Competitive Innovations, LLC v. United States

United States Court of Federal Claims·Decided August 28, 2025·No. 24-1773·Published

Opinion

In the United States Court of Federal Claims

COMPETITIVE INNOVATIONS, LLC,

Plaintiff,

v.

THE UNITED STATES,

Defendant, No. 24-1773 (Filed: August 28, 2025) 1 RELI GROUP, INC., Filed under seal: July 30, 2025 Reissued: August 28, 2025 Defendant-Intervenor,

and

HIVE GROUP, LLC,

Defendant-Intervenor.

Timothy B. Mills, Mills Law Group LLP, Washington, D.C., for Plaintiff. Mariana Teresa Acevedo, Civil Division, United States Department of Justice, Washington, D.C., and Christopher J. Curry, Office of Chief Counsel, Transportation Security Administration, Springfield, VA, for Defendant. James Ryan Frazee, John R. Prairie, and W. Benjamin Phillips, III, Wiley Rein LLP, Washington, D.C., for Defendant-Intervenor RELI Group, Inc. Alexander Brewer Ginsberg, Katherine L. St. Romain, and Robert C. Starling, Fried, Frank, Harris, Shriver & Jacobson LLP, Washington, D.C., for Defendant-Intervenor Hive Group, LLC.

OPINION AND ORDER

LERNER, Judge.

I. Introduction

On December 11, 2023, Plaintiff Competitive Innovations, LLC (“CI”) submitted a bid for a contract with Defendant, the Transportation Security Administration (“TSA” or “the

1 This Opinion was filed under seal on July 30, 2025. Op., ECF No. 82. Neither party proposed redactions. ECF No. 84. Instead, Plaintiff filed a Motion to Amend the Opinion. ECF No. 87. The Motion was denied. ECF No. 91. However, footnote two has been modified. Agency”). Tab 51 at AR 1616; see generally Pl.’s Revised Mot. for J. on the Admin. R. (hereinafter “Pl.’s MJAR”), ECF No. 62. On February 13, 2024, the Agency rejected the bid for containing a material error. Tab 61 at AR 2227–29. For over one month, Plaintiff made no attempt to correct this error, even with the opportunity to submit a revised bid. See Tab 17.1 at AR 697; Pl.’s MJAR at 7. Only after the Agency rejected its revised bid and set a deadline to submit a second revision did Plaintiff begin the process of correcting the error. Pl.’s MJAR at 7. Nevertheless, CI submitted its correction after the deadline. Tab 101 at AR 4390. CI challenges both the Agency’s decision to reject the late modification and its finding that the original bid contained a disqualifying error. Pl.’s MJAR at 1–2. Before the Court are Plaintiff’s Motion, as well as Cross-Motions for Judgment on the Administrative Record by Defendant and Defendant-Intervenors RELI Group, Inc. (“RELI”) and Hive Group, LLC (“Hive”). Id.; Def.’s Cross-Mot. for J. on the Admin. R. (hereinafter “Def.’s MJAR”), ECF No. 67; Hive’s Cross-Mot. for J. on the Admin. R. (hereinafter “Hive’s MJAR”), ECF No. 65; RELI’s Cross-Mot. for J. on the Admin. R. (hereinafter “RELI’s MJAR”), ECF No. 66. Because TSA properly rejected CI’s late attempt to modify its bid and reasonably disqualified CI’s original bid for containing a material error, Plaintiff’s Motion for Judgment on the Administrative Record is DENIED and Defendant’s and Defendant-Intervenors’ Cross-Motions for Judgment on the Administrative Record are GRANTED. Defendant’s Motion for a Status Conference is MOOT. II. Factual Background

