Allied Technology Group, Inc. v. United States

94 Fed. Cl. 16, 2010 WL 2679837
United States Court of Federal Claims·Decided July 2, 2010·No. No. 10-120C·Published·Cited by 55 cases

Opinion

OPINION AND ORDER1

WHEELER, Judge.

In this post-award bid protest, Plaintiff Allied Technology Group, Inc. (“Allied”) challenges the issuance of a Blanket Purchase Agreement (“BPA”) by the Department of Justice (“DOJ”) to Intervenor, Monster Government Solutions, LLC (“Monster”) to provide a web-based, automated recruiting system for DOJ’s Justice Management Division and its consortium members. Allied, the incumbent contractor, has provided these services through its General Services Administration (“GSA”) Federal Supply Schedule (“FSS”) listing since 2001 as the reseller of automated systems developed by Avue Technology Corporation. After evaluating proposals, DOJ selected Monster as the best value offeror. Allied filed a protest at the Government Accountability Office (“GAO”) on October 15, 2009, which was denied on January 21, 2010. Allied commenced this action on February 23, 2010.

Allied challenges DOJ’s evaluation of proposals, where the Contracting Officer (“CO”) disqualified Allied from the competition based upon six exceptions that Allied took to DOJ’s Request for Quotation (“RFQ”). Allied alleges that the CO’s source selection decision was “fatally flawed,” and that his disqualification of Allied was “pretextual,” intended only to preclude a later bid protest. (Compl.l.) Allied especially complains about the manner in which the agency performed [24] the technical and past performance evaluations. Allied contends that DOJ conducted improper discussions and treated its proposal differently from Monster’s proposal, particularly in failing to disqualify Monster for similar non-compliance with the RFQ’s requirements. Allied requests declaratory and injunctive relief nullifying the award to Monster.

The Court considered this protest on an expedited basis. Defendant submitted a certified copy of the administrative record on March 1, 2010. Allied filed a motion for judgment on the administrative record and a motion to supplement the administrative record on March 5, 2010. On March 15, 2010, Monster filed its own motion to supplement the administrative record, and Defendant filed a response opposing Allied’s motion to supplement. On March 25, 2010, the Court granted in part Allied’s motion to supplement the record and denied Monster’s similar motion. Allied Tech. Group, Inc. v. United States, 92 Fed.Cl. 226, 227 (Fed.Cl.2010). On March 19, 2010, Defendant filed a motion to dismiss Allied’s complaint for lack of jurisdiction pursuant to Rule 12(b)(1) of the Court of Federal Claims (“RCFC”) and, in the alternative, its response and cross-motion for judgment on the administrative record. Monster submitted its response and cross-motion on the same date. Allied filed a reply in support of its motion and opposition to the Government’s and Monster’s cross-motions on March 26, 2010. The Court heard oral argument on the parties’ motions on April 14, 2010.

For the reasons stated below, the Court finds that Allied, as the only other offeror in this procurement, has standing to challenge DOJ’s contract award to Monster. Were the Court to hold otherwise, in circumstances where there are only two offerors, a procuring agency could insulate itself from review of an improper award simply by disqualifying the losing offeror. Applicable case law precludes such a result. Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1334 (Fed.Cir.2001); Dyonyx, L.P. v. United States, 83 Fed.Cl. 460, 467-69 (2008). Allied’s standing to sue particularly is warranted where the agency evaluated Allied’s proposal as if it were eligible for award, and only belatedly declared the proposal unacceptable. Therefore, Defendant’s motion to dismiss Allied’s complaint for lack of jurisdiction is DENIED.

However, Allied’s protest must fail on the merits. In essence, the agency found Allied’s technical proposal slightly more favorable than Monster’s, but a whopping price difference between the two resulted in the agency selecting the less expensive Monster proposal. Even though price was the least important evaluation criterion, the agency could not justify paying the much higher price offered by Allied. Moreover, Allied’s six exceptions to the RFQ cannot be overlooked. To be sure, DOJ did not conduct a flawless procurement, but its award decision has a reasonable basis. The Court cannot say that DOJ’s ultimate selection of Monster was arbitrary or capricious, even if the Court itself might have conducted the procurement more in accord with the agency’s acquisition plan. See Holloway & Co. v. United States, 87 Fed.Cl. 381, 389 (2009) (holding that the Court will not substitute its judgment for the agency’s judgment even where the Court would have conducted the procurement differently). In view of the significant price difference and Allied’s exceptions to the RFQ, any agency missteps did not prejudice Allied because the agency still would have selected Monster. Accordingly, Allied’s motion for judgment on the administrative record is DENIED, and Defendant’s and Monster’s cross-motions for judgment on the administrative record are GRANTED.

Background2

A. The Draft Request for Quotations

On August 13, 2008, DOJ issued a draft RFQ for an Automated Integrated Staffing, Recruitment and Position Classification System, or ARS. Administrative Record (“AR”) 42a. In basic terms, an ARS is a system that allows the electronic creation of position descriptions, electronic postings of vacancies on USAJOBS, and online, automated submis[25] sion and tracking of employment applications, among other features. AR 51a, 183. DOJ issued the draft RFQ to allow for potential offerors to comment upon DOJ’s planned acquisition. AR 42a. While DOJ invited potential offers to submit comments and suggestions on any aspect of the RFQ, DOJ specifically stated that it was looking for comments on sections of the draft RFQ addressing Contract Line Item Numbers (“CLINs”), implementation, training, oral/system presentation, and security requirements. Id. at 42a-43a.

DOJ received comments from three potential offerors, including Allied and Monster. See AR 87-175. Monster provided DOJ with comments pertaining to CLINs, security, and system requirements contained in the draft RFQ. Monster suggested, for example, that the draft RFQ’s list of functional requirements limited a potential offeror’s ability to provide alternate means of achieving similar results or better outcomes. AR 127. Additionally, Monster suggested that DOJ incorporate a minimum guaranteed quantity in the CLINs. AR 124. Allied also provided comments to DOJ, including a four-page section entitled “Comments for DOJ on Contractual/Legal Matters.” AR 152. Allied noted that some of the terms and conditions listed in the draft RFQ potentially conflicted with Allied’s Master Subscription Agreement (“MSA”) used in other government contracts. Id. Allied commented upon a provision of the draft RFQ requiring offerors to highlight any provisions of their offer that may conflict with the terms of the RFQ. AR 154. Specifically, Allied observed that any conflicting provisions may be considered exceptions or may result in a potential proposal being found non-responsive. Id.

B. DOJ’s Fonnal RFQ

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Allied Technology Group, Inc. v. United States, 94 Fed. Cl. 16, 2010 WL 2679837 (uscfc 2010).

94 Fed. Cl. 16 (Allied Technology Group, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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