Q Integrated Companies, LLC v. United States

131 Fed. Cl. 125, 2017 U.S. Claims LEXIS 242, 2017 WL 1130946
CourtUnited States Court of Federal Claims
DecidedMarch 27, 2017
Docket16-101C
StatusPublished
Cited by9 cases

This text of 131 Fed. Cl. 125 (Q Integrated Companies, LLC 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
Q Integrated Companies, LLC v. United States, 131 Fed. Cl. 125, 2017 U.S. Claims LEXIS 242, 2017 WL 1130946 (uscfc 2017).

Opinion

Post-.award bid protest; motion for relief from judgment; RCFC 60(b); post-deci-sional change in circumstances; standing; application of Tinton Falls

OPINION AND ORDER

LETTOW, Judge.

The court issued its decision on the administrative record in this post-award bid protest on April 20, 2016. See Q Integrated Cos., LLC v. United States, 126 Fed.Cl. 124 (2016), appeal dismissed, No. 2016-1991, — Fed.Appx. -, 2016 WL 4363180 (Fed. Cir. June 2, 2016). In the procurement at issue, the United States Department of Housing and Urban Development (“HUD” or “government”) solicited and awarded contracts for services in marketing and selling single-family homes acquired by HUD after the owners defaulted on mortgages supported by the Federal Housing Administration. Id. at 127. Plaintiff (“Q Integrated”) challenged awards by HUD of contracts to Sage Acquisitions, LLC (“Sage”) for three geographic areas designated by HUD as Areas 7A, ID, and 5P. Id. Q Integrated’s motion for judgment on the administrative record was granted in part and denied in part, and the government’s and defendant-intervenor Sage’s motions for judgment on the administrative record were granted in part and denied in part. Id. at 148. Judgment was entered on April 21, 2016. The court left the awards to Sage undisturbed for the base period and the first option year, but set aside and enjoined the awards beyond the end of the first option period on May 31, 2017. Id. To obtain services after that date, the court specified that HUD had to either (1) “allow Q Integrated to revise its final proposal and then .,. conduct a new evaluation [of offers], or (2) conduct a new solicitation for the pertinent services.” Id.

On June 22, 2016, the government filed a motion for relief from the judgment pursuant to Rules 60(b)(2), (b)(5), and (b)(6) of the Rules of the Court of Federal Claims (“RCFC”). Shortly thereafter, at the request of the parties, briefing on that motion was suspended for months while the Small Business Administration (“SBA”) considered size determinations of entities competing for contractual awards. Briefing was renewed when SBA decided that a number of offerors, including Q Integrated and Sage, were “other than small” in connection with competition for contracts for HUD areas other than the areas at issue in this case. At that point, the government contended that Q Integrated no longer had standing and that the judgment should be vacated. Defendant-intervenor *128 Sage supports the government’s motion, and Q Integrated opposes it.

For the reasons stated, the government’s motion for relief from judgment is denied.

FACTS

A. The HUD Procurement

HUD works with private contractors to “manage and market its inventory of single-family homes obtained as a result of mortgage defaults.” Q Integrated, 126 Fed.Cl. at 128. After a decade of using single contractors for administrative, program support, management, and marketing services for this program, in 2009 HUD divided the contracts into Asset Management, which includes marketing and sales, and Field Service Management, which encompasses property management. Id. HUD also divided the contracts across four regional Homeownership Centers located in Atlanta, Philadelphia, Denver, and Santa Ana, which regional centers are then divided into smaller “areas” consisting of a state or group of states. Id. Each area is designated by a number followed by the first letter of the regional headquarters, e.g., Area ID is managed by the Denver Homeowner-ship Center and covers Utah, Colorado, New Mexico, and Northern Texas. See id.

The HUD procurement in this case covered Asset Management contracts in twelve areas, specifically 3A (Illinois), 4A (Indiana and Kentucky), 5A (North Carolina and South Carolina), 6A (Alabama, Mississippi, and Tennessee), 7A (Georgia), 8A (Florida, Puerto Rico, and the U.S. Virgin Islands), ID (Utah, Colorado, New Mexico, and Northern Texas), 2D (Kansas, Oklahoma, Arkansas, Louisiana, Missouri, and Southern Texas), IP (Michigan), 3P (Maine, Vermont, New York, New Hampshire, Rhode Island, New Jersey, Massachusetts, and Connecticut), 4P (Ohio), and 6P- (Pennsylvania, West Virginia, Virginia, Delaware, Maryland, and the District of Columbia). Q Integrated, 126 Fed.Cl. at 128-29. Within this procurement, “Areas 3A, 6A, 7A, 8A, ID, IP, 3P, 4P, and 5P were to be 100 percent small business set-aside contracts, Areas 4A and 6A were to be woman-owned small business set-aside contracts, and Area 2D was to be an unrestricted competition.” Id. at 129.

HUD issued its request for proposals (“RFP”) for these Asset Management contracts (solicitation number DU204SA-13-R-0005) on July 25, 2014. Q Integrated, 126 Fed.Cl. at 129. The RFP stated that “the contacts would be single award indefinite delivery/indefinite quantity contracts” with a base period from the award date until May 31, 2016, plus four one-year option periods. Id. The offerors’ proposals were evaluated through “a best-value source selection based on a performance-price trade-off.” Id. at 130. First, HUD evaluated proposals for technical acceptability. Id. All “technically acceptable” proposals were then evaluated for “price reasonableness and balanced pricing.” Id. Proposals with “reasonable pricing” were then évaluated for past and present performance. Id. Contact references demonstrating the offerors’ past performance were evaluated for recency, quality, and relevancy, and based on these factors each offeror received an “overall past/present performance confidence rating of Excellent/High Confidence, Good/Significant Confidence, Fair/Some Confidence, No Confidence, [or] Neutal/Un-known Confidence.”, Id at 130-31.

For the contracts encompassing Areas 7A, ID and 5P at issue in this case, HUD determined that the proposal from Sage “provided the best value based on a trade-off between its higher past performance rating and the price difference over the lowept-priced offer.” Q Integrated, Í26 Fed.Cl. at 136. Q Integrated had the lowest-priced offer for Areas ID and 5P, and the second-lowest-priced offer for Area 7A. Id. Sage was the second-lowest-priced offeror for Areas ID and 5P, and the third-lowest-priced offeror for Area 7A. Id. Sage received an overall past performance rating for its final proposal of “Excellent/High Confidence,” whereas Q Integrated received a final overall past performance rating of “Fair/Some Confidence.” Id. at 135-36.

B. Q Integrated’s Bid Protest before This Court

Q Integrated filed its protest in this court on January 19, 2016, arguing that HUD “improperly evaluated its past performance information, with the result that Q Integrated *129

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131 Fed. Cl. 125, 2017 U.S. Claims LEXIS 242, 2017 WL 1130946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/q-integrated-companies-llc-v-united-states-uscfc-2017.