Opinion ID: 382661
Heading Depth: 2
Heading Rank: 2

Heading: The Yokohama Contract

Text: 15 Simultaneous with the negotiations for the Okinawa contract, a similar milk contract became available for military installations in Yokohama, Japan. On December 18, 1978, the PACAF Contracting Center in Yokohama solicited bids for the supply of dairy products (Tr. 277). As with the Okinawa contract, best and final offers were due on March 26, 1979 (Tr. 278). The proposed contract was for one year beginning July 1, 1979, with four one-year renewal options (Tr. 159). The contracting officer in charge of negotiations was William P. Barrett (Tr. 160, 277). 16 Old Dominion was again one of three contractors to submit initial bids (Tr. 277). In anticipation of a possible award to ODDPI, Barrett sent two letters requesting performance data on Old Dominion's two existing contracts at Okinawa and Korea (Tr. 278). The report from Korea indicated that performance was at least satisfactory; a reference was also made to the fact that an audit was currently being conducted of Old Dominion by DCAA (Tr. 278). 17 On March 21, 1979, Barrett received an electronic report from Colonel Damm, Chief of the PACAF Contracting Center on Okinawa (Tr. 286-287). The report from Colonel Damm began with the following statement: Under the provisions of DAR 1-902 a determination is hereby made that Old Dominion Dairy Products is not a responsible contractor for failing to meet the DAR 1-903.1(iv) requirement wherein a prospective contractor to be declared responsible must meet the minimum standard of having a satisfactory record of integrity. App. G, exhibit 6, item 2. Transmitted after this opening statement was a copy of Ms. Wells' report. App. G, exhibit 6, item 2. 18 Based on this communication, Mr. Barrett concluded that Old Dominion had knowingly and substantially overbilled the Government (Tr. 279). Barrett based this conclusion solely on the communication from Colonel Damm and the report of Ms. Wells (Tr. 288). At no point between March 21 and March 26 did Barrett inform ODDPI of the allegations in the report, or notify Old Dominion that its integrity was in issue (Tr. 163). 19 On March 26, 1979, Old Dominion submitted a best and final offer for the Yokohama contract of $1,161,388.98. App. D, exhibit 12. On that date, however, Mr. Barrett made a determination that ODDPI was a nonresponsible contractor due to a lack of a satisfactory record of integrity, and placed that determination and the March 21 report from Okinawa in the contract file. App. G. The contract was awarded to Servrite International, the next low bidder, at a price of $1,272,873.43. App. D, exhibit 13. 9 20 As with the Okinawa contract, the record here is clear that, but for the finding of a lack of integrity, Old Dominion would have otherwise received the Yokohama contract. The Government has never suggested that any other reason motivated the award to Servrite, a substantially higher bidder.