Jacobs Technology Inc. v. United States

100 Fed. Cl. 198, 2011 U.S. Claims LEXIS 1708, 2011 WL 3555595
United States Court of Federal Claims·Decided July 29, 2011·No. Nos. 11-180C, 11-190C·Published·Cited by 28 cases

Opinion

OPINION AND ORDER

DAMICH, Judge.

Before the Court in this consolidated bid protest case are (1) the motions of Plaintiff2 IBM Global Business Services (“IBM”) to compel discovery and to supplement the administrative record and motion for judgment on the administrative record and (2) cross-motions for judgment on the administrative record by the Defendant United States and Defendant-Intervenor Jacobs Technology Inc. (“Jacobs”).

In brief, IBM challenges the Department of Defense United States Special Operations Command’s (variously, “USSOCOM’s,” “agency’s,” or “Defendant’s”) initial contract award to Jacobs (a poshaward bid protest on the initial procurement) and the agency’s subsequent decision to revise the RFP and resolieit the procurement (a pre-award bid protest on the reproeurement). IBM alleges that the agency’s decisions in the initial award and in the reproeurement were arbitrary and capricious and in violation of law. Specifically, IBM raises issues related to (1) possible organizational conflicts of interests (“OCIs”), (2) a possible violation of the Procurement Integrity Act (“PIA” or “the Act”), (3) an appearance of impropriety, (4) the technical/management evaluation of proposals, and (5) the past performance evaluation of proposals. For the issues pertaining to alleged OCIs and a PIA violation, IBM seeks discovery and supplementation of the administrative record.

For the reasons explained below, the Court (1) denies IBM’s motion to compel discovery and supplement the administrative record, (2) denies as moot IBM’s motion for judgment on the administrative record on the issues related to the initial procurement, and (3) grants IBM partial injunctive relief for the reproeurement — enjoining the agency from awarding a contract until the agency conducts additional analysis of organizational conflicts of interests. On all other issues raised by IBM with regard to the reprocurement, the Court denies IBM’s motion for judgment on the administrative record and grants the Defendant’s and Jacobs’ cross-motions on the administrative record.

I. BACKGROUND

USSOCOM established a service management and delivery framework — Special Operations Forces Information Technology Enterprise Contracts (“SITEC”) — to achieve its vision for a worldwide technology infrastructure. USSOCOM intends to migrate various information technology services from the existing Enterprise Information Technology Contract (“EITC”) to new service providers acquired through SITEC. Administrative Record (“AR”) 804. The Information Technology Service Management (“ITSM”) contract, at issue in this case, is the first of a series of service contracts to be awarded as part of SITEC. AR 803, 805. The ITSM service area provides the overall management of the information technology service [202]*202providers and the integration of USSOCOM’s worldwide information technology infrastructure and operations. AR 803.

A. USSOCOM’s Request for Proposals

On May 27, 2010, USSOCOM issued a final request for proposals (“RFP”) for ITSM services. AR 700. The RFP stated that the ITSM Contractor would be expected to support the Information Technology Management Office in (1) enterprise-level standardized information technology processes and methodologies, (2) the transition from the EITC to the new service providers, and (3) the overall integration and coordination of the service delivery activities provided by various service providers. AR 804.

The RFP set forth the specific criteria that USSOCOM would use in the evaluation of offerors’ proposals and in its best value source selection decision. The RFP stated that the agency would first evaluate proposals under several pass/fail qualifying criteria and then evaluate the proposals based on technieal/management, past performance, and eost/price factors. AR 1472.

For the Technical/Management Factor (RFP Section M.1.4), the RFP advised that:

[The agency would] evaluate the Offeror’s overall approach and expressed capabilities for providing the IT service management and integration services across all IT Service Areas, as well as its ability to manage the day-to-day operations delivery and support the IT services environment for each individual IT Service Area. Evaluation of this factor shall focus on the strengths, weaknesses, and risks of the Offeror’s proposal, as well as demonstrated historical capability of engagements of similar size and complexity.

AR 1474. The RFP stated that the agency would assign an overall rating for techni-eal/management of outstanding, good, acceptable, or unacceptable based on a roll-up of nine subfactors. AR 1473.

For the Past Performance Factor (RFP Section M.1.5), the RFP stated that:

[The agency would] consider[ ] the Offer- or’s demonstrated record of performance in providing services and products that meet users’ needs and in past performance regarding subcontracting. The [] Past Performance evaluation [would] focus on how well the contractor performed or is performing the same or similar type of work under other Government or commercial contracts____The [agency would] conduct an in-depth review and evaluation of all past performance data obtained to determine how closely the work performed under those efforts relates to the current requirement.

AR 1475-76.

The RFP advised that the past performance assessment would reflect the agency’s overall level of confidence in the offeror’s ability to successfully perform the required effort. The agency would determine whether it has high confidence, satisfactory confidence, limited confidence, or unknown confidence in the offeror’s ability. The confidence rating in turn would be based on the offeror’s performance evaluations for current and relevant present and past performance. The agency would assign a performance rating of exceptional, very good, satisfactory, or unsatisfactory to each evaluation.

For the Cost/Price Factor, the RFP stated that the agency would evaluate the offerors’ proposals based on Probable Cost and assess for reasonableness under Federal Acquisition Regulations (“FAR”). AR 1476. The RFP explained that Probable Cost would be determined by USSOCOM in part based on the offerors’ proposed unit prices and the agency’s estimate of the quantity of users. Id. The RFP advised that Probable Cost represented the agency’s “best estimate of the cost of any contract that is most likely to result from the Offeror’s proposal.” Id.

One component of Probable Cost was the cost associated with information technology service desk support. Pursuant to the RFP, offerors were required to provide prices— per month per user — for three different levels of service (bronze, silver and gold levels) as part of the service desk support requirement. For the initial procurement, the RFP provided annual maximum quantities for each service level. USSOCOM provided historical information only for the total number of users on a monthly basis. The agency [203]*203indicated that offerors were expected to “use that data along with their experience with similar efforts to develop an estimate of the effort required for the service desk effort.” AR 1038. The agency also stated that offer-ors were only to provide unit prices for each level; the agency would evaluate offerors’ costs based on its estimate of the number of monthly users by level.

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Jacobs Technology Inc. v. United States, 100 Fed. Cl. 198, 2011 U.S. Claims LEXIS 1708, 2011 WL 3555595 (uscfc 2011).

100 Fed. Cl. 198 (Jacobs Technology Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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