Progressive Industries, Inc. v. United States

129 Fed. Cl. 457, 2016 U.S. Claims LEXIS 1865, 2016 WL 7118563
CourtUnited States Court of Federal Claims
DecidedDecember 6, 2016
Docket14-1225C
StatusPublished
Cited by10 cases

This text of 129 Fed. Cl. 457 (Progressive Industries, 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
Progressive Industries, Inc. v. United States, 129 Fed. Cl. 457, 2016 U.S. Claims LEXIS 1865, 2016 WL 7118563 (uscfc 2016).

Opinion

Post-Award Bid Protest; Cross-Motions for Judgment on the Administrative Record; Technical Proposal Evaluation; Source Selection Plan; Unequal Treatment; In-junctive Relief.

OPINION AND ORDER

CAMPBELL-SMITH, Chief Judge

This is a post-award bid protest filed by Progressive Industries, Inc. (Progressive or plaintiff) against the United States Department of Veterans Affairs (VA, the agency, or defendant). Compl. ¶ 1, ECF No. 1, Dec. 22, 2014. Progressive challenges the VA’s source selection decisions awarding firm-fixed price, indefinite-delivery/indefinite-quantity (IDIQ) contracts for the supply of medical cylinder gases to locations and facilities identified by the VA. See id. ¶¶ 3, 8, 70, 74; see Administrative Record (AR), 2 Tab 59, AR 2360. Progressive alleges that the VA: (1) treated the offerors unequally; (2) failed to hold meaningful discussions; (3) evaluated the proposals arbitrarily and capriciously; and (4) deviated from the Soliei-tation’s evaluation criteria. Compl. ¶¶ 25, 32, 41.

On April 16, 2014, the VA issued its source selection decision, awarding the contracts to two veteran owned small businesses, 3 namely [Offeror A] and defendant-intervenor in this case, Irish Oxygen, Co. (Irish or defendant-intervenor). Tab 46, AR 2024; Tab 50, AR 2127; see also Compl. ¶74. Prompted by Progressive’s agency level protest, the VA agreed to take corrective action. The VA reevaluated the proposals submitted by [Of-feror A], Irish, and Progressive because the three offerors had been found previously to fall within the competitive range. As part of its corrective action, the VA considered the offerors’ initial proposals, the offerors’ November 2013 discussions with the VA, and the offerors’ revised proposals. On November 18, 2014, the VA issued a corrective action source selection decision, again awarding contracts to [Offeror A] and to Irish. 4 Tab 59, AR 2384-85, see Compl. ¶ 71.

Progressive then filed this protest on December 22, 2014. 5 Subsequently, the parties filed cross-motions for judgment on the administrative record in accordance with Rule 52.1 of the Rules of the United States Court of Federal Claims (RCFC). See Pl.’s Mot. J. *464 AR (Pl.’s Mot.), ECF No. 87, Sept. 25, 2015; Def.-Int.’s Mot. J. AR (Def.-Int.’s Mot.), ECF No. 88, Oct. 30,2015; Def.’s Mot. J. AR (Def.’s Mot.), ECF No. 89, Oct. 30, 2015; see also Pl.’s Resp. to Def., ECF No. 94, Nov. 20, 2015; Pl.’s Resp. to Def.-Int., ECF No. 95, Nov. 20, 2015; Def.-Int.’s Reply, ECF No. 97, Dec. 18, 2015; Def.’s Reply, ECF No. 98, Dec. 18, 2015; Pl.’s Sur-Reply, ECF No. 99, Dec. 30, 2015. The court heard three days of oral argument. At oral argument, plaintiff confirmed that it still was performing a number of the contracts at issue. Hr’g Tr. 6-7.

At oral argument, it became apparent that the significance of the evaluation criteria and evaluation sequence detailed in the Source Selection Plan (SSP) is a critical source of contention between the parties. Following oral argument, the court ordered the parties to file supplemental briefing addressing the legal impact, if any, of the agency’s evaluation of the offerors in a manner different from what was set forth in the SSP. The parties filed them briefs, Pl.’s Suppl, Br., ECF No. 117, Def.-Int.’s Suppl. Br., ECF No. 118, and Def.’s Suppl. Br., ECF No. 119.

For the reasons explained below, the court DENIES defendant’s cross-motion for judgment on the administrative record, DENIES defendant-intervenor’s cross-motion for judgment on the administrative record, and GRANTS-IN-PART plaintiffs motion for judgment on the administrative record.

I.Background

A The Source Selection Plan (SSP)

The contracting officer and designated Source Selection Authority (SSA) for this procurement, Ms. Kimberly Hurt, and the technical evaluation team (TET) chair, Ms. Jodi Cokl, approved the SSP in June 2013. Tab 9, AR 119,122.

The SSP was marked: “For Official Use Only Source Selection Information.” Id. at 119-138. The SSP set forth, inter alia, the procedures for evaluating the received proposals and the type of procurement to be conducted. Tab 9, AR 119-30. The VA’s objective was to “select the proposal(s) that represents the best value to the Government,” Tab 9, AR 122. As defined in FAR 2.101, “best value” is “the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.”

The SSP contained “the source selection criteria and the evaluation procedures used to submit [a] final award recommendation to the source selection authority (SSA).” Tab 9, AR 122. As set forth in the SSP, each proposal was to be evaluated for the following criteria in the order listed:

1. Technical Capability
2. Relevant Past Performance
3. Veteran’s Participation
4. Price
5. “The fifth step will be a series of paired comparisons among offerors, trading off expected value against probable costs in order to determine the best value source selection. In the event that additional capability information is desired before making a source selection, discussions may be held for those offerors with a realistic chance for award (competitive range). Steps two through five will then be repeated to arrive at a final source selection.”

Id. at AR 126.

As to the relative importance of the evaluation factors, technical capability was deemed more important than past performance and veterans participation. Id. at AR 126. Past performance was valued as more important than veterans participation. Id. The combination of technical capability, past performance, and veterans participation was valued as “significantly more important than price.” Id.

To aid in evaluating technical capability, the Technical Evaluation Team (TET) “suggested topics for discussions and questions/statements to be presented to offerors in the event discussions [were] to be conducted.” Tab 9, AR 125.

As to past performance, the SSP limited the type of relevant experience to be considered to the following:

[CJontracts performed in the last three (3) yeai’s involving:
i. Experience with Medical Gas Supply contracts
*465 ii. Demonstrated management of experienced accounts payable and receivable for medical supply contracts.
iii. Demonstrated ability providing Medical Gases services [sic] to multiple medical facilities preferably within the states of: WV, KY, TN, OH, MI, IL, IN, WI, MO, KS, LA, TX, AR, MS, OK, ND, MN, SD, IA, NE

Tab 9, AR 135-36.

As to veterans participation, each offeror was asked to furnish a representation, modeled on those found at FAR 52.212-3 or 52.219-1, as to whether it qualified as a service-disabled small business (“SDVOSB”) or a veteran-owned small business (“VOSB”).

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129 Fed. Cl. 457, 2016 U.S. Claims LEXIS 1865, 2016 WL 7118563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/progressive-industries-inc-v-united-states-uscfc-2016.