URS Federal Services, Inc. v. United States

102 Fed. Cl. 664, 2011 U.S. Claims LEXIS 2428, 2011 WL 6937459
CourtUnited States Court of Federal Claims
DecidedDecember 30, 2011
DocketNo. 11-790
StatusPublished
Cited by5 cases

This text of 102 Fed. Cl. 664 (URS Federal Services, Inc. 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
URS Federal Services, Inc. v. United States, 102 Fed. Cl. 664, 2011 U.S. Claims LEXIS 2428, 2011 WL 6937459 (uscfc 2011).

Opinion

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

I. STATEMENT OF FACTS2

The proposed scope of Contract No. TEOAF-12-D-001 is for “nationwide services for the receipt, possession, custody, management, and disposition of seized, blocked, or forfeited personal property on behalf of [the Department of Treasury’s (“Treasury”) Executive Office for Asset Forfeiture], the agencies participating in [the Treasury Forfeiture Fund] or [Office of Foreign Assets Control] when the seizing or blocking agency determines that Contractor services for such property will be in the agency’s best interest.” AR 96. The contractor was to be responsible for providing all services, materials, supplies, supervision, labor and equipment to perform such property management and disposition functions, including:

Pre-seizure analysis of General Property....
[666]*666The receipt, custody, security, transportation, review of Appraised Value ..., quick sale, storage, inventory, preservation, maintenance, repair, modification, refurbishment, upgrade, and final disposition ... of all types of General Property---Capturing, recording, reporting, and updating of all seizure data and related costs[.]

AR 96-97.

On July 17, 2009, Treasury issued a presolicitation notice via Federal Business Opportunities advising potential offerors that Treasury would be soliciting proposals for Contract No. TEOAF-12-D-001. AR 5. On January 20, 2010, Treasury issued a Solicitation. AR 5. The initial closing date was March 1, 2010, but Treasury subsequently issued a number of amendments extending the final bid closing date by over a year to May 25, 2011. AR 5.

On Apz'il 5, 2010, URS Fedez-al Services, Inc. (“URS”) submitted a proposal. Compl. ¶ 15. On January 28, 2011, Treasury made an initial competitive z’ange determination that included URS as a competitive bidder. Compl. ¶ 16. On March 7, 2011, following discussions with Treasuzy, URS submitted a Final Proposal Revision. Compl. ¶ 16. In August 2011, Treasuzy decided to z’e-open discussions and URS submitted responses to follow-up questions during August 2011-Oc-tober 2011. Compl. ¶ 17.

Sometime in September 2010, VSE Coz’poration, Inc. (“VSE”), the incumbent, received a number of sole source extensions to continue performance of the existing contz’act TOS-ll-C-001, duz-ing the extended Solicitation peziod. AR 91-92. These sole-source extensions cost Tz’easuzy $[z:edaeted] per month or approximately $[redacted] million for the 13 month period. AR 13,19, 26. The most z’ecent extension, via Modification 007, was issued on September 29, 2011 and afforded Treasury two options: one option to extend the existing contract through October 31, 2011 and another to extend the contract through November 30, 2011. AR 92. Treasury immediately exercised the first option, extending VSE’s performance through October 31,2011 at a cost of $3,038,138.25. AR 92.

On October 28, 2011, Treasury awarded VSE Contract No. TEOAF-12-D-001 (“the Contract”). AR 5. Ti’easuiy did not opt to exercise the second option under Modification 007 to extend the prior conti’act with VSE until November 30, 2011. AR 92. The cost of Conti’act No. TEOAF-12-D-001 appears to be $[i’edacted] over a 12-month base pei’iod, ie. $[redacted] per month. AR 13, 183.

On November 8, 2011, eight days after Treasury could have exei’cised the second option under Modification 007, to extend VSE’s pi’ior contract through the end of November, Ti’easuiy conducted a debi’iefing session with URS. Compl. ¶ 9. On November 14, 2011, URS filed a bid protest with GAO. AR 5. This act automatically stayed Treasury from pi’oceeding with the Contract “while the [GAO] protest is pending,” unless the “head of the procui’ing activity” authoi’ized an over-l’ide, pui’suant to 31 U.S.C. § 3553(c)-(d) (2006).3

On November 22, 2011, Treasuzy issued a foui’-page “Detennination & Findings” (“D & F”) to justify issuing an oven-ide of the congressionally imposed automatic stay. AR 5-8. Treasuiy’s D & F concluded that the sendees to be pei’formed under the Contz-aet were “critical,” and an overz-ide was justified, based upon three faetoi’s:

[1.] Seizures include, but are not limited to, pei’ishable foods, tainted foods, dangei’ous food products, adultez-ated and unlicensed drugs, and unsafe consumer pi’oducts____[T]he z'isk of potentially contaminated goods entei’ing the commei’ce of the United States would be significantly increased without the necessaiy con-ti’actor resources available dui’ing the seizui-e____
[2.] [I]tems that are seized include weapons of mass desti'uction (stinger missiles), illegal firearms, z’oeket fuel destined for Iran, explosives, and hazardous substances. The failure to properly pz’ocess and handle these items is a major issue of [667]*667public safety. The Government does not have the resources available or the required licenses or permits necessary to properly seize, transport, store, and dispose of such dangerous assets. In the event that a contractor is not available to provide these specialized skills, the Government would be forced to put Government employees as well as the general public at risk____
[3.] [T]he contractor manages the storage for specialty assets, ears, vessels, aircraft and management of the Government warehouses [that house evidence in cases involving organized crime]. In the event that contractor resources are not available for the management and disposal of property stored within the Government warehouses, a significant and immediate backlog of property would be experienced, exceeding the capacity of the Government warehouse. The lack of adequate and secure storage of bulk evidence to maintain its integrity could result in mistrials and dismissals of criminal, civil and administrative law violations, freeing violators to commit additional crimes against the Government and citizens of the United States____ Such a failure could also expose the Government to significant liability under the Federal Tort Claims Act.

AR 6.

Based on these findings, the Head of the Contracting Activity (“HCA”) determined that “continued IDIQ contract and task order performance is in the best interest of the Government.” AR 7.4

II. Procedural History.

On November 14, 2011, URS filed a bid protest with GAO. AR 5. On November 22, 2011, Treasury issued an override. AR 5-8. On November 23, 2011, URS filed a sealed Complaint For Declaratory Judgment, Temporary Restraining Order, And Preliminary And Permanent Injunctive Relief in the United States Court of Federal Claims (“Compl.”). The Complaint requests that the court determine that Treasury’s November 22, 2011 override is “arbitrary and capricious and without a rational basis, and contrary to applicable law.” Compl. ¶ 27. On the same day, URS also filed a Motion For Temporary Restraining Order and a Motion For Protective Order.

On November 23, 2011, the court convened a telephone status conference, during which the court denied Plaintiffs Motion for a Temporary Restraining Order.

On November 28, 2011, VSE filed an Unopposed Motion To Intervene that was granted on November 29, 2011.

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Bluebook (online)
102 Fed. Cl. 664, 2011 U.S. Claims LEXIS 2428, 2011 WL 6937459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/urs-federal-services-inc-v-united-states-uscfc-2011.