FirstLine Transportation Security, Inc. v. United States

107 Fed. Cl. 189, 2012 U.S. Claims LEXIS 1449, 2012 WL 5939228
CourtUnited States Court of Federal Claims
DecidedNovember 19, 2012
DocketNo. 12-601C
StatusPublished
Cited by11 cases

This text of 107 Fed. Cl. 189 (FirstLine Transportation Security, 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
FirstLine Transportation Security, Inc. v. United States, 107 Fed. Cl. 189, 2012 U.S. Claims LEXIS 1449, 2012 WL 5939228 (uscfc 2012).

Opinion

OPINION AND ORDER

WHEELER, Judge.

In this pre-award bid protest brought pursuant to 28 U.S.C. § 1491(b)(1), Plaintiff FirstLine Transportation Security, Inc. challenges some of the terms in a solicitation issued by the Department of Homeland Security, Transportation Security Administration to provide passenger and baggage security screening services at the Kansas City, Missouri International Airport. FirstLine successfully challenged a previous procurement for the same services and obtained permanent injunctive relief preventing the agency from proceeding with a proposed contract award. FirstLine Transp. Sec., Inc. v. United States, 100 Fed.Cl. 359 (2011) (Bush, J.) (“FirstLine I ”). The present protest relates to the agency’s new solicitation for the security screening services at the Kansas City Airport. As the incumbent contractor, First-Line has been performing the required services through a series of bridge contracts while the protests were pending.2

FirstLine raised multiple challenges to the new solicitation in its September 14, 2012 complaint, but now has narrowed its protest essentially to two arguments: (1) that TSA’s establishment of a 40 percent small business participation goal is unlawful and irrational; and (2) that TSA failed to provide sufficient information about the required services in the solicitation that would permit offerors to compete intelligently and on relatively equal terms. The parties have filed cross-motions for judgment on the administrative record, as well as response and reply briefs, and the Court heard oral argument on November 5, 2012. At an initial Temporary Restraining Order (“TRO”) hearing on September 18, 2012, Defendant voluntarily agreed to postpone the closing date for receipt of proposals until the Court decided this protest.

[194]*194TSA’s 40 percent goal for small business participation is calculated as a percentage of the offeror’s total contract price, not as a percentage of the offeror’s proposed subcontracting plan. FirstLine strenuously objects to such a goal, arguing that a calculation based upon the contract price is not in accord with Part 19 of the Federal Acquisition Regulation (“FAR”), and that it is not aware of the existence of qualified small businesses who could even approach the performance of 40 percent of the contract work. For reasons that will be explained, if the Court were in the shoes of the agency, it would not structure the small business objectives for this procurement as the agency has done. However, after careful consideration, the Court cannot say that the agency’s approach is clearly unlawful, or that the approach lacks a rational basis. As Defendant’s counsel has emphasized, the 40 percent small business objective is merely a solicitation goal, not a requirement. The agency will be free to negotiate the best small business arrangement it can prior to contract award. This is a case where the Court must stay its hand and refrain from interfering with the procurement process.

On the second issue, the Court finds that TSA has provided sufficient information to offerors, both in the solicitation and elsewhere, so interested parties may compete on an informed and equal basis. No requirement exists for the agency to include all relevant information only in the solicitation. Accordingly, the Court grants Defendant’s motion for judgment on the administrative record, and denies Plaintiffs cross-motion for the same, as well as Plaintiffs request for injunctive relief. However, the Court suggests to TSA, without requiring, that it amend Section M.4 of the solicitation to remove an ambiguity, and that it extend the closing date for receipt of proposals by 20-30 days from the date of this decision.

Background

Under the Screening Partnership Program (“SPP”) of the U.S. Transportation Security Administration (“TSA”), TSA contracts with private companies to provide passenger and baggage security screening services at certain designated airports, among them the Kansas City, Missouri International Airport (“MCI”). Administrative Record (“AR”) at Tab I, p. 5; see also FirstLine I, 100 Fed.Cl. at 362-63. Plaintiff FirstLine Transportation Security, Inc. (“FirstLine”) is the incumbent SPP contractor at MCI, and has been performing security screening services there since the fall of 2002. FirstLine I, 100 Fed.Cl. at 363. The company’s most recent contract was awarded in 2006, for one base year plus four option years. Id. This contract expired on September 30, 2010. Since that date, FirstLine has performed security screening services under a series of short-term bridge contracts. Id. The MCI contract is FirstLine’s [* * *], and accounts for [* * *] percent of its revenue. Declaration of [* * *] (“[* * *] Deck”), Dkt. No. 32-1, ¶ 4.

On April 10, 2010, in anticipation of the expiration of FirstLine’s contract, TSA issued a Request for Proposals (“Prior RFP”) for the provision of security screening services at MCI on a five-year, fixed-price basis (one base year plus four one-year options). AR at Tabs 17-19; FirstLine I, 100 Fed.Cl. at 363. After TSA completed its evaluation of proposals, it awarded the contract to Akal Security, and FirstLine protested the award to the GAO and then to this Court. Judge Bush sustained the protest on the basis of two major errors in TSA’s evaluation process, and also agreed with FirstLine that certain aspects of the solicitation’s pricing scheme were irrational — namely, that by ignoring out-of-contract transition costs, the solicitation skewed the price evaluation in favor of the proposal offering the least value to the Government. FirstLine I, 100 Fed.Cl. at 385-87. Although Judge Bush held that under Blue & Gold Fleet, L.P. v. United States, 492 F.3d 1308 (Fed.Cir.2007), First-Line had waived its objections to this issue, she nonetheless concluded that because TSA was likely to resolicit the contract, it would be “inefficient to allow obvious and serious errors to recur in the resolicitation.” Id. at 401. Judge Bush therefore gave TSA the option of either amending the solicitation to correct the price evaluation scheme, or conducting a complete reprocurement. Id. at 402-03.

[195]*195TSA opted for the latter choice. On July 23, 2012, TSA issued a second solicitation for the provision of security screening services at MCI, and requested offerors to submit their proposals by September 6, 2012. AR at Tab 4, p. 42. Like its predecessor, the new solicitation called for the award of a single fixed-price award-fee contract, consisting of one base year and four one-year option periods, to be awarded on a best value basis according to the specified evaluation factors. Id. at p. 49,180.

As relevant to this bid protest, Section L.6 of the solicitation states that the “Government anticipates an overall Small Business goal of 40 percent,” and that “[w]ithin that goal, the government anticipates further small business goals of: [ (1) ] Small, Disadvantaged business];] 14.5 percent; [ (2) ] Woman Owned]:] 5 percent; [ (3) ] HUBZone]:] 3 percent; [ (4) ] Service Disabled, Veteran Owned]:] 3 percent.” Id. at p. 175-76. As discussed in greater detail below, TSA subsequently clarified that this “goal represents 40% of the total contract value.” Id. at Tab 6, p. 307 (Question 189).

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107 Fed. Cl. 189, 2012 U.S. Claims LEXIS 1449, 2012 WL 5939228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/firstline-transportation-security-inc-v-united-states-uscfc-2012.