Northeast Military Sales, Inc. v. United States

100 Fed. Cl. 103, 2011 U.S. Claims LEXIS 1091, 2011 WL 2307660
United States Court of Federal Claims·Decided May 31, 2011·No. No. 11-181 C·Published·Cited by 14 cases

Opinion

OPINION AND ORDER

' EMILY C. HEWITT, Chief Judge.

This is a post-award bid protest brought by Northeast Military Sales, Inc., (Northeast, NEMS or plaintiff), a bidder in Solicitation No. HDEC02-10-R-0005 (Solicitation, Request for Proposals or RFP) issued by the United States government acting through the Defense Commissary Agency (DeCA, the agency, the government or defendant). First Am. Compl. for Injunctive Relief, a Declaratory J. and Damages (plaintiffs Complaint or Compl), Docket Number (Dkt. No.) 42, filed April 21, 2011, at 1. Plaintiff challenges defendant’s decision to award Contract No. HDEC02-10-D-0008 (the Contract) to Nay-yar Sons Corporation (Nayyar Sons or Nay-yarsons). Compl. 1.

Before the court are plaintiffs Complaint; Plaintiffs Motion for Preliminary and Permanent Injunctive Relief, Dkt. No. 5, filed March 22, 2011; Plaintiffs Revised Motion [105] for Judgment on the Administrative Record (Pl.’s Revised Mot.), Dkt. No. 41, filed April 21, 2011; Defendant’s Revised Cross-Motion for Judgment Upon the Administrative Record and Response to Plaintiffs Revised Motion for Judgment Upon the Administrative Record (Def.’s Resp.), Dkt. No. 48, filed April 26, 2011; Plaintiffs Revised Motion for Judgment on the Administrative Record (Pl.’s Mot. or plaintiffs Motion), Dkt. No. 60, filed May 9, 2011;2 Plaintiffs Reply to Defendant’s Response to Plaintiffs Revised Motion for Judgment on the Administrative Record and Response to Defendant’s Revised Cross-Motion for Judgment on the Administrative Record (Pl.’s Reply or plaintiffs Reply), Dkt. No. 57, filed May 9, 2011; and Defendant’s Reply to Plaintiffs Response to Defendant’s Revised Cross-Motion for Judgment Upon the Administrative Record (Def.’s Reply), Dkt. No. 68, filed May 11, 2011.

The court held oral argument at the National Courts Building on Thursday, May 12, 2011 at 10:00 a.m. Eastern Daylight Time.3

Plaintiff contends that the “evaluation conducted by Defendant ... was arbitrary, capricious, and inconsistent with applicable law and the solicitation; and the evaluation was so fundamentally flawed that the combined impact of the errors encountered here clearly prejudiced Plaintiff.” Pl.’s Reply 1 (quotations omitted). Plaintiff requests an order “permanently enjoining DeCA from awarding Nayyarsons any contract or task order” under RFP No. HDEC02-10-R-0005. Pl.’s Mot. 27.

Defendant contends that DeCA “rationally evaluated the proposals submitted by NEMS and the awardee, [Nayyarsons], and determined, based upon a consistent and reasonable consideration of all evaluation criteria, that the proposal submitted by Nayyarsons presented the best value to the Government.” Def.’s Resp. 1-2. The court agrees with defendant: the award is not arbitrary, capricious or not in accordance with law.

I. Background

A. The Solicitation and Initial Evaluation

The Solicitation provided for the award of “Commissary delicatessen and bakery resale operations in the Great Lakes Cluster of the East Region for Great Lakes NS, IL; Sel-fridge ANGB, MI; Harrison Village, IN; Wright-Paterson AFB, OH; Fort Knox and Fort Campbell, KY” for a term of two years with two one-year option periods and four one-year award term periods. Administrative Record (AR) Tab 2, at 17, 27. Offerors were informed that “[t]he successful contractor to receive the contract award will be determined using the best value, trade-off method”:

The Government will award one or more contracts resulting from this solicitation to the responsible offeror/offerors whose offer represents the best value after evaluation in accordance with the factors and sub-factors in the solicitation.

AR Tab 2, at 28.

The Solicitation provides that the following factors and sub-factors will be used to evaluate offerors:

I. Technical Capability
a. Customer Satisfaction
b. Increase Sales
e. Continue Customer Savings
d. Quality Assurance Program
e. Transition Approach
II. Past Performance
a. Quality History/Overall Customer Satisfaction
b. Business Relations
[106] III. Price

AR Tab 2, at 28.

The Evaluation Plan provides that Customer Satisfaction, Increase Sales, Continue Customer Savings and Quality Assurance Program will be evaluated on a twenty-five-point scale; Quality History/Overall Customer Satisfaction and Business Relations will be evaluated on a twenty-point scale; and Transition Approach will be evaluated on a ten-point scale. AR Tab 1, at 1. The Evaluation Plan provides that point ratings correspond to adjectival ratings as follows:

10 Point Scale:
Unsatisfactory (0 points)
Marginal (1-3 points)
Satisfactory (4-6 points)
Very Good (7-8 points)
20 Point Scale:
Unsatisfactory (0 points)
Marginal (1-7 points)
Satisfactory (8-14 points)
Very Good (15-18 points)
Exceptional (19-20 points)
25 Point Scale:
Unsatisfactory (0 points)
Marginal (1-10 points)
Satisfactory (11-19 points)
Very Good (20-23 points)
Exceptional (24-25 points)

AR Tab 1, at 3-5.

Of the evaluation factors, Technical Capability “is significantly more important than ‘Past Performance.’” AR Tab 2, at 28. “[Tjechnieal Capability and Past Performance, when combined, are considered to be significantly more important than Price (percentage of patron savings).” AR Tab 2, at 29. In addition, “the Government reserves the right to award to other than the offeror with the most favorable price or the offeror with the highest ranked technical or past performance rating.” AR Tab 2, at 28.

The Technical Capability sub-factors, Customer Satisfaction, Increase Sales, Continue Customer Savings and Quality Assurance Program are “equally important, and significantly more important than ‘Transition Approach.’” AR Tab 2, at 28-29. The Past Performance subfaetor Quality History/Overall Customer Satisfaction “is equal to ‘Business Relations.’ ” AR Tab 2, at 29.

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Northeast Military Sales, Inc. v. United States, 100 Fed. Cl. 103, 2011 U.S. Claims LEXIS 1091, 2011 WL 2307660 (uscfc 2011).

100 Fed. Cl. 103 (Northeast Military Sales, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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