Bannum, Inc. v. United States

91 Fed. Cl. 160, 2009 WL 4884388
United States Court of Federal Claims·Decided December 15, 2009·No. No. 09-546C·Published·Cited by 35 cases

Opinion

OPINION AND ORDER

WHEELER, Judge.

In this bid protest, Plaintiff Bannum, Inc. (“Bannum”) challenges a contract award by the Federal Bureau of Prisons (“BOP”) to Dismas Charities, Inc. (“Dismas”) for Residential Reentry Center (“RRC”) services in Charleston, West Virginia. An RRC is more commonly known as a halfway house for federal prison inmates as they transition to independent living. Bannum, the incumbent contractor in Charleston, submitted the lowest price for these RRC services. However, in the initial evaluation and reevaluation following a sustained protest by the Government Accountability Office (“GAO”), the BOP selected Dismas as the best value offeror.

On October 6, 2008, Bannum protested the original award to Dismas at the GAO. The GAO sustained Bannum’s protest on January 9, 2009, citing faults in the BOP’s evaluation of Bannum’s Technical/Management proposal as the basis for its decision. The GAO recommended that the BOP reevaluate Ban-num’s and Dismas’ proposals and issue a second source selection decision. After the reevaluation, the agency again selected Dis-mas as the awardee and Bannum protested this second award at the GAO. On July 29, 2009, the GAO denied Bannum’s second protest and Bannum then filed this action in this Court on August 19, 2009.

The BOP based its award decision on Dis-mas’ better ratings in the evaluation factors of Past Performance and Technieal/Management. Bannum challenges the BOP’s evaluation of both factors. Bannum’s Past Performance rating stems in part from the BOP’s default termination of another Ban-num contract for RRC services in Austin, Texas. Bannum argues that the Austin default occurred under unique circumstances, maldng it irrelevant to the present Charleston contract evaluation and not indicative of Bannum’s future management capability. In addition, Bannum alleges that the BOP did not properly evaluate three of the five factors comprising the Technieal/Management rating.

Bannum seeks declaratory and injunctive relief that the award to Dismas is improper. Bannum claims that the BOP’s award to Dismas was arbitrary and capricious, both in the agency’s evaluation of proposals and in its departure from the solicitation’s terms. Bannum requests a remand directing the BOP to conduct a more objective evaluation of the offerors’ proposals.

For the reasons stated below, the Court concludes that Bannum’s protest is without merit. While Bannum raises multiple protest grounds, its challenges to the BOP’s award decision generally amount to mere disagreement with the BOP’s reasonable Technical/Management and past performance evaluations. The Court finds nothing in the Administrative Record to suggest that the BOP acted arbitrarily or capriciously in evaluating Bannum’s proposal or in making its “best value” determination. This Court gives deference to the BOP’s Technical/Management and past performance ratings and will not substitute its judgment for that of the BOP if the agency’s decision is [164] reasonable. See, e.g., E.W. Bliss Co. v. United States, 77 F.3d 445, 449 (Fed.Cir.1996); Gulf Group Inc. v. United States, 61 Fed.Cl. 338, 351 (2004).

Accordingly, Plaintiffs motion for judgment on the Administrative Record is DENIED, and Defendant’s and Defendant-In-tervenor’s cross-motions for judgment on the Administrative Record are GRANTED.

Background

A. The Solicitation

On May 24, 2007, the BOP issued Request for Proposals No. 200-0976-MA (the “RFP”) seeking competitive proposals for a provider of RRC services in Charleston, West Virginia. Administrative Record (“AR”) 1-3. The BOP sought a contractor to establish a center for comprehensive community-based services for federal offenders, including those who are in the custody of the BOP, the United States Attorney General, or under the supervision of the United States Probation Office. AR 16. The facility would have a minimum capacity of 48 beds (44 male and four female). AR 258. The RFP called for a firm-fixed price indefinite quantity contract for a period of up to five years, with a two-year base period and three one-year options. AR 6-7. Contractors had to own or lease a facility for the services, and submit proof of proper zoning in accordance with Charleston’s laws and ordinances. AR 16, 228. The RFP required offerors to provide training and work programs for residents, as well as to ensure accountability for the residents’ participation in these programs. AR 235.

B. Method of Evaluating Proposals

The RFP set forth the evaluation criteria by which the BOP’s Source Selection Official (“SSO”) would review and rate the offerors’ proposals in three main areas: (1) Technical/Management, (2) Past Performance, and (3) Price. AR 232-233. The non-price factors of Past Performance and Technical/Management when combined were significantly more important than Price. Id. Past Performance was more important than Technical/Management. Id. Price would become increasingly more important as the non-price factor ratings approached equality. Id. The BOP intended to evaluate the non-price factors using an adjectival rating system, defined as follows:

BLUE (Very Good): Offeror’s proposal meets and exceeds the requirements of the solicitation. Their proposal shows they have a very good solution for meeting the needs and objectives of the program. One or more significant strengths exist. Weaknesses may exist, but none are considered significant and are easily correctable.
GREEN (Acceptable): Offeror’s proposal meets the minimum requirements of the solicitation. Their proposal shows they have an acceptable solution for meeting the needs and objectives of the program. Strengths and weaknesses may exist. The weaknesses are correctable.
YELLOW (Poor): Offeror’s proposal does not meet some of the requirements of the solicitation. Their proposal shows they have a poor solution for meeting the needs and objectives of the program. Weaknesses outweigh any strengths that may exist. The weaknesses are difficult to correct.
RED (Unacceptable): Offeror’s proposal fails to meet the requirements of the solicitation. Their proposal shows they have an unacceptable solution for meeting the needs and objectives of the program. There are numerous weaknesses. The weaknesses will be very difficult to correct or are not correctable.

AR 233.

1. Past Performance

Under the Past Performance factor, the BOP evaluated “the offeror’s probability of successfully performing the effort as proposed based on their record of performance in current and past relevant contract efforts.” AR 233. To obtain past performance data, the RFP required offerors to submit five relevant contracts or subcontracts that were currently being performed or were performed within the previous three years. AR 199. The RFP defined “relevant” as any contract which was “of similar size, scope and complexity” to the current solicitation. Id.

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Bannum, Inc. v. United States, 91 Fed. Cl. 160, 2009 WL 4884388 (uscfc 2009).

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