Prescient, Inc. v. United States

125 Fed. Cl. 475, 2016 U.S. Claims LEXIS 274, 2016 WL 1367409
United States Court of Federal Claims·Decided March 29, 2016·No. 16-109C·Published·Cited by 7 cases

Opinion

Keywords: Post-Award Bid Protest; Motion for Judgment on the Administrative Record; Standing; Disparate Treatment; Material Deficiencies.

OPINION AND ORDER

KAPLAN, Judge.

The plaintiff in this case is Prescient, Inc. (Prescient), an unsuccessful offeror in a procurement for asset management services. Prescient filed this post-award bid protest to challenge a decision of the Department of Housing and Urban Development (HUD) finding its proposal technically unacceptable under the terms of the solicitation and excluding it from further consideration for an award.

Currently before the Court are the parties’ cross-motions for judgment on the administrative record. For the reasons set forth below, Prescient’s motion is DENIED and the government’s cross-motion is GRANTED.

BACKGROUND

I. HUD’s Asset Management Solicitation

A. Overview

The Department of Housing and Urban Development, through the Federal Housing Administration (FHA), administers a single-family home mortgage insurance program in which the FHA insures approved lenders against the risk of financial loss. AR Tab 2H at 492. In the event of a default on an FHA-insured home mortgage, HUD may take possession of the property. Id. As a result of its acquisition of these properties, HUD manages and sells a large inventory of single-family homes, endeavoring to do so “in a manner that promotes home ownership, preserves communities, and maximizes return to the FHA insurance funds.” Id.

HUD contracts with real estate management and marketing companies across the country to service HUD’s Real-Estate Owned (REO) portfolio. To that end, on August 25, 2014, HUD initiated the procurement that is the subject of this action when it issued Solicitation No. DU204SA-13-R-0005. See AR Tab 2. The solicitation involved twelve geographic areas. These included, as is relevant to this case, area 2D, which covered HUD properties in Kansas, Oklahoma, Arkansas, Louisiana, Missouri, and Southern Texas. AR Tab 2H at 640^1. The contract to be awarded was a hybrid indefinite-quality/indefinite-quantity/indefinite-delivery contract with both fixed-price/fixed-unit-rate and *479 cost-reimbursable contract line items. Id. at 638.

As the solicitation described, the “purpose of this performance based contract [was] to obtain marketing and sales services for HUD’s REO properties.” Id. at 494. The Performance Work Statement (PWS) identified five objectives for Asset Managers (AM):

1. Properties are accurately and competitively valued.
2. Sales achieve the highest net return.
3. Holding time is minimized.
4. Sales create owner-occupant opportunities.
5. Closing proceeds are properly accounted for and delivered to HUD in a timely manner.

Id. at 494-95.

According to the solicitation, and consistent with Federal Acquisition Regulation (FAR) 15.306(a), HUD intended to award the contract without conducting discussions with the offerors. Id: at 637; see also FAR 15.306(a)(1) (“Award may be made without discussions if the solicitation states that the Government intends to evaluate proposals and make award without discussions.”). As a result, the solicitation prompted offerors to provide their “best terms Jrom a cost or price and technical standpoint.” Moreover, the solicitation noted that the Contracting Officer (CO) may “limit the number of proposals in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals.” Id.

The solicitation provided that awards would be made to offerors whose proposals represented the best value to the agency based on a performance/priee trade-off methodology. Under that process, technical approach would be evaluated on a pass-fail basis, and a trade-off would be conducted between past/present performance and price, with the former “approximately equal” in weight to the latter. Id. at 654.

B. Technical Evaluation

Offerors were instructed to divide their proposals into four volumes: Volume I: RFP Documents; Volume II: Technical Proposal; Volume III: Pasi/Present Performance Pro-posai; and Volume IV: Business Proposal. Id. at 644-53. Volume II, the technical proposal, was to include three sub-factors: a Work Flow Chart; an Organizational Chart; and a Condensed Marketing Plan. Id. at 645-48. The solicitation contained discrete requirements to be addressed for each sub-factor. Id. Volume II was also to include a “Technical Proposal narrative” that “include[d] all the information required [in Volume II] in detailed content.” Id. at 646.

This bid protest concerns only Prescient’s compliance with the first sub-factor, which required that offerors submit a Work Flow Chart that 1) “inelude[d] the specific process steps, timing and decision points that reflected] how the Offeror [would] manage a typical property consistent with HUD’s process under the requirements of the PWS;” and 2) discussed each of the five objectives for asset managers set forth above. Id. at 646. The solicitation stated that offerors were required to include in their proposals a narrative “that adds detail to the Offeror’s workflow chart.” Id. at 646-47.

The solicitation specifically informed offer-ors that the agency would evaluate the technical proposals “on the information presented therein.” Id. It stated that offerors “shall provide [a] convincing rationale to address how the Offeror intends to meet the [government’s] requirements.” Id. Moreover, the solicitation stated that “[a]ny information not in its appropriate Section and not cross-referenced to a specific location will be assumed to have been omitted.” Id.

HUD stated that it would begin its evaluation by reviewing an offeror’s Technical Proposal to “determine if the Offeror provides a sound, compliant approach that meets the requirements of [the solicitation] and demonstrates a thorough knowledge and understanding of those requirements and associated risks.” Id. at 655. The agency stated that it would independently evaluate each of the sub-factors listed above on a “pass/fail” basis. Id.

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Prescient, Inc. v. United States, 125 Fed. Cl. 475, 2016 U.S. Claims LEXIS 274, 2016 WL 1367409 (uscfc 2016).

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