McKing Consulting Corp. v. United States

78 Fed. Cl. 715, 2007 U.S. Claims LEXIS 336, 2007 WL 3054390
CourtUnited States Court of Federal Claims
DecidedOctober 4, 2007
DocketNo. 07-17 C
StatusPublished
Cited by27 cases

This text of 78 Fed. Cl. 715 (McKing Consulting Corp. 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
McKing Consulting Corp. v. United States, 78 Fed. Cl. 715, 2007 U.S. Claims LEXIS 336, 2007 WL 3054390 (uscfc 2007).

Opinion

OPINION AND ORDER

BLOCK, Judge.

This is a pre-award bid protest. Plaintiff McKing Consulting Corporation (“McKing”) challenges the December 22, 2006 Human Resources and Services Administration (“HRSA”) issuance of Request for Proposals No. TA SERVICES MCHB-DLC (the “Solicitation”), and seeks to permanently enjoin the performance of the contract. HRSA is part of the federal government’s Department of Health & Human Services (“DHHS”). McKing is an incumbent contractor with HRSA, currently providing oral health consulting services. The Solicitation seeks bidders for oral health technical assistance support services — essentially the same work as McKing’s existing contract. McKing secured its existing contract through a 2004 small business set-aside solicitation. Their existing contract’s expiration prompted the challenged Solicitation. McKing asserts the Solicitation should not be a small business set-aside, and brings three claims — violation of the Competition in Contracts Act, 41 U.S.C. § 253 et seq., (“CICA”) and Federal Acquisition Regulation (“FAR”), arbitrary and capricious conduct by HRSA with regard to the procurement, and violation of the Procurement Integrity Act (“PIA”), 41 U.S.C. § 423.

Both parties have moved for judgment on the record. Rule 52.1(b), Rules of the Court of Federal Claims (“RCFC”). Pl.’s Mot. for Jdgmt on the Rec; Def.’s Cross-Mot. for Jdgmt on the Rec. Plaintiff also moves impermanent injunctive relief. RCFC 65. The Court held a hearing to address the motions on March 29, 2007. Because the government did not act contrary to law when soliciting the procurement as a small business set-aside, the Court denies plaintiff’s request for injunctive relief and for its motion on the record. The Court grants defendant’s motion for judgment on the record.

I. FACTUAL BACKGROUND2

This pre-award bid protest arises out of the Solicitation issued by HRSA for technical assistance support services — the same work McKing is currently performing for HRSA pursuant to a 2004 contract award. PI. Amend. Cmpl. Specifically, the Solicitation called for bidders to provide dental consultants to perform the following work during the course of the contract-develop plans and policies for oral health conferences, develop technical materials for oral health conferences, manage conference logistics and communications, and staff and manage federal grant application review meetings. AR 10-14.

McKing’s contract was scheduled to expire on September 28, 2006, prompting the issuance of the Solicitation. PL Amend. Cmpl. McKing continues to provide dental health consulting services to HRSA pursuant to their expired contract, pending the outcome of this litigation. At the time of the old contract award, McKing was a certified small business under the Small Business Adminis[717]*717tration’s (“SBA”) 8(a) Program.3 The original contract was awarded pursuant to a 100% small business set-aside. Id. It is undisputed that McKing was no longer eligible to bid as a small business when the Solicitation was issued. PI. Amend. Cmpl.

As part of HRSA’s acquisition planning for fiscal year 2006, HRSA identified its procurement needs through the creation of a procurement plan. AR 608. HRSA’s procurement plan was a culmination of discussions with those responsible for various aspects of the procurement, and served as the agency’s tool for complying with FAR Part 7.4 AR 2625-26. Specifically, HRSA evaluated its existing contracts, and forecasted what contracts needed to be reprocured in the future. Id. HRSA also transmitted its fiscal year 2006 procurement needs to the Office of Small and Disadvantaged Business Utilization (“OSDBU”) in a report entitled “Forecast of HHS’ Contracting Opportunities for FY 2006.” AR 608-18; 2613-19. The report, a forecast of business opportunities made for informational and marketing purposes, was published on September 28, 2005, and posted on the OSDBU website for the entire fiscal year. AR 608, 618. The procurement that is the subject of the Solicitation that McKing now challenges is listed in the Forecast as a small business set-aside that HRSA planned to solicit in the forth quarter of FY 2006. AR 614. During their evaluation of their existing contracts, HRSA recognized the need to solicit a follow-up contract for the expiring McKing oral health services consulting contract. AR 608, 614. HRSA attempted to solicit bidders for the follow-up contract three times, the final attempt being the Solicitation now subject to this lawsuit.

The first reprocurement attempt was through a Strategic Sourcing Initiative (“SSI”) implemented by the Office of the Secretary for Administration and Management (“OSAM”) of the Department of Health and Human Services (“DHHS”). PI. Amend. Cmpl. The purpose of the SSI was to reduce operational costs by using blanket purchase agreements (“BPA”) with vendors to receive discounts. Id. Since the government is a high-volume consumer of good and services, the SSI was implemented to lower prices paid by government agencies by using the purchasing leverage mass quantities provide. Id. The initial solicitation attempt looked to take advantage of a General Services Administration (“GSA”) schedule program. Id. Commonly referred to as the “Sears catalog of government contracts,” the GSA’s schedules provide the convenience of contracts that have already been vetted for price reasonableness, so an agency need only focus on the responsiveness of a potential contractor. Transcript of Oral Argument at 21. A winning bid on the first reprocurement attempt was submitted by Professional and Scientific Associates, Inc. (“PSA”), pursuant to an events management BPA schedule. PI. Amend. Cmpl.

McKing protested the first solicitation attempt on August 29, 2006, and filed a protest with the Government Accounting Office (“GAO”) on October 10, 2006, contending the contract should not have been drawn from an events management schedule because the work solicited was not technically “events management.” Transcript of Oral Argument at 25-27. After the GAO protest was dismissed as untimely, McKing filed a protest in this Court on November 13, 2006. AR 443. Upon review of the merits, and without an admission of any wrongdoing, HRSA took voluntary remedial action, terminating the BPA solicitation attempt on November 27, 2006, “for the convenience of the government.” AR 570. The government then moved to dismiss the claim in this court, and [718]*718because the termination of the contract made the case moot, this court dismissed McKing’s protest on December 1, 2006. AR 572-573.

Thereafter, the contracting officer, Alexandra Garcia, along with contract specialist Diane Coger and project officer for procurement Mark Nehring, determined that in order to utilize funds from the cancelled BPA contract, HRSA had to award a replacement contract within 100 days of the termination of the BPA contract.5 AR 621. However, before issuing the second solicitation attempt, Ms. Garcia conducted research on GSA’s schedule database, and identified eight GSA schedules that could potentially be used to procure the required services. Id. Ms. Garcia then determined that the Mission Oriented Business Integrated Services6

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Bluebook (online)
78 Fed. Cl. 715, 2007 U.S. Claims LEXIS 336, 2007 WL 3054390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcking-consulting-corp-v-united-states-uscfc-2007.