Reli Group, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedJanuary 29, 2025
Docket24-248
StatusPublished

This text of Reli Group, Inc. v. United States (Reli Group, 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
Reli Group, Inc. v. United States, (uscfc 2025).

Opinion

In the United States Court of Federal Claims No. 24-248 (Filed Under Seal: January 13, 2025) Reissued: January 29, 2025 1

) RELI GROUP, INC., ) ) Plaintiff, ) ) v. ) ) THE UNITED STATES, ) ) Defendant, ) ) and ) ) HEALTHCARE MANAGEMENT ) SOLUTIONS, LLC, ) ) Defendant-Intervenor. ) )

John R. Prairie, Wiley Rein LLP, Washington, D.C., for the plaintiff.

Patrick Angulo, U.S. Department of Justice, Washington, D.C., for the defendant.

James E. Whytsell, Stinson LLP, Denver, CO, for the defendant-intervenor.

MEMORANDUM OPINION

SMITH, Senior Judge

This bid protest is before the Court on the parties’ Cross-Motions for Judgment on the Administrative Record. Plaintiff, RELI Group, Inc. (“RELI”), challenges a task order award to defendant-intervenor, Healthcare Management Solutions, LLC (“HMS”), by defendant, the United States of America, through the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (the “Agency”) for medical auditing services under Request for Quotation No. 240287 (the “Solicitation”). See generally Amended Complaint, ECF No. 28 [hereinafter Am. Compl.]; see also Plaintiff’s Motion for Judgment on the Administrative Record, ECF No. 24 [hereinafter Pl.’s MJAR]; Defendant’s Cross-Motion for Judgment on the

1 An unredacted version of this opinion was issued under seal on January 13, 2025. Defendant responded to the Court’s call for redactions, and this decision reflects the Court’s ruling on the proposed redactions.

1 Administrative Record and Motion to Dismiss, ECF No. 31 [hereinafter Def.’s CMJAR]; Defendant-Intervenor’s Cross-Motion for Judgment on the Administrative Record, ECF No. 30 [hereinafter Def.-Int.’s CMJAR].

As with most garden-variety bid protests, the main issue is whether the agency reasonably followed the Solicitation’s evaluation criteria in the procurement conducted under Federal Acquisition Regulation (“FAR”) Part 8.4. Specifically, RELI argues that the Agency violated the terms of the Solicitation by considering only the two lowest priced offerors, HMS and , when the Solicitation mandated a best- value tradeoff source selection methodology; and by improperly holding discussions with only those two offerors. See Pl.’s MJAR at 15–26. RELI also argues that the same conduct violates the FAR’s mandate that agencies treat offerors fairly and impartially. Id. at 19–22. Lastly, RELI argues that the Agency followed neither the Solicitation nor the FAR in its price evaluation. Id. at 22–24.

In response, defendant moves to dismiss RELI’s protest for lack of jurisdiction on standing grounds because RELI is not an “interested party” that would have had a substantial chance at contract award but for the alleged errors in the procurement process. See Def.’s CMJAR at 14–15. Specifically, defendant argues that RELI has no standing because RELI: (1) incorrectly describes itself as “the highest technically rated offeror”; (2) proposes a high price creating a substantial disadvantage; and (3) alleges errors that did not impact its chance for award. Id. at 15–16. Defendant also cross-moves for judgment on the administrative record, arguing that the award to HMS was proper because the Agency followed the Solicitation requirements and did not act arbitrarily, capriciously, or contrary to law. Id. at 18–45. Defendant addresses each of the issues raised by RELI, explains how the record undermines RELI’s argument and supports the Agency’s final award decision, and illustrates that, even if RELI were correct, it fails to show prejudice. Id. HMS argues much the same as defendant in its cross- motion, except that it details the Agency’s alleged proper evaluation of its proposal. See Def.- Int.’s CMJAR at 20–45.

As described in detail below, the Court finds in favor of defendant and defendant- intervenor. Accordingly, plaintiff’s Motion for Judgment on the Administrative Record is denied, and defendant’s and defendant-intervenor’s Cross-Motions for Judgment on the Administrative Record are hereby granted.

I. Background

A. The Solicitation

On October 11, 2023, the Agency issued the Solicitation for “Validation Clinical Data Abstraction Services” for the creation and use of an auditing program for skilled nursing facilities (“SNFs”) for the Agency’s purchasing program under the procedures of the Federal Supply Schedules (“FSS”). Administrative Record 130–31, ECF No. 22 [hereinafter AR]. The

2 Agency issued the Solicitation under the simplified procedures of FAR Part 8.4, and the Solicitation stated that this procurement was “not a source selection under FAR Part 15,” and that the procedures in FAR Subparts 15.1, 15.2, and 15.3 “do not apply.” AR 155. The Solicitation contemplated a five-year period of performance consisting of a one-year base period and four one-year option periods. AR 127.

The Solicitation also stated that, once the Agency “determines the Offeror that is best- suited (i.e., the apparent successful contractor),” the Agency may “communicate with only that Offeror to address any remaining issues, if necessary, and finalize a task order with that contractor.” AR 155. The Solicitation went on to state that, “[i]f the parties cannot successfully address any remaining issues,” as determined by the Agency, then the Agency may “communicate with the next best-suited Offeror based on the original analysis and address any remaining issues.” Id.

The Agency would use three evaluation factors in reviewing proposals: technical approach, prior experience, and price. AR 156. Technical approach was given more weight than prior experience, but both technical approach and prior experience, when combined, were approximately equal to price. AR 156–57. Lastly, the Agency would use a “trade-off process to determine which proposals represent the best value to the Government.” AR 157.

B. The Agency’s Evaluation

i. Initial Evaluations

The Agency received eight proposals. AR 1188. In its initial evaluation of these proposals, the agency assigned strengths and weaknesses to each offeror. AR 1188; AR 1148. The agency also assigned confidence levels for each offerors’ non-price factors (i.e., technical approach and prior experience), as well as an overall confidence level. AR 1183. The Agency summarized its results in the following chart:

3 contract to HMS, finding that “the level of effort provided by HMS will save the government time, money, and effort overall,” that HMS “can perform the work on time and within budget with little government interference,” and that HMS presents a “low risk of an unsuccessful contract performance.” AR 1432.

On February 2, 2024, the Agency notified the offerors that it awarded the contract to HMS. AR 1448–54. The Agency told RELI that its “submission was among the highest rated technical proposals, but the total proposed costs did not offer the overall best value to the government.” AR 1453.

C. Procedural History

On February 12, 2024, plaintiff filed its Complaint with this Court, protesting the Agency’s decision to award the contract to HMS. See generally Complaint, ECF No. 1. On March 5, 2024, defendant filed the Administrative Record. ECF No. 22. On March 26, 2024, plaintiff filed its Motion for Judgment on the Administrative Record (“Motion”). Pl.’s MJAR, ECF No. 24. On April 16, 2024, defendant and defendant-intervenor filed their Responses and Cross-Motions for Judgment on the Administrative Record (collectively, “Cross-Motions”). Def.’s CMJAR, ECF No. 31; Def.-Int.’s CMJAR, ECF No. 30. Defendant also moved in its Cross-Motion to dismiss plaintiff’s claims for lack of subject matter jurisdiction. See Def.’s CMJAR at 11–17. On April 23, 2024, plaintiff filed its reply in support of its Motion and its response to the Cross-Motions.

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Reli Group, Inc. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reli-group-inc-v-united-states-uscfc-2025.