No. 85-1697.United States Court of Appeals, First Circuit.Argued December 5, 1985.
Decided February 4, 1986. Rehearing and Rehearing En Banc Denied March 4, 1986.
Page 1075
[EDITORS’ NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.]Page 1076
Charles E. Raley, Washington, D.C., with whom James S. Phillips and Israel and Raley, Chartered, Washington, D.C., were on brief for appellant.
C. Brian McDonald, Asst. U.S. Atty., Washington, D.C., with whom William F.
Page 1077
Weld, U.S. Atty., Boston, Mass., were on brief for appellees.
Appeal from the United States District Court for the District of Massachusetts.
Before CAMPBELL, Chief Judge, and BOWNES and BREYER, Circuit Judges.
BOWNES, Circuit Judge.
[1] After being eliminated as a candidate for a contract to supply the military with .9mm pistols, Smith Wesson (S W) brought an action in the district court seeking to reverse the Army’s decision that the pistols manufactured by it failed two of the Army’s test requirements. The district court found against S W and refused to enjoin the Army from further proceeding with its pistol procurement program until S W was reinstated as a contract candidate. S W appeals that decision.[1] [2] Appellant mounts two lines of attack on the decision below: that the district court erred legally and factually in upholding the Army’s decision; and that the district court denied S W a fair trial. [3] At the outset, we note that both parties seem to assume that this is an appeal from the denial of a preliminary injunction. At least the cases they cite for the relevant standard of review are cases involving appeals from the grant or denial of preliminary injunctions. The record shows that at the start of trial the court stated: “This is a request for injunction consolidated with the trial on the merits, 65(a)(2) of the Federal Rules of Criminal [Civil] Procedure.” No objection was taken to this ruling. We, therefore, treat this as an appeal from a full-fledged trial on the merits. [4] I. THE ARMY TEST PROCEDURE[5] A. BackgroundManufacturers whose test samples meet or exceed the PDW characteristics described in enclosure 1 will be afforded an opportunity to compete for any future production contract, when, and if, such procurement is authorized and funded by Congress. Results from RFTS testing will be the most important of all evaluation factors under any subsequent procurement action source selection process. It is possible that the procurement action will be issued prior to completion of testing. In that event, the solicitation will be limited to those offerors whose weapons have not been eliminated from testing. If an offerors’ [sic] weapon is subsequently eliminated from consideration, the offeror will be informed as soon as possible and no proposal from the offeror in response to the competitive solicitation will be considered.
Page 1078
[8] In September of 1983, the Army had circulated a draft of the proposed RFTS within the industry for comment. A technical conference was held with those interested in October 1983, at which S W was present. No one at the conference objected to the RFTS procedure or the weapon characteristics to be tested. Some questions were asked about particular test methods and evaluations. The attendees were informed that they would not be allowed to observe the testing program. S W did not object to any of the proposed RFTS procedures or requirements. [9] Because S W’s brief is laced with allegations that the Army used “covert” test procedures and altered the test results from “pass to fail,” it is necessary to explain the Army’s test evaluation process. The tests were performed at three sites: Fort Benning, Georgia; Fort Dix, New Jersey; and Aberdeen Proving Ground, Maryland. The raw test data was given to the test coordinator who compiled it and turned it over to the Test Evaluation Board. The Evaluation Board was composed of civilians and representatives from each branch of the armed services, all of whom were technical experts on small arms. It reviewed the data supplied, evaluated it, and reported its results to the Test Advisory Board. The Advisory Board consisted of senior officers representing all branches of the services. The function of the Test Advisory Board was to review the report of the Test Evaluation Board to ensure that its evaluation comported with the procedures outlined in the RFTS. If the Advisory Board felt that a candidate should be terminated because of a failure to meet the test requirements, it so recommended to the Source Selection Authority, a single individual who alone had the authority to terminate a candidate, and furnished him with the pertinent test data.[2] [10] In May of 1984, procurement funds were authorized and a Request for Proposals (RFP) was issued to all RFTS candidates who, at that time, had not been eliminated. S W was still a candidate when the RFP was issued. It was eliminated as a candidate on September 18, 1984, before it submitted its proposal in response to the RFP. Its proposal, which was subsequently submitted, was not considered. [11] B. Testing and EvaluationPage 1079
v. McCarthy, 674 F.2d 1016, 1021-22 (3d Cir. 1982) Kinnett Dairies, Inc. v. J.C. Farrow, 580 F.2d 1260, 1271
(5th Cir. 1978); Kentron Hawaii, Limited v. Warner, 480 F.2d 1166, 1169 (D.C. Cir. 1973).
Page 1080
when a crack visible to the naked eye was detected in the pistol frame or when the pistol otherwise showed signs of imminent failure, excessive wear or safety hazards. The test called for seven pistols from each manufacturer. All would be fired to 3,500 rounds and three would continue to be fired to 5,000 rounds and then to 7,000 rounds. The weapons were inspected, cleaned and lubricated every 500 rounds. When the 5,000-round point was reached, a crack visible to the naked eye was found in one of the S W weapons. The 7,000-round inspection disclosed that a piece had broken from the frame in another of the S W weapons. The third S W pistol was fired to 7,000 rounds without any defects developing.
