Vantage Associates, Inc. v. United States

59 Fed. Cl. 1, 2003 U.S. Claims LEXIS 347, 2003 WL 23004763
CourtUnited States Court of Federal Claims
DecidedAugust 7, 2003
DocketNo. 03-340C
StatusPublished
Cited by22 cases

This text of 59 Fed. Cl. 1 (Vantage Associates, 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
Vantage Associates, Inc. v. United States, 59 Fed. Cl. 1, 2003 U.S. Claims LEXIS 347, 2003 WL 23004763 (uscfc 2003).

Opinion

OPINION

HORN, Judge.

FINDINGS OF FACT

On March 11, 2002, the United States Navy issued a request for proposals (RFP) through solicitation no. N63394-02-R-4001 for the manufacture, test, and delivery, in the first year, of sixty gray search radome assemblies and sixty gray track radome assemblies for the PHALANX MK 15, Close in Weapons System (PHALANX). The Naval Surface Warfare Center, Port Hueneme Division, Louisville, Kentucky initiated the procurement. The PHALANX system, installed on most Navy combatant ships, is a radar-controlled six-barrel gatling gun that projects a curtain of bullets as the last line of defense against missile attacks. Radomes, gel-coated fiberglass sandwich structures with a foam core, cover the radar systems that control the operation of the PHALANX. Radomes also protect the PHALANX electronic equipment from the wide variety of environmental conditions encountered at sea and must comply with precise electrical characteristics so that radio frequency (RF) transmissions, upon which the PHALANX system depends, can flow unimpeded through the radome. If the radome is not transparent to RF waves, the entire PHALANX system could be seriously degraded or rendered useless.

The Navy currently deploys white ra-domes, although the remainder of the PHALANX system (for which the radomes provide protective cover), and the majority of the ships, are painted haze gray. White radomes present a more conspicuous target for enemy fire than gray radomes, because gray radomes blend with the paint scheme of the ship. Louis J. Alpinieri, Chairman and CEO of plaintiff Vantage, Inc., stated that, “[i]n recent years the Navy ... became concerned that the white radomes were essentially an aiming point for hostile aircraft and missiles.”

Raytheon has a sole source contract with the Navy for the design of the PHALANX system and responsibility for, among other things, all engineering and testing of the PHALANX system. Additionally, Raytheon operates a facility for refurbishing PHALANX systems in Louisville, Kentucky, co-located with the Naval Surface Warfare Center, Louisville Office that conducted the pro[3]*3curement at issue. Raytheon’s corporate history is necessary to understand the documents in the record and to address plaintiffs organizational conflict of interest claim. General Dynamics Corporation was the original government contractor for the design, development, and production of the PHALANX system. On May 8, 1992, Hughes Aircraft Company purchased the assets of General Dynamics’ missile division, including the PHALANX system. General Dynamics and Hughes Aircraft signed a “Closing Agreement” and a novation agreement on August 21, 1992. Raytheon later acquired Hughes Aircraft, including the PHALANX system, in an agreement executed on December 16, 1997. As a result, Raytheon’s proposal for the solicitation at issue states that Raytheon is the original equipment manufacturer of the PHALANX and designed the original PHALANX Radome in the 1970s.

On June 24, 2000, after the Navy had tasked Raytheon with publishing a pilot lot inspection (PLI) report, Raytheon did so and included results of several tests performed on gray radomes manufactured by Vantage, Inc. for fleet use. Although Raytheon published the report and conducted a majority of the tests included in the PLI report, Derby City Engineering performed the Mechanical Load Testing on Vantage’s radomes. During the test. Derby City Engineering “made a fixture for applying loads to the handle mounting holes,” and concluded that only three of the ten mounting holes on Vantage’s gray radome passed the tear out loading test. Vantage had objected in April, 2000 to the “testing of its gray radomes by its competitor, Raytheon, and suggested that both [Vantage] and Raytheon’s gray radomes be subjected to identical PLI tests.” Vantage’s proposal had recommended that Derby City perform the necessary structural testing. Raytheon conducted several other tests including the post-humidity RF tests on Vantage’s gray radome, and reported that “the top of the Search Radome became soft where it contacted the floor of the Humidity Chamber. This caused indentations to the Ra-dome’s surface. The insertion loss in these areas failed at the highest test frequency from -0.1 to -0.3 dB. The maximum allowed insertion loss is -0.5 dB.”

The Solicitation

The solicitation at issue in the ease before the court was issued on March 11, 2002 and sought a contractor to manufacture Low Solar Absorbent (LSA) gray track radomes, pursuant to attached drawings. The Navy’s solicitation listed two “qualified sources” for gray radomes, Vantage and Raytheon, and mentioned no other large or small business manufacturers.2 Both of the qualified sources were required to pass detailed PLI qualification testing. Raytheon also prepared and issued new drawings and new part numbers for the gray gel coat for the gray radomes. The solicitation called for the submission of a technical narrative, not to exceed ten pages, in which the offeror “should include previous contracts of similar items.”

The solicitation outlined five technical factors the Navy would use to evaluate the proposals: 1) Technical Capability; 2) Past Performance; 3) Production Capability; 4) Test Equipment; and 5) Quality Control System. The solicitation provided that the Navy would evaluate Past Performance on, among other things, the degree to which the offeror has satisfied its customers. The solicitation also explained the relationship between the technical scoring and price as follows:

All evaluation factors other than price, when combined, are significantly more important than price. However, the importance of price as an evaluation factor will increase with the degree of equality in the proposals in relationship to the technical scores. After evaluation of the Technical Proposals and price, price may be the deciding factor between two or more highly rated Technical Proposals.3

On March 12, 2002, the Navy issued an amendment to the solicitation that further [4]*4described the evaluation of the five technical requirements in relation to price:

Offeror’s proposal will be evaluated on the basis of Technical and Price. Technical evaluation will be based on five factors:
1. Technical Capability
2. Past Performance
3. Production Capability
4. Test Equipment
5. Quality Control System
Factors (2) and (3) are equal in importance and are more important than factor (1). Factors (4) and (5) are equal in importance and are less important than factor (1). The five (5) factors when combined are significantly more important than price.

The modified October, 2002 Source Selection Plan (SSP), the SSP at issue in this case, provided that technical subeategories were to receive an adjectival rating guideline of either “Outstanding,” “Good,” “Satisfactory,” or “Unsatisfactory.”

The Proposals

On April 19, 2002, Raytheon submitted its proposal to the Navy and included a ten page technical narrative. The narrative stated that “Raytheon’s existing Phalanx Radome manufacturing processes ... have been used to produce more than one thousand Search and Track Radomes over a twenty-four year period.

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59 Fed. Cl. 1, 2003 U.S. Claims LEXIS 347, 2003 WL 23004763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vantage-associates-inc-v-united-states-uscfc-2003.