Bannum, Inc. v. United States

404 F.3d 1346, 2005 U.S. App. LEXIS 6815, 2005 WL 913487
Court of Appeals for the Federal Circuit·Decided April 21, 2005·No. 04-5008·Published·Cited by 1,110 cases

Opinion

GAJARSA, Circuit Judge.

Bannum, Inc. appeals from the judgment of the United States Court of Federal Claims in favor of the United States, dismissing its post-award bid protest with prejudice. Bannum, Inc. v. United States, No. 03-1284 (Fed.Cl. Aug. 7, 2003) (final judgment incorporating bench ruling made during oral argument on August 6, 2003). Although it determined the government violated its regulation and the terms of a request for proposals in evaluating the bids at issue, the trial court ruled there was no significant prejudice to Bannum. We affirm.

I.

On February 24, 2002, the Department of Justice, Bureau of Prisons (“BOP”) issued a request for proposals (“RFP”) for a contract relating to Community Correction Center (“CCC”) services in the Florence, South Carolina area. On April 24, 2002, Bannum, Inc. (“Bannum”) bid on the contract. The Alston Wilkes Society (“Alston Wilkes”) submitted its bid the next day. As the “incumbent” contractor, from 1998 to 2003 Bannum rendered the same services at issue in the RFP.

The RFP provided that the bid selection would turn on “best-value” procurement. Under this system the BOP evaluated bids under five factors, each assigned a different point value: (1) past performance (400 points); (2) community relations (350 points); (3) technical (250 points); (4) management (250 points); and (5) cost (250 points). Past performance on other government contracts was the most important criteria.

The BOP valued past performance by reviewing Contract Evaluation Forms (“CEFs”) completed for other BOP contracts. The CEFs are “annual assessments” that grade contractors with “overall performance” scores. The BOP’s CEF process is governed by 48 C.F.R. § 42.1503 (Federal Acquisition Regulation or “FAR” § 42.1503). Section 42.1503 provides, in relevant part:

Agency evaluations of contractor performance prepared under this subpart shall be provided to the contractor as soon as practicable after completion of the evaluation. Contractors shall be given a minimum of 30 days to submit comments, rebutting statements, or additional information. Agencies shall provide for review at a level above the contracting officer to consider disagreements betiveen the parties regarding the evaluation. The ultimate conclusion on the performance evaluation is a decision of the contracting agency. Copies of the evaluation, contractor response, and review comments, if any, shall be retained as part of the evaluation. These evaluations may be used to support future award decisions, and should therefore be marked “Source Selection Information.”

FAR § 42.1503(b) (2004) (emphases added).

BOP procedures called for Management Center Administrators (“MCA”), under FAR § 42.1503, to review CEFs and contractor rebuttals. MCAs supervise “Correctional Management Centers” comprising two or more “community correction field offices.” The MCA works “a level above CCC Oversight Specialists.” It is undisputed that MCAs do not supervise BOP contracting officers.

*1350 The RFP required bidders to submit a list of all contracts completed in the preceding three year's, or currently in progress. The RFP further cautioned “offer-ors would be well served to be aware of possible dissatisfied customers and address the issues in initial proposal submissions.”

Bannum admits that it knew, when it submitted its bid on April 24, 2002, that the BOP had not reviewed the CEFs and Bannum’s rebuttals relating to other contracts “at a level above the contracting officer.” That is, Bannum knew that the BOP procedure called for reviewing CEFs at the MCA level. Nevertheless, Bannum identified 21 past contracts in its bid without mentioning any of its rebuttal letters or disagreement with existing CEFs. Ban-num explains that it assumed the CEF and rebuttal review would take place in conjunction with the source selection on the RFP. ■

On October 9, 2002, the BOP scored Bannum’s past performance based on 16 of Bannum’s past contracts. 1 The BOP determined Bannum’s past performance warranted 74% of the possible 400 points, assigning 296 points for this portion of Bannum’s bid. The BOP did not alter its CEF review process as Bannum had assumed it would.

On January 13, 2003, BOP awarded the contract to Alston Wilkes. BOP notified Bannum of the award on January 23, 2003.

In March 2003, in response to alternative dispute resolution in the Government Accountability Office (“GAO”) — not involving this specific action — the BOP re-evaluated its recent Community Correction Center award decisions. For this bid a contracting officer re-scored Bannum’s past performance on the basis of 15 contracts and awarded Bannum 312 points rather than the original 296. Nonetheless, Alston Wilkes still received higher points than Bannum in each factor.

This was not a de novo review and the record does not show that this contracting officer accounted for every Bannum rebuttal. Instead, the March 2003 review relied on rebuttals available in the record maintained by BOP. On one past contract, J200c-361, the officer simply discarded the CEF because the CEF form was not signed. There is no evidence how the review on that contract, accounting for Ban-num rebuttals, might have improved Ban-num’s past performance score for this bid. For contract J200c — 433—in contrast to instances where the contracting officer specifically noted that Bannum did not submit a rebuttal' — the contracting officer simply noted there was no rebuttal in the file. On another contract, J200c-310, this officer simply reported the MCA’s score after reviewing Bannum’s rebuttal. The officer made no attempt to independently review the CEF in view of the rebuttal.

On May 28, 2003, Bannum filed this bid protest in the United States Court of Federal Claims, asking the court to set aside the contract award to Alston Wilkes and compel the BOP to re-evaluate Bannum’s bid.

Bannum and the government filed cross-motions for judgment on the administrative record. On August 6, 2003, the trial court heard argument and granted judgment for the government. Although the court ruled the BOP had violated both FAR § 42.1503(b) and the terms of the RFP when assigning weights (based on the CEFs) to Bannum’s past contract performance, it determined that Bannum was not sufficiently prejudiced by the violations to warrant setting aside the award to Alston Wilkes.

*1351 On August 7, 2003, the trial court entered judgment for the United States and dismissed the action. Bannum timely appealed, and this court has jurisdiction under 28 U.S.C. § 1295(a)(3).

II.

A.

A bid protest proceeds in two steps. First, as discussed below, the trial court determines whether the government acted without rational basis or contrary to law when evaluating the bids and awarding the contract.

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Bannum, Inc. v. United States, 404 F.3d 1346, 2005 U.S. App. LEXIS 6815, 2005 WL 913487 (Fed. Cir. 2005).

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