Innovative Test Asset Solutions LLC v. United States

125 Fed. Cl. 201, 2016 WL 865310
United States Court of Federal Claims·Decided March 7, 2016·No. 15-1290C·Published·Cited by 9 cases

Opinion

Post-award bid protest; agency’s reevaluation as part of GAO’s recommended corrective action; implied duty to fairly and honestly consider protestor’s proposal during reevaluation; technical risk factors; cost-price considerations, including price realism;, past performance

OPINION AND ORDER 1

LETTOW, Judge.

This post-award bid protest arises from a solicitation by the United States Air Force (“Air Force” or “government”) for test operations and sustainment services at the Arnold Engineering Development Complex located near Tullahoma, Tennessee. On June 10, 2015, after an approximately ten-month procurement process, the Air Force awarded the contract to National Aerospace Solutions, LLC (“National Aerospace”). Another offer- or, Innovative Test Asset Solutions LLC (“Innovative Test”), initially protested this award at the Government Accountability Office (“GAO”), challenging several aspects of the Air Force’s evaluation process. GAO sustained the protest on two grounds related to the technical evaluation of Innovative Test’s proposal and recommended that the Air Force take corrective action. The Air Force conducted a limited reevaluation of the offerors’ original proposals and issued a new selection decision on November 18, 2015, maintaining the award to National Aerospace.

*205 Innovative Test now seeks a permanent injunction in this court of the award to National Aerospace, asserting that the Air Force breached its duty to honestly and fairly consider Innovative Test’s proposal during the reevaluation, as well as renewing several of its protests regarding alleged flaws in the evaluation process. Pending before the court are the parties’ cross-motions for judgment upon the administrative record. For the reasons discussed in this opinion, the court has concluded that the plaintiffs motion should be denied and the government’s and defendant-intervenor’s motions should be granted.

FACTS 2

A. History of the Arnold Engineering Development Complex

The Arnold Engineering Development Complex was established in 1951 in the Tennessee Valley to serve as the Air Force’s premiere aerospace engineering development center. Pl.’s Mem. in Support of Its Mot. for Permanent Injunctive Relief, Declaratory Relief and Judgment on the Admin. Record (“PL’s Mot.”) at 3, ECF No. 50 (citing The History of AEDC, United States Air Force, http://www.arnold.af.mil/shared/media/ document/AFD-110405-006.pdf). The complex “operates 32 aerodynamic and propulsion wind tunnels, rocket and turbine engine test cells, space environmental chambers, arc heaters, ballistic ranges and other specialized units.” Id. In the 1960s, the complex focused on support to the U.S. space program, conducting tests on space propulsion systems. Id. at 4 (citing Aerospace, Excelled: The USA’s Arnold Engineering Development Center (“Aerospace, Excelled”), http;//www. defenseindustrydaily.eom/atas-consolidated-contract-for-maintenance-support-of-arnold-engineering-development-center-0627/). The focus later shifted to development of military aircraft, including testing for the F-15, F-16, and F-lll fighter aircraft. Id. The complex currently conducts aerodynamics and propulsion development tests for programs such as the F-22, F-35 Joint Strike Fighter, and F-18 E/F fighter aircraft, and the Delta III and IV rockets. Id.

Throughout the history of the Arnold Engineering Development Complex, the Air Force has relied on contractors to support the operations and maintenance of the test facilities, and to assist with information management and base operations. AR 132-27898; PL’s Mot. at 4 (citing Aerospace, Excelled ). 3 Initially the services were provided by a single contractor, but in 1980 the Air Force changed its acquisition strategy “[t]o stimulate competition and strengthen Air Force control of the Complex’s ... operations.” AR 132-27898. At that time, the Air Force awarded three separate contracts for propulsion testing, flight dynamics, and mission support. AR 132-27898. In 2003, these services were again consolidated into one contract known as Operations, Maintenance, Information Management, and Support (“OMIMS”). AR 132-27899; PL’s Mot. at 4. The OMIMS contract was awarded to Aerospace Testing Alliance (“ATA”), a joint venture between Jacobs Technology Inc. (“Jacobs”), Computer Sciences Corporation, and General Physics. AR 132-27899, -928. 4 The *206 contract extended for 12 years and was awarded for a price of $2.75 billion. Pl.’s Mot. at 4.

B. Solicitation for a New Test Operations and Sustainment Services Contract

In January 2013, the Air Force established a Source Selection Office to develop an acquisition strategy to again divide the OMIMS contract, this time into six distinct contracts, the largest of which (Test Operations and Sustainment) is at issue in this case. AR 132-27899 to -900. The government pub-lically announced its plans for the Test Operations and Sustainment contract in February 2013. AR 1-14. The Air Force issued a series of requests for information through the Federal Business Opportunities website to assess potential offerors’ capabilities and interests in the work to be performed and to obtain their reactions to possible contracting approaches. AR 1-2 to -20; see also AR 10-7364 to -66. Over the next several months, the Air Force also trained personnel who would be involved in the source selection process, including those who would be responsible for acquisition planning, past performance evaluation, risk management, and drafting instructions to offerors and evaluation criteria. AR Tabs 2-3, 6, 8. In October 2013, the Air Force received an independent government cost estimate totaling approximately $1.8 billion for the anticipated work to be performed over an eight-year period. AR 9-7343. The government also obtained a market research report, which concluded that the Test Operations and Sustainment contract should be awarded through a full and open competition because of the “limited number of companies with the capabilities to manage and execute the broad and diverse requirements of the proposed ... contract.” AR 10-7396.

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Innovative Test Asset Solutions LLC v. United States, 125 Fed. Cl. 201, 2016 WL 865310 (uscfc 2016).

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