East West, Inc. v. United States

100 Fed. Cl. 53, 2011 U.S. Claims LEXIS 1897, 2011 WL 4379518
CourtUnited States Court of Federal Claims
DecidedSeptember 7, 2011
DocketNo. 11-455C
StatusPublished
Cited by34 cases

This text of 100 Fed. Cl. 53 (East West, 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
East West, Inc. v. United States, 100 Fed. Cl. 53, 2011 U.S. Claims LEXIS 1897, 2011 WL 4379518 (uscfc 2011).

Opinion

ORDER

WOLSKI, Judge.

Before the Court are plaintiffs motion to supplement the administrative record with a declaration from one of its officers, and defendant’s motion to strike all references to this declaration in plaintiffs brief on the merits. For the reasons that follow, the motion to supplement is GRANTED-IN-PART and DENIED-IN-PART and the motion to strike is DENIED.

In this pre-award bid protest, East West, Inc. protests its exclusion from the competitive range by the Department of Health and Human Services’ National Institutes of Health (“NIH” or “the agency”), in a procurement for custodial services. Prior to NIH’s exclusion of East West from the competitive range, East West brought three separate protests related to this procurement before the Government Accountability Office (“GAO”), which resulted in several corrective actions. Plaintiff also protested its competitive range exclusion before the GAO, and brought this case to our court once the GAO denied that protest. Plaintiff now moves to supplement the administrative record with the declaration of Mr. Steven Duong, who, as vice president of East West, was responsible for preparing East West’s proposal in this procurement. Pl.’s Mot. to Supp. (“Pl.’s Mot.”) at 1.

Mister Duong’s declaration describes his reaction to two communications from NIH— a letter apparently requesting a clarification and a written post-award debriefing from the solicitation’s previous round. Duong Deck, Pk’s App. at 700-02. In a June 26, 2009 letter, NIH prompted East West to respond to the following: “In a previous proposal, East-West, Inc. offered to reduce its housekeeping staff. However, in the current proposal, there are no reductions in housekeeping staff, but there have been administrative positions eliminated. Please explain.” Admin. Rec. (“AR”) Tab 19 at 1709. In response, East West explained that it never intended to reduce housekeeping staff, but instead sought to lower its proposed cost by reducing administrative staff. Id. at 1711. The record does not indicate that East West and NIH engaged in any further communication until NIH informed plaintiff on November 30, 2009 that the agency awarded the contract to another offeror. See AR Tab 24 at 1755. Following that award, on December 22, 2009 NIH provided East West with a post-award debriefing letter which listed among “[weaknesses or [deficiencies” that East West “[eliminated only administrative positions” and “[d]id not reduce the housekeeping staff as mentioned in their previous proposal.” Id. at 1716. Mister Duong’s declaration explains that in light of NIH’s award of the contract to another offeror, he interpreted these statements in NIH’s request for clarification and post-award debriefing as a clear instruction that East West should reduce the number of proposed general cleaning staff in any subsequent round of proposals. Duong Deck ¶ 6, Pk’s App. at 702.

After East West protested the November 2009 award before the GAO, NIH took the corrective action of accepting revised technical proposals, AR Tab 27 at 1761, and revised business proposals, see Pk’s App. at 556, for another round of evaluations. It was in this round that East West was excluded from the competitive range, AR Tab 9 at 614, giving rise to the current protest. In its most recent proposal revision, East West reduced the number of cleaning staff by ten, which Mr. Duong asserts was pursuant to his interpretation of the two NIH communications. Duong Deck ¶ 7, Pk’s App. at 702. In the previous round of the solicitation, East West was given the highest technical rating among [55]*55the offerors, AR Tab 19 at 1716 (East West’s “technical ranking was (1) with a score of 93” out of one hundred), but its most recent proposal received a technical rating (fifty-four out of one hundred) which was unacceptable for inclusion in the competitive range. AR Tab 9 at 614. East West’s low score in the current round was due in part to what NIH considered an “unreasonably low” number of housekeeping personnel. Id. East West’s reduction in proposed housekeeping personnel was found to be a significant weakness and factored into its exclusion from the competitive range. Id.

In its motion for judgment on the administrative record, plaintiff cites Mr. Duong’s declaration just once. Pl.’s Mot. for J. at 15. This single citation is for the purpose of supporting the claim that the two NIH communications discussed in Mr. Duong’s declaration “were the primary reason that East West reduced its staff in its October 2010 proposal.” Id. Based on this limited use, East West’s desire to add Mr. Duong’s declaration to the AR appears to be a reaction to the GAO decision denying its protest of the competitive range exclusion. In this decision, the GAO found that the agency’s statements made it “reasonably clear that what the agency regarded as a weakness was the protester’s failure to furnish an explanation for the change [in approach to reduced staffing] and was not signaling to East West that it needed to lower its proposed staffing level.” AR Tab 22 at 1750 (emphasis added). The GAO further opined that it was “not apparent ... based on the record [before it], that the [NIH] communications were the primary impetus behind the protester’s decision to eliminate staffing positions.” Id. The GAO suggested instead that East West may have been motivated to reduce its staffing numbers merely to make its price more competitive, not because of the NIH communications. Id. Mister Duong’s declaration refutes this. See Duong Decl. ¶¶ 6-7, Pl.’s App. at 702.

Plaintiff asserts that Mr. Duong’s declaration should be added to the administrative record because it is evidence that East West suffered competitive prejudice by relying on the agency’s allegedly misleading communications — citing our court’s decisions in Gen-tex Corp. v. United States, 58 Fed.Cl. 634 (2003) and Hunt Building Co. v. United States, 61 Fed.Cl. 243 (2004), in which affidavits were added to the record to demonstrate such prejudice. Pl.’s Mot. at 1-2 (citing Gen-tex, 58 Fed.Cl. at 648-49, and Hunt Bldg., 61 Fed.Cl. at 271).2 East West argues that effective judicial review is precluded unless the declaration is added to the record because “prejudice is from the plaintiffs perspective” and evidence of this perspective will necessarily be absent from the administrative record. Pl.’s Reply & Opp’n to Def.’s Mot. to Str. & Opp’n to Pl.’s Mot. Supp. (“Pl.’s Reply”) at 2-3 (citing AshBritt, Inc. v. United States, 87 Fed.Cl. 344, 367 (2009)). In the alternative, plaintiff requests that the Court admit the declaration to the court record for the purpose of determining whether plaintiff was prejudiced by the agency’s communications, noting that recent opinions of our Court recognize that the court record, rather than the administrative record, may contain material outside the administrative record relating to questions of prejudice and relief. Pl.’s Reply at 4 (citing PlanetSpace, Inc. v. United States, 90 Fed.Cl. 1, 5 (2009) and AshBritt, 87 Fed.Cl. at 367).

[56]*56Defendant’s opposition does not mention either Gentex or Hunt Building, and instead focuses on the more recent Federal Circuit decision in Axiom Resource Management, Inc. v. United States, 564 F.3d 1374 (Fed.Cir.2009), and on plaintiffs initial failure to address the standard adopted in the latter opinion. See Def.’s Mot. to Str.

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100 Fed. Cl. 53, 2011 U.S. Claims LEXIS 1897, 2011 WL 4379518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/east-west-inc-v-united-states-uscfc-2011.