A Squared Joint Venture v. United States

United States Court of Federal Claims·Decided November 21, 2019·No. 17-835·Published

Opinion

In the United States Court of Federal Claims No. 17-835C

(Filed: November 21, 2019)* *Opinion Originally Filed Under Seal November 18, 2019

)

A SQUARED JOINT VENTURE, )

)

Plaintiff, ) Bid Protest; Rational Procurement ) Cancellation; Lack of Bad Faith v. )

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THE UNITED STATES, )

)

Defendant. )

)

Joseph P. Dirik, Dallas, TX, for plaintiff.

Borislav Kushnir, Civil Division, United States Department of Justice, Washington, D.C., with whom were Joseph H. Hunt, Assistant Attorney General, Robert E. Kirschman, Jr., Director, Douglas K. Mickle, Assistant Director, for defendant. Jerry L. Seemann, National Aeronautics & Space Administration, Office of Chief Counsel, Washington, D.C., of counsel.

OPINION

FIRESTONE, Senior Judge.

Plaintiff, A Squared Joint Venture (“A2JV”), protests the National Aeronautics and Space Administration’s (“NASA” or “agency”) decision to cancel a procurement for acquisition and business support services. This bid protest has a long and protracted history which is described briefly below. Because the court finds that NASA had a rational basis for cancelling the subject solicitation and because A2JV has failed to demonstrate that NASA acted in bad faith, the plaintiff’s motion challenging NASA’s decision is DENIED and the defendant’s motion for judgment on the administrative

record is GRANTED. The court also DENIES AS MOOT plaintiff’s motion to supplement the administrative record. I. BACKGROUND FACTS1

A. NASA’s Procurement of Acquisition and Business Support Services at Marshall Space Flight Center (“MSFC”)

NASA awarded contract no. NNM11AA30C for acquisition and business support services at MSFC (“ABSS1 contract”) to Al-Razaq Computing Services (“Al-Razaq”) on May 1, 2011. AR46. The ABSS1 contract included business support services for supporting the preparation, analysis, and verification of budget and financial data. AR108-10. The ABSS1 contract also included acquisition support services such as acquisition planning, solicitation preparation, contract award, performance, payment, and closeout. AR110-12. The ABSS1 contract had a one-year base period and five option periods, allowing NASA to retain Al-Razaq until August 31, 2016. AR59.

On February 16, 2016, NASA issued request for proposal no. NNM16534124R for follow-on acquisition and business support services at MSFC (“ABSS2 RFP”). AR321. The follow-on contract was planned for a base period of one year, with five additional option years. AR326. A2JV was established to meet the criteria for the acquisition. Importantly, Al-Razaq, the incumbent, is one of the partners in A2JV.

NASA received twenty proposals in response to the ABSS2 RFP on March 18, 2016. AR3463-64. On May 9, 2016, NASA Contracting Officer (“CO”) Ketela K. Helton

1 The facts relevant to the cancellation decision together with relevant background facts from the court’s earlier decisions are taken from the full administrative record that was presented to the court.

eliminated A2JV’s proposal from the ABSS2 competition based on her conclusion that A2JV had an organizational conflict of interest. She determined that the Al-Razaq personnel that had worked on the A2JV proposal had access to the confidential business information of potential A2JV competitors. A2JV filed a protest of its elimination with the Government Accountability Office (“GAO”). Third Am. Compl. ¶ 42, ECF No. 130. That protest was dismissed as untimely. AR1628-38. Ten months after the GAO’s dismissal, A2JV filed this action. See Compl., ECF No. 1.

While A2JV’s action was pending in this court, NASA proceeded to have discussions with ABSS2 offerors within the competitive range, and, on June 30, 2017, NASA selected Paragon TEC, Inc. (“Paragon”) for award of the ABSS2 contract. AR3465. Following the award, Will Technology, Inc. (“WTI”), another offeror in the competitive range, challenged Paragon’s selection before the GAO. Id. Although WTI ultimately withdrew its protest, NASA decided that it should reevaluate Paragon’s proposal. Id. After reevaluating Paragon’s proposal, NASA selected a third offeror within the competitive range, Canvas, Inc. (“Canvas”), for award of the ABSS2 contract. Id.

Both WTI and Paragon protested Canvas’s selection before the GAO. Id. The GAO sustained these protests in part and recommended that NASA reevaluate all of the proposals within the competitive range. Id. NASA followed the GAO’s recommendation and reevaluated all the proposals. Id. On October 28, 2018, NASA reaffirmed Canvas’s selection for award of the ABSS2 contract. Id.

Meanwhile, this case was continuing, see id., and on December 21, 2018 this court determined that NASA’s basis for disqualifying A2JV was not supported and ordered

briefing on the appropriateness of injunctive relief. Order, ECF No. 113. To address this court’s order, NASA decided not to issue a final source selection decision. Before it could respond to the court’s order regarding injunctive relief, however, NASA lost its funding for the procurement as part of the December 2018 government shutdown. Def.’s Mot. for Stay, ECF No. 114. Funding was not restored until January 25, 2019. AR3465.

B. NASA’s Decision to Cancel the ABSS2 Procurement NASA decided to cancel the ABSS2 procurement on March 12, 2019. The formal decision was issued by NASA CO Hervie B. Williford. See AR3463-68. In his decision, CO Williford provided a history of the ABSS1 contract at MSFC, and a summary of the lengthy ABSS2 procurement process. AR3463-66. CO Williford also provided an overview of NASA’s strategy for contract centralization, which is supported by other documents in the record. AR3465-66. In April 2016, NASA’s Office of Procurement (“OP”) developed an implementation plan for contract centralization. See AR2630-2765. Phase II of that plan involved the assessment and centralization of procurement areas within the OP’s domain, which was “chosen as one of three Phase II projects.” AR3346. The OP’s domain includes all acquisition support services and financial support services, both of which were slated for “agency-wide” procurements whereby “[o]ne OP location procures for all Centers.” AR3402. To accomplish Phase II for acquisition support services, NASA issued solicitation no. 80NSSC18R0025 on February 15, 2018. AR2771. This solicitation was designed to result in a contract that provides a broad range of acquisition support services on a NASA-wide level. AR2838-39 (section titled “Scope of Work”). As for business/financial support services, NASA intends to award an agency-

wide contract for these services, in accordance with its broader centralization strategy, by the end of 2020. See AR3467, AR3429. On September 11, 2018, NASA published a Procurement Information Circular addressing the agency’s approach to acquisition strategies. See AR3484-88. According to the Circular, “[f]or any new acquisition above the simplified acquisition threshold (SAT), regardless of anticipated contract vehicle,” procurement officers were required to “coordinate the individual requirement(s) with the Procurement Portfolio Manager and Enterprise Requirement Manager.” AR3485. The Circular also provides that “[c]enters should wait for direction from the Procurement Portfolio Manager prior to continuing with acquisition planning activities in order to avoid the potential for revisions to the instant acquisition . . . due to necessary steps and considerations required to implement an enterprise procurement strategy.” Id.

CO Williford then gave two basic reasons for cancelling the ABSS2 procurement.

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