Dm Petroleum Operations Company v. United States

115 Fed. Cl. 305, 2014 WL 1292789
CourtUnited States Court of Federal Claims
DecidedMarch 27, 2014
Docket1:14-cv-00080
StatusPublished
Cited by2 cases

This text of 115 Fed. Cl. 305 (Dm Petroleum Operations Company 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
Dm Petroleum Operations Company v. United States, 115 Fed. Cl. 305, 2014 WL 1292789 (uscfc 2014).

Opinion

OPINION

ERIC G. BRUGGINK, Judge

This is a post-award bid protest of the Department of Energy’s selection of Fluor Federal Petroleum Operations, LLC (“Fluor”) as the management and operating contractor for the Strategic Petroleum Reserve. The parties briefed the case on cross-motions for judgment on the administrative record, and oral argument was held on March 7, -2014. Because the agency’s decision was not arbitrary or capricious, we deny plaintiffs motion for judgment on the administrative record and grant defendant’s and intervenor’s cross-motions for judgment.

BACKGROUND

The Department of Energy (“DOE”) maintains the nation’s Strategic Petroleum Reserve (“SPR”). Plaintiff, DM Petroleum Management Operations Company (“DM”) has been the primary management and operations (“M & 0”) contractor for the SPR since 1993, having successfully completed two back-to-back 10 year contracts with DOE. In February 2012, contemplating the end of the current SPR M & O contract, DOE issued solicitation No. DE-SOL-0003490, which invited proposals for a five year contract with a DOE option for five additional years. The solicitation announced a cost-plus award fee performance-based contract to be awarded to the proposal evaluated to be “the best value and most advantageous to the Government.” Administrative Record (“AR”) 686, 911. The contract was competed as a negotiated procurement pursuant to Federal Acquisition Regulation part 15. The solicitation informed offerors that discussions would likely not be held.

Proposals were first evaluated by the Source Evaluation Board (“SEB”) and then a final offeror selected by the Source Selection Official (“SSO”) using the best value analysis described in the solicitation. In doing so, the SSO was to consider “the Technical Evaluation Criteria ... significantly more important than evaluated price.” AR 912. Offerors were informed, however, that the more similarly they were evaluated for technical merit, “the more likely the evaluated price may be the determining factor in selection for award.” Id.

The solicitation listed six technical factors to be adjectivally rated by the SEB: (1) Management Approach, (2) Key Personnel, (3) Organizational Structure, (4) Past Performance, (5) Relevant Experience, and (6) Transition Approach. Management Approach was the most important factor and second was Key Personnel. Organizational Structure and Past Performance were of “equal importance and when combined [were] equal in importance to Management Approach.” Id. Relevant Experience' and Transitional Approach were equally important and least among all of the factors but were combined to be equal to Key Personnel. The technical evaluation was “significantly more important than the cost evaluation criteria.” AR 911.

With respect to the most important technical factor, Management Approach, the agency informed offerors that DOE would evaluate their “approach to managing and operating activities at the [SPR].” AR 913. It went on to notify bidders that,

DOE will evaluate the depth, quality, effectiveness, and completeness of the Offeror’s proposed approach to performing the work described in the PWS [Performance Work Statement], including implementing a contractor assurance system that identifies and corrects deficiencies; developing budgets and establishing cost controls; achieving safe and environmentally responsible performance of work; assuring the operational readiness of the storage sites/facilities; managing a large workforce; ensur *307 ing the integrity, including optimal storage capacity, of the crude oil storage caverns; and identifying specific actions to reduce contract costs.

Id. The “commitment and availability of corporate resources to support efficient and effective contract performance” was also considered. Id.

For the Organizational Structure factor, DOE was concerned with offerors’ “rationale for the proposed organizational structure for its providing an effective and efficient structure for the successful accomplishment of the work to be performed_” AR 914. For Past Performance, the solicitation indicated that the agency would evaluate the offeror, “its teaming partners, as well as major subcontractors’ past performance ... on the basis of information furnished by the references identified in Section L and any other available sources.” Id. The solicitation further provided that, for major subcontractors, DOE “will evaluate ... past performance commensurate with the portion of the work being performed under the solicitation/PWS.” Id. Offerors or their subcontractors without relevant past performance history were to be rated as neutral.

The Source Selection Plan listed five possible adjectival ratings for the technical factors: Outstanding, Good, Satisfactory, Marginal, and Unsatisfactory. Relevant to this case are the definitions of the top three ratings.

Outstanding: The proposal demonstrates a very high probability of successful contract performance. In general, the response would be described as excellent or superior.
The proposal also demonstrates a comprehensive understanding of the contract requirements; and a highly effective approach to perform the work that will likely exceed the contract requirements. Such a response may be evidenced by a proposal that exhibits several significant strengths; several or many strengths; few, if any, weaknesses, no significant weaknesses; and no deficiencies.
Good: The proposal demonstrates a high probability of successful contract performance. In general, the response would be described as conscientious, competent, and complete.
The proposal also demonstrates a proficient understanding of the contract requirements, and an effective approach to perform the work that may exceed the contract requirements.
Such a response may be evidenced by a proposal that exhibits few, if any, significant strengths; many strengths, few weaknesses; few, if any, significant weaknesses; and no deficiencies.
Satisfactory: The proposal demonstrates a moderate probability of successful contract performance. In general, the response would be described as suitable or sufficient.
The proposal also demonstrates an adequate understanding of the contract requirements, and an acceptable approach to perform the work that will achieve the contract requirements.
Such a response may be evidenced by a proposal that exhibits few, if any, significant strengths; several strengths; several or many weaknesses; offsetting strengths and weaknesses; few, if any, significant weaknesses; and no deficiencies.

AR 958-59.

Five offerors submitted proposals and were evaluated by DOE. The SEB members produced individual ratings for each offeror and then met and agreed upon a consensus rating for each offeror in March 2013. Only the offers of DM and Fluor are relevant to this protest. Their ratings were as follows:

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Bluebook (online)
115 Fed. Cl. 305, 2014 WL 1292789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dm-petroleum-operations-company-v-united-states-uscfc-2014.