Raymond Express International, LLC v. United States

124 Fed. Cl. 79, 2015 U.S. Claims LEXIS 1537, 2015 WL 7289340
United States Court of Federal Claims·Decided November 18, 2015·No. 15-1088 C·Published·Cited by 3 cases

Opinion

Post-Award Bid Protest; Identity of Awardee Adequately Clear; Past Performance Evaluation Consistent with Solicitation and Rational; Price Realism Inquiry Neither Arbitrary Nor Capricious and Consistent with Solicitation.

OPINION

Bush, Senior Judge.

Plaintiff Raymond Express International, LLC (REI) filed its post-award bid protest complaint on September 28, 2015. In its complaint, REI challenges awards under Solicitation No. HDEC09-14-R-0002, a solicitation which was amended six times and which was protested by REI several times. Most recently, a post-award protest brought by REI at the Government Accountability Office (GAO), raising, largely, the same protest grounds as those now before the court, was denied on September 11, 2015.

The solicitation requested bids on a .comprehensive contract (or up to three individual contracts) to provide fresh fruits and vegetables (FFV) to Department of Defense commissaries in South Korea, Japan and Guam (the “Pacific Area”). The procuring agency is the Defense Commissary Agency (DeCA). The awardees, and intervenors in this suit, are MPG West, LLC (MPG), for South Korea and Japan, and International Distributors, Inc. (IDI), for Guam. 2 In this protest, REI seeks injunctive and declaratory relief related to the contracts awarded pursuant to the solicitation.

The administrative record (AR) of this procurement was filed on October 5, 2015, was corrected on October 18, 2015, and briefing was filed by the parties according to an extremely, expedited schedule, in light of the fact that deliveries under the new contracts are to begin November 1, 2015. Oral argument, was held on October 20, 2015. As discussed below, plaintiff has not shown that the agency violated procurement laws or regulations or that the contract awards were arbitrary or capricious. Defendant’s and in-tervenors’ motions for judgment on the administrative record are therefore granted and plaintiffs motion for judgment on the administrative record is denied.

BACKGROUND 3

I. Introduction

This protest poses four principal questions. First, did the somewhat imprecise identification of the business, entity in MPG’s proposals invalidate the contract award to MPG? Second, were MPG’s “business references” proper sources of past performance data for MPG? Third, did DeCA rate and weigh the past performance data for MPG and IDI as required by the evaluation scheme set forth in the solicitation? Fourth, was DeCA’s price realism analysis of the offerors’ proposals rational and consistent with the solicita^ tion? These four primary questions are addressed below. 4

II. Incumbent Contract

REI is the incumbent contractor supplying FFV to DeCA commissaries in South Korea, Japan (including Okinawa), and Guam. Unlike- the incumbent contract, the new contracts require the contractor to transport FFV to the Pacific Area at its own cost, or to obtain FFV locally. One of REI’s secondary subcontractors on the incumbent contract, MPG, is now the -awardee for the new FFV contract for South Korea and Japan.

*84 III. The Solicitation

An offeror hoping to supply FFV to DeCA could bid on all three regions in the Pacific Area (South Korea, Japan and Guam), or could bid on only one or two regions. The contracting period would be for an initial two-year base period, with three option years. Solicitation No. HDEC09-14-R-0002, “Solicitation of Fresh Fruits & Vegetables— Pacific Area,” was issued by DeCA on February 3, 2014. AR Tab 4. The produce needs of the commissaries of South Korea, Japan and Guam were divided into distinct Contract Line Item Numbers (CLINs), with CLIN 0001 for South Korea, CLIN 0002 for Japan (including Okinawa), and CLIN 0003 for Guam. The estimated value of the contract was $200 million for the base period and all option periods if an offeror provided FFV for all three CLINs. Id. at 409, 414 (clarification provided by Amendment 0001). The projected performance start date 'was September 2014. Id. at 476.

In its planning for the procurement, DeCA rejected an evaluation system based on price alone, because “price will not be the sole determining factor in selection of the awar-dee.” AR at 474. Instead, the agency recognized that technical proficiency is key to the offeror’s success in providing FFV to the Pacific Area commissaries:

It is essential that the contract awardee has the technical approach to meet the merchandising support, meet or exceed the [Pacific Area] Agricultural Standards, and the other requirements that fall under the technical approach sub-factor. In addition, the contract awardee must be able to meet the inspection requirements, .and have a promotional plan to meet the additional support requirements needed. This requirement is a program buy; which means the resulting contract is an all-inclusive commodity contract that providefs] for the addition of new items as they become available in the marketplace. These additional items will be considered within the scope of the contract and will not require further competition. Evaluation of each sub-factor will include the offeror’s participation in technological advancements and its ability to provide products available in the commercial marketplace. The contracting officer must have latitude to make tradeoff decisions between Combined Technical Capabilities/Risk, Past Performance, and Price.

Id. at 474-75. In the solicitation, the evaluation system is generally described as “Best Value, Trade-Off.” Id. at 219. More specifically, the evaluation scheme provides that technical capability is significantly more important than past performance, and that these two factors, when combined, are significantly more important than price. Id,

It is not necessary to review all of the solicitation terms, but a few provisions merit mention here and closer examination in the analysis section of this opinion. Offerors were required to supply three business references for prior or present work that would establish their contract performance track record. Each offeror’s past performance data, which could come from a variety of sources, would then be evaluated according to three past performance sub-factors and “relevancy”; this data would produce a “performance confidence” rating as well. AR at 221-22. Prices were to be evaluated for reasonableness, and proposals would also provide the government with the opportunity to perform a price realism assessment. Consumer prices at the commissaries were to provide shoppers with at least a fifteen percent discount compared to prices at nearby local stores; this discount is referred to here as the Patron Savings Discount, or PSD. 5

IV. Offers Received

Six offerors responded to the solicitation, but only five offerors were considered to have submitted responsive proposals. Of the five responsive offerors, one competed for Guam only, another competed for Guam and South Korea, and the remaining three competed for all three regions (South Korea, Japan and Guam).

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Raymond Express International, LLC v. United States, 124 Fed. Cl. 79, 2015 U.S. Claims LEXIS 1537, 2015 WL 7289340 (uscfc 2015).

124 Fed. Cl. 79 (Raymond Express International, LLC v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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