Insight Systems Corp., and Centerscope Technologies, Inc. v. the United States 12-863c and

110 Fed. Cl. 564
United States Court of Federal Claims·Decided May 6, 2013·No. 12-863C and 12-883C·Published·Cited by 26 cases

Opinion

Pre-award bid protest; Cross-motions for judgment on the administrative record; Standard of review — Bannum; Proposals received by government mail server, but not forwarded to the next server in the government mail system, were covered by the Government Control exception to the “late is late” rule found in 48 C.F.R. § 52.212-l(f)(2)(i)(B); Plain meaning of regulation controls; Watter-son Constr.; Specific/general canon of construction; Contrary GAO decisions rejected; Injunction issued.

OPINION

ALLEGRA, Judge:

Coming before this court, with disturbing frequency, are bid protests that find defendant straining to defend agency decisions to reject, as purportedly late, proposals submitted by contractors electronically. 2 These cases somewhat painfully illustrate the thorny issues that can arise when the outmoded provisions in the Federal Acquisition Regulations (FAR) governing the delivery of electronic proposals - which date back to the last century — are applied to modern computer technology. As this deficiency is well-documented, 3 and because, notwithstanding it, Federal agencies continue, in the name of electronic commerce, to exhort offerors to submit their proposals electronically, one might think that those same agencies would be hesitant to construe the FAR in a way that springs technological traps on their con- *569 traeting partners - but, then again, perhaps not.

In this case, Insight Systems Corp. (Insight) and CenterScope Technologies, Inc. (CenterScope) both electronically submitted quotations in response to a request for quotations issued by the United States Agency for International Development (USAID). Unfortunately, those electronic communications were sent when one or more of the internal servers that USAID’s contractors use in processing the agency’s electronic mail apparently were malfunctioning. Although the emails containing the proposals were received and accepted by the initial server in USAID’s mail system before the submission deadline, they were not forwarded on to the next server in the mail delivery system because of an internal processing error. The contracting officer rejected the quotations as untimely because they were not received in her electronic mailbox before the deadline. Arguing that “late is late,” defendant claims that it is irrelevant that the delays here occurred as a result of the malfunction of government computers. At issue is whether a different view is reflected in FAR § 52.212-l(f)(2)(i)(B), which provides a “Government Control” exception to the late-filing rule that plaintiffs claim applies here. Although defendant argues that this exception only covers paper filings, the court, for a host of reasons, disagrees. Because it finds that the exception should have been applied here, the court concludes that USAID’s refusal to accept plaintiffs’ proposals was arbitrary, capricious, and contrary to law. As such, the court GRANTS plaintiffs’ motions for judgment on the administrative record and DENIES defendant’s cross-motion for judgment on the administrative record. An appropriate injunction is entered.

I. BACKGROUND

The administrative record in this case reveals the following:

On June 8, 2012, USAID issued Request for Quotation (RFQ) No. SOL-OAA-OOOO68 “seeking quotes for services in support of [USAID’s Bureau of] Global Health Support Services.” The RFQ anticipated the award of a task order under the General Service Administration’s Federal Supply Schedule to a company eligible under GSA’s FSS 874 for Mission Oriented Business Integrated Systems (MOBIS). The procurement was also a total setaside for small businesses participating in the Small Business Administration’s Section 8(a) Disadvantaged Business Development program.

Quotations in response to the RFQ were originally due on July 9, 2012, at 11:00 am EDT. The due date was subsequently extended to July 16, 2012, at 11:00 am EST, and then to July 23, 2012, at 2:00 pm EST. 4 The RFQ contained conflicting delivery instructions. In Attachment 1, it stated, “[q]uotes submitted in response to this RFQ will be received ... electronically by email only.” The RFQ then provided the email addresses of the contracting officials, Alina Schulte and Alisa Dunn (the contracting officer). In Attachment 3, the RFQ directed offerors to submit a hard copy quote to the attention of Ms. Dunn at USAID’s Washington, DC offices (although it again listed both Mss. Schulte’s and Dunn’s email addresses). In an undated question and answer document, USAID clarified that although “[t]he preferred delivery method is physical submission via mail or hand delivery,” email delivery was acceptable, but that “it is the vendor’s responsibility to make sure that USAID receives the technical and price quotes with the correspondent attachments.” The RFQ instructed that “[q]uotes must be received by the closing date and time by the person and the place designated to be considered received in time.”

Both Insight and CenterScope submitted timely quotes. On or around September 24, 2012, USAID notified plaintiffs that it had made the award to a third company, BLH Technologies, Inc. (BLH). On September 26, 2012, and September 27, 2012, respectively, CenterScope and Insight protested this *570 award to the United States Government Accountability Office (GAO). By letter dated October 15, 2012, USAID advised GAO that it had decided to take corrective action in response to the protests, by reopening discussions with those offerors that were in a competitive range and by inviting the submission of “revised final quotes.” Consequently, on October 24, 2012, the GAO dismissed the protests.

On November 2, 2012, USA ID sent letters to plaintiffs informing them that they were in the competitive range. On November 8, 2012, USAID issued written discussion questions to the offerors in the competitive range. The letters stated that “[r]evised final quotes should be submitted electronically to [Ms. Schulte’s email address] and [Ms. Dunn’s email address] by COB Wednesday, November 21, 2012.” On November 19, 2012, USAID amended the RFQ to indicate that “Responses to USAID Discussion questions dated November 8, 2012 can be submitted as an attachment,” and that “[t]he deadline to submit final revised quotes has been extended from COB (5:00 pm) Wednesday, November 21, 2012, to COB (5:00 pm) Tuesday, November 27th.”

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Insight Systems Corp., and Centerscope Technologies, Inc. v. the United States 12-863c and, 110 Fed. Cl. 564 (uscfc 2013).

110 Fed. Cl. 564 (Insight Systems Corp., and Centerscope Technologies, Inc. v. the United States 12-863c and) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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