Akima Intra-Data, LLC v. United States

119 Fed. Cl. 520, 2014 U.S. Claims LEXIS 1430, 2014 WL 7359026
CourtUnited States Court of Federal Claims
DecidedDecember 23, 2014
Docket14-378C
StatusPublished
Cited by3 cases

This text of 119 Fed. Cl. 520 (Akima Intra-Data, LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akima Intra-Data, LLC v. United States, 119 Fed. Cl. 520, 2014 U.S. Claims LEXIS 1430, 2014 WL 7359026 (uscfc 2014).

Opinion

Post-Award Bid Protest; Javits-Wagner-O’Day Act, 41 U.S.C. § 8501 et seq.\ AbilityOne Program; Direct Labor Ratio; Alaska-Native-Owned Corporation

OPINION

Firestone, Judge.

Pending before the court are the motion for judgment on the administrative record filed by plaintiff AMma Intra-Data, LLC (“AID”), ECF No. 32, and the cross-motions for judgment on the administrative record filed by defendant the United States (“the government”) and defendant-intervenor Ser-viceSource, Inc. (“ServiceSource”), ECF Nos. 41 & 42. This case involves the award of the National Geospatial-Intelligence Agency (“NGA”) West Base Operations Services (“BOS”) contract. After a referral from NGA the Committee for Purchase from People Who Are Blind or Severely Disabled (“CFP”) awarded the contract to Service-Source under the AbilityOne program created by the Javits-Wagner-O’Day Act (“the JWOD Act” or “the Act”), 41 U.S.C. §§ 8501-8506. Plaintiff, an Alaska-Native-Owned corporation (“ANC”), alleges that the award to ServiceSource, a nonprofit organization employing persons with severe disabilities (“PWSD”), was arbitrary, capricious, or a violation of the law for three principal reasons. First, plaintiff argues that CFP incorrectly determined that ServiceSource is “qualified” to receive a contract award under the AbilityOne program because CFP calculated the statutory ratio of direct labor performed by PWSD using all of the contract work performed by ServiceSource — both under AbilityOne and elsewhere — instead of focusing solely on the specific services to be provided under the BOS contract. 1 Plaintiff argues that this was an incorrect calculation under definitions set forth in the JWOD Act. Second, plaintiff argues that CFP erred in concluding that the BOS contract was suitable to be added to the AbilityOne procurement list in the first instance. As part of this ■ argument, plaintiff challenges CFP’s findings for all four of the suitability factors set forth by the regulations: (1) that the addition of the BOS contract would potentially create employment for PWSD, (2) that ServiceSource was capable of performing the contract, (3) that ServiceSource was eligible to perform the contract, and (4) that such an award would not severely impact the incumbent plaintiff, AID. Third, plaintiff argues that NGA separately erred in relying on CFP’s determinations by failing to perform its own evaluation of ServiceSource’s ability to perform the BOS contract and failing to recognize that the organization that helped it to decide whether to refer the BOS contract to the AbilityOne program, SourceAmerica, had an organizational conflict of interest in the selection of ServiceSource due to the method by which it was funded. 2

*524 In response, the government and defendant-intervenor argue that the award to Ser-viceSource through the AbilityOne program is lawful. First, they argue that CFP’s interpretation of the JWOD Act with regard to a “qualified nonprofit agency” is based on the plain language of the statute as well as its legislative history. Next, they argue that CFPs suitability determinations regarding the addition of the BOS contract to the procurement list were rational and properly supported by the administrative record, therefore entitling them to deference. Finally, they argue that plaintiffs arguments regarding NGA’s role in the decision-making process are not relevant as the CFP decision is binding on NGA regardless of NGA’s actions. In the alternative, they argue that NGA’s actions were proper in any event.

For the reasons set forth below, the court finds that the award to ServiceSource was lawful. As a result, plaintiffs motion for judgment on the administrative record is DENIED and the government’s and defendant-intervenor’s cross-motions for judgment on the administrative record are GRANTED.

I. BACKGROUND

A. The AbilityOne Program

Under to the JWOD Act, Congress created CFP as a 15-member committee appointed by the President of the United States to administer the AbilityOne Program. 41 U.S.C. § 8502. The AbilityOne program is intended to provide employment opportunities for blind and severely disabled persons whose condition is a barrier to traditional employment by qualified nonprofit agencies (“NPA”). The primary task of CFP is to “maintain and publish in the Federal Register a procurement list” that includes “products and services determined by the Committee to be suitable for the Federal Government to procure” from “a qualified [NPA] for the blind or ... a qualified [NPA] for other severely disabled.” Id, at §§ 8502, 8503(a)(1); see also 41 C.F.R. §§ 51-2.2, 512.8. In addition to adding suitable products and service to the procurement list, CFP is tasked to “determine the fair market price of products and services contained on the procurement list that are offered for sale to the Federal Government by a qualified [NPA] for the blind or a qualified [NPA] for other severely disabled.” 41 U.S.C. § 8503(b).

Once CFP adds a service to the procurement list, only qualified AbilityOne contractors are eligible to perform the work. Id. at §§ 8501(6)-(7), 8503(a)(1). The JWOD Act differentiates between NPAs that operate in the interest of the blind and those who operate in the interest of the severely disabled. Qualified NPAs in both cases must employ “blind or other severely disabled individuals for at least 75 percent of the hours of direct labor[ 3 ] required for the production or provision of the products or services.” 41 U.S.C. § 8501(6); see also 41 C.F.R. §§ 51-4.2, 51-4.3. While exceptions may be made on a case-by-case basis, 'CFP policy “expects that the vast majority of individual AbilityOne Procurement List projects (fulfilling products or services) are performed with a direct labor ratio of at least 75 percent.” AR 3170-72.

Pursuant to the Act, CFP has designated two central NPAs to “facilitate the distribution, by direct allocation, subcontract, or any other means, of orders of the Federal Government for products and services on the procurement list among qualified [NPAs] for the blind or qualified [NPAs] for other severely disabled.” 41 U.S.C. § 8503(c); see also 41 C.F.R. § 51-3.2. These NPAs are SourceAmerica 4 and the National Industries for the Blind. 41 C.F.R. § 51-3.1. Central NPAs do not receive appropriated funds; instead, they fund their operations by charging fees to NPAs with Federal contracts. 41 *525 C.F.R. §§ 51-3.5, 51-4.3(b)(9).

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119 Fed. Cl. 520, 2014 U.S. Claims LEXIS 1430, 2014 WL 7359026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akima-intra-data-llc-v-united-states-uscfc-2014.