Geiler/Schrudde & Zimmerman v. United States

133 Fed. Cl. 578, 2017 WL 3865721
CourtUnited States Court of Federal Claims
DecidedJuly 7, 2017
DocketNo: 16-186 C
StatusPublished
Cited by1 cases

This text of 133 Fed. Cl. 578 (Geiler/Schrudde & Zimmerman 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
Geiler/Schrudde & Zimmerman v. United States, 133 Fed. Cl. 578, 2017 WL 3865721 (uscfc 2017).

Opinion

OPINION AND ORDER

SMITH, Senior Judge

This bid protest action comes before the Court on the parties’ cross-motions for judgment on the administrative record and defendant’s Motion to Dismiss plaintiffs original and supplemental complaints. Plaintiff, Geiler/Schrudde & Zimmerman, A Joint Venture (“GSZ”), alleges the following: (1) the United States Department of Veterans Affairs (“Agency”) acted arbitrarily and capriciously in awarding the bid to defendant-intervenor, Innovative Support Solutions, Inc. (“ISS”); (2) GSZ should have been awarded the bid because it was the lowest-priced offeror; and (3) GSZ’s status as a Service-Disabled Veteran-Owned Small Business (“SDVOSB”) was improperly revoked by the Agency. For the reasons set forth below, the Court dismisses plaintiffs Supplemental Complaint, and grants the United States’ (“government”) and defendant-intervenor’s motions for judgment on the administrative record.

I. Background

A. Factual History

On June 9, 2015, the Agency issued the Request for Proposals (“RFP”) for Solicitation No. VA 289-15-R-0311 (“Solicitation”) for the upgrade of a chiller plant at one of the Agency’s medical centers in Lexington, Kentucky, Administrative Record at -45 (hereinafter “AR _”). The RFP was expressly set aside for SDVOSBs. Id. The federal SDVOSB program reserves specific government contracts for service-disabled veteran-owned small businesses. 38 U.S.C. § 8128 (2012). The RFP requires that each offeror submit a price proposal and a technical proposal. AR 70. The Agency would then award the Solicitation to whichever offeror submitted the “lowest price, technically acceptable offer.” AR 72; accord FAR 15,101-2 (2017). The offeror with the lowest “evaluated price” wins the award if it meets or exceeds the RFP’s non-price factors. AR 72.

In this case, there are four evaluation factors currently at issue. AR 73-74. First, the experience factor requires offerors to provide three “completed projects” with a contract value of at least $3 million showing experience in “civil, HVAC, electrical, low voltage, mechanical, and fire protection.” AR 73. The standard for acceptability is “complete project title, locations, contract, price, trades involved, [and] start and completion dates.” Id. Second, the infection control measures factor requires “successful” measures taken ■for the “Highest Risk Group 4 for Type A, B, C, and D mitigation precautions.” Id. The standard for acceptability is a demonstration of “[t]wo successfully] completed projects” that applied the “Highest Group 4 mitigation precautions.” Id. Third, the past performance factor requires three “completed projects” with a contract value of at least $3 million. AR 74. The standard for acceptability is based on whether the government deems those submissions “satisfactory” after an evaluation on the “relative merits.” Id. Fourth, the price factor requires each offeror to list a “base offer,” along with a detailed price breakdown. AR 45, 49, 74. The Agency will then evaluate the price based on reasonableness, pursuant to FAR 15.4, as well as a possible cost realism analysis to determine if the price was consistent with the offeror’s technical proposal. FAR 15.404 (2017). The standard for acceptability is the achievement of a price proposal consistent with the requirements and contract documents. Id.

[582]*582The Agency received six proposals, including those submitted by ISS and GSZ. AR 1667-2126. Each offeror submitted a bid bond with their proposals. AR 2127-2158. The Agency then determined that ISS had the lowest evaluated price at $8,663,000, while the plaintiff submitted the third-lowest price at $8,964,548. AR 2159-60. Once it determined that ISS proposed the lowest price, the Agency evaluated ISS for technical acceptability. AR 2161—88. The Technical Evaluation Board (“TEB”), determined that ISS was technically acceptable for all non-price factors. AR 2161-82. Following the determination of technical acceptability, the Source Selection Authority (“SSA”) issued its recommendation that ISS receive the bid because it was the “best overall value to the [government” and the lowest price, technically acceptable offer. AR 2188.

On September 23, 2015, the Agency notified plaintiff that it had not received the award. AR 2189-202. On September 24, 2015, ISS was awarded the bid. AR 2203-04.

B. Procedural History

1. Original Complaint

On October 1, 2015, plaintiff filed a protest with the Government Accountability Office (“GAO”) contesting the Agency’s decision to grant the award to ISS. AR 2279-83, 2820-31. Plaintiff alleged, in relevant part, that (1) the Agency should have evaluated and accepted GSZ’s alternative price proposal and (2) ISS’s proposal was technically unacceptable. AR 2820. On January 7, 2016, the GAO ultimately denied those claims, and dismissed in part and denied in part the remainder of plaintiffs protest. AR 2820-31.

On February 8, 2016, plaintiff filed its Original Complaint in this Court. Post Award Bid Protest (hereinafter “Compl.”), ECF No. 1, at 1. On May 9, 2016, plaintiff filed its Motion for Judgment on the Administrative Record, based on the following arguments: (1) ISS’s three submitted projects prove that it is non-responsible and technically unacceptable; (2) ISS’s submitted bonding commitment shows that it is non-responsible and technically unacceptable; (3) ISS failed to meet the infection control measures factor, and thus is ineligible for the award as a matter of law; and (4) the Agency failed to properly evaluate all price proposals. Plaintiff Geiler/Schrudde Zimmerman’s Motion for Judgment on the Administrative Record (hereinafter “P’s MJAR”), ECF No. 24 at 2-3.

On June 10, 2016, the government filed a motion to dismiss plaintiffs original complaint or, in the alternative, for judgment on the administrative record. Defendant’s Motion to Dismiss or, Alternatively, for Judgment on the Administrative Record, and Opposition to Plaintiffs Motion for Judgment on the Administrative Record (hereinafter “D’s MJAR”), EOF No. 30 at 1-2. The government rejects plaintiffs claims and argues that plaintiff lacks standing, asserting that GSZ lost its SDVOSB status upon the death of Mr. William R. Geiler, Jr., the service-disabled veteran, on March 18, 2016. Id. at 5. The government argues that, because plaintiff is no longer an “interested party,” it lacks standing to protest the Agency’s award decision. Id. at 7; 28 U.S.C. § 1491(b)(1) (2012). Additionally, on June 10, 2016, defendant-intervenor, ISS, filed its Cross-Motion for Judgment on the Administrative Record. De-fendanfc-Intervenor’s Opposition to Plaintiffs Motion for Judgment Upon the Administrative Record and Cross-Motion for Judgment upon the Administrative Record (hereinafter “DPs MJAR”), ECF No. 28 at 1-2. ISS argues that plaintiff cannot adequately demonstrate that ISS was ineligible to receive the award. Id.

2. Supplemental Complaint

Mr. Geiler’s death triggered a revocation of GSZ’s SDVOSB status. Defendant’s Motion to Dismiss the First Amended Supplemental Complaint or for Judgment on the Second Administrative Record, and Opposition to Plaintiffs Motion Regarding the Same (hereinafter “D’s Supp. MJAR”), ECF No. 83 at 6.

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133 Fed. Cl. 578, 2017 WL 3865721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geilerschrudde-zimmerman-v-united-states-uscfc-2017.