Alpine Companies, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedNovember 10, 2021
Docket21-1541
StatusPublished

This text of Alpine Companies, Inc. v. United States (Alpine Companies, Inc. 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
Alpine Companies, Inc. v. United States, (uscfc 2021).

Opinion

No. 21-1541C (Filed: October 28, 2021) (Re-Filed: November 10, 2021)1

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ALPINE COMPANIES, INC.,

Plaintiff, Bid protest; post-award bid protest; best value v. determination; Procurement Integrity THE UNITED STATES, Act; unequal treatment

Defendant,

and

INFORMATION SYSTEMS AND NETWORKS CORPORATION (ISN),

Intervenor.

Jerry Alfonso Miles, Rockville, MD, for plaintiff.

Alison S. Vicks, Trial Attorney, United States Department of Justice, Civil Division, with whom were Brian M. Boynton, Acting Assistant Attorney General, Martin F. Hockey, Jr., Acting Director, and Douglas K. Mickle, Assistant Director, for defendant. Julie A. Holvik, United States Department of Housing and Urban Development, of counsel.

Damien C. Specht, Washington, DC, for intervenor, with whom was James A. Tucker, of counsel.

1 This opinion was originally issued under seal in order to afford the parties an opportunity to propose redactions of the protected material. The parties agreed that none were necessary; thus it appears in full. OPINION

This is a post-award bid protest of the Department of Housing and Urban Development’s (“HUD” or “agency”) decision to award a contract to Information Systems and Networks Corporation (“ISN” or “intervenor”) for loan-servicing support services. Plaintiff, Alpine Companies, Inc. (“Alpine”), complains that the agency made a wide-ranging set of errors throughout this procurement, including not evaluating the offerors’ proposals accurately and engaging in a faulty Procurement Integrity Act (“PIA”) investigation. After a remand, the matter is now fully briefed on cross- motions for judgment on the administrative record, and oral argument was held on October 13, 2021. Because the agency’s actions were reasonable, we deny the protest for the reasons set out below.

BACKGROUND

A. The Solicitation

On August 6, 2020, HUD issued the solicitation at issue, which was then amended twice within the month. The solicitation called for proposals to provide Secretary-Held (“Sec-Held”) “mortgage loan servicing while maintaining a high standard of customer service and maximizing recoveries on the loan portfolio.” Administrative Record (“AR”) 281. While HUD acts “primarily [as] a mortgage insurer,” Sec-Held mortgages are mortgages held directly by HUD “as a result of its loss mitigation program and specialized loan programs.” AR 275. The required services include acting as a document custodian, being responsible for occupancy certifications, and resolving asset sales issues. The performance period would be one 12-month base period with four 12-month option periods.

The solicitation established that the procurement would be conducted on a best-value basis using full and open competition, subjecting the procurement to the requirements of Federal Acquisition Regulation (“FAR”) Part 15 and allowing the Government to choose a proposal that may not be the lowest-priced or highest-rated. The solicitation stated that a Technical Evaluation Panel (“TEP”) would evaluate the proposals using the following five factors, each of equal importance: (1) Technical Approach, (2) Quality Control Plan, (3) Management Plan, (4) Past Performance, and (5) Socioeconomic Participation. Price would be evaluated as well, albeit separately from the non-price factors. It would be evaluated for both price and cost reasonableness, unbalanced pricing, and cost completeness. All non-price factors, when considered together, “are significantly more 2 important than cost or price.” AR 401. The Contracting Officer (“CO”) would then provide a recommendation to the Source Selection Authority (“SSA”), who would make the award decision.

The non-price factors would be rated adjectively. Technical Approach, Quality Control, and Management Plan’s possible scores were Excellent/Very Low Risk, Good/Low Risk, Fair/Medium Risk, Marginal/High Risk, and Unsatisfactory/Very High Risk. Socioeconomic Participation was rated similarly with possible scores of Excellent, Good, Fair, Marginal, and Unsatisfactory. Possible scores for Past Performance were Excellent/Very Low Risk/Very High Confidence, Good/Low Risk/High Confidence, Satisfactory/Medium Risk/Some Confidence, Neutral/Unknown Risk/Neutral Confidence, Poor/Very High Risk/Low Confidence, and Unsatisfactory/Very High Risk/Very Low Confidence. If an offeror had no relevant or recent past performance, then it would receive a neutral rating.

On September 11, 2020, plaintiff, intervenor, and two other offerors submitted their proposals to HUD. Intervenor’s and the other two offerors’ proposals were evaluated by the TEP in November 2020. The agency then conducted a Responsibility Determination on ISN, and it determined that ISN was a responsible contractor under the FAR and eligible for award. Plaintiff’s proposal, however, was not evaluated until February 2021, as the CO had initially misfiled plaintiff’s proposal. The CO was made of aware of this mistake prior to award when, on February 3, 2021, Alpine’s CEO, April Cooper, emailed the CO for an update on the procurement and informed him of rumors she had heard of improprieties in the procurement.2 Upon his discovery of the mistake, the CO provided Alpine’s proposal to the TEP for a full evaluation.

The TEP found plaintiff’s proposal (and the other two non-ISN proposals) to be unacceptable. The TEP assigned plaintiff scores of Unacceptable in Technical Approach, Good in Quality Control Plan, Good in Management Plan, Neutral in Past Performance, and Good in Socioeconomic Participation. The score of Unacceptable in Technical Approach made plaintiff ineligible for award. Under the Technical Approach factor, Alpine received no strengths, 13 weaknesses, 2 significant weaknesses, and 16 deficiencies. The TEP justified its assignments by referencing specific sections of the Performance Work Statement (“PWS”) from the RFP, meticulously comparing those sections with their respective

2 See Background Section B (discussing Ms. Cooper’s allegations). 3 counterparts in Alpine’s proposal, discussing why Alpine did not meet the requirements, and how the failure to meet those requirements impacted HUD. ISN’s proposal, meanwhile, received scores of Fair under Technical Approach, Good under Quality Control Plan, Good under Management Plan, Neutral under Past Performance, and Fair under Socioeconomic Participation. The CO and SSA largely agreed with the TEP’s conclusions. As the only acceptable offeror, the SSA awarded the contract to intervenor on May 3, 2021.

Following the award of the contract to ISN, Alpine filed an unsuccessful bid protest at the Government Accountability Office on May 10, 2021. Alpine Cos., Inc., B-419831, 2021 WL 2667135 (Comp. Gen. June 8, 2021). On July 2, 2021, the current bid protest was filed with the court.

B. Procurement Integrity Act (“PIA”) Investigation

While the evaluations and award process were ongoing, the CO began an investigation into the allegations Ms. Cooper outlined in her February 3, 2021 email. Ms. Cooper had heard rumors that “a company headquartered in Maryland ([she] believe[s] ISN)” was holding itself out to be the awardee. AR 1581. She also heard rumors that this unspecified Maryland- headquartered company was negotiating with the landlord of the incumbent contractor’s location “because they are to be awarded” the contract. Id. She further alleged that “we have been told some of the incumbent staff working in the Secretary-Held area have been contacted and advised that they should consider working for them as they have been selected as the new secretary held contractor.” Id. Finally, Ms.

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Alpine Companies, Inc. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpine-companies-inc-v-united-states-uscfc-2021.