Octo Consulting Group, Inc. v. United States

117 Fed. Cl. 334
CourtUnited States Court of Federal Claims
DecidedAugust 13, 2014
Docket1:14-cv-00234
StatusPublished
Cited by2 cases

This text of 117 Fed. Cl. 334 (Octo Consulting Group, 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
Octo Consulting Group, Inc. v. United States, 117 Fed. Cl. 334 (uscfc 2014).

Opinion

Bid Protest; Motion for Judgment on the Administrative Record; General Services Administration; Technical Evaluation; Best Value.

OPINION

HORN, J.

The protestor, Octo Consulting Group, Inc. (Octo), filed a bid protest in this court challenging the General Services Administration’s (GSA’s) awards of contracts to 43 awardees under Pool 3 of the OASIS SB (One Acquisition Solution for Integrated Service — Small Business) request for proposals No. GS00Q-13-DR-0002 (the Solicitation). Protestor alleges that the “Agency [GSA] improperly failed to award Octo a contract,” because “either the Agency improperly rated its proposal or Octo’s original self-assessment was incorrect.” Protestor also alleges that “[e]ven if the Agency did properly determine Octo’s score, based upon the mistakes that Octo discovered the Agency made in evaluating its proposal, the Agency probably improperly evaluated the proposals of some of the 43 awardees.” Therefore, protestor sought an order declaring that the Agency’s actions in evaluating Oeto’s proposal were “irrationally based, arbitrary, capricious, and contrary to applicable statutes and regulations.” The protestor also sought a preliminary injunction, followed by a permanent injunction, to enjoin the Agency from proceeding on the Pool 3 contracts and to properly evaluate Octo’s proposal. The court issued an oral ruling to the parties denying protestor’s motion for injunctive relief. This opinion reduces to writing and further explains the prior oral decision delivered to the parties.

FINDINGS OF FACT

On July 30, 2013, GSA issued an Acquisition Plan, which identified “a significant need for a contract vehicle” that could “provide total solutions for complex professional service based requirements that spans multiple service disciplines within the government marketplace.” The Agency intended for the OASIS SB to provide both commercial and noncommercial services and to “meet the professional service mission requirements of all Federal agencies, including all organizations within the Department of Defense (DoD).”

The following day, July 31, 2013, the Agency issued the Solicitation. The Solicitation was a 100% small business set-aside .contract, and stated the

OASIS SB spans 28 NAICS [North American Industry Classification System] Codes and 6 NAICS Code Exceptions under the economic subsector 541, Professional, Scientific, and Technical Services. NAICS Codes are grouped into 6 separate size standards (14M, 19M, 35.5M, 500 employees, 1,000 employees, and 1,500 employees) and are referred to as ‘Pools’. Pool 5 (1,000 employees) will be split into Pool A (Exception B) and Pool B (Exception C) for a total of 7 Pools. Each Pool will be a separate OASIS SB MA-IDIQ task order contract. Multiple awards shall be made in each of the 7 Pools. 40 awards are anticipated in each Pool (e.g., 40 multiple awards for Pools 1,2,3,4, and 6) and (20 multiple awards for Pools 5.A. and 20 multiple awards for 5.B.). In the event of a tie at the number 40/20 position (as applicable), all Offerors tied will receive an award in the respective Pool.

*337 The Solicitation also noted “[a] single Offeror may compete for more than one OASIS SB Pool.” As indicated in the Solicitation, “[t]he period of performance of OASIS SB is from the date of the Notice-To-Proceed through 5 years thereafter, with 1 (5-year) option that may extend the cumulative term of the contract to 10 years in accordance with FAR 52.217-9, Option to Extend the Term of the Contact, if exercised.”

As indicated in the Joint Stipulations of Fact submitted by the parties: “From a technical perspective, the Government sought to measure what work an offerors [sic] had actually done, what systems and certifications an offeror actually obtained, and how well an offeror had performed.” (internal citations omitted).

The “BASIS FOR AWARDS” (capitalization in original), at Section M.2. of the Solicitation indicated that:

The source selection process on OASIS SB will neither be based on the Lowest Price Technically Acceptable (LPTA) nor Tradeoffs. Within the best value continuum, FAR 15.101 defines best value as using any one or a combination of source selection approaches. For OASIS SB, the best value basis for awards will be determined by the Highest Technically Rated Offerors with a Fair and Reasonable Price.

The Solicitation indicated that the Highest Technically Rated, Fair and Reasonable Price approach would “best achieve the objective of awarding contracts to Offerors of varying core expertise in a variety of professional services disciplines with qualities that are most important to GSA and our customers, such as Past Performance, Relevant Experience, and Systems, Certifications, and Clearances.” The Solicitation also indicated that “[t]he Government intends to award contracts without discussions. Initial proposals must contain the best offer. The Government may conduct clarifications, as described in FAR 15.306(a). The Government reserves the right to conduct discussions if determined necessary.” The Solicitation noted that “[clarifications may be conducted for better understanding of proposal contents, but Offerors will NOT be able to change their proposals based upon any clarifications.” (capitalization in original).

The Source Selection Plan expanded on the Solicitation’s “BASIS FOR AWARDS,” (capitalization in original), and explained:

Work to be performed under OASIS SB are articulated and awarded by federal customers at the task order level. As a result, non-price factors like Past Performance, Relevant Experience, and Systems, Certifications, and Clearances play a dominant role in the basis for the OASIS SB awards. Accordingly, the source selection process will neither be based on the Lowest Price Technically Acceptable (LPTA) or Tradeoffs. The LPTA approach is in direct contrast and detrimental to obtaining the quality and expertise of professional service employees needed for successful task order performance across the federal Government for a variety of integrated professional services for all contract types and pricing. Tradeoffs allow for a subjective analysis to consider awards to other than the lowest priced Offeror or other than the highest technically rated Offeror, however, this subjective approach is better suited for single award contracts or task orders when risks associated with the actual work to be performed and actual prices to be paid are being analyzed. Furthermore, in a tradeoff scenario, you can’t predetermine a number of awards because you don’t know in advance where the logical trade-offs will occur.
Given the breadth and depth of OASIS SB a more “Objective” approach rather than a “Subjective” approach will be used for the basis of awards, focusing primarily on the non-price factors. Within the best value continuum, FAR 15.101 defines best value as using any one or a “combination” of source selection approaches. As the best value continuum points out, technical capability becomes a more dominant factor in procurements where the requirement is not definitive and contract type and pricing is accomplished at the task order level.
For OASIS SB, the best value basis for award will be determined by the Highest *338

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117 Fed. Cl. 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/octo-consulting-group-inc-v-united-states-uscfc-2014.