Ereh Phase I LLC v. United States

95 Fed. Cl. 108, 2010 U.S. Claims LEXIS 829, 2010 WL 4386734
CourtUnited States Court of Federal Claims
DecidedNovember 3, 2010
DocketNo. 10-560 C
StatusPublished
Cited by7 cases

This text of 95 Fed. Cl. 108 (Ereh Phase I LLC 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
Ereh Phase I LLC v. United States, 95 Fed. Cl. 108, 2010 U.S. Claims LEXIS 829, 2010 WL 4386734 (uscfc 2010).

Opinion

OPINION AND ORDER 1

DAMICH, Judge:

Before the court are cross motions for judgment on the administrative record (AR) in a post-award bid protest of the award of a contract by the General Services Administration (GSA) for the lease of office and related space. Plaintiff complains that the award of the lease to GBA Associates Limited Partnership (GBA) was made in violation of material terms of the Solicitation for Offers (SFO) and that the lease award should instead be awarded by the court to Plaintiff.

For the reasons stated below, the court finds that the award of the lease to GBA violated the provision of the SFO that no award shall be made for a property located in a flood plain and that the decision of GSA in this x’espect was arbitrary and capricious. The court does not find, however, any violations of the SFO, as further alleged by Plaintiff, with respect to GBA’s offer of the [111]*111amount of rentable square feet (rsf) or its schedule for the delivery of completed space.

Nevertheless, because the public’s interest weighs heavily against an award of injunctive relief, the court DENIES Plaintiffs motion and GRANTS the cross motions of Defendant and Intervenor.

I. Background

On January 20, 2010, GSA issued Solicitation for Offers No. 9VA2175 (SFO or Solicitation) for the award of a contract, GS-11B-02213, to lease office space. AR 331. There were five subsequent amendments to the SFO. AR 311-16. GSA retained CB Richard Ellis (CBRE or broker) as its construction project management expert to assist in the procurement. AR 342, 2695; Def.’s Cross Mot. for J. on AR 21.

The purpose of the solicitation was to obtain office space sufficient to enable the location of the Department of Defense Medical Command (MedCom) headquarters in one centralized site in the Northern Virginia area, pursuant to the Base Realignment and Closure Act (BRAC). AR 235, 89. Med-Com’s BRAC realignment and relocation must be complete by September 15, 2011. AR 3849, 3836.

GSA received offers from three bidders: EREH Phase I LLC (EREH), GBA Associates Limited Partnership (GBA), and Vorna-do. AR 2697. Vornado filed a protest with the Government Accountability Office (GAO) against the SFO’s BRAC mandated occupancy date of June 1, 2011. AR 2698. That protest was denied. Id. Vornado’s offer was found noncompliant and it was eliminated from the competition, leaving only EREH and GBA under consideration in the final evaluation. AR 2698, 1593. The EREH site is also referred to in the record as “Victory Center — 5001 Eisenhower Ave., Alexandria, VA;” The GBA site is also referred to as “Raytheon Building — 7700 Arlington Blvd., Falls Church, VA.” AR 2696.

The SFO provided that the lease would be awarded to “the lowest responsible Offeror whose offer conforms to the requirements of this SFO and is the lowest priced offer submitted.” AR 240.

Subsequent to the receipt of initial offers, GSA held negotiation meetings and discussions with the offerors. AR 2695-2705. On April 23, 2010, GSA sent letters to EREH and to GBA noting various deficiencies and items requiring clarification in their offers, respectively, and requested final proposal revisions (FPRs) by May 6, 2010. AR 2682, 1597.

Based on the FPRs, GSA calculated the net present value of the respective offers. It determined that GBA’s offer was $27.59 per ABOA square foot and that EREH’s offer was $32.16 per ABOA square foot. AR 2707; Def.’s Cross Mot. for J. on AR 7. GBA’s offer was thus the lowest-priced offer and met the requirements of the solicitation. AR 2708. On June 24, 2010, GSA notified GBA that it was the apparent successful offeror and that it would be recommended for lease award. AR 2829. The lease was executed with GBA as of July 12, 2010. AR 2839.

On July 19, 2010, EREH filed a bid protest with GAO, but that protest was dismissed on August 18, 2010, when EREH filed its protest in this court.

On August 20, 2010, the court denied Plaintiffs motion for a temporary restraining order and preliminary injunction against the GBA lease award. The court issued a scheduling order for briefing on opposing motions for judgment on the AR.2 Briefing concluded [112]*112on September 20, 2010, and the court heard oral argument on September 29, 2010.

II. Jurisdiction, Standing, and Standard of Review

The Court of Federal Claims has jurisdiction under the Tucker Act to render judgment in actions by an interested party challenging the award of a contract in connection with a procurement. 28 U.S.C. § 1491(b)(1). There is no dispute among the parties about the court’s jurisdiction over this matter and the court finds that its jurisdiction is manifest. For purposes of standing, the Federal Circuit has defined an “interested party” as “an actual or prospective bidder [ ] or offeror [ ] whose direct economic interest would be affected by the award of the contract or the failure to award the contract.” American Fed’n of Gov’t Employees Local 14-82 v. United States, 258 F.3d 1294, 1302 (Fed.Cir.2001). As an actual offeror and the only final offeror other than GBA, EREH has clearly met the requirements for standing to pursue this action.

The court’s review of the agency’s decision in a bid protest is limited. In concordance with the scope of review under the Administrative Procedure Act (APA), this court reviews the record to determine whether the decision of the agency is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 5 U.S.C. § 706(2); Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1332 (Fed.Cir.2001). The court may set aside a contract award if the agency decision lacked a rational basis or the procurement procedure involved a violation or regulation or procedure. Id. “Accordingly, the test for reviewing courts is to determine whether ‘the contracting agency provided a coherent and reasonable explanation of its exercise of discretion.’ ” Id. at 1332-33. The burden of showing that the award decision had no rational basis is a heavy one. Id. at 1333. Even so, “[A] proposal that fails to conform to the material terms and conditions of the solicitation should be considered unacceptable and a contract award based on such an unacceptable proposal violates the procurement statutes and regulations.” Centech Group, Inc. v. United States, 554 F.3d 1029, 1038 (Fed.Cir.2009).

Once the trial court determines that the award lacked a rational basis or was contrary to law, the court may award relief to the protester only where it is demonstrated that the protester was prejudiced by the decision of the agency. Bannum, Inc. v. United States, 404 F.3d 1346, 1351 (Fed.Cir.2005). Such prejudice requires showing that there was a substantial chance that the protester would have received the contract award.

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Bluebook (online)
95 Fed. Cl. 108, 2010 U.S. Claims LEXIS 829, 2010 WL 4386734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ereh-phase-i-llc-v-united-states-uscfc-2010.