Parcel 49C Ltd. Partnership v. United States

130 Fed. Cl. 109, 2016 U.S. Claims LEXIS 1967, 2016 WL 7587614
CourtUnited States Court of Federal Claims
DecidedNovember 30, 2016
DocketNo. 16-427C
StatusPublished
Cited by9 cases

This text of 130 Fed. Cl. 109 (Parcel 49C Ltd. Partnership 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
Parcel 49C Ltd. Partnership v. United States, 130 Fed. Cl. 109, 2016 U.S. Claims LEXIS 1967, 2016 WL 7587614 (uscfc 2016).

Opinion

Pre-Award Bid Protest; Judgment upon the Administrative Record, RCFC 52.1; Organizational Conflict of Interest; Supplementing the Administrative Record.

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, Parcel 49C Limited Partnership (“Parcel 49C”), brought this pre-award bid [113]*113protest matter challenging several actions taken by the United States General Services Administration (“GSA”) in connection with the GSA’s evaluation of proposals in response to a request for lease proposals to procure office space for the headquarters of the Federal Communications Commission (“FCC”). The government has moved to partially dismiss this matter for lack of subject-matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”). The government, Parcel 49C, and the defendant-intervenor in this matter, Trammell Crow Company (“Tram-mell Crow”), have also filed cross-motions for judgment upon the administrative record, pursuant to RCFC 52.1. In addition, Parcel 49C has filed a motion to supplement the administrative record, a motion for leave to file a sur-reply and a motion to file certain documents under seal, pursuant to RCFC 7(b).

For the reasons set forth below, the Court: (1) GRANTS the government’s motion for judgment upon the administrative record and Trammell Crow’s motion for judgment upon the administrative record; (2) DENIES Parcel 49C’s motion for judgment upon the administrative record; (3) DENIES Parcel 49C’s motion to supplement the administrative record; (4) GRANTS Parcel 49C’s motion to file certain documents under seal and motion for leave to file a sur-reply; and (5) DENIES, as moot, the government’s partial motion to dismiss.

II. FACTUAL AND PROCEDURAL BACKGROUND1

A. Factual Background

In this pre-award bid protest matter, Parcel 49C alleges that the GSA committed several errors in connection with the agency’s evaluation of proposals submitted in response to a request for lease proposals (the “RLP”) to procure office space for the headquarters of the FCC (“the FCC Lease”). PL 2d. Am. Compl. ¶¶ 1-9. Specifically, Parcel 49C alleges that the GSA’s evaluation of responsive proposals was unreasonable and not in accordance with the terms of the RLP or applicable law.

In this regard, Parcel 49C challenges the GSA’s evaluation upon five grounds. First, Parcel 49C alleges that the GSA should have determined that Trammell Crow is ineligible for award of the FCC Lease due to an organizational conflict of interest (“OCI”) that cannot be mitigated and because Trammell Crow was not a single owner of the property that it proposes for the FCC Lease at the time that Trammell Crow submitted its proposal. Id. at ¶¶ 160-79. Second, Parcel 49C alleges that certain requirements in the RLP unduly restrict competition and prejudice Parcel 49C. Id. at ¶¶ 96-108. Third, Parcel 49C alleges that the GSA improperly required Parcel 49C to provide certain National Environmental Policy Act (“NEPA”) documentation in connection with Parcel 49C’s offer, in violation of the RLP’s terms and applicable law. Id. at ¶¶ 143-51. Fourth, Parcel 49C alleges that the GSA’s evaluation of responsive proposals was improper, because the agency did not consider certain relocation and move-related costs in connection with its evaluation of the price for the FCC Lease and because the GSA’s Independent Government Estimate (“IGE”) has not been properly documented by the agency. Id. at 109-42; PI. 2d. Mem. at ¶¶ 24-46. Lastly, Parcel 49C alleges that the GSA failed to conduct meaningful discussions with Parcel 49C regarding its proposed price. PI. 2d. Am. Compl. at ¶¶ 152-159.

As relief, Parcel 49C requests that the Court order the GSA to reject Trammell Crow’s proposal or, alternatively, enjoin the GSA from awarding the FCC Lease. Id. at ¶¶ 43-44.

1. The Request For Lease Proposals

Parcel 49C is the current lessor of a building located at The Portals II, 445 12th Street, SW, Washington, DC, which currently houses the headquarters of the FCC under a previous lease. AR at 1450. This lease will expire on October 16, 2017. Id. at 26.

[114]*114On September 21, 2015, the GSA issued the RLP to procure office space to house the headquarters of the FCC in Washington, DC after the current lease expires. Id. at 1427-1697. The RLP provides that the subject lease is expected to be for a 15-year tern and that the occupancy date under the lease is expected to be between October 18, 2017 and December 31, 2019. Id. at 1431. In addition, the RLP also provides that “[t]he Lease will be awarded to the responsible Offeror whose offer ... is the lowest priced technically acceptable offer submitted.” Id. at 1446.

Prior to issuing the RLP, the GSA retained the services of CBRE, Inc. (“CBRE”) to provide broker services related to the RLP, pursuant to a professional services contract for real estate consulting and other services. Id. at 2918. Consistent with its standard practice, the GSA required CBRE to conduct a preliminary survey of building locations that were eligible to submit bids in connection with the RLP. Id. This survey revealed that CBRE had three potential conflicts of interest, including a potential conflict with respect to the FCC’s incumbent lessor, Parcel 49C. Id. at 2923.

There are several provisions in the RLP that are relevant to Parcel 49C’s claims in this matter.

First, the RLP contains certain requirements regarding the minimum ceiling height for the space offered for the FCC Lease, as well as a requirement for power redundancy through dual power feeds. Id. at 1497. Specifically, the RLP provides that “[t]he first (1st) floor of the offered building must have a minimum finished ceiling height of 11’6.” Id. The RLP also contains a requirement regarding dual power feeds, which provides that:

The Government requires power and communication circuits that have more than one point of entry coming into the Building (multiple independent conduits coming from the street to the facility, with at least 25 feet of physical separation). The Government requires redundancy for communications and power. Communications requires dual redundant 10-gigabit circuit, with more than one cable infrastructure...

Id. (Exhibit B, paragraph 11).

Second, the RLP contains a requirement that the space to be leased must be owned by a single owner. Id. at 1687. In this regard, paragraph 1.02, subparagraph C of the RLP provides that:

Offered space must be contiguous (with the exception of the ground level/first floor space referenced in paragraph 1.02.A. above) and accommodated in no more than one (1) building, as determined by the LCO [Lease Contracting Officer]. To qualify as one (1) building, offered space must be owned by a single Offeror and the structures, if more than one, must be connected internally on at least 60% of the offered floors as determined by and at the discretion of the LCO.

Id. at 1687.

Third, the RLP contains several provisions to address potential conflicts of interest involving the broker for the RLP, CBRE. Specifically, paragraph 1.13, subparagraph A of the RLP provides that:

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130 Fed. Cl. 109, 2016 U.S. Claims LEXIS 1967, 2016 WL 7587614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parcel-49c-ltd-partnership-v-united-states-uscfc-2016.