Cyios Corporation v. United States

124 Fed. Cl. 107, 2015 WL 7424880
United States Court of Federal Claims·Decided November 23, 2015·No. 15-148C·Published·Cited by 13 cases

Opinion

Motion for Reconsideration; Post-Award Bid Protest; RCFC 59(a)(1)(B); RCFC 60(b)(6) '

OPINION AND ORDER

PATRICIA E. CAMPBELL-SMITH, Chief Judge

This is a motion for reconsideration of the court’s decision dismissing plaintiffs post-award bid protest. CYIOS Corporation was the incumbent contractor, and an unsuccessful offeror (CYIOS or plaintiff). The procuring agency is the United States Army Software Engineering Center Enterprise Solutions Directorate Eiata Services Division (agency, the Army or defendant).

In resolving the bid protest, the court found that two weaknesses the Army assigned to CYIOS’ technical proposal were unsupported by the record. Nonetheless, the court found that despite the elimination of the two weaknesses, CYIOS did not have a substantial chance to receive the contract; thus it was not prejudiced by the Army’s errors. The court denied CYIOS’ motion for judgment on the administrative record, and granted defendant’s cross-motion.

CYIOS argues that the court erred in several respects in its decision, principally, in its finding that CYIOS was not prejudiced by the Army’s errors. CYIOS contends otherwise. According to CYIOS, under a particular scenario it sets forth in its motion, it would have prevailed over the awardee on the most important factor, Factor 1 Technical/Risk, and thereby demonstrated a substantial chance of receiving the contract. CYIOS seeks a remand of its proposal to the Army for reevaluation in light of the court’s decision eliminating two weaknesses.

The court did not request responsive briefing from defendant. 2 Plaintiffs motion is ripe for decision. For the reasons fully discussed below, plaintiffs motion for reconsideration is DENIED.

I. Background

The court set out detailed facts relating to the solicitation and the cross-motions for judgment on the administrative record in its earlier decision. CYIOS Corp. v. United States, 122 Fed.Cl. 726, 731-33 (2015). Only those facts necessary to address the issues plaintiff raises on reconsideration will be discussed here.

A. Procurement, Plaintiffs Motion for Judgment on the Administrative Record, and the Court’s Decision

Plaintiff filed its motion for judgment on the administrative record on April 9, 2015. Pl.’s Mot. JAR, ECF No. 15. On July 31, 2015, the court issued a sealed opinion denying plaintiffs motion for judgment on the administrative record, and granting defendant’s cross-motion for judgment on the administrative record. ECF No. 20. Judgment entered that same day. ECF No. 21. On August 21, 2015, the court issued the public version of its opinion. CYIOS Corp., 122 Fed.Cl. 726.

In evaluating proposals, the Army considered three factors:

*111 1. FACTOR 1 — TECHNICAL/RISK FACTOR: The Teehnieal/Risk factor will include the evaluation of the offeror’s response to the proposal requirements identified in the RFP as they relate to the PWS....
2. FACTOR 2[-] PAST PERFORMANCE: Each offeror’s past performance will be reviewed to determine relevancy and confidence assessment.
3. FACTOR 3[-J COST/PRICE: The resulting award will be a Cost Plus Fixed-Fee Term Contract. Cost realism will be utilized in the evaluation of this cost reimbursable effort.

Tab 6d, AR 178 § M.B. Further, the Solicitation provided that

[t]he Technical factor is significantly more important than Past Performance. Past Performance is more important than the CostyPrice factor. All evaluation factors other than Cost/Price, when combined, are significantly more important than the Cost/ Price factor.... Offerors are cautioned that the award may not necessarily be made to the lowest cost offeror.

Id. § M.A.

In evaluating Factor 1 Technieal/Risk, the Army assessed each technical proposal with one of five adjectival ratings, Outstanding, Good, Acceptable, Marginal, or Unacceptable. Id, at AR 180. On June 20, 2014, the Source Selection Authority awarded the contract to SSB, Inc. (SSB or awardee). Tab 23, AR 1141 ¶ 7.

In evaluating CYIOS’ Factor 1 Technical /Risk proposal, the Army assessed CYIOS with five weaknesses, two of them significant weaknesses. Tab 19a, AR 1056-57. In its motion for judgment on the administrative record, CYIOS challenged each weakness. PL’s Mot. JAR 20-35. The court eliminated two of those weaknesses (one of which was a significant weakness), finding that they were unsupported by the record. CYIOS Corp., 122 Fed.Cl. at 742-44 (Weakness 3); id. at 744-45 (Weakness 4),

Both CYIOS and SSB earned the top rating on Factor 2 Past Performance, Very Rel-evanVSubstantial Confidence. Tab 23, AR 1140. As CYIOS and SSB received the same rating, the Past Performance ratings received no weight in the court’s prejudice analysis.

In its Factor 3 Cost/Price proposal, the offeror calculated its proposed cost, to include the cost of its direct labor, fringe benefits, labor overhead, and various indirect rates and fees. See, e.g., Tab 10d, AR 399 (CYIOS total price). The Army conducted a cost realism analysis, in which it examined whether the offeror’s proposed cost was “(a) realistic to meet the requirements of this solicitation, and (b) accurately reflective] [of] the technical approach contained in Offeror’s Technical Approach Factor.” Tab 6d, AR 183. The Army told offerors that it would determine the probable cost of their proposals “by adjusting the Offeror’s proposed Cost to reflect any additions or reductions in specific cost elements to realistic levels based on the results of the cost realism analysis. The Probable Cost may differ from the proposed Cost.” Id. In making its contract selection, the Army considered the probable cost of each proposal, not the proposed cost. See id.

B. Plaintiff’s Motion for Reconsideration

On August 28, 2015, plaintiff filed its motion for reconsideration under Rules 59(a)(1)(B) and 60(b)(6). Pl.’s Mot. 1, ECF No. 26. Along with its motion, CYIOS filed an affidavit from its Chief Executive Officer (CEO), Timothy W. Carnahan. Carnahan Aff., ECF No. 26-1.

According to plaintiff, “the court’s determination that the Awardee still leads CYIOS as to the [Factor 1] Technical/Risk Factor and the [Factor 3] Cost Factor and that no best value tradeoff would be necessaiy is clearly not supported by the record and is in fact erroneous.” PL’s Mot. 16. Plaintiff asks this court to reverse the judgment dismissing its protest, and to remand the matter to the Army for reevaluation of CYIOS’ proposal. See id, at 24-25.

Regarding Factor 1, plaintiff argues that although the court did find that two weaknesses were unsupported by the record, it failed to consider whether it should have instead received a strength or significant strength, instead of each erroneous weak *112 ness. Id. at 17.

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Cyios Corporation v. United States, 124 Fed. Cl. 107, 2015 WL 7424880 (uscfc 2015).

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