Knowledge Connections, Inc. v. United States

76 Fed. Cl. 6, 2007 U.S. Claims LEXIS 102, 2007 WL 1031709
CourtUnited States Court of Federal Claims
DecidedMarch 28, 2007
DocketNo. 06-786C
StatusPublished
Cited by11 cases

This text of 76 Fed. Cl. 6 (Knowledge Connections, 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
Knowledge Connections, Inc. v. United States, 76 Fed. Cl. 6, 2007 U.S. Claims LEXIS 102, 2007 WL 1031709 (uscfc 2007).

Opinion

OPINION AND ORDER1

LETTOW, Judge.

Plaintiff Knowledge Connections, Inc. (“KCI”) lodged this bid protest involving an information-technology set-aside procurement for service-disabled, veteran-owned small businesses. The General Services Administration (“GSA”) administered the procurement, known as the Veterans Technology Services Government-wide Acquisition Contract (“VETS GWAC”), under an “executive agent” designation bestowed on GSA by the Office of Management and Budget (“OMB”), the overseer of all federal procurement of information technology. VETS GWAC was part of an effort to implement Executive Order 18360, by which Order the President sought to effectuate two federal statutes that (1) set a government-wide goal of not less than three percent for the participation in federal procurement contracts of small businesses owned and controlled by service-disabled veterans and (2) permit certain set-aside and restricted-competition procurements for service-disabled, veteran-owned businesses. See Exec. Order No. 13360, 69 Fed.Reg. 62,549, 62,549 (Oct. 26, 2004); see also 15 U.S.C. §§ 644(g)(1), 657f. Conceptually, by way of the VETS GWAC, GSA endeavored to select a pool of pre-qualified, service-disabled, veteran-owned small businesses that then would compete for information technology “task orders” from individual agencies across the federal government.

KCI filed its complaint on November 22, 2006, amending it on November 29, 2006. KCI initially claimed a variety of errors in the procurement process, Am. Compl. HH15-23, but it ultimately focused on its allegations that GSA (1) arbitrarily limited the number of awardees, (2) violated a condition of OMB’s “executive agent” designation that prohibited GSA from taking into account an offeror’s lack of government contracting ex[8]*8perience, and (3) arbitrarily employed a tier-ing arrangement for evaluation of past experience based on monetary values of previous contracts offerors had performed, thus in effect excluding from consideration for an award KCI and others who did not have a broad range of prior work. Pl.’s Mot. for Judgment on the Administrative Record (“Pl.’s Mot.”) at 7; PL’s Resp. to Def.’s Supplemental Brief at 1-2. On November 29, 2006, Catapult Technology, Ltd., an offeror identified at the time as a potential awardee, was granted leave to intervene in this matter.

Following a status conference on November 29, 2006, the court adopted an expedited schedule for submitting the administrative record and for filing cross-motions for judgment on the administrative record. By a motion filed December 15, 2006, KCI sought a temporary restraining order to preclude GSA from completing the VETS GWAC by awarding contracts, until this court ruled on KCI’s pending request for a permanent injunction. On that same day, the court held a hearing on that motion and denied it. Promptly thereafter, on December 18, 2006, GSA awarded contracts to 43 service-disabled, veteran-owned small businesses, including intervenor,2 and this action was then converted from a pre-award bid protest to a post-award protest. Subsequently, on January 8, 2007, the parties filed a stipulation that “[pjlaintiff will not pursue any injunctive or declaratory relief from this [cjourt in this ... action that will have the effect of invalidating any award made by GSA on December 18, 2006, as part of the VETS GWAC proeurement, to any of the 43 awardees, including [ijntervenor.” Stipulation If l.3 Following briefing, a hearing on the cross-motions for judgment on the administrative record and on separate motions filed by each-party seeking to supplement the administrative record was held on January 26, 2007. Supplemental briefing was concluded on February 21, 2007. The case is now ready for disposition.4 For the reasons set forth below, the court remands this case to GSA for a determination of whether the tiering arrangement included in the solicitation is consistent with Executive Order 13360 and the conditions OMB placed on the “executive agent” designation it bestowed on GSA.

FACTS5

A. Statutory Background

In 1999, Congress amended Section 15(g)(1) of the Small Business Act to require the President to establish a government-wide goal of not less than three percent for the participation in federal procurement contracts of small businesses owned and controlled by service-disabled veterans. See Veterans Entrepreneurship and Small Business Development Act of 1999 (the “1999 Act”), Pub.L. No. 106-50, § 502(a)(2), 113 Stat. 233, 247 (codified at 15 U.S.C. § 644(g)(1)). In responding to public comments on proposed amendments to the Federal Acquisition Regulation (“FAR”) pursuant to the 1999 Act, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (“Councils”)6 specif[9]*9ically rejected a request that the FAE refer to the three percent goal:

The FAE does not specify the statutory Government[-]wide goals for any small business category because they have no regulatory purpose for agencies. Statutory goals for small businesses are established on a Govemment[-]wide basis. Within these Government[-]wide goals, SBA negotiates separate annual goals for each small ■ business category with each agency. The individual agency goals attempt to reflect the agency mission and its contracting requirements, and these individual agency goals may be higher or lower than the Government[-]wide goal. SBA then tracks cumulative agency achievements against the Government[-]wide goal. Accordingly, specifying the 3 percent service-disabled veteran-owned small business goals in the FAE is inappropriate in that only the goal negotiated with SBA is relevant to that agency.

Federal Acquisition Eegulation; Veterans Entrepreneurship and Small Business Development Act of 1999, 66 Fed.Reg. 53,492, 53,-492 (Oct. 22, 2001). A further amendment of the Small Business Act was enacted in 2003, when Congress added Section 36 to give federal agency contracting officers discretion to set aside certain procurements for service-disabled, veteran-owned small businesses through the use of sole-source contracts and contracts in which competition was restricted to such businesses. See Veterans Benefits Act of 2003 (“2003 Act”), Pub.L. No. 108-183, § 308, 117 Stat. 2651, 2662 (codified at 15 U.S.C. § 657f). In issuing a final rule amending the FAE to include regulations for the sole-source and set-aside provisions of the 2003 Act, the Councils rejected a public comment that requested altering the language from “may set-aside” to “shall set aside.” See Federal Acquisition Eegulation; Procurement Program for Service-Disabled Veteran-Owned Small Business Concerns, 70 Fed.Reg. 14,950, 14,953 (March 23, 2005); 48 C.F.R. § 19.1405(a) (2004). The Councils explained that by using the words “may award” the Veterans Benefits Act of 2003 “established a discretionary, not mandatory, set-aside authority for [service-disabled, veteran-owned small businesses].” 70 Fed.Eeg. at 14,953; see 15 U.S.C. §

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76 Fed. Cl. 6, 2007 U.S. Claims LEXIS 102, 2007 WL 1031709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knowledge-connections-inc-v-united-states-uscfc-2007.