Msc Industrial Direct Co., Inc. v. United States

126 Fed. Cl. 525, 2016 WL 2609685
CourtUnited States Court of Federal Claims
DecidedMay 6, 2016
Docket15-1409C
StatusPublished
Cited by3 cases

This text of 126 Fed. Cl. 525 (Msc Industrial Direct Co., 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
Msc Industrial Direct Co., Inc. v. United States, 126 Fed. Cl. 525, 2016 WL 2609685 (uscfc 2016).

Opinion

*528 Bid Protest; Pre-Award; Corrective Action; Federal Supply Schedule; Blanket Purchase Agreement, FAR 8.406-3; Ability-One Program

OPINION

BRUGGINK, Judge.

This is a post-award protest of a corrective action decision taken by the General Services Administration (“GSA” or “the agency”) in response to a Government Accountability Office (“GAO”) protest by W.W. Grainger, Inc. (“Grainger”) following the award of two blanket purchase agreement (“BPA”) modifications to MSC Industrial Direct Co., Inc. (“MSC”). Specifically, MSC protests GSA’s decision to (1) terminate the awards of the BPA modifications to MSC under Request for Quotations (“RFQ”) No. QS0A-4PL-150014; (2) amend the RFQ to correct an asserted misstatement of a requirement; (3) invite competitors to submit revised quotations; and (4) make a new award decision. Pending are the parties’ cross-motions for judgment on the administrative record pursuant to Rule 62.1 of the Rules of the Court of Federal Claims (“RCFC”) and intervenor’s motion to dismiss pursuant to RCFC 12(b)(1) and 12(b)(6). The motions are fully briefed, and oral argument was held on April 29, 2016. As announced at the conclusion of oral argument, and for the reasons set out herein, we deny plaintiffs motion and grant defendant’s and intervenor’s motions for judgment on the administrative record. Intervenor’s motion to dismiss is denied as moot.

BACKGROUND

The GSA Office of General Supplies and Services (“GSS”) is responsible for acquisition services and comprehensive supply chain management. One of its divisions, Retail Operations, manages GSS’s fourth-party logistics (“4PL”) solutions program. This program is designed to provide supply solutions to client organizations.

The Federal Supply Schedule (“FSS”), also known as the GSA Schedules Program or the Multiple Award Schedule Program (“MAS”), provides federal agencies with a simplified process for obtaining commonly used commercial supplies and services. GSA schedule contracts require all contractors to publish an “Authorized Federal Supply Schedule Pri-celist,” which contains all supplies and services offered by a contractor. BPAs may be established under FSS contracts “to fill repetitive needs for supplies or services.” FAR 8.405~3(a)(l).

Sometime prior to December 2013, a number of Command Fleet Readiness Centers (“COMFRC”) and DLA Aviation Fleet Readiness Centers (“FRC”) requested the 4PL program. In order to provide supply services to the FRCs, GSA Retail Operations issued an RFQ on December 9, 2013, for the purpose of establishing multiple BPAs with existing MAS vendors to provide and manage inventory within the FRCs.

On June 16, 2014, GSA established BPAs with four vendors: MSC, Grainger, [redacted], and [redacted]. All four vendors have contracts pursuant to FSS Schedule 61V, which covers hardware supply needs. The BPAs did not authorize vendors to begin supplying products; instead, they provided that GSA would issue a competitive RFQ and would award two BPA modifications to the vendor(s) whose quotations represented the best value to the government.

The BPAs contemplated that the awardee vendors would establish physical storefronts for the purpose of stocking and managing industrial product inventory for military FRCs. Vendors would also be required to fill in-store “referral” orders of items from the vendor’s catalog which were not currently stocked in the store and allow for on-line “referral” ordering. The BPAs provided that “[delivery is required no later than 3 calendar days after receipt of order.” Administrative Record (“AR”) 31. Further, the vendor was to maintain a fill rate for in-store/online referral and web ordering of 95%. AR 43. This rate is “based upon the maximum time interval (in business days) from the issuance of the order to the date that the order is delivered.” Id.

The modifications required vendors to “ensure that no item which is essentially the same as an AbilityOne item be sold to a Government customer,” and to delete “all items, terms and conditions not accepted by the Government, including items Essentially- *529 the-Same (“ETS”) as AbilityOne products” from print and electronic catalogs. AR 123-24. 2

RFQ QS0A-4PL-150014 was issued in February 2015. 3 Its purpose was to “acquire support for GSA [ ] end-to-end supply chain management requirements (Issue Points) for the Distribution Centers and Supply Storage Centers” for FRCs in Jacksonville, Florida (“FRCSE”), Oceana and Norfolk, Virginia (“FRCMA”), Cherry Point, North Carolina (“FRCE”), and San Diego, California (“FRCSW”). AR 284. The RFQ contemplated that two BPA modifications would be awarded one for FRCSE, FRCMA, and FRCE, and a second for FRCSW. The statement of work provided that the BPA holder would supply the line of tools and industrial products for the FRCs’ Distribution Centers, Supply Storage locations, Master Tool Room Warehouses, Safety Crib Warehouses, and Facilities Maintenance Warehouses. Id. Unlike the BPA, the RFQ did not mention a three-calendar-day delivery requirement for referral orders.

The evaluation was based on price and non-price factors. The non-price factors, in order of importance, were: Specific Technical Expertise-Supply Chain System Capability, Past Performance, and Local and Small Business Utilization Plan. AR 297-98. These factors, when combined, were significantly more important than price. Id. For the price evaluation, the RFQ instructed BPA holders to quote prices for 548 commonly purchased items, called the “market basket.” AR 296. The evaluation would involve a comparison of each vendor’s proposed unit pricing for the market basket items. However, the bidders were not expected to submit price quotations for all 548 items; thus, only the common items submitted would be evaluated. The evaluation would be “based on offered discount from BPA prices, including the weighted average of the discounts proposed for the three sales volume tiers.” AR 111.

Both MSC and Grainger submitted quotations in response to the RFQ on March 11, 2015. MSC’s quotation- provided that it is able to deliver orders anywhere in the contiguous 48 United States "within three business days after receipt of order. Grainger’s quotation stated that it can “provide 24-48 hour shipment times on most referral orders” and that “items requested for pick-up that are not immediately available at the On-Site location will be shipped for next day pick-up from the supporting [distribution center].” AR 459, 468. ■

The quotations were evaluated during March and April 2015. Grainger and MSC were given the same ratings for all of the non-price factors. AR 950-60. During the price evaluation, it was determined that MSC’s price was approximately 23% lower than Grainger’s price. AR 961-66. The contracting officer therefore determined that MSC’s quotation represented the best value to the government. AR 966. On May 4, 2015, GSA awarded the BPA modifications to MSC. The contracting officer subsequently notified Grainger of the award decision and informed Grainger that MSC’s price was approximately 23% lower than Grainger’s. AR 972.

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Bluebook (online)
126 Fed. Cl. 525, 2016 WL 2609685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/msc-industrial-direct-co-inc-v-united-states-uscfc-2016.