A. The Solicitation

On February 26, 2023, TSA issued a Request for Quote (“RFQ” or “Solicitation”), which was amended ten times. Tab 20.1 at AR 828; Tab 10 at AR 269 (denoting date Solicitation was issued). The RFQ solicited Integrated Program Management Support Services (“IPMSS”) to help individual TSA program offices achieve performance goals within their budgets and comply with Department of Homeland Security acquisition directives. Tab 20.1 at AR 829. The Agency intended to award Blanket Purchase Agreements (“BPAs”) under Federal Acquisition Regulation (“FAR”) Subpart 8.4. Tab 20.1 at AR 828–29, 867. Under FAR 8.4, an agency may award a BPA to eligible suppliers with contracts in the General Service Administration’s (“GSA’s”) Multiple Award Schedule (“MAS”) program, also known as the Federal Supply Schedule program. FAR 8.401. A supplier must first enter into a MAS contract for a category of services with the GSA, after which an agency requiring comparable services can award a BPA through a separate solicitation. See id. The RFQ in this case sought offerors with MAS contracts under Category 541611: Management and Financial Consulting, Acquisition and Grants Management Support, and Business Program and Project Management Services. Tab 20.1 at AR 828, 845. TSA intended to award up to three BPAs, but “reserve[d] the right to award more, less or even no BPA.” Id. at AR 867. The procurement was divided into two phases covering three factors. Id. In Phase I, offerors submitted information about Factor 1 (Prior Experience) describing their experience within the last five years conducting work similar to each area of support identified in the Solicitation’s Scope of Work. Id. at AR 869. TSA assigned each Phase I submission a score of High, Some, or Low Confidence, indicating the Agency’s “confidence that the Quoter 2 understands the requirement . . . [and] will be successful in performing the contract.” Id. at AR 873–74. The Agency advised the offerors with the highest-rated Phase I submissions to proceed to Phase II and recommended all other offerors not to proceed, although they could nevertheless elect to do so. Id. at AR 869–70. Twenty-four offerors submitted Phase I bids, of which only five, including Defendant-Intervenors, received High Confidence scores and recommendations to proceed. Tab 48 at AR 1566. Plaintiff received a Low Confidence rating—the lowest score— and a recommendation not to proceed. Id. It was the only offeror that elected to proceed against the Agency’s recommendation. See Tabs 51–56b (Phase II submissions). Phase II requested quotes for Factor 2 (Technical Approach and Management Approach) and Factor 3 (Price). Tab 20.1 at AR 867. For Factor 3, offerors were required to complete an attached Price Spreadsheet, which included a Labor Categories and Rates sheet. Id. at AR 872; Tab 18a at AR 768 (Price Spreadsheet). The sheet listed the Solicitation’s required Labor Categories (“LCATs”) in Column A, a description of each LCAT in Column B, and the required education and experience for each LCAT in Column C. Tab 18a at AR 768. In Columns D, E, and F, offerors provided the “Equivalent GSA LCAT” from their MAS contract, as well as an equivalent description and experience requirement. See id.; Tab 20.1 at AR 872. The RFQ stated: “Labor categories, labor category descriptions, education/experience, and rates must be clearly mapped to [the offeror’s] GSA schedule contract.” Tab 20.1 at AR 872. It further warned: “If any of the equivalent GSA Labor Categories, GSA Labor Category Descriptions, and Education/Experience do not clearly map to the Government provided Labor Categories, Labor Category Descriptions, and Education/Experience, the Quoter may be eliminated from award consideration.” Id. at AR 874. It repeated: “Failure by a Quoter to comply with Attachment 1 Price Instructions, as previously outlined, may result in an elimination from award consideration.” Id. B. CI’s Phase II Submission

On December 11, 2023—the day submissions were due—CI submitted its Phase II quote. Tab 51 at AR 1616. In its Price Spreadsheet, next to the TSA LCAT “Acquisition Support Specialist,” CI listed its Equivalent GSA LCAT as “Associate Management Consultant.” Tab 51c at Sheet “Labor Categories and Rates,” Column B, Row 24. It provided the following Equivalent GSA Labor Category Description: Experience in providing advice, assistance, guidance or counseling in support of management, organizational, and business improvement that may include studies, strategic, business, action planning or advising clients related to information technology strategies and plans.

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