Cardinal Maintenance Services, Inc. v. United States

The United States Air Force (government) (defendant) issued a Request for Proposals (RFP) for a custodial services contract at Hickam Air Force Base (Hickam). Cardinal Maintenance Services, Inc. (Cardinal) (plaintiff), the incumbent contractor, and Navales Enterprises, Inc., both submitted responsive proposals. The government conducted a best-value evaluation and determined that Navales’s proposal represented the best value for the government. Navales was awarded the contract and commenced performance. The Navales contract initially included an “Add/Delete of Service Cost Sheet” (cost sheet) allowing the government to make certain minor changes to the scope of the contracted work, as limited by the cost sheet. The Navales contract was modified eight times after the initial award, resulting in an approximately 80 percent increase in the overall contract cost. The third modification removed the cost sheet from the contract, including the associated restrictions on contract term changes. One of the changes made after the cost sheet was removed was so significant that the government ultimately removed the modified responsibilities from Navales’s contract and created a new, separate contract, which was then awarded to a different contractor. Cardinal filed a post-award protest against the government in the Court of Federal Claims, arguing that the government violated the Competition in Contracting Act (CICA) by substantially modifying Navales’s contract post-award without first engaging in a full and open bidding competition.