Pricewaterhousecoopers Public Sector, LLP v. United States

126 Fed. Cl. 328, 2016 U.S. Claims LEXIS 504, 2016 WL 2764330
CourtUnited States Court of Federal Claims
DecidedMay 10, 2016
Docket16-98C
StatusPublished
Cited by6 cases

This text of 126 Fed. Cl. 328 (Pricewaterhousecoopers Public Sector, LLP 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
Pricewaterhousecoopers Public Sector, LLP v. United States, 126 Fed. Cl. 328, 2016 U.S. Claims LEXIS 504, 2016 WL 2764330 (uscfc 2016).

Opinion

Pre-Award Bid Protest; Corrective Action; 48 C.F.R. § 8.406; Injunctive Relief; Subject Matter Jurisdiction; Federal Acquisition Streamlining Act, 10 U.S:C. § 2S04c(e); Organizational Conflicts of Interest; Unequal Treatment.

OPINION

HORN, J.

FINDINGS OF FACT

Protestor, PrieewaterhouseCoopers Public Sector, LLP (PwC), filed a pre-award bid protest on January 19, 2016 to challenge the issuance of a revised solicitation by the Department of Defense, Defense Health Agency (DHA), which came after a decision by the Government Accountability Office (GAO), on November 16, 2016, to sustain an earlier, related bid protest challenging the award of a contract to PwC. See Deloitte Consulting, LLP; Booz Allen Hamilton, Inc.; CALIBRE Sys. Inc., B-411884.6, 2015 WL 9701026, at *2 (Comp.Gen. Nov. 16, 2016). At the same time the pre-award bid protest was filed, PwC also moved for a temporary restraining order and/or a preliminary injunction. PwC seeks to enjoin DHA from resoliciting quotes, evaluating those quotes, and making a new award under the amended Request for Quotations (RFQ) No. HT0011-15-T-0022, which DHA issued on December 21, 2015. PwC alleges that:

After a proper competition conducted pursuant to Federal Acquisition Regulation (FAR) Part 8, PwC won the competition fair and square, it rightfully received the order, and it is entitled to perform the order. That order is now in jeopardy due to DHA’s irrational and unlawful actions, which are the subject of this protest,

The protestor asserts three grounds in its bid protest:

(1) DHA’s corrective action is irrational because it is being taken in response to a GAO decision that, itself, is irrational and contrary to controlling law; (2) even if the GAO’s decision were correct, which it is not, DHA’s corrective action is unlawful because it is far broader than is necessary to correct the GAO’s identified procurement errors, it includes changes to the evaluation scheme that do not result from any changes in agency needs, it unfairly favors PwC’s competitors, and it is competitively harmful to PwC whose quote information has been disclosed to PwC’s competitors; and (3) the corrective action mandates that certain competitors of PwC be disqualified due to significant organizational conflicts of interest (OCI[s]).

The procurement in the above-captioned protest began on May 29, 2015, when DHA *333 issued an RFQ “on behalf of the DHA, Healthcare Operation (HCO) Directorate.” Thé acquisition plan for this procurement explained that in 2014 the Secretary of the Department of Defense ordered a 90-day review of the Military Health System (MHS), focused on access to care, safety, and the quality of care. The review was conducted by an “Action Officer (AO) Working Group,” with contractor support, and resulted in a final report that “included six overarching recommendations; 77 recommendations related to access to care, quality of care, and patient safety; and 82 associated action items.” Following the review, another working group was established to “develop specific plans to address the recommendations and associated action items contained in the Final Report.” According to the declaration of Colonel Pehrson, the Government Lead for the MHS Review Project Management Office, which was submitted to the court following the filing of this bid protest, the working group submitted a plan to the Secretary of Defense “outlining 41 action plans and 264 milestones to address the findings in the MHS Review as well as the Secretary’s guidance to implement changes necessary to become a top-performing health system.”

The protestor alleges that this working group created a document titled: “MHS 90-Day Review Follow-On: Integrated Deliverable for 30 December 2014 Products.” Action plan 1, of the 41 proposed by the follow-on working group, resulted in the establishment of the High Reliability Organization Task Force (HRO TF) in December 2014, which had “dual responsibilities to develop a framework for the Military Health System to become a high reliability organization [2] and for tracking and advancing closure of the action plans created in response to the MHS Review.” According to the protestor, the HRO Task Force published “The [HRO] Task Force Report: A Resource Guide for Achieving High Reliability in the Military Health System.” (brackets in original). Later, in January 2015, “the MHS Review PMO [Project Management Office] was established to facilitate tracking of the MHS Review action plans.” Based on the declaration of the Government Lead for the MHS Review Project Management Office, it appears that, as of the date of this decision, the MHS Review PMO continues to receive contractor support from Deloitte LLP, including assistance in tracking milestone progress.

Through the solicitation released on May 29, 2015, DHA intended to award a contract “to establish a Program Integration Office (PIO)” to “provide services necessary to transform the Military Health System (MHS) into a High Reliability Organization.” The RFQ issued on May 29, 2015 explained that the services to be performed under the contract would include:

[Establishing and maintaining a comprehensive Program Integration Office (PIO), supporting full execution and implementation of action plans resulting from the MHS review, establishing an Enterprise Performance Management System, and providing direct support for each of the Services (Army, Air Force, and Navy) Medical Departments as described in the Performance Work Statement (PWS).

The contractor would be required to:

[F]urnish the necessary personnel, materials, facilities, and other services as may be required to assist the Assistant Secretary of Defense (Health Affairs), the Defense Health Agency’s Healthcare Operations Directorate and all of its associated Divisions in the support of action plans resulting from the MHS Review to provide a comprehensive Program Integration Office which supports robust performance management and continuous process improvement for the Military Health System to improve patient safety, access, and healthcare quality throughout the Military Health System Enterprise and all the various functions identified in the Scope of Performance Work Statement.

*334 Pursuant to FAR subpart 8.406-3, 48 C.F.R. § 8.405-3 (2016), 3 DHA issued the RFQ to contractors that held the General Services Administration Performance Man-agemenVContinuous Process Improvement Blanket Purchase Agreement (GSA PM/CPI BPA), which was created under the Mission Oriented Business Integrated Services (MO-BIS) Federal Supply Schedule (also known as Schedule 874). 4 PwC and defendant-in-tervenors Booz Allen Hamilton, Inc. (Booz Allen), CALIBRE Systems Inc./Ernst & Young LLP (CALIBRE/EY), and Deloitte Consulting LLP (Deloitte) have each held a GSA PM/CPI BPA at all times relevant in this case.

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126 Fed. Cl. 328, 2016 U.S. Claims LEXIS 504, 2016 WL 2764330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pricewaterhousecoopers-public-sector-llp-v-united-states-uscfc-2016.