PlanetSpace Inc. v. United States

96 Fed. Cl. 119, 2010 WL 5183959
United States Court of Federal Claims·Decided December 14, 2010·No. No. 09-476 C·Published·Cited by 51 cases

Opinion

OPINION and ORDER

BLOCK, Judge.

On July 23, 2009, plaintiff, PlanetSpace Inc. (“PlanetSpace”), filed this post-award bid protest, alleging six counts of error in a negotiated procurement by the National Aeronautics and Space Administration (“NASA”) for cargo transportation services to the International Space Station (“ISS”). The procurement concluded with NASA’s decision to award contracts to the two inter-venors, Space Exploration Technologies Corporation (“Spaee-X”) and Orbital Sciences Corporation (“Orbital”), but not to plaintiff. Through a prior opinion and order, the court held in favor of defendant on counts (3)-(6) of the complaint, but withheld judgment on counts (1) — (2) pending a remand to NASA for additional explanation of the grounds for the agency’s award decision. See PlanetS-pace, Inc. v. United States (“PlanetSpace I”), 92 Fed.Cl. 520, 549 (2010). On May 3, 2010, pursuant to the court’s remand order, defendant submitted this additional explanation in the form of a sworn declaration from NASA’s Source Selection Authority (“SSA”). The case is now before the court on the parties’ cross-motions for judgment on the administrative record, pursuant to Rule 52.1 of the Rules of the United States Court of Federal Claims (“RCFC”). With further explanation of NASA’s award decision in hand, and for the reasons discussed below, the court resolves the remaining counts of the complaint and enters judgment in favor of defendant.

I. BACKGROUND

Under various international agreements, the United States, acting through NASA, is responsible for providing cargo transportation services to and from the ISS.1 In 2008, faced with the imminent retirement of its fleet of space shuttles, NASA turned to private industry for help in meeting this ongoing commitment.2 To that end, NASA issued Request for Proposals No. NNJ08ZBG001R (the “RFP”) on April 23, 2008, to procure “Commercial Resupply Services” for the ISS (the “ISS-CRS procurement”). Admin. Record (“AR”) 1306, 1314, 1364. Exactly eight months later, on December 23, 2008, the procurement concluded with the issuance of [122]*122contract awards to the two intervenors, ultimately prompting the instant protest. PlanetSpace I, 92 Fed.Cl. at 529. The court’s prior opinion in this matter provides a detailed account of the factual and procedural background, see id. at 525-30, but a selective synopsis is useful here.

A. The Evaluation of Proposals and Award Decision

The RFP specified two factors for the evaluation of proposals: (1) price and (2) mission suitability. AR 2089. Mission suitability, in turn, included three subfactors for evaluation: (a) technical approach; (b) management approach; and (e) small business utilization. AR 2089, 2091. An offeror’s relevant past performance history was not to be evaluated separately but as part of each mission suitability subfaetor. AR 2090. Contract award was to be made to the offeror(s) whose proposal(s) provided the “best value” based upon a “trade-off’ among price and mission suitability, with the proviso that mission suitability was more important than price.3 AR 2089; see PlanetSpace I, 92 Fed. Cl. at 526-29.

Plaintiff, Orbital, and Space-X were the only contractors to submit initial proposals in response to the RFP. AR Tabs 68-80. Thereafter, the contracting officer decided to include all three offerors in the competitive range. AR 2723-24. The contracting officer also ordered a “pre-award survey” of the offerors, the results of which would help him make an eventual determination regarding the “responsibility” of the prospective contract-awardee(s).4 AR 2691. The final pre-award survey report concluded that Space-X and Orbital satisfied the FAR’s standards for contractor responsibility, but that plaintiff did not. See AR 2600-01 (citing FAR 9.104-1). A member of the pre-award survey team sent to the SSA a draft copy of that report, along with an email that invited the SSA to consider the report’s contents in his evaluation of proposals.5 See AR 16683.

Meanwhile, a source evaluation board (“SEB”) conducted an initial evaluation of the offerors’ final proposals. AR Tab 53. The SEB concluded that plaintiffs proposal offered better mission suitability at a lower price than Orbital’s proposal, and that Spaee-X’s proposal, in turn, offered the best mission suitability at the lowest price. AR 4470, 5016-35; see PlanetSpace I, 92 Fed.Cl. at 527. The SEB presented its conclusions to the SSA on December 15, 2008. AR 4466.

Eight days later, the SSA issued his source selection decision. AR 5181. With regard to price, the SSA accepted fully the SEB’s analysis, concluding that “[Space-X] proposed the lowest overall price, with the price proposed by PlanetSpace being the next lowest overall price, and with Orbital’s price being the highest overall proposed price.” Id. The SSA’s source selection statement did not provide any quantitative estimate of the price [123]*123differences between the three proposals. See AR 5180-81; see also PlanetSpace I, 92 Fed.Cl. at 528 n. 7.

With regard to mission suitability, the SSA again concurred with the SEB’s evaluation as to Space-X and Orbital’s proposals. AR 5173-80. However, the SSA disagreed sharply with the SEB’s assessment of plaintiffs proposal in that regard. Id. In particular, the SSA viewed the merits of plaintiffs technical and management approaches far less favorably than did the SEB. AR 5175-77; see PlanetSpace I, 92 Fed.Cl. at 528-29. The SSA was especially concerned with the risks inherent in plaintiffs proposed use of two different launch vehicles over the contract period, plaintiffs proposed reliance on subcontractors for performance of the majority of work under the contract, and the inadequacy of plaintiffs proposed measures for controlling subcontractor costs. Id. Accordingly, with regard to mission suitability, the SSA concluded that Orbital’s proposal was superior to plaintiffs, explaining that he “had much higher confidence in Orbital’s ability to provide resupply services on a fixed-price basis.” AR 5180.

Ultimately, the SSA concluded that it was in NASA’s best interests to award two contracts. AR 5181. Because Space-X’s proposal was the best in both price and mission suitability, no trade-off analysis was necessary in selecting Space-X as one of the two contract-awardees. Id. However, having concluded that Orbital’s proposal offered superior mission suitability but at a higher price than plaintiffs proposal, the SSA was required by the RFP to conduct a trade-off analysis in order to determine which of the two proposals provided the best value. See AR 2089; supra note 3. The SSA’s only explicit documentation of his trade-off analysis was the following single paragraph in the source selection statement:

I concluded the proposal from Orbital was superior due to the serious Management risks inherent in PlanetSpace’s proposal: however, I recognized PlanetSpace had a lower overall price than the Orbital proposal. I had reservations with regard to PlanetSpaee’s ability to successfully address the technical challenges associated with its proposal given the risks I identified in its Management approach.

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PlanetSpace Inc. v. United States, 96 Fed. Cl. 119, 2010 WL 5183959 (uscfc 2010).

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