Actionet, Inc. v. United States

United States Court of Federal Claims·Decided May 7, 2019·No. 19-388·Unpublished

Opinion

In the United States Court of Federal Claims No. 19-388C (Filed: April 22, 2019) (Reissued: May 7, 2019) 1 NOT FOR PUBLICATION

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ACTIONET, INC.,

Plaintiff, Post-award bid protest; v. Preliminary injunction; Likelihood of success THE UNITED STATES, on the merits; Standing; Prejudice; Unstated Defendant, evaluation criteria; Disparate treatment. and

ACCENTURE FEDERAL SERVICES LLC,

Intervenor.

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OPINION

This is a post-award bid protest of the Department of Energy’s (“DOE”) award of a Blanket Purchase Agreement for Information Technology services to Accenture Federal Services LLC (“Accenture”). Plaintiff, ActioNet, Inc., currently holds an IDIQ task order contract with DOE for IT services. Currently pending is plaintiff’s motion for a preliminary injunction. Oral argument was held on April 11, 2019. As announced at the conclusion of that argument, we deny the motion, primarily due to a lack of likelihood of success on the merits.

1 This opinion was originally issued under seal to afford the parties an opportunity to propose the redaction of protected information. The parties did not agree on all of the proposed redactions. We have redacted information necessary to safeguard the competitive process. Redactions are indicated by brackets. BACKGROUND

I. The Solicitation

DOE issued Request for Quotations No. DE-SOL-0008790 (“RFQ” or “solicitation”) on November 15, 2017, asking holders of Federal Supply Schedule 70 contracts to submit bids for a single award blanket purchase agreement (“BPA”) against which orders could be placed for information technology (“IT”), telecommunications, and cybersecurity services for a period of up to five years (one base year and four option years). The total estimated value for all five years was $2,000,000,000. The BPA as a whole is known as “CBOSS,” which stands for CIO Business Operations Support Service. The RFQ included performance work statements (“PWS”) for two planned initial orders: one for IT Modernization Strategy Support, known as the “IM-60;” and the other was for Cybersecurity Strategy and Program Management Support, known as “IM-30.” In large part, bidders were to tailor their offers to these two task orders. 2

The agency made the award on a best value tradeoff basis, which was promised by the RFQ, based on the four following factors: 1) Past Performance, 2) Management Approach, 3) Technical Approach, and 4) Price. Past Performance was the most important evaluation factor and was rated for relevance and quality of performance with an overall adjectival rating of either Outstanding, Good, Satisfactory, Marginal, or Unsatisfactory. DOE reserved for itself the right to eliminate offers rated marginal or lower on Past Performance, and it did so for one offeror.

Management Approach, the second most important factor, and Technical Approach, the third in importance, were also rated adjectively from Outstanding to Unsatisfactory. Proposals were assigned strengths and weaknesses for these two factors according to the definitions provided in the

2 For example, the solicitation specifically solicited examples (three of the six required) of doing work similar to the two planned task orders; the Technical Approach factor was measured against the PWSs for these two task orders; and a major portion of the price evaluation was of these two task orders.

2 solicitation. See Pl.’s Ex. 1 at 699. 3 The overall adjectival ratings for these factors were dependent on these strengths and weaknesses assigned as well.

Although the RFQ estimated a total value of $2 billion for the BPA across five years, it did not require the agency to evaluate the total price of each offer. Instead, the solicitation stated that the agency would compare labor rates across offers, total prices for the two anticipated initial orders (IM- 60 and IM-30), and the load percentage to be charged on other direct costs and materials. The results of the BPA labor rates evaluation was the most important element of the price evaluation. The solicitation also stated that the agency would perform a price realism and reasonableness analysis of all offerors’ prices and rates. The agency reserved the right to conduct discussions with offerors but warned that it might make an award without having done so.

II. The Evaluation and Award

The Technical Evaluation Committee (“TEC”) performed the non- price evaluation of offers and presented its findings to the Source Selection Official (“SSO”), who frequently met with the TEC and the Contracting Officer (“CO”) throughout the evaluation process. The CO conducted the price analysis. The source selection decision was made by the SSO.

DOE received six offers in response to the RFQ. The TEC first evaluated the Past Performance factor by itself, completing that evaluation on September 24, 2018. One of the six offerors was eliminated by the CO because it was rated only marginal for Past Performance. The TEC then completed its evaluation of the other two non-price factors on November 19, 2018. The results for all three factors were as follows (ranked in order):

3 “PX” refers to Plaintiff’s Exhibit; “DX” refers to Defendant’s Exhibit. Because briefing on the motion for preliminary relief was completed prior to the filing of the Administrative Record, citations to the procurement record are to the documents as the parties presented them as attachments to their briefs.

3 Quoter Past Performance Management Technical Approach Approach Accenture Outstanding Good Good Quoter No. 2 Good Outstanding Good Quoter No. 3 Satisfactory Outstanding Good Quoter No. 4 Satisfactory Good Good ActioNet Satisfactory Satisfactory Satisfactory

PX 5 at 9. 4

The CO completed her price analysis the next day on November 20, 2018. All five remaining offerors’ prices were found to be both fair and reasonable overall, but plaintiff’s evaluated prices for the two initial tasks orders were found to be unrealistically low. The highest offeror was $25,990,987.33 for the two orders; Accenture was at $21,358,203.81; and ActioNet bid the work for only [ ]. The next lowest offeror, by comparison, was $19,766,505.24.

The CO evaluated the BPA labor rates by comparing the offerors’ proposed rates against one another for each category. The mean for each labor category was calculated and then a standard deviation analysis was performed against that mean for each category. Rates within two standard deviations on the low side of the mean and one standard deviation above were considered to be within range. The CO then evaluated what percentage of all of the labor categories each offeror’s prices were. The higher the number, the better. Plaintiff was evaluated to have 90.8% of its rates within range while intervenor was found to have 72.3%.

As to the load rates for materials and other direct costs, ActioNet had a range of rates starting at [ ] for materials and subcontractor costs up to [ ] for travel and other direct costs. Accenture offered [ ] for its load across categories and a [ ] load for its teaming partner [ ].

The SSO reviewed the analyses performed by the TEC and CO and ranked the offers for non-price factors. Intervenor was the highest ranked, and plaintiff was the lowest. Accenture was chosen as the most advantageous (best value) quote to the government. The SSO did, however,

4 Further factual detail regarding the non-price evaluations will be supplied as necessary as we discuss the merits of the protest below.

4 perform a trade-off analysis between Accenture and each of the four other offerors in her source selection decision.

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