Altos Federal Group, Inc. v. United States

60 Fed. Cl. 832, 2004 U.S. Claims LEXIS 145, 2004 WL 1366009
CourtUnited States Court of Federal Claims
DecidedJune 10, 2004
DocketNo. 04-936C
StatusPublished
Cited by8 cases

This text of 60 Fed. Cl. 832 (Altos Federal Group, 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
Altos Federal Group, Inc. v. United States, 60 Fed. Cl. 832, 2004 U.S. Claims LEXIS 145, 2004 WL 1366009 (uscfc 2004).

Opinion

OPINION

FUTEY, Judge.

This bid protest ease comes before the court on plaintiffs request for a temporary restraining order.1 Plaintiff, Altos Federal Group, Inc., filed a bid protest with the United States General Accounting Office (GAO) on May 25, 2004, with respect to a contract for nursing services awarded under Request for Quotations (RFQ) No. 673-90F-04-003-A. The protestor alleges that the United States Department of Veterans Affairs (VA) did not perform its evaluation of the bidders according to the standards set forth in the solicitation.

Upon the filing of the GAO protest, an automatic stay was imposed pursuant to the Competition In Contracting Act (CICA). 31 U.S.C. § 3553(d)(3). As a consequence, the Contracting Officer (CO) responsible for the RFQ issued a stop work order on May 27, 2004, to the successful bidder, Intelistaf Healthcare, Inc., the intervenor in this case. On May 28, 2004, the Deputy Assistant Secretary for Acquisition and Material Management (Deputy Assistant Secretary) for the VA decided to override the automatic stay in the “best interests of the United States.” See id. § 3553(d)(3)(C).

The only issue before the court is the validity of the agency decision to override the automatic stay. The merits of plaintiffs bid protest remain with the GAO.

Factual Background

The solicitation process at issue in this case involves nursing services at Lackland Air Force Base (Lackland) in San Antonio, Texas. Recently, these services were provid[833]*833ed by three contractors, plaintiff, Spectrum Healthcare Services, and StarMed Staffing Group. The contract for those services expired on September 30, 2003, and performance was extended until March 31, 2004. According to defendant, the VA had no authority to extend the performance period under the contract.2

The VA continued to procure the services under the Federal Supply Schedule System(FSS) until May 28, 2004. The FSS allows the government to order an indefinite quantity of services from contractors who have FSS contracts, and when services required by the agency are listed on the contractor’s pre-approved FSS schedule.

Intervenor was to begin providing services under the new contract on June 1, 2004, but was prevented from beginning work due to the stop work order. When the Deputy Assistant Secretary directed that the automatic stay be overridden in the best interests of the government, it was allegedly done in light of the fact that “there was no other basis for continuing the old contract.”3 Plaintiff argues, however, that:

[T]he VA’s documentation ¡justifying the override] is wholly inadequate and is nothing more than a statement that the VA facility at Lackland Air Force Base cannot provide nursing resources from in-house personnel____There is no explanation or assertion as to why the services cannot be provided under the existing contracts held by [plaintiff and other previously operating contractors] since the new contract ... contains no additional work or tasks not present under existing contracts.4

Plaintiff contends, therefore, that under the automatic stay, the status quo should be maintained and the existing contracts should be extended until the GAO renders a decision. Further, it argues that the determination and finding justifying the VA’s override of the stay does not provide a rational basis. Defendant counters that it did not possess any means of maintaining the status quo since plaintiff could not have legally continued to provide the services it required under the FSS. In fact, this contention was made post hoc by defendant and is not expressly stated in the contemporaneous determination and findings adopted as the basis of the override by the Deputy Assistant Secretary.5

Discussion

This court has jurisdiction under 28 U.S.C. § 1491(b) to review an agency’s decision to override an automatic stay of contract performance under 31 U.S.C. § 3553. RAM-COR Servs. Group v. United States, 185 F.3d 1286, 1291 (Fed.Cir.1999); Keeton Corrections, Inc. v. United States, 59 Fed.Cl. 753, 755 (2004); PGBA, LLC v. United States, 57 Fed.Cl. 655, 658 (2003); SDS Int’l, Inc. v. United States, 55 Fed.Cl. 363, 364 (2003).

The court may not “substitute its judgment for that of the agency,” Citizens to Presene Overton Park, Inc. v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971), but must consider whether the override decision was arbitrary, capricious, or otherwise not in accordance with law. 28 U.S.C. § 1491(b)(4); PGBA 57 Fed.Cl. at 657. The question, therefore, is whether the agency considered the relevant factors and made a rational determination. See Advanced Data Concepts, Inc. v. United States, 216 F.3d 1054,1057-58 (Fed.Cir.2000).

Post hoc declarations made by the CO indicate that the basic justification for the override was the belief that continued performance by plaintiff was unlawful and, therefore, there were no legal means of maintaining the status quo. The court finds this dubious, since defendant had been procuring the required services from plaintiff under the FSS for nearly two months between the end of plaintiff’s contract and the award of the new contract to intervenor. In order to explain this conflict, the CO states, that “using the FSS System for the remainder of the services provided by [plaintiff] [834]*834during this two month period had been improper, although I had not realized it at the time.”6 A June 2, 2004, declaration by Brigadier General Charles B. Green likewise relies on the belief of the CO.7 A revised declaration by the CO, however, asserts that his previous understanding of the facts was erroneous.8 Defendant’s final position is that plaintiff was capable of lawfully performing more tasks than defendant thought possible on May 28, 2004, but that it may still be unable to provide some required services.

Plaintiff disputes the judgment of the CO, contending that it is fully capable of performing all of the services requested by the VA under its current FSS schedule. Further, it avers that the services that defendant alleges plaintiff is unqualified to perform could lawfully be performed by a subcontractor and, therefore, no impediment exists to restoring the status quo as of May 31, 2004.

An agency’s decision may be arbitrary and capricious if the agency “entirely failed to consider an important aspect of the problem [or] offered an explanation for its decision that runs counter to the evidence before the agency ----” Keeton, 59 Fed.Cl. at 755 (quoting Motor Vehicle Mfrs.

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Bluebook (online)
60 Fed. Cl. 832, 2004 U.S. Claims LEXIS 145, 2004 WL 1366009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/altos-federal-group-inc-v-united-states-uscfc-2004.