Idea International, Inc. v. United States

74 Fed. Cl. 129, 2006 U.S. Claims LEXIS 376, 2006 WL 3490936
CourtUnited States Court of Federal Claims
DecidedNovember 21, 2006
DocketNos. 06-652C, 06-717C
StatusPublished
Cited by37 cases

This text of 74 Fed. Cl. 129 (Idea International, 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
Idea International, Inc. v. United States, 74 Fed. Cl. 129, 2006 U.S. Claims LEXIS 376, 2006 WL 3490936 (uscfc 2006).

Opinion

OPINION AND ORDER

WHEELER, Judge.

In this bid protest, Plaintiff, IDEA International, Inc. (“IDEA”), is challenging an August 7, 2006 contract award by the Department of Defense Education Activity (“DoDEA”) to Defendant-intervenor, ICATT Consulting, Inc. (“ICATT”). The contract is for a Remote Location Home School Program for the dependents of DoD military and civilian personnel located overseas. After contract award, IDEA filed a bid protest at the Government Accountability Office (“GAO”) alleging irregularities in the agency’s evaluation of proposals and selection of ICATT. DoDEA, believing that IDEA was eligible for an automatic stay of performance following a timely bid protest, issued a Determination and Finding overriding the stay so that ICATT could perform the contract and provide the needed home schooling services. IDEA commenced this judicial action on September 14, 2006 as a challenge to the agency’s override of the automatic stay provided in 31 U.S.C. § 3553(d)(3). On October 17, 2006, before the Court had decided the stay override issue, IDEA filed a new action bringing the merits of its GAO protest to this Court. The two actions have been consolidated, although the stay override challenge has been rendered moot by IDEA’S election to bring the merits of its protest to the Court.2

As grounds for its protest, IDEA asserts in a three-count Complaint that: (1) ICATT was not eligible for award because it did not hold a responsive General Services Administration (“GSA”) Schedule 69 contract as required by the Solicitation; (2) DoDEA failed to evaluate the proposals properly pursuant to the stated technical and past performance evaluation criteria, and failed to make a valid best value award determination; and (3) Do-DEA unlawfully issued an out-of-scope contract modification materially altering the contract payment provisions shortly after contract award.

Defendant has filed a motion to dismiss Counts II and III of the Complaint on the ground that the Court lacks jurisdiction over a protest challenging a task or delivery order, unless the protest relates to “the scope, period, or maximum value of the contract under which the order is issued.” Federal Acquisition Streamlining Act of 1994 (“FASA”), 10 U.S.C. § 2304c(d) and 41 U.S.C. § 253j(d).3 Defendant also has moved for judgment on the Administrative Record, arguing that ICATT’s GSA Schedule 69 contract covers home schooling services, that the agency’s evaluation and award to ICATT was rational and in accordance with law, and that the contract modification did not materially change the scope of work. ICATT has filed a separate motion to dismiss and motion for judgment on the Administrative Record joining in the Government’s arguments, but also providing an analysis of the factors the Court should consider in granting or denying injunctive relief. IDEA has cross-moved for judgment on the Administrative Record. Both IDEA and ICATT have submitted declarations to supplement the Government’s Administrative Record.

For the reasons stated below, the Court concludes that it has subject matter jurisdiction to review this protest relating to a task order under a GSA Federal Supply Schedule (“FSS”) contract. On the merits, the Court finds that DoDEA’s acquisition of home schooling services was less than a model procurement. The selected awardee, ICATT, did not have the capability itself to meet the agency’s requirements, so it teamed with a subcontractor, WWIDEA, that did not [131]*131hold a GSA Schedule contract. A procuring agency may not limit a solicitation to holders of GSA Schedule contracts, and then procure non-Schedule services through the awarded contract. Where, as here, teaming arrangements are made to respond to such a solicitation, all team members must hold GSA Schedule contracts. While the agency should have followed this basic tenet of FSS task order contracting, DoDEA’s solicitation did not explicitly inform offerors of the consequences of proposing non-Schedule subcontractors. In a dispute between small businesses, the Court is reluctant to disqualify ICATT where fault most squarely lies with the agency for failing to inform offerors of the applicable rules.

The Court also has difficulty with the agency’s “best value” award determination. There is no evidence in the Administrative Record, other than an after-the-fact declaration submitted to the GAO, that the agency’s Source Selection Authority (“SSA”) gave any consideration to the technical advantages of IDEA’S proposal, identified by the Technical Evaluation Board. Instead, the SSA assumed that either offeror could provide the required services, and she chose the lower priced offer without weighing the technical benefits of IDEA against ICATT’s slightly lower price. The SSA’s award rationale is marginal at best, even under the broad discretion that the Court affords in “best value” determinations.

The agency’s payment modification 18 days after contract award also is problematic. The Solicitation indicated to offerors that the agency would pay on a per student basis upon receipt of a proper invoice. The modification changed the basis of payment, instead dividing the contract price into four payment increments without regard to the number of enrolled students. The modification permitted ICATT to receive nearly one-half of the contract price in the first month of the contract. This significant change should have been announced to all offerors responding to the solicitation.

In considering appropriate relief, the Court notes that ICATT has been performing this one-year contract for more than three months, and that DoDEA has paid ICATT $1.6 million. The Court especially is mindful of the needs of the military families and children, and of the benefits of home schooling program stability. Although the parties sharply disagree on the extent of disruption that would occur through a midyear change of contractors, certainly there would be some disruption that could be avoided by continuing the current contract. Also, some of the teachers who previously worked for IDEA have departed to join the new subcontractor, WWIDEA. It is not clear that IDEA could immediately step in and provide the same level of services as ICATT and WWIDEA. Moreover, despite its missteps, DoDEA apparently succeeded in selecting a qualified contractor team at a reasonable price. Applying 28 U.S.C. § 1491(b)(2), the Court will grant Plaintiff recovery of its proposal preparation costs, but will not require a change in contractors at this stage.

Since there are no option periods to continue this contract beyond one year, DoDEA presumably will conduct another competitive procurement for home schooling services in 2007.4 The Court is hopeful that DoDEA will learn from its mistakes in 2006 and conduct a better procurement next year. A full discussion of the above summary follows.

Factual Background

On May 18, 2006, DoDEA issued its Remote Location Home School Program Solicitation No. HE1254-06-Q-0024 (“the Solicitation”) to provide a comprehensive, secular home school program for the dependents of active duty military and DoD civilians located overseas. Administrative Record (“AR”) 15-33.

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Bluebook (online)
74 Fed. Cl. 129, 2006 U.S. Claims LEXIS 376, 2006 WL 3490936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/idea-international-inc-v-united-states-uscfc-2006.