Devtech Systems, Inc. v. United States

United States Court of Federal Claims·Decided May 1, 2025·No. 24-1792·Published

Opinion

In the United States Court of Federal Claims DEVTECH SYSTEMS, INC, Plaintiff,

v.

No. 24-cv-1792

THE UNITED STATES, Filed Under Seal: April 16, Defendant, 2025

and Publication: May 1, 20251 VERITAS MANAGEMENT GROUP, INC., Intervenor-Defendant.

David B. Dixon of Pillsbury Winthrop Shaw Pittman LLP, McLean, VA, argued for Plaintiff. With him on the briefs were Toghrul M. Shukurlu, Aleksey R. Dabbs, and Alexis P. Landrum of Pillsbury Winthrop Shaw Pittman LLP, McLean, VA.

Antonia R. Soares of the United States Department of Justice, Civil Division, Washington, D.C. argued for Defendant. With her on the briefs were Patricia M. McCarthy and Deborah A. Bynum, of the United States Department of Justice, Civil Division, Washington, D.C., and David A. Lank of the Office of the General Counsel, United States Department of Health & Human Services.

Gordon Griffin of Holland & Knight LLP, Washington, D.C., argued for Intervenor-Defendant. With him on the briefs were John M. McAdams III and Tanner N. Slaughter of Holland & Knight LLP, Washington, D.C.

1 This Memorandum and Order was filed under seal in accordance with the Protective Order entered in this action. ECF No. 9. On April 30, 2025, the parties filed a Notice proposing redactions to the Memorandum and Order. ECF No. 44. The sealed and public versions of this Memorandum and Order are identical, except for some redactions, this footnote, the publication date, and corrections to minor typographical errors.

MEMORANDUM AND ORDER

In 2003, Congress enacted the United States Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003. 22 U.S.C. § 7601, et seq. This Act created the President’s Emergency Plan for AIDS Relief (PEPFAR), which is “the largest health program worldwide for a single disease.” About the President’s Emergency Plan for AIDS Relief (PEPFAR), Health Res. & Servs. Admin (Dec. 2023), https://www.hrsa.gov/office-global-health/global-hivaids-program/about- pepfar. PEPFAR is supported by several federal agencies, including the United States Department of Health and Human Services (HHS); the United States Agency for International Development (USAID); the United States Department of Defense; and the Peace Corps. Id.

On September 27, 2024, the Health Resources and Services Administration (HRSA or Agency) awarded to Veritas Management Group, Inc. (Veritas or VMG) a task order for technical professional staffing to support PEPFAR. Plaintiff DevTech Systems, Inc. (DevTech) challenges that decision in this post award bid protest. Specifically, DevTech—which proposed a price more than double Veritas’s and over five times the Agency’s internal price estimate—challenges the Agency’s decision as arbitrary and capricious on two grounds. First, DevTech asserts that Veritas was ineligible for award because its proposal failed to respond to several material provisions of the Solicitation. Second, DevTech contends that the Agency erred in its evaluation of certain parts of DevTech’s proposal. Pending before the Court are the parties’ Cross-Motions for Judgment on the Administrative Record. As explained further below, the Court grants the Agency’s and Veritas’s respective Motions for Judgment on the Administrative Record and denies DevTech’s Motion for Judgment on the Administrative Record, as the Agency’s actions were not arbitrary and capricious.

BACKGROUND

I. Procedural History DevTech filed its Complaint on October 31, 2024, and subsequently amended its Complaint twice—first on December 20, 2024 and again on January 13, 2025. See Complaint (ECF No. 1); First Amended Complaint (ECF No. 23); Second Amended Complaint (ECF No. 28) (Am. Compl.). As noted, DevTech challenges the decision of the Agency to award a task order (RFP No. 75R60224Q00135) (Solicitation) to Veritas for technical assistance supporting PEPFAR initiatives. Am. Compl. ¶ 1. On November 7, 2024, Veritas filed an Unopposed Motion to Intervene, which this Court granted on the same day. See ECF No. 10; Order, dated Nov. 7, 2024 (ECF No. 14).

On November 27, 2024, pursuant to this Court’s Scheduling Order, the Agency made the Administrative Record (AR) available for review. Scheduling Order, dated Nov. 22, 2024 (ECF No. 21); Notice (ECF No. 22). The Agency subsequently amended the AR on January 7 and January 10, 2025. See ECF Nos. 25, 26. On January 13, 2025, Plaintiff timely filed its Second Amended Complaint, and the parties filed their Opening Motions for Judgment on the Administrative Record (MJAR). 2 On January 31, 2025, the parties filed their Responsive MJARs, 3 and on February 20, 2025, the Court conducted oral argument. See Transcript, dated Feb. 20, 2025

2 See Am. Compl.; Veritas’s Cross-Motion for Judgment on the Administrative Record (ECF No. 27) (Veritas MJAR); DevTech’s Motion for Judgment on the Administrative Record (ECF No. 29- 1) (DevTech MJAR); Agency’s Motion for Judgment on the Administrative Record (ECF No. 30) (Agency MJAR). 3 Veritas Reply in Support of its Motion for Judgment on the Administrative Record and Response to Plaintiff’s Motion for Judgment on the Administrative Record (ECF No. 33) (Veritas Resp. MJAR); Plaintiff’s Opposition to Defendant’s and Defendant-Intervenor’s Motions for Judgment on the Administrative Record (ECF No. 34) (DevTech Resp. MJAR); Defendant’s Reply in Support of its Motion for Judgment on the Administrative Record and Response to Plaintiff’s Motion for Judgment on the Administrative Record (ECF No. 35) (Agency Resp. MJAR).

(ECF No. 41) (OA Tr.). During oral argument, the Court granted DevTech’s request for leave to file a sur-reply to address issues raised at argument regarding the parties’ proposed project managers, which it filed on February 27, 2025. ECF No. 39 (Sur-Reply); see also OA Tr. 133:4– 134:13; Minute Order, dated Feb. 20, 2025. Accordingly, the parties’ Cross-MJARs are fully briefed and ripe for review. II. The Solicitation The Solicitation underlying this post-award bid protest is for a task order, issued on September 4, 2024 as a request for proposal (RFP) through the General Services Administration’s (GSA) eBuy website, which facilitates Government purchases of commercial goods via GSA Multiple Award Schedule (MAS) contracts. AR222–23; FAR 8.402(d). 4 The Solicitation sought bids for a contract “to provide Technical Assistance (TA) to support [the Agency’s Office of Global Health (OGH)] in advancing PEPFAR initiatives,” which “includes aiding in programming, strategic planning, communication, scientific publication, analytics, site visits, and staff development for effective implementation.” AR300. The “support encompasses providing necessary personnel and services to execute the tasks outlined” in the RFP. AR408. The Agency anticipated issuing a firm-fixed price task order for a twelve-month period—the Base Period— with four twelve-month Option Periods to follow. AR405; AR408.

The MAS program, which is also known as the Federal Supply Schedule (FSS) program, is managed by GSA and provides a simplified avenue for federal agencies to procure commercial supplies and services at prices associated with volume buying. FAR 8.402(a); see also Land Shark Shredding, LLC v. United States, 842 F. App’x 594, 595 (Fed. Cir. 2021); Coast Pro., Inc. v.

4 The Federal Acquisition Regulation (FAR) is contained in Chapter 48 of the Code of Federal Regulations. Thus, all references to the FAR are shorthand for “48 C.F.R. §.”

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