Vero Technical Support, Inc. v. United States

94 Fed. Cl. 784, 2010 U.S. Claims LEXIS 755, 2010 WL 3835835
CourtUnited States Court of Federal Claims
DecidedSeptember 29, 2010
DocketNo. 10-575C
StatusPublished
Cited by12 cases

This text of 94 Fed. Cl. 784 (Vero Technical Support, 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
Vero Technical Support, Inc. v. United States, 94 Fed. Cl. 784, 2010 U.S. Claims LEXIS 755, 2010 WL 3835835 (uscfc 2010).

Opinion

ORDER

HORN, Judge.

This case was brought against the United States by plaintiff, Vero Technical Support, Inc. (Vero), in the United States Court of Federal Claims as a bid protest, according to plaintiff, “in connection with a procurement or a proposed procurement,” pursuant to 28 U.S.C. § 1491(b)(1) (2006) (the Tucker Act). The ease is before the court on the defendant’s motion to dismiss and cross-motions for judgment on the administrative record. Vero’s protest arises from a department wide insourcing policy decision made by the United States Department of Defense (DoD) and a Department of the Air Force decision to insource the work for which plaintiff currently has an ongoing contract. Plaintiff’s contract, however, is due to end by its own terms on September 30, 2010, with the government having a unilateral option to extend plaintiffs contract for up to six months. Vero alleges that the United States improperly plans to insource the work Vero currently performs for the Air Force, in violation of 10 U.S.C. § 129a (2006) and 10 U.S.C. § 2463 (2006). Plaintiff challenges the DoD’s in-sourcing decision process for using improper data and failing to make a “like comparison” between Vero’s costs and the government’s own costs and, therefore, defendant’s failure to select the low cost provider for the services required. The plaintiff describes the government’s decisions as a “procurement decision that permanently removes the scope of work from the competitive realm and violates statutes (10 U.S.C. § 129a) and its [the Air Force] own insourcing procedures ... which it has expressly bound itself to.” According to the plaintiff, the “Air Force is simply continuing to insource without basis.”

Vero alleges in its complaint before this court that the DoD and Air Force insourcing decisions and the findings and conclusions to support those insourcing decisions were arbitrary and capricious agency actions and an abuse of discretion, or otherwise made not in accordance with law. Plaintiff requests a declaratory judgment to that effect. Vero also requests a temporary restraining order, as well as preliminary and permanent injunc-tive relief to enjoin and to set aside the DoD and Air Force insourcing decisions. Furthermore, plaintiff requests attorney’s fees and expenses.

Currently, Vero provides weather forecasting, weather observation, maintenance and support services at meteorological stations at eleven Army bases and fifteen total sites throughout the United States, pursuant to Contract No. FA4890-10-C-0006 (the contract). Vero was awarded the contract on March 15, 2010. The contract had a phase in period from March 15 through March 31, 2010, plus a base period of six months from April 1, 2010 to September 30, 2010, with no optional CLINs [Contract Line Item Numbers], except for four locations which had a three month base period, plus three one month optional CLINs. Although Vero’s work is performed at Army bases, Vero reports to the Air Fox-ce, and it is the Air Force which is handling the insourcing of the services Vero has been performing. The Air Force has begun hiring various Vero employ[787]*787ees as government employees to facilitate the insourcing at a number of Army bases.

Prior to award of the contract to Vero, the Air Force issued Amendment No. 9 to the Request for Proposals (RFP) FA4890-08-R-0004. Amendment No. 9 was issued following the Air Force’s decision to insource the services provided for in the RFP in the future. Accordingly, the period of contract performance was shortened in the RFP, or, as explained in an accompanying memorandum to offerors from the contracting officer, the performance period was altered as a result of “realigning resources to support the in-sourcing initiative.” After the issuance of Amendment No. 9, the government reopened discussions and invited offerors to submit revised price proposals. Vero submitted a revised price proposal in response to the shortened period of performance, and ultimately was awarded the contract.

Before filing suit on August 24, 2010 in this court, Vero had filed suit on June 8, 2010 in the United States District Court for the Southern District of Florida against the United States, also naming the DoD, the Air Force, and the Army as defendants. In its complaint in the District Court, as in this court, Vero had asked for declaratory relief and challenged the decisions by the DoD and the Air Force to insouree the work Vero is currently performing. In both courts, plaintiff alleged that the defendant’s insourcing decision had not been made in accordance with the insourcing procedures required by 10 U.S.C. § 129a and 10 U.S.C. § 2463, and that the defendant had ignored or violated its own procedures by arriving at the insourcing-decision without “like comparison” of the costs of insourcing its own personnel, as compared with those of Vero. In the District Court, however, Vero argued jurisdiction pursuant to the Administrative Procedure Act (APA), 5 U.S.C. §§ 701-706 (2006), specifically section 702, and not pursuant to the Tucker Act, which the plaintiff argues is the basis for jurisdiction in this court. In the District Court, as it also did subsequently in this court, Vero requested a declaratory judgment that the defendant’s insourcing decisions, and the agency actions which led to the findings and conclusions to support the insourcing decisions, were arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law and requested a temporary restraining order, as well as preliminary and permanent injunctive relief to enjoin the defendant’s insourcing decision. In the District Court, as in this court, plaintiff also requested attorney’s fees and expenses.

In its complaint filed in the District Court, Vero unequivocally stated its position on jurisdiction, as follows, “the issue is whether Defendants arbitrarily ignored or violated their own procedures (never incorporated into VTS’ [Vero’s] contract), not whether Defendants violated some contractual provision. This is not a ease founded on any contractual provision at all, and is not a ‘government contract’ case. VTS requests no contractual relief.” Plaintiff also stated in its complaint in the District Court, “[t]he CDA [Contract Disputes Act, 41 U.S.C. §§ 601-613 (2006) ] does not apply by its very terms. No contractual right guarantees Plaintiffs continued performance; the Court need only determine whether there was a violation of Plaintiffs procedural rights under the APA.” Therefore, Vero alleged that “[tjhere is no adequate remedy in the Court of Federal Claims.” It is evident that plaintiff Vero made a conscious choice that jurisdiction to challenge the defendant’s insourcing decisions is based on section 702 of the APA, and that the case should be brought in the United States District Court. The plaintiff could not have stated more clearly that Vero was of the opinion that Tucker Act jurisdiction would be improper.

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Cite This Page — Counsel Stack

Bluebook (online)
94 Fed. Cl. 784, 2010 U.S. Claims LEXIS 755, 2010 WL 3835835, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vero-technical-support-inc-v-united-states-uscfc-2010.