Distributed Solutions, Inc. v. United States

106 Fed. Cl. 1, 2012 U.S. Claims LEXIS 978, 2012 WL 3264574
United States Court of Federal Claims·Decided July 30, 2012·No. No. 12-274 C·Published·Cited by 25 cases

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

On May 1, 2012, plaintiff, Distributed Solutions, Inc. (“DSI”), filed a complaint in this Court (docket entry 1), which was subsequently amended on May 22, 2012 (docket entry 24), alleging that the Department of Labor (“DOL”) acted arbitrarily, capriciously, and not in accordance with law, and abused its discretion when it awarded a contract for an Acquisition Management System (“AMS”)1 to defendant-intervenor, Compu-search Software Systems, Inc. (“Compu-search”). Thereafter, the parties filed cross-motions for judgment on the administrative record (docket entry 22, May 22, 2012; docket entry 23, May 22, 2012; docket entry 26, May 23, 2012;2 docket entry 33, June 7, 2012; docket entry 35, June 7, 2012) as well as corresponding responses and replies (docket entry 45, June 18, 2012; docket entry 47, June 25, 2012; docket entry 50, June 25, 2012). On July 10, 2012, following oral argument, see Transcript of July 10, 2012 Hear[6] ing, Distributed Solutions, Inc. v. United States, No. 12-274 C (Fed.Cl. July 17, 2012) (hereinafter “Hr’g Tr.”), the Court issued a bench ruling GRANTING defendant’s and defendant-intervenor’s motions for judgment on the administrative record and DENYING plaintiffs motion for judgment on the administrative record. The Court stated that a written opinion would follow.

I. Background

A Procurement History and Original Request for Quotes

On November 23, 2009, DOL issued a Request for Information (“RFI”) to conduct market research for E-Procurement Capabilities. Administrative R. (“AR”) Tab 25. On January 4, 2010, plaintiff responded to the RFI, see AR Tab 26, at 544-78, and simultaneously notified DOL that it believed the RFI was biased because it used language adopted from defendant-intervenor’s website describing its acquisition software and, therefore, DOL’s market research would be flawed, AR Tab 26, at 542-43. DOL replied assuring plaintiff that its market research was appropriate. AR Tab 27, at 581.

In May 2010, DOL issued its Market Research Report. AR Tab 90. The report explained that DOL received nine responses to its RFI and that there were three feasible alternative solutions proposed: (1) cheapest to implement (plaintiff), (2) mainstream (defendant-intervenor), and (3) Oracle Advance Procurement Suite with a Contract System ( [* * *]). AR Tab 90, at 2290. The report noted that plaintiffs solution met 96.6% of DOL’s requirements and would be the least expensive to implement, that defendant-in-tervenor’s so-called mainstream solution met 97.6% of DOL’s requirements, and that [* * *] solution met 98% of DOL’s requirements. Id. When discussing pros and eons, the report explained that plaintiffs solution had “no established ‘community of users’ (federal users group) outside of DOL” and that the PRISM solution proposed by both defendant-intervenor and [* * *] had “a very active community of users group [and was] used by 75 federal organizations across the civilian, defense, intelligence and public sectors.” Id. Of the three solutions, DOL found that the two most viable alternatives were proposed by defendant-intervenor and plaintiff. Id.

On June 25, 2010, DOL finalized its Acquisition Plan and accompanying Independent Government Cost Estimate (“IGCE”). See AR Tab 18; AR Tab 19, at 395. The Acquisition Plan concluded “that a [General Services Administration (‘GSA’) ] competition would be the most advantageous procurement strategy to obtain the best value for the Government.” AR Tab 18, at 390.

On July 16, 2010, DOL issued RFQ No. DOL110RQ21021, seeking a firm-fixed price task order contract issued under the GSA Federal Supply Schedule (“FSS”) Information Technology Schedule 70 for “commercial-off-the-shelf’ (“COTS”) acquisition software. AR Tab 34, at 603-04, 627; see also AR Tab 1. The original Request for Quotes (“RFQ”) called for a performance period of a one-year base period, plus four one-year option periods, AR Tab 34, at 628, which was later amended to include six one-year option periods, AR Tab 93, at 2422 (amendment eight). Quotes were limited to GSA schedule holders with applicable Special Item Numbers (“SINs”). AR Tab 34, at 604. On July 29, 2010, in an answer to a quoter’s question, DOL indicated it was seeking a government-off-the-shelf (“GOTS”) solution. AR Tab 2, at 82; compare AR Tab 1 (amended solicitation with COTS references), with AR Tab 34 (original solicitation containing several GOTS references).

B. Bid Protest History, RFQ Amendments, and Corrective Action

Plaintiff filed a pre-award protest at the Government Accountability Office (“GAO”) on August 13, 2010. AR Tab 24. Plaintiff protested, among other things, DOL’s use of the FSS to procure a GOTS system. AR Tab 24, at 478-80. At the request of the GAO, GSA issued comments on the solicitation stating that it could not determine whether the product DOL sought fell within FSS Schedule 70 and that, in general, GOTS systems cannot be acquired through FSS Schedule 70. AR Tab 41, at 718-20. In response to the protest and GSA’s comments, [7] DOL informed GAO that it would not seek a GOTS solution and that it would not issue an award under the solicitation as it was then written. AR Tab 44, at 724. As a result, on October 29, 2012, GAO dismissed plaintiffs protest as academic. AR Tab 46, at 227-28.

On December 9, 2010, DOL issued an amended RFQ, RFQ No. DOL110RQ21021-01, utilizing the same FAR Part 8 procurement strategy. AR Tab 1. DOL removed all references to a GOTS system and instead made clear that DOL was pursuing a COTS system. See id.

The RFQ provided that quotes would be evaluated based on technical approach, past performance, product demonstration, and price. AR Tab 1, at 72. Technical approach was “significantly more important than Past Performance and when combined, these two factors [were] more important than Price.” Id. The price factor became “significantly more important as non-price factors approached] equality.” Id. The live product demonstration factor was equal in importance to past performance. Id.

The RFQ stated that technical proposals were to be rated using an adjectival scale ranging from “unsatisfactory” to “excellent.” AR Tab 1, at 69-70. Within the technical factor, subfaetor (a), functionality requirements, and subfactor (b), technical approach, were of equal importance. AR Tab 1, at 69, 72. The RFQ instructed that the technical quotes “shall address the requirements of the RFQ and the evaluation factors presented in [the] RFQ in a straightforward, complete and concise manner.” AR Tab 1, at 69. Additionally, quoters were required to “demonstrate [their] ability to comply with each requirement and explain how such compliance is achieved.” Id. Quotes that paraphrased or regurgitated requirements were considered “inadequate and [would] be deemed not to comply with the RFQ.” Id.

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Distributed Solutions, Inc. v. United States, 106 Fed. Cl. 1, 2012 U.S. Claims LEXIS 978, 2012 WL 3264574 (uscfc 2012).

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