Quantico Tactical Inc. v. United States

United States Court of Federal Claims·Decided November 2, 2020·No. 20-120·Published

Opinion

In the United States Court of Federal Claims Nos. 20-120C & 20-150C (consolidated) (Originally Filed: September 23, 2020) (Re-issued: November 2, 2020)1

************************** QUANTICO TACTICAL INC.,

Plaintiff,

v. Pre-award bid protest; Competitive range THE UNITED STATES, determination; FAR 15.306; technically Defendant, unacceptable; prejudice. and

ATLANTIC DIVING SUPPLY, INC.

Intervenor-Defendant.

************************** UNIFIRE, INC.,

v.

THE UNITED STATES,

Defendant.

**************************

Anuj Vohra, Washington, D.C., with whom was Daniel R. Forman, Eric M, Ransom, and Rina M. Gashaw, for plaintiff Quantico Tactical Inc.

1 This opinion was originally issued under seal in order to afford the parties an opportunity to propose redactions of protected material. The parties have done so but disagree as to the extent of those redactions. Appropriate redactions appear in brackets below. David S. Black, Tysons Corner, VA, for plaintiff Unifire, Inc. Gregory R. Hallmark and Amy L. Fuentes of counsel.

Douglas T. Hoffman and Mariana T. Acevedo, United States Department of Justice, Commercial Litigation Branch, Civil Division, Washington, D.C., with whom was Martin F. Hockey, Jr., Deputy Director, Robert E. Kirschman, Jr., Director, and Ethan P. Davis, Acting Assistant Attorney General, for defendant.

Paul F. Khoury, Washington, D.C., for intervenor. John R. Prairie, Kendra P. Norwood, and J. Ryan Frazee of counsel.

OPINION BRUGGINK, Judge.

In these consolidated bid protest actions, Quantico Tactical Inc. (“Quantico”) and Unifire, Inc. (“Unifire”) challenge their exclusion from the competitive range by the Defense Logistics Agency (“DLA”) in a procurement for special operations equipment and logistical support. Pending before the court are plaintiffs’ motions for judgment on the administrative record and the cross-motions of defendant and intervenor, Atlantic Diving Supply, Inc. (“ADS”). The motions are fully briefed, and oral argument was held on September 15, 2020. Because Quantico cannot show prejudice, its protest must be denied. Unifire’s protest is denied because it has not shown irrationality in DLA’s decision to exclude it from the competitive range.

BACKGROUND

On November 16, 2018, DLA issued Request for Proposals (“RFP”) No. SPE8EJ-18-R-0001 for the Special Operations Equipment (“SOE”) Tailored Logistics Support (“TLS”) Program. The RFP contemplated multiple awards for an indefinite-delivery/indefinite-quantity (“IDIQ”) contract with a two-year base period and up to four two-year option periods (potential 10-year total). Under the SOE TLS program, contract holders will compete to supply special operations equipment to authorized Department of Defense customers. In addition, contractors will provide logistics support for the supplied equipment.

The RFP provides that DLA would engage in a best value tradeoff process to make “[a]wards . . . to offerors whose proposals are most advantageous to the Government considering non-price evaluation factors and price.” Administrative Record (“AR”) at 151. The two non-price

2 evaluation factors are: Factor I – Past Performance; and Factor II – Technical Merit. The Technical Merit Factor is broken into two subfactors: (a) Product Sourcing and (b) Distribution. Factor I is more important than Factor II and, within Factor II, (a) Product Sourcing is more important than (b) Distribution. Non-price factors are “significantly more important than price,” but, the importance of price would increase if the technical merits of proposals were equivalent. Id.

The Past Performance Factor assesses “the offeror’s probability of meeting the solicitation requirements.” Id. at 151-52. Offerors were to submit up to three past performance references to allow DLA to evaluate their relevance. DLA would then assign a ranking based on each past performance reference of either “Very Relevant,” “Relevant,” “Somewhat Relevant,” or “Not Relevant,” along with a quality of contractor performance ranking of either “Outstanding,” “Good,” “Acceptable,” “Marginal,” or “Unacceptable.” Id. at 145, 152. These assessments resulted in DLA assigning an overall “Confidence Assessment” of the contractor’s ability to perform on the new contract—“Substantial Confidence,” “Satisfactory Confidence,” “Limited Confidence,” “No Confidence,” or “Neutral Confidence”—which DLA assigned “based on the offeror’s record of relevancy and quality of performance.” Id. at 152.

The Solicitation’s Statement of Work (“SOW”) contained several critical performance metrics that offerors’ proposals would be measured against. Contractors are required to maintain a “quote rate” of 90%, meaning the contractor “must submit quotes on 90% of the Delivery Order RFQs.” AR 130. Contractors must also maintain a 95% “fill rate,” defined as the proportion of quantity ordered that the contractor actually delivers. Id. at 135. The contractor also must maintain a 90% “on-time delivery rate,” defined as the proportion of quantity ordered that the contractor delivers on time. Id.

Under Factor II, Technical Merit, subfactor (a), Product Sourcing, DLA would assess an offeror’s plan to meet certain RFP requirements, including: (1) purchasing system requirements; (2) a 90 percent Quote Rate Performance Metric; and (3) a 95 percent Fill Rate Metric. Subfactor (b), Distribution, would assess an offeror’s distribution plan for whether it could “meet the delivery requirements including, routine, urgent, emergency orders, and consolidated bill of material requirements and plan to meet the 90% on-time delivery metric and ensure control over subcontracting.” Id. at 153. Under each subfactor, DLA promised to assign an overall adjectival rating of “Outstanding,” “Good,” “Acceptable,” “Marginal,” “Unacceptable” based on the strengths, deficiencies, weaknesses, and risks of the offeror’s proposal. AR at 45-46 (acquisition plan).

3 The Source Selection Plan explained that these adjectival technical ratings “reflect[] the degree to which the proposal meets or does not meet the minimum requirements” for each subfactor. Id. at 43 (Product Sourcing), 44 (Distribution). An offeror’s plan to meet the SOW’s performance metrics was an important aspect of the ratings for each subfactor. See id. at 43-46. An unacceptable rating was defined as a “proposal [that] does not meet requirements of the solicitation, and thus, contains one or more deficiencies, and/or risk of unsuccessful performance is unacceptable.” Id. at 44, 46. The solicitation warned that such a rating meant that the proposal was “unawardable.” Id. A “weakness” was defined by DLA to mean a “flaw in the proposal that increases the risk of unsuccessful contract performance, while a “deficiency” meant that DLA found a “material failure of a proposal to meet a Government requirement.” AR at 151. A deficiency was alternatively defined as a “combination of significant weaknesses.” Id. Either of which would “increase the risk of unsuccessful contract performance to an unacceptable level.” Id.

Quantico, Unifire, and 27 other vendors timely submitted offers by the deadline of January 18, 2019. [ ] of the [ ] offerors failed to meet the requirement to offer on 90 percent of the Price Evaluation List (“PEL”) and were thus considered unresponsive. The remaining [ ] offerors were evaluated by the Source Selection Evaluation Board (“SSEB”), which began its non-price evaluation on January 31, 2019. The non-price evaluation was completed on June 14, 2019; the report details the results for the plaintiffs as detailed below.

I. Quantico

DLA rated Quantico as follows:

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Quantico Tactical Inc. v. United States, (uscfc 2020).

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