Nexagen Networks, Inc. v. United States

124 Fed. Cl. 645, 2015 WL 9920081
CourtUnited States Court of Federal Claims
DecidedJanuary 27, 2016
Docket15-664C
StatusPublished
Cited by8 cases

This text of 124 Fed. Cl. 645 (Nexagen Networks, 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
Nexagen Networks, Inc. v. United States, 124 Fed. Cl. 645, 2015 WL 9920081 (uscfc 2016).

Opinion

Bid Protest; Tucker Act, 28 U.S.C. § 1491(b); Motion to Dismiss; Rule 12(b)(1); Rule 12(b)(6); Contract Disputes Act, 41 U.S.C. § 7103(a); Task Order; Federal Acquisition Streamlining Act, 10 U.S.C. § 2304c(e).

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, Nexagen Networks, Inc., brought this bid protest action challenging the United States Army Contracting Command’s decision to terminate its contract to provide data strategy and software support services to the government and the government’s subsequent corrective actions with respect to that contract. The government has moved to dismiss Nexagen’s complaint for lack of subject-matter jurisdiction pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”), or, in the alternative, for failure to state a claim upon which relief can be granted, pursuant to RCFC 12(b)(6), For the reasons set forth below, the Court GRANTS defendant’s motion to dismiss.

II. PROCEDURAL AND FACTUAL

*648 BACKGROUND 1

A. Factual Background

The relevant facts in this bid protest matter are not in dispute. Plaintiff, Nexagen Networks, Inc. (“Nexagen”), is a government contractor and one of several awardees of a multi-award indefinite-delivery-indefinite-quantity contract to provide scientific, systems engineering, and software systems and services to the United States Army Communications and Electronics Command’s Software Engineering Center, AR at 962-64.

1. Relevant Task Order

The Army Contracting Command (the “Army”) procures the services called for under the contract through the award of task orders, and solicits proposals to perform those task orders through the issuance of task order requests. AR at 964. At issue in this bid protest matter is the award of a specific task order to provide data strategy and software support services for which the Army solicited proposals by issuing Task Order Request No. SSESR-2031 (“TOR 2031”) on July 11, 2014. AR at 161, 182, 335, 815.

On July 29, 2014, Nexagen submitted a proposal in response to TOR 2031. AR at 2397-524. On September 30, 2014, the Army awarded the task order pursuant to TOR 2031 to CACI Technologies, Inc. (“CACI”). AR at 2949-992.

Following a protest of that award before the United States Government Accountability Office (“GAO”), the Army elected to take corrective action by issuing an amendment to TOR 2031 (“TOR 2031-1”) on November 14, 2014. AR at 161, 1481. The Army solicited proposals for TOR 2031-1 from all of the government contractors that had previously submitted proposals for TOR 2031, including Nexagen. AR at 161, 162, 3520.

On December 1, 2014, Nexagen, along with five other government contractors, submitted a proposal in response to TOR 2031-1. AR at 2, 490-617. The Army awarded the task order solicited pursuant to TOR 2031-1 to Nexagen on February 13,'2015. AR at 1444-450. The .total value of TOR 2031-1 was $46,309,664. AR at 648.

On March 6, 2015, CACI protested the award of the task order to Nexagen before the GAO. AR at 70.1-70.2. In March 2015, the Army also sent two e-mails to Nexagen stating that Nexagen had not complied with the performance work statement for the task order. AR at 771-74. In particular, the Army indicated that Nexagen had not fully staffed open positions and that some staff did not have the required experience. AR at 771-74. The GAO dismissed CACI’s protest on March 26, 2015, after the Army advised that it intended to take corrective actions by reevaluating all proposals submitted in response to TOR 2031-1 and making a new award decision. AR at 1491, 3526. Subsequently, on April 20 and 21, 2015, the Army issued cure notices to Nexagen to address the Army’s concerns regarding non-compliance. AR at 775-77.

On April 27, 2015, Nexagen filed a protest before the GAO challenging the Army’s decision to take corrective actions in relation to the task order. AR at 46-54. During the protest, Nexagen requested that the GAO order “the corrective action to cease regarding the subject task-order and Nexagen’s award be affirmed.” AR at 48. On May 1, 2015, the GAO dismissed Nexagen’s protest finding that Nexagen’s challenge to the Army’s actions was premature because the Army’s corrective actions were ongoing. AR at 4752.

On May 4, 2015, the Army’s contracting officer terminated Nexagen’s contract to provide the data strategy and software support services called for in the task order for default, because Nexagen failed to address the deficiencies set forth in the government’s cure notices. AR at 806. The problems with the task order did not, however, end with the termination of Nexagen’s contract. On May 6, 2015, the Army canceled TOR 2031-1 because of “material flaws in the evaluation *649 record which made re-evaluation and a subsequent award impossible.” AR at 816. Following the cancelation of TOR 2031-1, the Army informed Nexagen and others that the government intended to re-solicit proposals to perform the task order by issuing yet another task order request — TOR 2057. AR at 3986-987. The Army issued a draft performance work statement for TOR 2057 on May 12, 2015. AR at 3988-4023.

2. Nexagen’s GAO Bid Protest And CDA Claim

On May 14, 2015, Nexagen again filed a protest before the GAO challenging the Army’s decision to terminate its contract, to provide data strategy and software support services pursuant to the subject task order, for default and the Army’s subsequent decision to issue TOR 2057. AR at 10, 26. On May 15, 2015, the Army’s contracting officer converted the termination of Nexagen’s contract for default into a termination for convenience. AR at 809.

On May 19, 2015, Nexagen modified its protest before the GAO to include a claim for bad faith termination for convenience. AR at 39. On June 26, 2015, Nexagen filed its complaint in this matter. See generally Comp. On July 6, 2015, the GAO issued a decision dismissing Nexagen’s protest because Nexagen failed to timely file comments on the agency report, as required by the GAO’s Bid Protest Regulations. AR at 4753-754.

On August 1, 2015, Nexagen submitted a certified claim to the Army's contracting officer seeking $40,244,379.94 in monetary damages. Am. Comp, at 3; PI. Resp. at Attachment 41. In its claim, Nexagen sought to recover monetary damages for the breach of its contract with the Army. Am. Comp, at 3; PL Resp. at Attachment 41. In addition, Nexagen also challenged the Army’s decision to terminate its contract to provide services pursuant to the subject task order for default and subsequently for convenience. Am. Comp, at 3; Pl. Resp. at Attachment 41. On August 25, 2015, the contracting officer informed Nexagen that she did not possess jurisdiction to consider Nexagen’s claim because of Nexagen’s pending litigation in this Court. Am. Comp, at 3; PL Resp.

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Bluebook (online)
124 Fed. Cl. 645, 2015 WL 9920081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nexagen-networks-inc-v-united-states-uscfc-2016.