Universal Marine Company, K.S.C. v. United States

120 Fed. Cl. 240, 2015 U.S. Claims LEXIS 91, 2015 WL 545861
CourtUnited States Court of Federal Claims
DecidedFebruary 10, 2015
Docket14-1115 C
StatusPublished
Cited by14 cases

This text of 120 Fed. Cl. 240 (Universal Marine Company, K.S.C. 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
Universal Marine Company, K.S.C. v. United States, 120 Fed. Cl. 240, 2015 U.S. Claims LEXIS 91, 2015 WL 545861 (uscfc 2015).

Opinion

Bid Protest; Interested Bidder; Competition In Contracting Act, 31 U.S.C. § 3551; Lowest Price Technically Acceptable Source Selection, 48 C.F.R. § 15.101-2; Standing.

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

1. RELEVANT FACTUAL BACKGROUND. 2

A. Solicitation No. W52P1J-14-R-0062

In March 2009, the United States Army (“the Army”) awarded Contract W52P1J-09-D-0025 to Universal Marine Co., K.S.C. (“Universal Marine”) for the operation of a container yard in Kuwait that repairs and refurbishes commercial shipping containers. AR Tab 31b, at 1216.

On April 24, 2014, the Army solicited Request for Proposals No. W52P1J-14-R-0062 (the “RFP”) for the same services as the March 2009 Contract. AR Tab 15, at 88. The RFP was for a fixed-price contract that included: one base year; four one-year evaluated options; and one six-month option. AR Tab 15, at 88-89. Attachment 0002 of the RFP describes the work requirements:

2.5 The contractor shall be required to repair/re-stencil 8 containers per day. In the event of a military surge, the contractor will increase output incrementally up to a maximum of 33 containers per day. Increments of output are 13, 18, 23, 28 and 33 depending on the level of need during a military surge period....
2.5.1 The contractor shall have up to 30 days from a notice of military surge/increment increase to obtain additional workers and allow time for the installation badging process. The 30 days is allowed for each increment of increase....
2.6 If the Government is unable to provide 8 containers per day for repair/resten-cil, the contractor will only be held responsible to repair/re-stencil the number of containers provided by the Government that day....

AR Tab 18a.l, at 435-36.

To select an awardee, the Army used a lowest price technically acceptable (“LPTA”) source selection process that evaluated three factors: Technical; Past Performance; and Price. AR Tab 15, at 89. Attachment 0005 describes the evaluation methodology for each factor:

a) Technical Capability Factor. The three (3) Subfactors of the Technical Proposal [technical capabilities, quality, and management] are considered of equal weight and will be evaluated as such. An Acceptable or Unacceptable rating will be assigned to each of the three (3) Subfactors with supporting narrative substantiating the basis for each rating. The Government will only evaluate Past Performance on those proposals that receive an “Acceptable” for the Technical Capability Factor.
b) Past Performance Factor. Past Performance information will be evaluated and an Acceptable or Unacceptable rating will be assigned with supporting narrative substantiating the basis for the rating. In the event an Offeror has no recent, relevant past performance, a rating of Acceptable will be assigned. The Government will only evaluate Price on those proposals that receive an “Acceptable” on the Past Performance Factor.
e) Price Factor. Price will be evaluated IAW Factor III — Price (See 5.3). 3

AR Tab 24a.l, at 788-89.

Thus, an offeror must clear three successive hurdles to be awarded the contract: *243 First, an offeror must obtain an “Acceptable” rating in Technical Capability and an “Acceptable” rating in Past Performance, and then must propose the lowest price. AR Tab 24a.l, at 788-89.

Attachment 0005 provides, however:

In the case of an Offeror without a record of relevant past performance or for whom information on past performance is not available or so sparse that no meaningful past performance rating can be reasonably assigned, the Offeror may not be evaluated favorably or unfavorably on past performance (see FAR 15.305(a)(2)(iv)). Therefore, the Offeror shall be determined to have unknown past performance. In the context of acceptability/unacceptability, “unknown” shall be considered “acceptable.”

AR Tab 24a. 1, at 791.

The FRP also included a list of Federal Acquisition Regulation (“FAR”) clauses. AR Tab 15, at 103-04. Next to each clause is a short line with the applicable FAR clauses incorporated by reference and signified with an “X” on the adjacent line. AR Tab 15, 103-04. The line next to FAR 52.222-17 (Nondisplacement of Qualified Workers), however, was not checked. AR Tab 15, at 103.

After ten amendments to the RFP, the Army set a closing date of August 15, 2014 for proposal submissions. AR Tab 25, at 804-05.

B. The Proposals.

Four offerors submitted timely proposals: KGL International For Port, Warehousing and Transportation, K.S.C.C. (“KGL”); [REDACTED]; [REDACTED]; and Universal Marine. AR Tab 46, at 1795. On August 21, 2014, after holding discussions with the offer-ors, the Army received final revised proposals. AR Tab 46, at 1795,1798.

All four proposals received an “Acceptable” rating for both the Technical and Past Performance factors. AR Tab 46, at 1795-1801.

The prices of the proposals are reflected in the following chart:

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AR Tab 46, at l795-1801.'

1. Universal Marine’s Proposal.

On August 5, 2014, Universal Marine submitted a proposal that included: (1) an Introduction; (2) a Technical Volume; (3) a Past Performance Volume; and (4) a Price Volume. AR Tabs 31a-d.l, at 1191-1277. The proposed price was $[REDACTED]. AR Tab 46, at 1795. In the Technical Volume, Universal Marine stated that it:

has laid out the [work site] so that there is a smooth flow of containers from the Incoming Container Staging Area to the Dispatch Area. The layout has been designed to handle up to 40 containers per day so [it] is more than adequate to handle the reduced maximum of 33 containers a day. The company plans to maintain the same level of equipment, tools and material stock as currently used so that in [the] *244 event of an increase of daily quota only the manpower needs to be increased.

AR Tab 31b, at 1125.

2. KGL’s Proposal.

On May 30, 2014, KGL submitted a proposal that included: (1) an Introduction; (2) a Technical Volume; (3) a Past Performance Volume; and (4) a Price Volume. AR Tabs 29a-d, at 966-1091. KGL’s proposed price was $98,839,609. AR Tab 46, at 1795.

In the Technical Volume, KGL stated:

KGL shall make repairs to containers in accordance with the contract guidelines and [Performance Work Statement]. All the repairs will take place at the designated repair Area inside Camp Arafijan, or other locations within the Kuwait AOR, as required and directed.

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120 Fed. Cl. 240, 2015 U.S. Claims LEXIS 91, 2015 WL 545861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-marine-company-ksc-v-united-states-uscfc-2015.