Cgs Administrators, LLC, and Palmetto Gba, Llc v. the United States 13-87c &

110 Fed. Cl. 431, 2013 U.S. Claims LEXIS 381
CourtUnited States Court of Federal Claims
DecidedMay 6, 2013
Docket13-87C
StatusPublished
Cited by3 cases

This text of 110 Fed. Cl. 431 (Cgs Administrators, LLC, and Palmetto Gba, Llc v. the United States 13-87c &) 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.

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Cgs Administrators, LLC, and Palmetto Gba, Llc v. the United States 13-87c &, 110 Fed. Cl. 431, 2013 U.S. Claims LEXIS 381 (uscfc 2013).

Opinion

Post-Award Bid Protest; Best Value Award Not Shown To Be Arbitrary, Capricious, an Abuse of Discretion, or Contrary to Law.

OPINION AND ORDER

Bush, Judge.

This post-award bid protest is before the court on cross-motions for judgment on the administrative record filed under Rule 52.1(c) of the Rules of the United States Court of Federal Claims (RCFC). CGS Administrators, LLC (CGS) and Palmetto GBA, LLC (Palmetto) challenge the award of Contract No. HHSM500-2012-M0012Z to Noridian Administrative Services, LLC (Noridian) by the Centers for Medicare and Medicaid Services, United States Department of Health and Human Services (CMS or agency). Plaintiffs’ complaints were filed on February 1, 2013 and the two cases were consolidated on February 5, 2013. An administrative record (AR) was filed on February 8, 2013 and was subsequently corrected and amended on February 14, 2013 and February 21, 2013. The parties’ cross-motions have been fully briefed according to an expedited briefing schedule; oral argument (Tr.) was held on April 2, 2013. For the reasons discussed below, plaintiffs’ motions are denied and the government’s and Noridian’s motions are granted. 2

BACKGROUND

I. Procurement Summary

A. Medicare Administrative Contractor for Jurisdiction E

“CMS historically ... used private insurance companies to process claims and perform related administrative services for Medicare beneficiaries and health care pro-viders_” AR at 128. More recently, however, these tasks have been performed, on a regional “jurisdictional” basis, by Medicare administrative contractors (MACs). Id. at 128-29. The region at issue here is “Jurisdiction E,” formerly known as Jurisdiction 1 (Jl), and is composed of “California, Nevada, Hawaii, and the Pacific Islands of American Samoa, Guam, and Northern Mariana.” Id. at 129. The particular services competed in this procurement are referred to as “claims benefit administration services in support of Medicare Part A and Part B claims for Jurisdiction E.” Id.

The tasks to be performed by the MAC chosen through this procurement include “all core claims processing operations,” “[mjedical review and local provider education and training,” the “Provider Customer Service Program (PCSP),” the “Medicare secondary payer (MSP) program,” “[ajppeals other than initial claims determinations,” and “[pjrovider oversight.” AR at 129. CMS has determined that the appropriate contracting vehicle for this MAC contract is a cost-plus-award-fee (CPAF) contract. Id. at 132-34. *437 The government estimate for the cost of the contract, including option years, is $506,869,115. Id. at 130. Palmetto is the incumbent MAC for these services in this region.

B. The Solicitation

The agency issued Solicitation No. CMS-2011-0026 (solicitation or RFP) on December 5, 2011. AR at 135. Proposals were due by January 25, 2012. Id. Two amendments to the solicitation were issued. AR Tabs 24-25. Only three offers, from CGS, Palmetto and Noridian, were received in response to the solicitation. Id. at 13853. The resulting contract is to include a one-year base period, four option years, and a six-month option for a close-out period. Id. at 1315.

Award would be based on the written proposals submitted by the offerors, as supplemented by oral presentations and by past performance information available to CMS. AR at 2084-85, 2115-17. Offerors were given notice that award might be made without discussions, through a reference to FAR 52.215-1, 48 C.F.R. § 52.215-1 (2011). 3 Id. at -2052, 13854. The anticipated contract award date was June 10, 2012. Id. at 2063.

C. Evaluation Criteria

1. Overview

Section M of the solicitation outlines the agency’s proposal evaluation scheme. CMS would choose the “best value” proposal:

Award will be made to the Offeror(s) whose proposal offers the best overall value to the Government. This will be determined by a trade-off technique allowing the Government to consider award to other than the lowest cost Offeror or other than the highest technically rated Offeror in accordance with FAR Part 15.101-1. This process permits tradeoffs between cost and non-cost factors and allows the Government to accept other than the lowest priced proposal.

AR at 2111.

Offerors were on notice that non-cost factors, when combined, were “significantly more important than cost or price.” Id. The agency would consider the reasonableness and the realism of the costs proposed by the offeror; the cost realism analysis would determine whether

estimated proposed cost elements are realistic for the work to be performed, reflect a clear understanding of the requirement and are consistent with the unique methods of performance and materials described in the Offeror’s technical proposal.

Id. An offeror’s proposed costs, pursuant to FAR 15.404-l(d)(2), would be corrected to reflect probable costs predicted by the agency’s cost realism analysis, where needed. AR at 2111; see also FAR 15.404-l(d)(2). Probable costs would be the costs used in the agency’s “best value” analysis. FAR 15.404-Kd)(2)(i).

2. Evaluation Factors and Aspects

The agency formed a Technical Evaluation Panel (TEP) to “evaluate and rate each technical proposal (including the written technical proposal and Oral Presentation, inclusive of the oral presentation slides) by applying the weighted Technical Evaluation Factors set forth” in the solicitation. AR at 2115. The first of the three technical evaluation factors, weighted at 40%, was past performance:

The evaluation of past performance will be based on the Offeror’s demonstrated ability, (considering its performance of the requirements of other contracts of a similar nature, scope, and complexity as the MAC contract) to successfully meet the requirements of the [Statement of Work (SOW) ] in this solicitation.

Id. The second of the three technical evaluation factors, also weighted at 40%, was technical understanding, which was reflected in the offeror’s approach to performing the tasks required by the contract. Id. The third technical evaluation factor, weighted at 20%, was the offeror’s approach to implementation activities required to begin performance of the contract services. Id. at 2092, 2115.

*438

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110 Fed. Cl. 431, 2013 U.S. Claims LEXIS 381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cgs-administrators-llc-and-palmetto-gba-llc-v-the-united-states-13-87c-uscfc-2013.