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FAR
9.400: Debarment, Suspension, and Ineligibility |
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Comptroller
General - Key Excerpts |
Greenleaf asserts that the award to CLF was improper because
CLF's proposal misrepresented the resources and staff CLF
intended to use to perform the contract. An offeror’s material
misrepresentation in its proposal can provide a basis for
disqualification of the proposal and cancellation of a contract
award based upon the proposal. A misrepresentation is material
where the agency relied upon it and it likely had a significant
impact upon the evaluation. Integration Techs. Group, Inc., B-
291657, Feb. 13, 2003, 2003 CPD para. 55 at 2-3; Sprint
Communications Co. LP; Global Crossing Telecommunications.,
Inc.--Protests and Recon., B-288413.11, B‑288413.12, Oct. 8,
2002, 2002 CPD para. 171 at 4; AVIATE L.L.C., B-275058.6,
B‑275058.7, Apr. 14, 1997, 97-1 CPD para. 162 at 11. Based on
our review of the record, we find that HUD’s evaluation of CLF’s
proposal was unreasonable because it was based on aspects of
CLF’s proposed resources and technical approach that, after the
submission of CLF’s FPR, and unbeknownst to the agency,
materially changed such that the agency never evaluated the
awardee’s actual resources and technical approach as they
existed at the time of award. (Greenleaf
Construction Company, Inc., B-293105.18; B-293105.19,
January 17, 2006) (pdf)
Here,
even if we assume, arguendo, that AKMI is not, and has never
been, affiliated with Keith Moving, Inc., AKMI provided no
information in its proposal to suggest that the D&B report,
which reflected that AKMI was an alternate name for Keith
Moving, Inc., was inaccurate or otherwise unreliable. On the
contrary, at the time of the contemporaneous evaluation of
proposals, there was sufficient information in AKMI's proposal,
particularly when read in conjunction with information in the
D&B report, for GSA to reasonably conclude that AKMI was
affiliated with Keith Moving, Inc., a firm that had been
proposed for debarment, thereby making AKMI ineligible for
award. (Aardvark
Keith Moving, B-290565, August 8, 2002) (pdf) |
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Comptroller
General - Listing of Decisions |
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For
the Government |
For
the Protester |
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Shinwha
Electronics, B-290603; B-290603.2; B-290931; B-290932,
B-290932.2, B-291064, September 3, 2002 |
Greenleaf Construction Company, Inc.,
B-293105.18; B-293105.19, January 17, 2006 (pdf) |
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Aardvark
Keith Moving, B-290565, August 8, 2002 (pdf) |
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U.
S. Court of Federal Claims - Key Excerpts |
The United States Court of Appeals for the Federal Circuit held
in Planning Research
Corp. v. United States, 971 F.2d 736 (Fed. Cir. 1992) that:
[T]he submission of a misstatement . . . which materially influences
consideration
of a proposal should disqualify the proposal. The integrity of the system
demands
no less. Any further consideration of the proposal in these circumstances would
provoke suspicion and mistrust and reduce confidence in the competitive
procurement system.
Id. at 741 (citation omitted).
Therefore, to establish a material misrepresentation, Sealift must demonstrate
both that TAL intentionally made a false statement and that MSC relied on that false
statement in awarding
the contract to TAL. See Blue & Gold Fleet, LP v. United States, 70 Fed. Cl.
487, 495 (2006)
("To establish a material misrepresentation, plaintiff must demonstrate that (1)
[the awardee]
made a false statement; and (2) the [agency] relied on that false statement in
selecting [the
awardee’s] proposal for the contract award. . . . To preserve the integrity of
the solicitation
process when such a material misrepresentation influences the award of the
proposal, the proposal
is disqualified from consideration.") (citations omitted), aff'd, 492 F.3d 1308
(Fed. Cir. 2007);
see also Northrop Grumman Corp. v. United States, 50 Fed. Cl. 443, 468 (2001)
("[I]t is quite
common for proposals to fall short of their assertions; it is not something to
be punished unless
the errors were willful and egregious."). Intent may be established by
circumstantial evidence.
See Planning Research Corp., 971 F.2d at 742 ("This court has held that intent
frequently must be proved by circumstantial evidence.”) (citing Klein v.
Peterson, 866 F.2d 412, 415 (Fed. Cir.
1989)).
