Impresa Construzioni Geom. Domenico Garufi v. United States

The federal government (defendant) solicited proposals from contractors to provide maintenance and groundskeeping services at the United States Naval Air Station in Sigonella, Italy (Sigonella base). Impresa Construzioni Geom. Domenico Garufi (Garufi) (plaintiff) and Joint Venture Conserv (JVC) both submitted proposals. JVC was comprised of four different business entities. Two of JVC’s entities, Impredil and Lara, had previously been controlled by Carmelo La Mastra but were placed into a receivership after Carmelo was indicted on criminal charges related to Mafia involvement and bid-rigging. The receivership was operated by a legal administrator, but Carmelo’s son, Salvatore La Mastra, held signatory power over both Lara and Impredil. Despite the receivership, Carmelo remained a corporate officer and signatory for Impredil. The government’s contracting officer (CO) found that JVC was a responsible contractor and awarded the contract to JVC. Garufi filed a bid protest in the United States Court of Federal Claims, arguing that the CO’s determination of JVC’s responsibility was arbitrary because JVC did not have a satisfactory record of business ethics and integrity. The government countered, arguing that the receivership imposed on Carmelo eliminated any control Carmelo had over JVC. The court denied Garufi’s bid protest. Garufi appealed to the Federal Circuit.