Dorado Services, Inc. v. United States

128 Fed. Cl. 375, 2016 U.S. Claims LEXIS 1552, 2016 WL 6107140
CourtUnited States Court of Federal Claims
DecidedSeptember 30, 2016
Docket16-945C
StatusPublished
Cited by3 cases

This text of 128 Fed. Cl. 375 (Dorado Services, Inc. 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
Dorado Services, Inc. v. United States, 128 Fed. Cl. 375, 2016 U.S. Claims LEXIS 1552, 2016 WL 6107140 (uscfc 2016).

Opinion

Keywords: Post-Award Bid Protest; Small Business Administration; HUBZone Program; HUBZone Status Protest; Bid Protest Jurisdiction; 35% Residency Requirement

OPINION AND ORDER

KAPLAN, Judge.

This post-award bid protest involves a HUBZone status protest filed by Defendant-Intervenor GEO International Management, Inc. (GEO) in connection with the award of a HUBZone set-aside contract to Plaintiff Do-rado Services, Inc. (Dorado). On August 27, 2016, for reasons that are set forth more fully below, the Court denied the government’s motion to dismiss Dorado’s complaint. See Order Denying Mot. to Dismiss, EOF No. 29.

Currently before the Court are Dorado’s motion to supplement the administrative record and the parties’ cross-motions for judgment on the administrative record. As discussed below, Dorado’s motion to supplement the administrative record is DENIED. Further, the Court concludes that the Small Business Administration (SBA) did not err in deciding that certain individuals Dorado claims as its employees did not reside in HUBZones at the time of the award. Dorado concedes that if these employees do not count towards its total number of HUBZone-resident employees, Dorado cannot meet the HUBZone program’s requirement that 35% of its employees reside in HUBZones at the time of the award. Therefore, Dorado’s motion for judgment on the administrative record is DENIED, and the government’s cross-motion for judgment on the administrative record is GRANTED.

BACKGROUND

I. The HUBZone Program and the 35% Residency Requirement

To “encourage[ ] economic development in historically underutilized business zones”— i.e., “HUBZones”—Congress has created the HUBZone program for qualified small businesses. Understanding the HUBZone Program, SBA.gov, https://www.sba.gov/ contracting/government-contraeting-programs/hubzoneprogram/understanding-hubzone-program (last visited September 29, 2016); see also Small Business Reauthorization Act of 1997, Pub. L. 105-135, Tit. VI, 111 Stat 2592, 2627 (1997). Under the program, qualified small businesses receive federal contracting assistance in the form of contract set-asides and other preferences. Understanding the HUBZone Program, supra; see also 13 C.F.R. § 126.100.

To participate in the program, a small business must first obtain certification from SBA See 13 C.F.R. § 126.300. To become certified, the small business must (among other things) meet the program’s 35% residency requirement, which mandates that “[a]t least 35% of the [business’s] employees must reside in a HUBZone.” 1 Id. § 126.200(b)(4). After obtaining certification, a small business must still meet a variety of other requirements to secure a HUBZone award. See id. § 126.601. As is most relevant here, the business “must be a qualified HUBZone [small business] both at the time of its initial offer and at the time of [the] award in order to be eligible for a HUBZone contract.” Id. § 126.601(e). Thus, the small business must meet the 35% residency requirement both on the date of the offer and at the time of the award. See id.

II. The Request for Proposals, Contract Award, and GEO’s Protest

On June 11, 2015, the U.S. Department of the Air Force (Air Force) issued Request for *379 Proposals (RFP) No. FA3047-15-R-0011 to secure “Municipal Solid Waste collection and disposal” services for its installations at Joint Base San Antonio. Administrative Record (AR) Tab 3 at 11, 128. The RFP was 100% set aside for HUBZone small businesses. Id. at 11. The Air Force intended to award a Firm Fixed Price, Indefinite Delivery/Indefinite Quantity contract to the lowest-priced technically acceptable offeror. Id. at 124. The Air Force expected that services under the contract would extend for up to five years. See id. Tab 1 at 3; id. Tab 16 at 426.

On July 27, 2015, the Air Force received proposals from Dorado and GEO. Id. Tabs 8-9; see also Compl. ¶ 5. It awarded the contract to Dorado on October 29, 2015. AR Tab 18 at 468; see also id Tab 15 at 420-23 (source selection decision).

A few days later, on November 5, 2015, GEO filed a HUBZone status protest with SBA. 2 Id Tab 18 at 469-70; see generally 13 C.F.R. §§ 126.800-05 (setting forth the HUBZone status protest procedures). GEO contended that Dorado could not have satisfied the HUBZone program’s 35% employee residency requirement on either the date it submitted its offer or the date of the award. AR Tab 18 at 471-74.

III. SBA’s Request for Documentation and Dorado’s Response

On November 17, 2015, SBA requested that Dorado submit documentation to establish that it met the 35% residency requirement on both the date of its offer and the date of award. Id. Tab 19 at 520-23. Among other things, it requested “company payroll records for Dorado showing all employees and number of hours worked per week at the time Dorado submitted its offer and at the time of award.” Id. at 521 (footnote omitted). For “employees who worked less than 40 hours during the week when the offer was submitted or during the week of award,” SBA asked Dorado to:

[P]rovide the following to demonstrate that those employees worked at least 40 hours in a month as of the date of offer and the time of award:
• payroll records that cover the four-week period leading up to, and ending on the date of offer, and
• payroll' records that cover the four-week period leading up to, and ending on the date of award.

Id. SBA also requested that Dorado provide “records indicating the home address of each HUBZone resident employee of Dorado at the time offers were submitted and at the time of award, including copies of driver’s licenses or voter registration cards showing that the employee’s home address is in a HUBZone.” Id. at 522. It further instructed Dorado to provide “a copy of a HUBZone map determination for each employee residing in a HUBZone, including the name of each employee op the HUBZone maps,” as well as “an explanation and any other documents addressing the specific allegations set forth in the protest.” Id.

Dorado responded on November 24, 2015. Id. Tab 45. It claimed that it employed 82 people on both the date of the offer and at the time of the award; and that 31 of those employees lived in HUBZones on the date of the offer, while 32 lived in HUBZones at the time of the award. 3 Id. at 1849-51. Dorado also provided supporting documentation, including payroll information and proofs of residence, for each claimed HUBZone-resident employee. Id. Tabs 46-69. For 28 of its claimed HUBZone-resident employees, Dora-do used driver’s licenses as proofs of residence. See id Tabs 48-63. For the other four—[...], [...], [...], and [...]—Dorado provided other forms of documentation that it believed were responsive to SBA’s request. 4

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Cite This Page — Counsel Stack

Bluebook (online)
128 Fed. Cl. 375, 2016 U.S. Claims LEXIS 1552, 2016 WL 6107140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorado-services-inc-v-united-states-uscfc-2016.