Facility Healthcare Services, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedFebruary 10, 2022
Docket21-1978
StatusPublished

This text of Facility Healthcare Services, Inc. v. United States (Facility Healthcare 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
Facility Healthcare Services, Inc. v. United States, (uscfc 2022).

Opinion

In the United States Court of Federal Claims No. 21-1978 C Filed Under Seal: January 20, 2022 Reissued: February 10, 2022 *

* * * * * * * * * * * * * * * * ** * * FACILITY HEALTHCARE * SERVICES, INC., * * Plaintiff, * * v. * * THE UNITED STATES, * * Defendant, * * and * * PEAK FACILITY SOLUTIONS, * LLC, * * Defendant-Intervenor. * * * * * * * * * * * * * * * * * * ** *

William M. Weisberg, Law Offices of William Weisberg PLLC, of McLean, VA, for Plaintiff.

Galina I. Fomenkova, Trial Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, D.C., for Defendant, and Jonathan S. Baker, Attorney-Advisor, Contract Law Division, Office of General Counsel, Department of Commerce, of Washington, D.C., of counsel.

John Ryan Prairie, with George E. Petel, Wiley Rein LLP, of Washington, D.C., for Defendant- Intervenor.

* Pursuant to the protective order entered in this case, this opinion was filed initially under seal. The parties provided proposed redactions of confidential or proprietary information. In addition, the Court made minor typographical and stylistic corrections. MEMORANDUM OPINION AND ORDER

SOMERS, Judge.

This bid protest challenges the award of a contract to Peak Facility Solutions, LLC, (“Defendant-Intervenor” or “Peak”) for the provision of services related to the operation and maintenance of the central utility plant and related facilities for National Institute of Standards and Technology (“NIST”) campuses in Colorado and Hawaii. ECF No. 1 at 4 (“Compl.”). Plaintiff, Facility Healthcare Services, Inc., 1 asserts that NIST failed to conduct meaningful discussions with it regarding its price proposal prior to awarding the contract at issue to Defendant-Intervenor. For the following reasons, the Court grants in part the government’s motion to dismiss, as well as grants in part the government’s and Defendant-Intervenor’s motions for judgment on the administrative record.

BACKGROUND

On March 10, 2020, NIST issued Request for Proposal No. 1333ND20RNB190010 (“RFP”) for “[o]ne firm-fixed-price contract” for the maintenance and operation of facilities at NIST campuses in Colorado and Hawaii. AR 222. Plaintiff has performed maintenance services on these campuses for over ten years, most recently under a contract that ended on June 24, 2020. See AR 5. Plaintiff is currently maintaining the relevant facilities on these campuses under a series of bridge contracts. See Compl. at 1.

The procurement at issue is a best value procurement, with non-price/technical factors being about equal in importance to price. AR 232. The technical factors include: (1) past performance; (2) organization, management, and key personnel; and (3) technical approach. AR 232-33. In terms of price, the RFP provided that NIST would evaluate offerors’ proposed prices by comparing them with: (1) one another; (2) the independent government cost estimate; or (3) available historical information. AR 234.

Initially, NIST received five proposals, all of which it deemed technically unacceptable. AR 1472. Moreover, NIST determined that the price in Plaintiff’s first proposal as neither fair nor reasonable “in comparison with the [independent government estimate] and competitive price offers.” Id. Thus, the contract was unawardable at that time, and NIST proceeded to establish a competitive range that included all five offerors and opened discussions with them “to give the offerors the opportunity to address weaknesses, significant weaknesses and deficiencies to bring the proposals to a satisfactory or higher level . . . .” AR 1524. NIST further provided that “offerors may also make price revisions.” Id.

Plaintiff received its initial discussion letter on February 21, 2021, detailing the weaknesses and significant weaknesses NIST identified in its proposal for the non- price/technical factors. AR 1849-50. The letter also noted that “[Plaintiff’s] price proposal . . . is

1 Although Plaintiff captioned its complaint as being brought by “Facilities Health Care Services,” the Court believes that the complaint was in fact brought by “Facility Healthcare Services.” See AR 260; see also FACILITY HEALTHCARE SERVS., http://www.fhcare.com/services html (last visited Jan. 13, 2022). The caption has been adjusted accordingly.

2 significantly higher than the Government Estimate" and asked that Plaintiff "review the price proposal to ensure it is consistent with the technical proposal and ensure there are no eITors." AR 1852.

On March 5, 2021, Plaintiff submitted a revised proposal, which, among other things, included a minor price reduction. See generally AR Tab 19. After reviewing the revised proposal, NIST once again info1med Plaintiff via letter that its price was still "significantly higher than the Government Estimate." AR 2767. Plaintiff submitted its final proposal on March 31, 2021, without changing its proposed price. Compare AR 2104 with AR 3010.

The source selection evaluation board ("SSEB") evaluated the final proposals from the five offerors and rated them from first to last:

TECHNICAL/ NON-PRICE PROPOSAL OFFEROR B TOTAL PRICE ($) Ranking A Organization, C OVERALL Past Management & Technical TECHNICAL Performance Key Personnel Approach Peak Facility Solutions, LLC (PFS) Neutral Good Good Good $ 11,101,079.52 1st

[Offeror No. 2) Neutral Good Good Good $ 11,450,040.00 2nd [Offeror No. 3) Satisfactory Good Good Good $ 12,443,080.68 3rd

Facility Healthcare Services, Inc. (FHSI) Good Good Good Good $ 16,624,584.00 4th (Tied) [Offeror No. SJ Satisfactory Unacceptable Good Unacceptable $ 10,296,504.00 4th (Tied) IGE $ 11,429,248.60 I AR 3612. The SSEB concluded that Defendant-Intervenor's proposal represented the best value to the government based, in pait, on the fact that its price offer was the lowest from a technically acceptable proposal and the proposal had an overall technical rating of good. AR 3649. The SSEB also noted that "[n]either [Plaintiffs] higher past perfo1mance rating nor any paiticulai· features in [its] technical proposal justify the $5,523,504.48 (49.8%) price premium associated with [Plaintiff's] offer as compared with [Peak's] proposal, non-price and price factors considered." AR 3650.

On May 21, 2021, NIST awarded the contract to Defendant-Intervenor. See AR 3786. Plaintiff requested a post-award debrief, which occmTed on May 26, 2021. See generally AR 4083-115. Sho1tly thereafter, Plaintiff filed a post-award bid protest with the Government Accountability Office ("GAO"). Facility Healthcare Servs., Inc., B-418743.2, B-418743.3, 2021 WL 4191923 (Comp. Gen. Sept. 2, 2021). GAO ultimately dismissed Plaintiffs protest, finding that NIST conducted adequate and meaningful discussions regai·ding the proposed price, and that Plaintiff was not an interested pa1ty able to raise challenges to the proposal's technical evaluation, as there were two intervening offerors with eligible proposals that NIST rated higher than Plaintiff. See generally id. Plaintiff then filed its protest in this Comt on October 7, 2021. The paities filed cross-motions for judgment on the administrative record. ECF Nos. 19, 20, 21. Additionally, the government filed a motion to dismiss Plaintiffs complaint, arguing that Plaintiff has not established standing to protest the awai·d because it does not have a "direct

3 economic interest.” ECF No. 21 at 16-18. The Court has reviewed the pending motions and the administrative record, and the matter is now ripe for review.

DISCUSSION

A. Plaintiff’s Motion for Judgment on the Administrative Record Fails to Comply with RCFC 52.1

Regardless of the merits of a protest, a protestor must comply with the Rules of this Court in making its case.

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