Claygroup, LLC, the v. United States

123 Fed. Cl. 66, 2015 U.S. Claims LEXIS 1106, 2015 WL 5102732
CourtUnited States Court of Federal Claims
DecidedAugust 31, 2015
Docket15-411C
StatusPublished

This text of 123 Fed. Cl. 66 (Claygroup, LLC, the 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
Claygroup, LLC, the v. United States, 123 Fed. Cl. 66, 2015 U.S. Claims LEXIS 1106, 2015 WL 5102732 (uscfc 2015).

Opinion

Ability-One Program, 41 C.F.R. § 51 — 1.1(a); Bid Protest, 28 U.S.C. § 1491; Competition In Contracting Act Of 1984, 31 U.S.C. §§ 3561-3556; Judgment On The Administrative Record, RCFC 52.1; Small Business Concerns, 38 U.S.C. § 8127; Standing. •

MEMORANDUM OPINION AND FINAL ORDER

SUSAN G. BRADEN, Judge

I. RELEVANT FACTUAL BACK *68 GROUND. 2

The ClayGroup, LLC (“ClayGroup”) is a Service-Disabled Veteran-Operated Small Business (“SDVOSB”) that supplies janitorial and sanitation supplies to the Government. AR 1558.

In November ,2005, the United States General Services Administration (“GSA”), in partnership with the United States Department of Treasury, launched a Federal Strategic Sourcing Initiative (“FSSI”), an interagency procurement vehicle that allows federal agencies to “approach vendors in a single, coordinated enterprise” and “enable[s] the Government to leverage its vast buying power[.]” About FSSI, https:// strategicsourcing.gov/about-fssi-0 (last visited August 20, 2015).

On December 5, 2012, the Office of Management and Budget (“OMB”) directed the GSA to “identify at least five products and/or services for which a new [G]overnment-wide acquisition vehicle[ ] ... should be developed and made mandatory, to the maximum extent practicable, for the [Strategic Sourcing Leadership Council (“SSLC”)] 3 agencies.” AR 2050. OMB instructed the GSA agencies to promote sound strategic sourcing practices by “issuing and enforcing mandatory use policies for [G]overnment[-]wide and agency[-]wide strategic sourcing solutions to the extent appropriate.” AR 2050.

On May 15, 2013, the GSA held pre-solici-tation meetings for various Government-wide Blanket Purchase Agreements (‘‘BPAs”) for janitorial and sanitation supplies, where the Contracting Officer (“CO”) informed Clay-Group and other companies that “[t]hese BPAs are not mandatory at this time.” AR 399; see also 435 (“We hope that agencies will be purchasing from the BPAs but it is not mandatory.”).

On August 22, 2013, the United States Department of Veterans Affairs (“VA”) announced that it would:

conditionally commit VA to use the [FSSI] ... on a limited basis ... exelud[ing] Abil-ityOne 4 purchases, purchases that are obtained under existing VA prime vendor arrangements, and purchases for motorized cleaning equipment and accessories as the anticipated FSSI solution does not anticipate awards to Veteran-owned small businesses (VOSBs) and/or service-disabled Veteran-owned small businesses (SDVOSBs) in this specific category.

AR 1420.

The VA’s commitment included three conditions:

(1) That lower prices actually result in lower cost to VA[.]
(2) That the eventual vendor mix permits VA to maintain or increase our current spend with small businesses, especially our spend with VOSBs and/or SDVOSBs at costs equal to or less than current costs.
(3) That the eventual products offered are appropriate for use in healthcare settings as determined by VA healthcare product review committees.

On October 8, 2013, the GSA issued Request For Quotation No. 832055 (“RFQ”) for four Government-wide BPAs to purchase various janitorial and sanitation supplies (“Jan-San BPAs”). AR 1141-82. The RFQ estimated that federal spending would “be more than $599 million annually,” but warned that since “agencies will not be able to for *69 mally obligate dollars prior to award, agencies have been asked to provide written statements of commitment from a senior agency official.” AR 1142.

On November 5, 2013, in response to vendor questions, the Government published Amendment 0003, providing that “[c]urrent GSA BPA[]s will be allowed to run until their expiration date” and that “any remaining options on the [current] BPA will not be exercised.” AR 1463,1466.

On December 4, 2013, ClayGroup submitted a bid to GSA for three of the four 5 available Jan-San BPAs, with a weighted total extended market basket 6 value of $[REDACTED]. AR 1557-1612; see also AR 1574 (Category 1 proposal of $[REDACTED]); AR 1576 (Category 2 proposal of $[REDACTED]); AR 1578 (Category 3 proposal of $[REDACTED]). On December 9, 2013, the RFQ closed having received sixty-five bids. AR 1845.

On February 12, 2014, the GSA requested more information about ClayGroup’s ability to provide market basket items in each category. AR 1630-32. On February 26, 2014, ClayGroup submitted a revised quote of $[REDACTED], requesting only to be considered for the third category of Jan-San BPA: paper products and release dispensers. AR 1633; see also 1639,1644.

On June 9, 2014, the GSA notified Clay-Group that the “low market basket price for ... Category 3, Paper Products and Related Dispensers, is $2,296,963.76[.]” AR 1836. On June 11, 2014, ClayGroup submitted a new quote with a weighted total extended market basket value of $[REDACTED], AR 1756.

On July 17, 2014, the GSA notified Clay-Group that “the proposed quote does not offer the best overall value and most advantageous terns to the [G]ovemment[.]” AR 1764.

On or around July 29, 2014, the GSA awarded contracts for seventeen commodities under the Jan-San BPA, but did not award a Jan-San BPA to ClayGroup. -AR 1842-71. Two of the Jan-San BPA contracts were awarded to qualified VOSBs. AR 1869.

On August 26, 2014, ClayGroup entered into BPA No. YA261-BP-C068 with the VA to supply products to medical facilities in the VA’s Western States Network Consortium through September 30,2018. AR 2133.

On March 19, 2015, the VA’s Deputy Assistant Secretary for Acquisition and Logistics issued a Memorandum, providing that the Jan-San “BPAs are mandatory use contradicting vehicles for the seventeen commodities that were standardized by the Veterans Health Administration.” AR 2373. This Memorandum also specified that this BPA included toilet paper, paper towels, and toilet seat covers that were part of the Category 3 Jan-San BPA for which ClayGroup also submitted a quotation. AR 2375.

Subsequently, on an unspecified date in 2015, one of ClayGroup’s VA customers, VA Eastern Kansas Health Care System, informed ClayGroup that it was no longer permitted to purchase products outside the FSSI Jan-San BPAs. Compl. App’x Tab 1, at 2 (Clay Deck) (“[T]he VA Eastern Kansas Health Care System has informed ClayGroup that it cannot place any future orders for paper goods with ClayGroup because such products must now be exclusively ordered from the Jan-San BPA.”).

II.

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Bluebook (online)
123 Fed. Cl. 66, 2015 U.S. Claims LEXIS 1106, 2015 WL 5102732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/claygroup-llc-the-v-united-states-uscfc-2015.