Xtra Lease, Inc. v. United States

50 Fed. Cl. 612, 2001 U.S. Claims LEXIS 185, 2001 WL 1195824
CourtUnited States Court of Federal Claims
DecidedSeptember 17, 2001
DocketNo. 01-181C
StatusPublished
Cited by17 cases

This text of 50 Fed. Cl. 612 (Xtra Lease, 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
Xtra Lease, Inc. v. United States, 50 Fed. Cl. 612, 2001 U.S. Claims LEXIS 185, 2001 WL 1195824 (uscfc 2001).

Opinion

OPINION 1

FUTEY, Judge.

This post-award bid protest is before the court on the parties’ cross-motions for judgment on the administrative record. Plaintiff [614]*614contends it has standing to bring this case because it has a substantial chance of receiving the disputed contract (Contract) if it is resolicited. Plaintiff also asserts the court has jurisdiction to consider this protest as the United States Postal Service (USPS) is a federal agency. With respect to the merits of its claim, plaintiff maintains defendant acted arbitrarily and capriciously when it extended the Contract’s first delivery date after plaintiff withdrew from the solicitation. Plaintiff also challenges the Contract’s requirement for an anti-lock braking system (ABS) as unduly restrictive. Plaintiff argues the court should issue a permanent injunction and order a resolicitation of the Contract because defendant’s actions were irrational and in violation of the USPS Purchasing Manual (PM). In the alternative, plaintiff requests bid proposal costs.

Defendant claims plaintiff does not have standing to support its protest because plaintiff withdrew from the solicitation prior to the Contract’s award. Defendant also argues that USPS is not a federal agency. In addition, defendant asserts its actions were within the standards of the PM, and were not arbitrary and capricious. Defendant challenges plaintiffs request for injunctive relief and resolicitation as unnecessary. The awar-dee, TIP Government Services (TIP), has intervened as defendant and, unless noted, its arguments do not materially differ from defendant’s.

Factual Background

Plaintiff, XTRA Lease, Inc., is a corporation organized under the laws of the State of Delaware with its principal place of business in St. Louis, Missouri. Defendant, the United States of America, is acting by and through its agent2 USPS. Since it received the Contract, TIP is defendant-intervenor.

On April 28, 2000, defendant issued Solicitation No. NTL 00-001 (Solicitation) for the lease of 4,406 mail delivery trailers complying with detailed specifications unique to USPS. Defendant conducted the procurement under the authority granted by its regulations, which are contained in Issue 1 of the 1997 USPS PM. The PM contains detailed, mandatory provisions governing the contents of the Solicitation and the conduct of this USPS procurement. The Solicitation established a set of contracts to replace a large number of trailer leasing contracts ending at various dates in 2000 and 2001. Defendant entered these previous contracts under multiple solicitations by separate Distribution Network (DN) offices and by other large postal processing plants. The Solicitation sought proposals to lease trailers for seven DN groups, but allowed either a single national award of all groups to one party or multiple awards of individual groups to different parties. The period of performance was six years with an option to renew for six more years.

The Solicitation required ABS to be included on each trailer. It also mandated that delivery of the trailers to various regional sites around the country be conducted in two groups. Delivery Date A involved 1,637 trailers to be delivered by September 10, 2000. Delivery Date B was set for July 1, 2001, for the remaining 2,769 trailers.

The Solicitation required a two-stage process for selecting the awardee. In the first stage, it asked offerors to submit written technical proposals for any or all DN groups by May 26, 2000, for evaluation by USPS. An offer for a specific DN group needed to include all trailers required in that group. If defendant accepted an offeror’s proposal in the first stage, it became prequalified for the second stage, an online reverse auction referred to as a “competitive bidding event” (CBE) to be held on June 8, 2000. The CBE consisted of each offeror submitting prices expressed in terms of daily rental rates for each trailer. All offerors could view each other’s proposed prices during the event. Solicitation Article K.2 stated that “After the CBE has begun and the offeror has submitted a price bid, it may not withdraw its proposal prior to the expiration of the proposal acceptance period.”3 This acceptance period lasted for 60 days after the date of the [615]*615CBE or a longer period proposed by an offeror.

