360Training.com, Inc. v. United States

106 Fed. Cl. 177, 2012 WL 3143840
United States Court of Federal Claims·Decided August 3, 2012·No. No. 12-197 C·Published·Cited by 11 cases

Opinion

OPINION

DAMICH, Judge:

Plaintiff 360Training.com, Inc., (“360”) filed this post-award bid protest on March 27, 2012. 360 had submitted several applications in response to a “Request for Applications” (“RFA” or “Solicitation”) issued by the Occupational Safety and Health Administration (“OSHA”) of the United States Department of Labor. OSHA was seeking to authorize qualified vendors to be online providers of OSHA Outreach Training Program courses (“outreach courses”). Prior to the RFA, 360 was an authorized online provider of several outreach courses. In response to the RFA, 360 submitted 5 applications, one for each outreach course it wished to provide. On January 12, 2012, OSHA announced that 10 different providers were selected for an award. 360 was not selected and this bid protest followed.

Currently pending before the Court are the parties’ cross-motions for judgment on the administrative record and 360’s motion to supplement the administrative record. 360 alleges that OSHA’s decision not to select any of 360’s course applications lacked a rational basis because the application evaluation process OSHA actually used was different than the process disclosed in the RFA 360 requests a permanent injunction that [180]*180would either allow it to continue offering online courses, require OSHA to reevaluate its applications, or require OSHA to cancel the awards and rebid the competition. To be successful on the merits, 360 must show that OSHA’s decision lacked a rational basis and that it was prejudiced by OSHA’s decision by showing both a significant error and that it had a substantial chance of receiving an award but for that error.

The Court finds that OSHA adopted an evaluation process that materially differed from the process disclosed in the RFA and that OSHA’s final evaluations and ratings are inconsistent with the contemporaneous documentation in the administrative record. In its actual evaluation of 360’s applications, OSHA imposed an undisclosed eligibility requirement — the applicant’s probationary status as a provider of online outreach courses — and OSHA improperly determined that 360 was ineligible to apply. The Court also finds that OSHA’s decision prejudiced 360 because, had OSHA evaluated all the applications consistent with the evaluation process and selection criteria disclosed in the RFA, 360 stood a substantial chance of award. Therefore, 360 has established that it is entitled to relief.

1. Background

A. Procedural History

On March 27, 2012, Plaintiff filed its complaint in this Court. Along with its complaint, Plaintiff filed a motion for a preliminary injunction seeking to preserve the status quo by enjoining OSHA from issuing contracts to the awardees. ClickSafety.com, Inc., one of the 10 awardees, intervened. After a hearing, the Court determined that, instead of enjoining OSHA from making any awards, the more equitable remedy was to permit OSHA to proceed with the awards but adding 360 as an 11th awardee. Therefore, the Court issued a preliminary injunction permitting OSHA to make the awards but enjoining OSHA to treat 360 as an awardee as well.

On April 6, 2012, the Government filed a motion to dismiss for lack of subject matter jurisdiction because the contract OSHA entered into with awardees was labeled a “cooperative agreement” and not a “procurement contract.” On April 26, 2012, this Court found that in issuing the RFA, OSHA was seeking to obtain the services of third parties in place of OSHA’s in implementing the mandate that it establish and supervise training and education programs, see 29 U.S.C. § 670(c) (2006); OSHA was not seeking to provide funding or assistance to third parties to ensure the availability of training. The Court noted the agreements were intended to give OSHA the ability to exercise tight control over course content and delivery, as well as the business practices of the providers, so that OSHA could ensure that the training met its standards. Therefore, the Court concluded that the Solicitation was “in connection with” the “process of acquiring property or services” for OSHA and jurisdiction under § 1491(b)(1) was proper. 360Training.com v. United States, 104 Fed.Cl. 575 (2012). After the Court denied the motion to dismiss, it extended the preliminary injunction through a decision on the merits.2

On May 14, 2012, 360 filed its Motion for Judgment on the Administrative Record (“PL’s Mot. JAR”). Simultaneously, it filed its First Motion to Supplement the Administrative Record. On May 24, 2012, the Government filed a Cross-Motion for Judgment on the Administrative Record (“Def.’s Mot. JAR”) and also a Response to the Motion to Supplement the Administrative Record. ClickSafety filed a brief in support of the [181]*181Government’s Cross-Motion.3 On May 29, 2012, 360 filed a Response and Reply, and on June 1, 2012, it filed an Amended Response and Reply (“Pl.’s Reply”) with leave of the Court. On June 4, 2012, the Government filed a Reply (“Def.’s Reply”) and CliekSafety filed a brief in support. On June 7, 2012, 360 filed a Second Motion to Supplement the Administrative Record, and on June 11, 2012, the Government filed a response.

B. Facts

Additional facts are set forth in this Court’s April 26, 2012 decision denying the Government’s motion to dismiss for lack of jurisdiction. Below, the Court provides some background information on the Outreach Training Program, followed by an overview of the Solicitation. Then, the Court discusses 360’s past performance as a provider of online outreach courses.

1. The Outreach Training Program

OSHA established the Outreach Training Program pursuant to § 670(e). OSHA furthers its mission to provide training through its Directorate of Training and Education (“DTE”). DTE is responsible for conducting and administering many of OSHA’s training programs, including the Outreach Training Program. OSHA provides training through multiple programs, two of which are relevant here: OSHA Training Institute Education Centers (“OTIECs”) and the Outreach Training Program. OTIECs are a network of non-profit organizations that OSHA has authorized to deliver occupational safety and health training on behalf of OSHA. OTIECs offer courses on OSHA standards as well as the courses required to become an authorized trainer for the Outreach Training Program.

The Outreach Training Program provides courses that are designed to give workers an overview of the OSHA system, worker rights, and other basic safety and hazard information. Administrative Record (“AR”) 1. Through the program, “workers may attend 10- and 30-hour classes in construction, general industry, and maritime, and 2-day classes for disaster site workers.” AR 55. OSHA does not require workers to attend outreach training classes, but the classes are required by certain states and by “some employers, unions, organizations, and other jurisdictions.” AR 1. In jurisdictions where the training is required, workers typically cannot gain access to job sites unless they first show their OSHA Outreach Training course completion card, called a “DOL card.” See Intvr.’s Mot. Reeons. PI, May 4, 2012, at 7-8; Id. at Appx. A ¶ 11 (Brian Tonry Aff.).

OSHA does not directly provide outreach courses to workers.

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360Training.com, Inc. v. United States, 106 Fed. Cl. 177, 2012 WL 3143840 (uscfc 2012).

106 Fed. Cl. 177 (360Training.com, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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