Itility, LLC v. United States

124 Fed. Cl. 452, 2015 WL 9664969
CourtUnited States Court of Federal Claims
DecidedJanuary 7, 2016
Docket15-237C
StatusPublished
Cited by8 cases

This text of 124 Fed. Cl. 452 (Itility, LLC 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
Itility, LLC v. United States, 124 Fed. Cl. 452, 2015 WL 9664969 (uscfc 2016).

Opinion

Pre-award bid protest; Rule 12(b)(1) motion to dismiss; Contractor Performance Assessment Report; 48 C.F.R. § 42.1503(b)(1), (d); contract administration under Contract Disputes Act, 41 U.S.C. § 7101 et seq.; not ripe; no subject-matter jurisdiction.

MEMORANDUM OPINION AND ORDER

WOLSKI, Judge.

Plaintiff, ITility, LLC, has filed this matter as a pre-award bid protest. The suit concerns a past performance evaluation ITility received from the United States Air Force and the effect of this evaluation on its ability to compete for awards in pending and future procurements. Plaintiff has moved for a preliminary injunction, and the government has responded with a motion to dismiss the case for lack of subject-matter jurisdiction under Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (RCFC). For the reasons set forth below, the government’s motion is GRANTED and, as a consequence, plaintiffs is DENIED.

I. BACKGROUND

Plaintiff was awarded Contract No. FA4890-12-D-0008-0057 by the Air Force *455 on September 23, 2013, and served as the prime contractor on that contract through September 26, 2014. See Mem. in Supp. of Mot. for TRO and Prelim. Inj. (Pl.’s Br.), Ex. B (“First Sload Decl.”) ¶ 2. 1 The contract sought program management support for the Ah’ Force’s Air Combat Command A6C-T User Defined Operational Picture (UDOP) Rapid Innovation Funds effort. Id. The Air Force was seeking to develop an application that would allow its personnel to select multiple programs/databases and “view them together on a single ‘dashboard’ interface,” which is known as a UDOP. See Def,’s Mot. to Dismiss Compl. and Opp’n to Pl.’s Appl. for TRO and Mot. for Prelim. Inj. (Def.’s Mot.) at 4-5. ITility’s role under the contract was to provide program management and technical support for this UDOP initiative, which included overseeing the UDOP schedule and monitoring UDOP progress, developing a “best practices” plan for using the UDOP, building a demonstration site, and facilitating collaboration relating to the UDOP initiative between units and agencies. Id.; see also Compl. ¶¶ 12-25.

After numerous disputes between ITility and the Air Force with regards to ITility’s performance under the contract — including the Air Force’s issuance of three deficiency notices, a corrective action request, and a cure notice — the Air Force finally issued a stop-work order on the contract on June 27, 2014, and the period of performance was allowed to expire. See Admin. R. (AR) 501; see also AR 158-67, 171-81, 185-86, 363. Then, on November 5, 2014, Theresa Johnson, the Air Force’s Contracting Officer, issued an interim Contractor Performance Assessment Report (CPAR) concerning the contract, which rated ITility’s performance as “[XXX].” Compl. ¶28; AR 369. Plaintiff alleges this interim CPAR used “hyperbolic language” to describe ITility’s performance. Compl. ¶ 28. On November 18, 2014, ITility filed comments to the interim CPAR, contending that the CPAR was filled with “errors” and completely omitted “any discussion of [the Air Force]’s failure to meet the requirements-of the contract.” Id, ¶29; see AR 367-88 (interim CPAR with ITility’s comments). ITility claimed that it was not responsible for the failed contract, instead arguing that the Air Force was to blame because the Air Force had “never given” ITility “access to the current UDOP servers within [the Air Force’s] sole possession,” which was necessary in order for ITility “to perform work under the [cjontract.” Compl. ¶ 13. ITility also claimed that it was unable to access a website — hosted by another contractor, Sitscape — that was necessary to allow it to complete its performance. 2 Id. ¶¶ 14-16; First Sload Decl. ¶¶6-9. On January 23, 2015, the Air Force issued a final version of the CPAR, which softened some of the language from the interim CPAR but did not amend ITility’s “[XXX]” ratings. Compl. ¶ 30; see AR 525-47.

On March 6, 2015, plaintiff filed the complaint in this case, framed as a bid protest, accompanied by its motion for a preliminary injunction. Plaintiff alleges that the final CPAR issued by the Air Force contains inaccurate information and fails to provide necessary relevant information and context regarding the Air Force’s hindrance of ITility’s performance. According' to plaintiff, the Air Force’s CPAR violates the Federal Acquisition Regulation (FAR) provision requiring that past performance evaluations include “relevant information that accurately depicts the contractor’s performance” and be “based on objective facts,” Compl. ¶ 5 (quoting 48 C.F.R. § 42.1503(b)(1)), because it is inaccurate and misleading and will be viewed by procuring agencies to evaluate ITility’s past performance, id. ¶¶ 41-46. Plaintiff also contends that the government violated the FAR requirement that agencies “consider disagreements between the parties regarding the evaluation” because the reviewing official refused to address ITility’s comments disputing the CPAR. Id. ¶¶ 52-55 (quoting 48 C.F.R. § 42.1503(d)). Instead, the reviewing official merely noted that “many of the contractor comments contained within this *456 CPAR also appear within the non-conformance documentation within the contract file,” and thus the official felt there was “no need to re-address those issues here.” Id. ¶53. Finally, plaintiff claims that the viewing of this allegedly inaccurate and misleading CPAR by procuring agencies will result in an arbitrai*y and capricious determination of ITility’s acceptability for contract award, due to the FAR requirement that past performance be considered. Id. ¶¶ 58-62 (citing 48 C.F.R. § 15.305(a)(2)). 3

Plaintiff alleges that it has submitted proposals in eleven currently pending procure^ ments worth upwards of $200 million, and intends to submit proposals in response to twenty-seven additional solicitations worth upwards of $1.5 billion, all of which will involve consideration of past performance. Compl. ¶¶ 36-37, 39; see also First Sload Decl. ¶¶ 61-62, 64. ITility asserts that our court has jurisdiction over this matter as a bid protest under 28 U.S.C. § 1491(b)(1), “based on the proposed award of a contract and based on the imminent violation of a regulation in connection with a procurement or a proposed procurement as agencies are currently about to evaluate ITility’s past performance” by reviewing the Air Force’s CPAR. Compl. ¶ l. 4

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Bluebook (online)
124 Fed. Cl. 452, 2015 WL 9664969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/itility-llc-v-united-states-uscfc-2016.