform the United States Army into a more modular, expeditionary, and effective fighting force. In this connection, the Corps explained that its primary objective “is to meet the Department of the Army’s time, cost, quality, and standardization targets and goals while providing new facilities for our soldiers and then-families”—an undertaking requiring “a mini[96]*96mum of 20% reduction in cost and a minimum of 30% reduction in time to occupancy.”

In developing its acquisition strategy, the Corps initiated a market research program in 2005 to acquaint members of the construction industry with the Army’s upcoming needs and to gain the industry’s perspective on how best to execute a construction program of the magnitude contemplated. The program included sponsorship of a nationwide forum, four regional forums, and a specialized forum with representatives of the pre-fabricated/pre-engineered/modular construction industry, as well as the implementation of an internet-based research questionnaire. Through these efforts, the Corps identified an industry consensus that the successful execution of its construction program would require an emphasis on standardization and economies of scale. Based on this conclusion, the Corps decided to pursue a flexible acquisition strategy “composed of primarily local and regional contracts with a possibility of national contracts, in order to execute an estimated $40 Billion dollar Military Construction ... Program.”

Although the Corps has amended the solicitation numerous times since its issuance (partially in response to litigation initiated by plaintiff), the current version provides for a base-year contract subject to two option years, a minimum guarantee of $10,000 (applicable to the base year only), and a total estimated contract amount of $301 million. The solicitation identifies the scope of work for the initial task order as a “Basic Training (BT) Barracks for Company Operations with running track and training pits” at Fort Benning, Georgia, at an estimated value of between $25 million and $100 million, and contains a 252-page statement of work outlining in detail the other types of facilities to be procured. The statement of work estimates that the Army will require five basic training barracks, one advanced individual training complex (consisting of barracks/company operation facilities, dining facilities, support facilities, and outdoor facilities), and an unspecified number of warrior-in-transition complexes (consisting of barracks, a family assistance center, and an administrative building) throughout the eight-state area. The statement of work does not indicate where these facilities are to be built; it does, however, inform offerors that the facilities will be required primarily at Fort Benning, Georgia.

The solicitation additionally contemplates the selection of two or more contractors based on a two-phase proposal process. In Phase I, the Corps evaluates the performance capabilities of the offerors based on specialized experience, past performance, organization, and technical approach, with up to five offerors “short-listed” and invited to submit Phase II proposals. In Phase II, offerors are asked to submit a conceptual design, technical narrative, performance schedule, and price for the initial task order, with at least two offerors ultimately selected for contract award. The resulting IDIQ contracts allow the selected contractors to become the only competitors for the negotiation and award of all subsequent task orders, subject only to the limitation that a contractor is not be obligated to honor a task order of less than $14 million, a task order in excess of $47.5 million, or any order involving a combination of items in excess of $95 million.

As noted above, plaintiff challenges the instant procurement on the grounds that the use of IDIQ procurement procedures for major construction is not permitted by law or regulation and that the consolidation of separate construction projects suitable for small businesses constitutes “bundling” and is therefore prohibited by statute. Consistent with these contentions, plaintiff asks the court to enter the following relief: (i) a declaratory judgment holding that the Federal Acquisition Regulations (“FAR”) do not authorize the use of IDIQ procedures for the acquisition of large design/build military construction projects or for major construction projects generally; (ii) a declaratory judgment holding that the instant solicitation violates the prohibition on bundling as provided by the Small Business Act, 15 U.S.C. § 631(j) (2006), and therefore impermissibly restricts participation by small business concerns; and (iii) an order permanently enjoining the Corps from awarding a contract under the instant solicitation and directing that the [97]*97Corps may proceed with the procurement of the facilities identified in the solicitation only through individual project solicitations that provide appropriate opportunities for participation by small business concerns.

DISCUSSION

Pursuant to 28 U.S.C. § 1491(b)(1) (2000), this court has jurisdiction to award declaratory and injunctive relief in “an action by an interested party objecting to a solicitation by a Federal agency for bids or proposals for a proposed contract or to a proposed award or the award of a contract or any alleged violation of statute or regulation in connection with a procurement or proposed procurement.” The statute additionally directs that “[i]n any action under this subsection, the court[] shall review the agency’s decision pursuant to the standards set forth in section 706 of title 5” (i.e., the standards set forth in the Administrative Procedure Act). 28 U.S.C. § 1491(b)(4).

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Tyler Construction Group v. United States
570 F.3d 1329 (Federal Circuit, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
83 Fed. Cl. 94, 2008 U.S. Claims LEXIS 233, 2008 WL 3852154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyler-constr-group-v-united-states-uscfc-2008.