Opinion ID: 675864
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 2 In September 1987, GSA obtained authority to issue Solicitation for Offers (SFO) 88-100. SFO 88-100, which issued in March 1989, sought building space to consolidate FCC headquarters. As amended, SFO 88-100 required a minimum of 286,500 square feet and a maximum of 305,000 square feet of space. The solicitation contained an option for 30,000 additional square feet pending approval from Congress. SFO 88-100 specified that the building must be ready for initial occupancy no later than January 1993 and complete occupancy no later than July 1993. 3 In February 1990, FCC asked GSA to cancel SFO 88-100 and revise the delineated area for relocation. FCC sought to revise the relocation area to remain in close proximity with the offices of the communications industry representatives. FCC's current headquarters lie in the northwest quadrant of Washington, D.C., amidst a fashionable business district. The revised area would have excluded Parcel 49C's proposed consolidation site in the southwest quadrant of the nation's capital. GSA declined to revise the solicitation. 4 In September 1991, GSA issued its request for best and final offers (BAFOs). GSA received four BAFOs. Parcel 49C and Warner Theatre Associates were the leading contenders. The Warner Theatre building lies in the northwest quadrant near Pennsylvania Avenue, within the revised area requested by FCC. Far East Trading, Inc., an offeror that submitted a nonresponsive offer, protested to General Accounting Office (GAO) that SFO 88-100's January 1993 occupancy date was too restrictive. GAO conducted protest proceedings during which FCC stressed the importance of the occupancy date. 5 The Court of Federal Claims made revelatory findings about the procurement process: 6 The source selection process was marred by disagreement between GSA and FCC over how offers should be evaluated. The source selection was to be based on who could provide the Government with the greatest value, while FCC wanted an award to go to the offeror that FCC believed best suited its own requirements. 7 Parcel 49C, No. 92-286C, slip op. at 3. Therefore, FCC asserted that buildings meeting SFO 88-100's minimum requirements would not necessarily provide the FCC with an acceptable operational environment. FCC's final Source Selection Report preferred Warner as the most advantageous offeror. Parcel 49C ranked second. 8 The rent offer for the Warner Building, however, exceeded the authorized ceiling. The Warner facility offered 288,000 square feet of space. Nonetheless, on December 9, 1991, FCC asked GSA to award the lease to Warner and deal with additional space needed later. 9 On December 20, 1991, GSA selected Parcel 49C for the award. Warner withdrew its proposal. Through a series of letters, FCC indicated its dissatisfaction with the award. FCC renewed assertions that its space requirements had increased and that, because the Parcel 49C building--the Portals--was not yet under construction, it could not meet the occupancy date. The Court of Federal Claims found: 10 After GSA informed FCC that the Portals had been selected for FCC headquarters, FCC responded with a campaign to scuttle the procurement.... We found credible the testimony of GSA officials who stated that FCC intended to take whatever steps were necessary to avoid going to the Portals. Concerns FCC said it had with the procurement became critical to FCC only when Portals was selected. 11 Parcel 49C, No. 92-286C, slip op. at 3-4. 12 With bid protest proceedings still pending at GAO, FCC wrote GAO on January 17, 1992, conceding the occupancy date protest. This direct contact violated GAO procedure. In the words of the trial court, FCC's stated position to GAO was a sudden and complete reversal, announced only after Parcel 49[C] was selected as the prospective awardee. Id. at 4. 13 On January 24, 1992, FCC sent GSA an SF-81 increasing their space request to 335,588 square feet. On February 10, 1992, GSA cancelled SFO 88-100. GSA based its cancellation on FCC's changed space needs. 14 Thereafter, on April 17, 1992, Parcel 49C filed a complaint in the Court of Federal Claims protesting GSA's cancellation of the solicitation. Following trial, the Court of Federal Claims granted injunctive relief to Parcel 49C. The injunction required GSA to proceed with award of the solicitation by March 15, 1994. 15 Approximately two weeks after the bench trial, on March 14, 1994, the court issued its opinion which based the injunction on GSA's abuse of its discretion to cancel procurements. Pending appeal, this court issued a temporary stay. Parcel 49C Limited Partnership v. United States, Order No. 94-5085 (Mar. 14, 1994).