CHE Consulting, Inc. v. United States

78 Fed. Cl. 380, 2007 U.S. Claims LEXIS 302, 2007 WL 2768863
CourtUnited States Court of Federal Claims
DecidedSeptember 11, 2007
DocketNo. 07-55C
StatusPublished
Cited by23 cases

This text of 78 Fed. Cl. 380 (CHE Consulting, 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
CHE Consulting, Inc. v. United States, 78 Fed. Cl. 380, 2007 U.S. Claims LEXIS 302, 2007 WL 2768863 (uscfc 2007).

Opinion

OPINION AND ORDER

WHEELER, Judge.

This bid protest involves the Government’s acquisition of hardware and software maintenance services for robotic tape library systems used by the Naval Oceanographic Office (“NAVO”) at Stennis Space Center, Mississippi. NAVO maintains large silo-type storage libraries of tape drives that can be accessed with robotic arms and communication devices. The maintenance services are necessary to assure that the robotic tape retrieval system functions properly to support critical needs of the Department of Defense (“DoD”) and civilian users.

Defendant-Intervenor Storage Technology Corporation (“StorageTek”) is the original manufacturer of these robotic tape retrieval systems, and StorageTek’s parent, Sun Microsystems, owns the system software as intellectual property. Plaintiff CHE Consulting, Inc. (“CHE”), a prospective maintenance provider, acknowledges that only StorageTek or a licensee can perform the required software maintenance, but challenges the Government’s merging of the hardware and software maintenance services into single acquisitions.2 CHE contends that it is capable of performing the hardware maintenance services, and points to its experience with other federal agencies who have separated the hardware and software maintenance components to achieve greater competition. CHE protests its exclusion from the competition that results from NAVO’s merger of the hardware and software maintenance requirements, and asserts that the Government’s actions violate the Competition in Contracting Act (“CICA”), 41 U.S.C. § 253(a)(1)(A); 10 U.S.C. § 2304(a)(1)(A).

Defendant asserts that the Government’s merger of the maintenance requirements is reasonable and justified. NAVO operates one of DoD’s Major Shared Resource Centers (“MSRCs”) at the Stennis facility, a supercomputing center that acquires and analyzes oceanic and shoreline data for critical defense and civilian needs worldwide. The NAVO MSRC broadly supports Navy fleet operations by providing essential warfighter information 24 hours per day, seven days per week. The NAVO MSRC furnishes such data as ocean current direction and speed, wave height and direction, water salinity, wind speed and direction, and relative humidity. The NAVO databases also include information on ocean depth and floor type. The NAVO MSRC is a key part of DoD’s High Performance Computing Modernization Program, supporting weapons programs such as the Joint Strike Fighter, Unmanned Aerial Vehicles, Medium Tactical Vehicles Requirement, and the Javelin Missile Program. The MSRC must maintain 97 percent availability, and has actually achieved greater than 99 percent availability since 2003. The NAVO MSRC also is the backup Disaster Recovery Center for five other DoD supercomputer centers, including DoD’s three other MSRCs. Due to the size and complexity of the MSRC system, and its mission critical services to the military, NAVO determined that its hardware and software requirements should be awarded to a single contractor. Defendant contends that the merger of the maintenance services does not violate CICA because such action is necessary to meet its minimum needs. Defendant still expects adequate competition from the many authorized maintenance providers for StorageTek software, some of whom are small businesses.

The case is before the Court on the parties’ cross-motions for judgment on the Administrative Record, pursuant to Rule 52.1. At the Court’s request, Defendant has supplemented the Administrative Record with additional information bearing upon its determination that the hardware and software maintenance requirements should be com[382]*382bined and not separated. For the reasons explained below, the Court grants the motions of Defendant and Defendant-Intervenor for judgment on the Administrative Record. The Court concludes that NAVO’s decision to combine the hardware and software maintenance requirements was not “arbitrary, capricious, [or] an abuse of discretion,” and was otherwise in accordance with law. See Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1332 n. 5 (Fed.Cir.2001). The Court also is mindful of its statutory duty to “give due regard to the interests of national defense and national security.” 28 U.S.C. § 1491(b)(3). This is not a case where the Court should substitute its judgment for that of the procuring agency.

Factual Background

On August 21, 2006, the General Services Administration (“GSA”), acting on behalf of NAVO, issued Solicitations 4THG17072001 and 4THG17072002 for follow-on hardware and software maintenance of StorageTek robotic tape library systems. Administrative Record (“AR”) 1, 33, 153. GSA issued two solicitations instead of one for administrative and accounting reasons. AR 153. The first solicitation covered maintenance of the MSRC’s Disaster Recovery systems, and the second solicitation covered maintenance of all systems except Disaster Recovery. Id. The solicitations required that both the hardware and software maintenance services be provided by one contractor. AR 2-3, 33-35, 139. The solicitations stated that the period of performance would be from October 1, 2006 through September 30, 2007, and specified that the required maintenance coverage was “7 days a week, 24 hours a day with a 2 hour response time.” AR 1, 2, 33.

On August 23, 2006, CHE notified GSA’s Contracting Officer that the software component of these acquisitions could only be performed by StorageTek, because the parent corporation, Sun Microsystems, owned the software as intellectual property. AR 139, 153, 191. However, CHE stated that the hardware maintenance services on the robotic tape library system could be performed by a number of different vendors, including CHE. AR 191. CHE requested that the maintenance be separated into two separate contracts, one for hardware and one for software, so that full and open competition could be achieved. Id.

Due to CHE’s challenge of the agency’s “single vendor” position, GSA’s Contracting Officer extended the solicitation closing date to August 31, 2006 to obtain additional information. AR 153. The Contracting Officer contacted MSRC on-site technical staff from Lockheed Martin Space Operations who, apparently without consulting NAVO representatives, stated that no technical reason would prevent the award of separate hardware and software maintenance contracts to two vendors. AR 160, 162. The Contracting Officer thereupon separated the requirements to allow for performance of hardware and software maintenance by multiple vendors. AR 140,153.

CHE submitted a proposal for the hardware maintenance by the August 31, 2006 closing date, and the Contracting Officer forwarded the package of proposals to NAVO for evaluation and review. AR 140, 153, 192.

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78 Fed. Cl. 380, 2007 U.S. Claims LEXIS 302, 2007 WL 2768863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/che-consulting-inc-v-united-states-uscfc-2007.