[18] S W’s attack on the service-life test is simple and direct; it asserts that its pistols passed the test as set forth in the RFTS. The Army determined that, although the crack in the frame was not discovered until 5,000 rounds had been fired, the crack must have started prior to that point. Since every weapon was examined after every 500 rounds of firing, the Army reasoned that the crack started to develop between 4,500 and 5,000 rounds of firing. The validity of this determination was testified to by test director Richard Audette, George B. Niewenhous, principal tester at Aberdeen Proving Ground, and Louis Delattre, who made an independent evaluation of the Army’s .9mm pistol procurement program. Delattre gave a detailed explanation of the validity of the service-life test. He explained that a crack in the frame could not have been caused by firing a single round and that a crack caused by firing enlarges as the firing continues. S W’s insistence that it passed the service-life test because the crack was not detected until after 5,000 rounds were fired is based on its interpretation of the RFTS test summary, not on what actually happened on the firing line. There was nothing irrational, unfair or inaccurate about the service-life test. [19] We find and rule that the decision of the Army that S W’s weapons failed to meet the firing-pin-energy requirement and the service-life requirement was neither irrational nor a violation of applicable statutes and regulations. It must also be noted that the weapons of Beretta, the company awarded the contract, passed all of the tests in categories one, two and three. [20] S W also claims that it was treated unfairly because Saco, one of the three candidate manufacturers, was allowed to continue in the competition, although two of its weapons failed the dry mud part of the Adverse Conditions Test. This test was part of the category two mandatory requirements. The treatment of Saco, however, has no bearing on the performance of S W weapons in the other mandatory tests. Saco was not awarded the contract, so its preferential treatment on this test, if there was any, had no adverse impact on S W. We note also that the Army had a rational and reasonable explanation for allowing Saco to continue in the competition: that the Saco weapons performed better or comparable to the standard in the sand, dust, water spray, and wet mud tests, but that the weapon experienced stoppages only when the magazine was covered with caked-on mud. The Army felt that this would not be a likely field condition. [21] C. The Due Process Violation ClaimsPage 1081
disbars it from bidding on or seeking government contracts in the future. S W was eliminated from competing for a single contract; that is all. See Myers Myers, Inc. v. United States Postal Service, 527 F.2d 1252, 1258 (2d Cir. 1975). Second, there is no basis at all for finding that S W had a property interest. The RFTS was simply an invitation by the Army to weapon manufacturers to submit .9mm pistols for tests to determine whether a manufacturer would be considered as a contract candidate. It did not, as S W asserts, give it “a legitimate claim of entitlement” to the pistol contract. Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972). Award procedures are not designed to establish private entitlements to public contracts but to produce the best possible contracts for the government. Delta Data Systems Corp. v. Webster, 744 F.2d at 206.
[24] Nor has the plaintiff shown that there is any basis for his claim of a liberty interest. In the context of government procurement contracts, a liberty interest requiring due process protection arises only when a company is barred from the procurement process, or eliminated from it, because of charges of fraud or dishonesty made without an opportunity for a hearing on those charges.[25] Transco Security, Inc. of Ohio v. Freeman, 639 F.2d 318, 321While the deprivation of the right to bid on government contracts is not a property interest (procurement statutes are for the benefit of the government, not bidders, Keco Industries v. U.S., 428 F.2d 1233 (Ct.Cl. 1970)), the bidder’s liberty interest is affected when that denial is based on charges of fraud and dishonesty. Old Dominion Dairy Products, Inc. supra. The minimum requirements of due process are notice and an opportunity for hearing appropriate to the nature of the case. Boddie v. Connecticut, 401 U.S. 371, 91 S.Ct. 780, 28 L.Ed. 113 (1971).
Page 1082
It would be intolerable for any frustrated bidder “to render uncertain for a prolonged period of time government contracts which are vital to the functions performed by the sovereign.” [Citation omitted.]
. . . .
[30] S W’s complaint contains only the broad allegation that it would suffer “substantial and irreparable harm and injury.” No specifics as to how and why such injury would occur were stated. In both its preheating and pretrial statements, S W claimed that it would incur irreparable injury because, under the applicable law, it could recover only test preparation expenses and could not recover loss of future profits. Passing the correctness of that statement, there is nothing in any of the numerous motions and memoranda filed in the district court stating or even suggesting the amount of loss of profits anticipated. And of even more significance is the complete lack of any evidence, loss of profits or otherwise, on irreparable injury introduced by S W at trial. Although S W’s failure of proof on this issue is fatal, we go on to review its claim of deprivation of a fair trial. [31] B. The Conduct of the TrialIn the more relaxed context of an action for damages, the court has an effective opportunity to give careful consideration to the controversy at hand, to probe the various and interrelated provisions of regulations, contract terms and specifications, questioning technical witnesses if necessary, reviewing pertinent administrative procedures and practices that give content as well as background to generalized regulations.