In awarding this contract, MSC advised that:
It is useful to compare the offered rate to previous contract awards for
comparable
vessels under similar requirements. . . . Th[ese] comparisons provide support
that
the rates offered by [TAL] and Sealift under this procurement are both highly
competitive and very reasonable.
AR 1985.
MSC's price analysis also stated that:
[T]he daily rate proposed by [TAL] is considered fair and reasonable based on
price competition and comparison with previous competitively awarded prices for
comparable vessels under similar requirements in accordance with FAR [] 15.404-
1(b)(2)(i) and (ii)15 respectively.
AR 1992.
Sealift's primary evidence that TAL misrepresented the Bonito's warranted fuel
consumption is the Raggio Declaration that relies on a single data point found
on a website. See AR 2266. The Government, however, states that: "[t]o assess [TAL]'s
compliance with its fuel
warranties, it is necessary to gather information on the vessel's speed, weather
conditions, load,
and fuel consumption for each voyage the vessel makes." See AR 2513. Sealift
agrees that "[g]auging actual fuel consumption requires some research, judgment, and
initiative" in addition
to "expert review of the varying factors that affect vessel operations." Pl. Mem.
at 16.
The March 31, 2006 Solicitation provided that the "[c]ost of fuel consumed will
be based
on an operational scenario of 60% underway laden at 12 knots . . . , 28% in-port
idle . . . , and
12% in-port discharge[.]" AR 1572. The Raggio Declaration, however, only
considered the
Bonito's fuel consumption "when steaming at 12 knots." AR 2266 (Raggio
Declaration ¶ 6).
Moreover, it did not consider the March 31, 2006 Solicitation’s required
“operational scenario.”
See AR 1572. The Raggio Declaration also assumed that "[t]he slightly larger
engine on the
Bonito should have a fuel consumption no less than that of the Montauk." See AR
2266 (Raggio
Declaration ¶3) (emphasis added). Other evidence, however, indicates that the
Montauk burned
188 grams of fuel per KWH under a 100 percent load and 187 grams of fuel per KWH
under an
85 percent load, while the Bonito burned 182 grams of fuel per KWH, under a 100
percent load,
and 180 grams of fuel under an 85 percent load. See AR 2266, 2476-77, 2481
(citing
http://www.sea-web.com, an online service of LLOYD'S LIST). Sealift did not
challenge this
data.
Nordtank does not guarantee or warrant the data on the website. See AR 2301-07.
In
addition, the cases cited by Sealift are not precedential and do not stand for
the proposition that
fuel consumption rates on a website are warranted. See Pl. Reply at 5. Instead,
they hold that a
representation of fuel consumption in a charter may create a warranty in certain
circumstances.
See Transatlantic Lines, LLC, Soc’y of Mar. Arb., No. 3834 (Nov. 4, 1998)
(determining that
"speed and fuel consumption capabilities" were incorporated into a contract
through an annex);
see also Denholm Shipping Co., 47 F.2d at 214-15 ("[A] description of a ship's
capacity, in speed,
as well as in any other respect, when inserted in the body of a charter, will
support a suit for
damages.") (citation omitted) (emphasis added); The Atlanta, 82 F. Supp. at 230
(a statement as
to speed and fuel consumption in a charter results in a warranty "rather than a
representation,
even though the statement is not expressly designated as a warranty").
Accordingly, the court has determined that the Bonito's fuel consumption rate,
posted on Nordtank's website, does not evidence a material misrepresentation by TAL,
particularly since
Sealift has not proffered any independent evidence that the information on
Nordtank's website
was reliable. See AR 2301-07. In addition, the Administrative Record contains no
evidence that
the Bonito did not achieve a consumption rate of [redacted] barrels per day,
although the court afforded Sealift the opportunity to supplement the
Administrative Record with post-award
information. See AR 2536-3047; see also 1/17/08 TR 38, 41-42.
For these reasons, the court has determined that, as a matter of law, Sealift
did not
establish a false statement was made by TAL to the CO. See Blue & Gold Fleet,
LP, 70 Fed. Cl.
at 495.
(Sealift, Inc., v. U. S., No.
07-627C, July 11, 2008) (pdf) |
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| U.
S. Court of Federal Claims - Listing of Decisions |
| For
the Government |
For
the Protester |
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Sealift, Inc., v. U. S., No.
07-627C, July 11, 2008. (pdf) |
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