Industrial Property Management, Inc. v. United States

59 Fed. Cl. 318, 2004 U.S. Claims LEXIS 4, 2004 WL 62542
CourtUnited States Court of Federal Claims
DecidedJanuary 13, 2004
DocketNo. 03-2500C
StatusPublished
Cited by8 cases

This text of 59 Fed. Cl. 318 (Industrial Property Management, 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
Industrial Property Management, Inc. v. United States, 59 Fed. Cl. 318, 2004 U.S. Claims LEXIS 4, 2004 WL 62542 (uscfc 2004).

Opinion

OPINION

FIRESTONE, Judge.

This case arises from a solicitation issued by the United States Department of the Army (the “Army” or “government”) for a contract for Base Operations, Maintenance and Support services for the Stratford Army Engine Plant (“SAEP” or the “facility”). The government’s Request for Proposal, Solicitation No. DASW01-02-R-001 (“RFP”), indicated that it would be seeking the bid which was the “best value.” Industrial Property Management, Inc. (“IPM” or the “plaintiff’) contends that the government acted arbitrarily, capriciously, and contrary to law by improperly including a bid from an offeror that was technically unacceptable in the government’s best value evaluation and by eliminating IPM from the competition before the final decision was made. The government contends that its decision to conduct a best value analysis without IPM was neither arbitrary, capricious, nor contrary to law. In addition, the government argues that IPM did not stand a chance of award and therefore was not prejudiced by any error in the government’s best value determination. For the reasons set forth below, the court GRANTS the government’s motion for judgment upon the administrative record.

BACKGROUND

The following facts are not in dispute unless otherwise noted. The SAEP is a former Army-controlled manufacturing plant that was closed in 1997 pursuant to the Defense Base Closure and Realignment Act of 1990, 10 U.S.C. § 2687 (2003) (“BCRA”). Pursuant to BCRA, the government maintains the facility pending transfer to the Local Redevelopment Agency or other disposition.

In 1998, shortly after the base was closed, IPM won a competitive small business set-aside contract for base operations, maintenance and support services at SAEP. The contract type was “cost plus fixed-fee” for a base year period from October 1, 1998 through September 30, 1999, and three options to renew the contract for one year each, all of which the Army exercised. The final option to renew, therefore, was set to expire on September 30, 2002. The total award under IPM’s contract was $18,816,607.

In May 2002, prior to the expiration of IPM’s final option year, the Army issued the RFP for the follow-on contract. Unlike the contract IPM already had performed, the [320]*320RFP emphasized that the Army expected the new contractor to ramp down remaining operations at the base as soon as possible. The RFP stated that:

The contract goal is to transition all activities from Maintenance Levels I & II to Level IV (idle buildings).... Contract services will initially be provided at current levels of support for tenants that are still at the facility when this contract begins. Services will be ramped down as quickly as feasible to caretaker levels as described throughout this section. This approach will vacate personnel (including the Contractor and Government personnel) from all buildings where cost savings will result. The intent of this RFP is to minimize caretaker costs as quickly as possible while maintaining only essential semces and operations.

RFP at 2 (emphasis added).

This solicitation is a “best value” procurement, in which the government need not award the contract to the lowest price offeror if the government can obtain the best overall value, considering both price and other factors, from another offeror. The person finally responsible for determining which bid will be accepted in a best value procurement is the contracting officer (“CO”), who determines whether a higher cost offer represents the best value. In this case, the CO was Alyssa A. Murray.

To determine the best value to the government, the CO employs a cost/technical tradeoff process:

This process permits tradeoffs among cost or price and non-cost factors and allows the Government to accept other than the lowest price proposal. The perceived benefits of the higher priced proposal shall merit the additional cost, and the rationale for tradeoffs must be documented in the file____

48 C.F.R. § 15.101-l(c). See § 15.101; § 15.308. The three evaluation factors, in descending order of importance, were Technical Approach, Past Performance, and Price. The Technical Approach factor was composed of four equally-weighted sub-factors: Understanding Requirements/Plan of Operation; Staffing and Organization; Quality Control; and Transition/Phase-In Plan.

The RFP noted that “[a]ll technical evaluation factors when combined are significantly more important than price.” RFP at 236. However, with respect to the price factor, the RFP advised that price would be “a significant evaluation factor and will become more critical as technical ratings approach equality.” RFP at 238.

Pursuant to the RFP, the Army prepared an internal Independent Government Estimate (“IGE”) of the appropriate cost for the SAEP contract. RFP at 234. The IGE was to be used “not only to determine whether proposed prices are reasonable, but also to determine [whether] the offeror understands the work and [is able] to perform the contract.” RFP at 238. See also 48 C.F.R. § 15.404-1. The IGE estimated a total cost of $10,775,874.12 for the base year plus three option years. IGE at 1. The Army anticipated that the cost savings could come mainly from reduced staffing commensurate with the lessening need for maintenance and support.

To assist her in evaluating the proposals, the CO formed an evaluation team (the “Panel”). Each of the evaluators was required to carefully consider each of the proposals pursuant to the criteria contained in the RFP and prepare detailed analyses. See 48 C.F.R. § 15.308 (source selection official may rely upon reports and analyses prepared by others).

Each of the evaluators was required to assign an adjectival rating for each of the factors and subfactors set forth in the RFP, except price, as well as an overall adjectival rating. The available ratings were exceptional, good, acceptable, marginal, and unacceptable. The Panel was required to then discuss its ratings and determine a consensus rating for each factor.

On July 22, 2002, the Army received offers from: IPM; Ferguson-Williams, Inc. (“Ferguson”); C.M.C. & Maintenance, Inc. (“CMC”); and JANTEC, Inc. (“JANTEC”). The following day, the technical proposals of the four offerors were forwarded to each member of the Panel. Each member of the Panel reviewed the technical merits of the [321]*321four offers and prepared -written analyses, and on July 31, 2002 the Panel submitted a technical evaluation report with consensus ratings to the CO. The CO supervised this process carefully, and twice rejected the Panel’s report as insufficient and requested that they revisit their analysis. The proposals, which were evaluated on their technical merits without regard to price, received the followed scores:

OFFEROR RATING PRICE

Ferguson Good $ 9,445,145

IPM_Good_$18,539,374

CMC Acceptable $* * * * * 1

JANTEC Marginal $* * * * *

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59 Fed. Cl. 318, 2004 U.S. Claims LEXIS 4, 2004 WL 62542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-property-management-inc-v-united-states-uscfc-2004.