Page 1083
chairman of the Source Selection Evaluation Board (formerly the Technical Evaluation Board) which made the recommendation that S W be terminated from the program. S W had an opportunity to examine at trial those who conducted the tests, the person in charge of the program, the person who made an independent evaluation of the program and the chairman of the Board who made the final recommendation. Since the termination recommendation was obviously followed by the decision maker, we do not think that the district court abused its discretion in not ordering that person to testify. If his decision had been contrary to the recommendation and the test results, there might be cause to determine the reasons for it but, under the circumstances, his testimony was not necessary.
[35] The relevant evidence that S W claims the district court excluded was a physical demonstration test to be performed by SExcept as otherwise provided in criminal proceedings by section 3500 of title 18, United States Code, if a witness uses a writing to refresh his memory for the purpose of testifying, either —
(1) while testifying, or
[39] The court examined the unredacted report in camera and refused to disclose it to S W’s counsel. Here again, the test is whether the district court abused its discretion in determining that such disclosure was not necessary “in the interest of justice.” United States v. Massachusetts Maritime Academy, 762 F.2d 142, 157 (1st Cir. 1985); Cosden Oil Chemical Company v. Karl O. Helm Aktiengesellschaft, 736 F.2d 1064, 1077 (5th Cir. 1984); United States v. Howton, 688 F.2d 272, 277 (5th Cir. 1982). We find no abuse of discretion in the district court’s rule. [40] Two other trial issues need only brief treatment. The district court did not abuse its discretion in setting aside the default judgment it had issued against the Army on April 5, 1984, for failure to plead or otherwise defend. The court found that because the case had been juggled among three federal courts and the defendants had shown the existence of a meritorious defense, the good cause requirement of Federal Rule of Civil Procedure 55(c) for setting aside a default had been met. We agree. [41] Nor did the district court abuse its discretion or act unfairly in scheduling the(2) before testifying, if the court in its discretion determines it is necessary in the interests of justice,
an adverse party is entitled to have the writing produced at the hearing, to inspect it, to cross-examine the witness thereon, and to introduce in evidence those portions which relate to the testimony of the witness.
Page 1084
case for trial when it did. S W complains that it did not have sufficient time to prepare, but it sought injunctive relief as soon as possible. It agreed to the trial date. Although in doing so, it may have succumbed to pressure from the district court, a reading of the trial transcript convinces us that it was not time for preparation that was fatal to S W’s case. Additional preparation time would not have changed the test results or the discovery and trial rulings. The case was well tried by S W’s counsel, but the ammunition available was not sufficient to pierce the Army’s impregnable shield of rationality and legality.
[42] We have considered all the other issues raised by S W and find that they do not merit discussion. [43] There are two post-trial motions that require rulings. Since we have reviewed all of the materials in the appendix, the Army’s motion to strike material from it, although legally sound, is moot. In its reply brief, S W, under the heading of “Recently Discovered Information,” asserts that “Beretta has failed the firing pin indent and other tests and requirements” and that the Army now admits “that Smith Wesson, among other candidates, had a service life of 5,000 rounds and met the JSOR criteria.” It is clear that S W’s reply brief on pages 1-30 states and argues facts that were not part of the record and pages 35-42 of the addendum to the brief contain materials not included in the record.[44] United States v. Kobrosky, 711 F.2d 449, 457 (1st Cir. 1983). The Army’s motion to strike pages 1-30 of the reply brief and pages 35-42 of its addendum is granted. [45] In closing, we note that this case was concerned with the Army’s second attempt to obtain a procurement contract for .9mm pistols. We do not know whether another procurement program is in the offing; we do know, however, that as far as this court is concerned this case is concluded. [46] Affirmed.We are an appellate tribunal, not a nisi prilus
court; evidentiary matters not first presented to the district court are, as the greenest of counsel should know, not properly before us. Nogueira v. United States, 683 F.2d 576, 578 (1st Cir. 1982); United States v. Sachs, 679 F.2d 1015, 1019 (1st Cir. 1982); United States v. Payton, 615 F.2d 922, 925 (1st Cir.), cert. denied, 446 U.S. 969, 100 S.Ct. 2950, 64 L.Ed.2d 830 (1980).
OLGA PAULE PERRIER-BILBO, Plaintiff, Appellant, v. UNITED STATES; L. FRANCIS CISSNA, Director, U.S. Citizenship and…
United States Court of Appeals For the First Circuit ?No. 17-1803 ANA MARINA PEREZ-RABANALES, Petitioner,…
United States Court of Appeals For the First Circuit No. 16-2401 LORI FRANCHINA, Plaintiff, Appellee,…
United States Court of Appeals?For the First Circuit No. 16-2222 UNITED STATES OF AMERICA, Appellee,…
860 F.3d 752 (2017) UNITED STATES of America, Appellee, v. Hector Luis TORRES-FIGUEROA, Defendant, Appellant.…
860 F.3d 39 (2017) UNITED STATES of America, Appellant, v. Wayne CARTER, Defendant, Appellee. United…