Turner Const. Co., Inc. v. United States
2011 U.S. App. LEXIS 14370
| Fed. Cir. | 2011Background
- Army awarded Turner contract for Fort Benning hospital; two rivals protested to GAO alleging OCIs; GAO recommended re-procurement without Turner participation; Army followed GAO recommendation and terminated Turner; Turner sued in the Court of Federal Claims seeking reinstatement; CO conducted post-award OCI investigation that found no significant OCI.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether GAO decision lacked rational basis | Harbert-Gorrie contends GAO irrational | Harbert-Gorrie argues GAO properly reviewed CO findings | GAO decision irrational; reversed in Turner I |
| Whether Court properly used Honeywell standard | Court should defer to GAO | GAO's rationality review governs | Court applied Honeywell standard and avoided de novo review |
| Whether post-award investigation could support rationality | CO's post-award analysis should be given weight | Post-award and pre-award analyses both valid | Post-award investigation properly considered under FAR § 9.504(a) |
| Whether hard facts requirement was misapplied | GAO relied on suspicious inferences | CO identified hard facts showing no competitive utility | Hard facts requirement correctly applied; no OCI found |
| Whether reinstatement was proper remedy under Tucker Act | Remand or re-procurement preferable | Reinstatement appropriate to restore status quo | Court’s reinstatement remedy affirmed; properly within Tucker Act equitable powers |
Key Cases Cited
- PAI Corp. v. United States, 614 F.3d 1347 (Fed. Cir. 2010) (rational basis review for bid protests; deference to CO findings)
- Honeywell, Inc. v. United States, 870 F.2d 644 (Fed. Cir. 1989) (agency decision must be rational; not substitute judgment)
- Axiom Res. Mgmt. v. United States, 564 F.3d 1374 (Fed. Cir. 2009) (discretion in OCI identification; FACT-specific inquiries)
- R&W Flammann GmbH v. United States, 339 F.3d 1320 (Fed. Cir. 2003) (review standard for bid protests; deference to agency)
- C.A.C.I., Inc. v. United States, 719 F.2d 1567 (Fed. Cir. 1983) (hard facts vs. mere suspicion in OCI context)