Opinion ID: 2755031
Heading Depth: 2
Heading Rank: 1

Heading: The Ultrasound Contract

Text: The ultrasound contract was the result of extensive negotiations. Acuson responded to a VA solicitation for ultrasound equipment in 2000 with a bid that included, inter alia, a form setting forth required “Discount and Pricing Information.”3 Acuson offered the VA a 43% discount and disclosed that other entities were given discounts greater than those extended to the government – as high as 48%. The pre-award audit also confirmed that the discounts offered to commercial customers exceeded those offered to the government – specifically that Acuson had provided discounts of 59% and 3 The Discount and Pricing Information form is used as part of the award process to evaluate the vendors’ pricing. The form asks vendors to specify the basis of the list pricing the vendor is offering the VA and the discount percentage offered for the capital medical equipment. The form also requests information on discounts given to other customers. It contains neither completion instructions, nor definitions of terms. For example, the form does not specify whether to disclose contract-level or transaction-level discounts. The undisputed evidence establishes that the VA accepted such forms completed in materially different ways, namely forms containing either transaction-level or contract-level discounts, and forms containing either comparable or noncomparable discounts. (App. at 1698) (former chief operating officer of the VA stated that the VA understood the “significant ambiguities, limitations, and differing interpretations of the [Discount and Pricing Information] form.”). 3 56% on ultrasound products. Based on the audit, the VA asked Acuson to increase its discounts to 48% and 50% respectively for two different products. Acuson then resubmitted its Discount and Pricing Information to the VA and increased its discount offer to 48% with additional multiple-system discounts. The VA accepted the resubmitted information and awarded Acuson the contract.