IBM Corp. v. United States

101 Fed. Cl. 746, 2011 U.S. Claims LEXIS 2271, 2011 WL 6005189
CourtUnited States Court of Federal Claims
DecidedNovember 15, 2011
DocketNo. 11-533 C
StatusPublished
Cited by14 cases

This text of 101 Fed. Cl. 746 (IBM Corp. 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
IBM Corp. v. United States, 101 Fed. Cl. 746, 2011 U.S. Claims LEXIS 2271, 2011 WL 6005189 (uscfc 2011).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

Plaintiff IBM Corporation, U.S. Federal (“IBM”) filed a complaint against the United States alleging that the Department of Veterans Affairs (“DVA”) improperly evaluated the proposal submitted by IBM in response to DVA’s Request for Proposals (“RFP” or “Solicitation”), No. VA-118-10-RP-0052, and in so doing acted in a manner that was arbitrary, capricious, an abuse of discretion, and contrary to law (docket entry 1, Aug. 24, 2011). For the following reasons, the Court DENIES IBM’s motion for judgment on the administrative record (docket entry 46, Sept. 23, 2011), GRANTS defendant’s motion for judgment on the administrative record (docket entry 48, Sept. 23, 2011), and GRANTS defendant-intervenor HP Enterprise Services, LLC’s (“HP”) motion for judgment on the administrative record (docket entry 45, Sept. 23, 2011).

I. Background

A. DVA’s Solicitation for the TJ Program

On July 26, 2010, DVA issued an RFP for its Transformation Twenty-One Total Technology (“T4”) Program. Administrative R. (“AR”) Tab 3. The RFP sought proposals for “a total IT services solution encompassing, but not limited to software and IT products incidental to the solution, in conjunction with all services needed to integrate a system, network, or other IT service in order to meet [DVA’s] mission requirements.” AR Tab 3, at 163. The Performance Work Statement described general requirements of the contract. Id. More specific requirements were to be defined in individual task orders to be issued during the pendency of the contract. See id.

The agency anticipated entering into an Indefinite Delivery/Indefinite Quantity (“IDIQ”), Multiple Award Task Order contract with a five-year period of performance. AR Tab 3, at 164. The RFP provided for a maximum selection of 15 awardees, with at least 4 contracts being awarded to Service-Disabled Veteran-Owned Small Business (“SDVOSB”) firms and at least 3 being awarded to Veteran-Owned Small Business (“VOSB”) firms. AR Tab 3, at 250. The ceiling value of the T4 Program was $12 billion, with a minimum $50,000 guaranteed to each awardee. AR Tab 3, at 158.

B. Section M: Evaluation Factors

The Solicitation explained that “[a]ny awards to be made will be based on the best overall (i.e., best value) proposals that are determined to be the most beneficial to the Government.” AR Tab 3, at 250. To evaluate the proposals under this standard, the RFP set forth five factors: (1) technical, consisting of two sub-factors: (a) sample tasks and (b) management; (2) past performance; (3) veterans involvement; (4) small business participation commitment (“SBPC”); and (5) price. AR Tab 3, at 250-51. With regard to the weight to be assigned to each factor, the Solicitation provided that “[t]he [t]echnical factor is significantly more important than the [p]ast [performance factor, which is slightly more important than the [v]eterans [i]nvolvement factor, which is of equal importance to the SBPC factor, which is slightly more important than the [p]rice factor.” AR Tab 3, at 250. Additionally, when combined, factors one through four were viewed as “significantly more important” than factor five. Id. The RFP cautioned that “awards may not necessarily be made based upon the lowest prices offered.” Id.

1. Technical Factor

Under the sample tasks sub-factor, which was more important than the management subfaetor, AR Tab 3, at 251, offerors were to propose solutions to three sample tasks designed to be similar to task orders that would be issued under the contract. Id. The offer-ors’ proposed solutions to the sample tasks [750]*750were evaluated by assessing the offerors’ understanding of the problems and the feasibility of each offeror’s approach. See AR Tab 3, at 251-52. Each sample task was of equal importance. AR Tab 3, at 251.

The second technical sub-factor, management, was to be similarly evaluated, see AR Tab 3, at 252, to determine the offerors’ understanding of the problems and the feasibility of each offeror’s proposed approach. See id.

2. Past Performance Factor

DVA also used past performance as a factor in assessing the desirability of the proposals. This evaluative factor looked at “the relative risks associated with an offeror’s likelihood of success in performing the solicitation’s requirements as indicated by that offeror’s record of past performance.” AR Tab 3, at 252. The assessment was conducted by looking at “the quality, relevancy[,] and recency” of the offeror’s and its major subcontractors’ past performances. Id. The Solicitation specifically identified as significant to its analysis past contracts greater than $100,000 for the provision of services similar to those to be provided pursuant to the T4 Program. AR Tab 3, at 252-53. A “Past Performance Assessment Questionnaire” was attached to the Solicitation for offerors to employ when reporting past performance information. See AR Tab 3, at 258.

3. Veterans Involvement Factor

Under the veterans involvement factor, evaluation credit was assigned to an offeror that was an SDVOSB or a VOSB firm. AR Tab 3, at 253. Offerors that were not such entities could receive evaluation credit if they “agree[d] to subcontract 10% or more of the contract value to SDVOSB concerns or 12% or more of the contract value to VOSB concerns.” Id.

4. SBPC Factor

Section M stated that “[a]ll offerors (both large and small businesses) will be evaluated on the level of small business commitment that they demonstrate for the proposed acquisition, and their prior level of commitment to utilizing small businesses in performance of prior contracts.” AR Tab 3, at 253. Specifically, the agency assessed

(a) the extent to which small business firms, as defined in FAR Part 19, were “specifically” identified in proposals;

(b) “[t]he extent of commitment to use such firms (enforceable commitments [would] be weighted more heavily than non-enforceable ones)”;

(c) “[t]he complexity and variety of the work” small business firms were to perform;

(d) the “realism” of the commitment to small business participation;

(e) “[p]ast performance of the offeror in complying with the requirements of the clauses at FAR 52.219-8, Utilization of Small Business Concerns, and, for all large business offerors, FAR 52.219-9, Small Business Subcontracting Plan”;

(f) the extent of participation of small business firms in the value of the total acquisition;

(g) whether the offeror “me[t] the ... overall subcontracting requirement for this procurement” — namely, that small business firms receive 35 percent of the total contract value — which was required in order to be found “acceptable” under the SBPC factor; and

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Bluebook (online)
101 Fed. Cl. 746, 2011 U.S. Claims LEXIS 2271, 2011 WL 6005189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ibm-corp-v-united-states-uscfc-2011.