On May 10, 2000, USPS held a pre-proposal conference with representatives of the prospective offerors, including plaintiffs proposal manager, Ronald D. Owens. Many questions were addressed at the conference, but Mr. Owens did not raise concerns about the delivery dates or ABS requirements. The contracting officer (CO) emphasized that the award could be made without discussion, so the offerors should each respond to the Solicitation with their best offer.

On May 15, 2000, the CO issued Amendment Modifications-1 to the Solicitation allowing for adjustments to the delivery dates. Specifically, this change provided:

The contract(s) awarded under this solicitation will be for a term of six years, with a single 6 year renewal term with beginning contract/delivery dates of September 10, 2000 and July 1, 2001. These contract/delivery dates in the initial term and any renewal term may be adjusted at the discretion of the Contracting Officer.4

By May 26, 2000, plaintiff and eleven5 other offerors submitted timely technical/management proposals for the first stage of the procurement. Plaintiff qualified its proposal as to Delivery Date A by proposing to deliver approximately one-third of the 1,637 trailers on September 10, 2000, and the remaining two-thirds on November 10, 2000. Plaintiff also offered to postpone Delivery Date B by 30 days for all trailers, changing the date from July 1, 2001 to August 1, 2001, even though plaintiff asserts it had no problem meeting the original deadline. Plaintiff alleges it proposed the change to Delivery Date B to maintain consistency with the time interval between the two delivery dates. TIP’s proposal asserted that it would meet the delivery dates as listed.

In addition, plaintiff proposed to delete Article B.46 from the Solicitation. This provision allowed USPS to order an additional 50 traders per DN group, over and above the base quantities, for the first three years of the Contract, if necessary. Plaintiff contends this clause complicated the already difficult task of meeting Delivery Date A. Plaintiff took exception to the Delivery Date A, Delivery Date B, and Article B.4 requirements in its proposal submitted May 24, 2000. No offeror, including plaintiff, ever challenged the ABS requirements.

Mr. Owens claims he spoke with the CO by telephone on or about June 5, 2000, informing him that plaintiff could not meet Delivery Date A for all DN groups. Plaintiff asserts Mr. Owens then requested an amendment of the delivery date, which the CO denied. Mr. Owens conveyed to his superiors the CO’s denial of his request, and they reached a consensus decision that plaintiff could not meet the deadline for all DN groups. Given the risks of performance, plaintiff maintains it made no business sense for it to propose an offer on fewer than all DN groups. As a result, Mr. Owens called the CO on June 5, 2000, confirming with him that plaintiff would withdraw from the Solicitation. The CO suggested that plaintiff express this decision in writing, so by letter dated June 6, 2000, plaintiff officially left the procurement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Peraton, Inc v. United States
Federal Claims, 2019
Raymond Express International, LLC v. United States
124 Fed. Cl. 79 (Federal Claims, 2015)
Pernix Group, Inc. v. United States
121 Fed. Cl. 592 (Federal Claims, 2015)
Sotera Defense Solutions, Inc. v. United States
118 Fed. Cl. 237 (Federal Claims, 2014)
Sentrillion Corp. v. United States
114 Fed. Cl. 557 (Federal Claims, 2014)
Office Depot, Inc. v. United States
95 Fed. Cl. 517 (Federal Claims, 2010)
Tin Mills Properties, LLC v. United States
82 Fed. Cl. 584 (Federal Claims, 2008)
Infrastructure Defense Technologies, LLC v. United States
81 Fed. Cl. 375 (Federal Claims, 2008)
Scott v. United States
78 Fed. Cl. 151 (Federal Claims, 2007)
Corrigan v. United States
70 Fed. Cl. 665 (Federal Claims, 2006)
Wit Associates, Inc. v. United States
62 Fed. Cl. 657 (Federal Claims, 2004)
Hunt Building Co. v. United States
61 Fed. Cl. 243 (Federal Claims, 2004)
Holloway v. United States
60 Fed. Cl. 254 (Federal Claims, 2004)
ABF Freight System, Inc. v. United States
55 Fed. Cl. 392 (Federal Claims, 2003)
Gulf Group, Inc. v. United States
56 Fed. Cl. 391 (Federal Claims, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
50 Fed. Cl. 612, 2001 U.S. Claims LEXIS 185, 2001 WL 1195824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xtra-lease-inc-v-united-states-uscfc-2001.