Rev, LLC v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 29, 2024
Docket22-1759
StatusPublished

This text of Rev, LLC v. United States (Rev, LLC v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rev, LLC v. United States, (Fed. Cir. 2024).

Opinion

Case: 22-1759 Document: 56 Page: 1 Filed: 01/29/2024

United States Court of Appeals for the Federal Circuit ______________________

REV, LLC, Plaintiff-Appellant

v.

UNITED STATES, APTIVE RESOURCES, LLC, Defendants-Appellees

DECISIVE POINT CONSULTING GROUP, LLC, Defendant ______________________

2022-1759 ______________________

Appeal from the United States Court of Federal Claims in No. 1:21-cv-01011-PEC, Judge Patricia E. Campbell- Smith. ______________________

Decided: January 29, 2024 ______________________

THOMAS SAUNDERS, Wilmer Cutler Pickering Hale and Dorr LLP, Washington, DC, argued for plaintiff-appellant. Also represented by JON DAVIDSON LEVIN, Maynard Nex- sen PC, Huntsville, AL.

ERIC JOHN SINGLEY, Commercial Litigation Branch, Civil Division, United States Department of Justice, Wash- ington, DC, argued for all defendant-appellee United States. Also represented by REGINALD THOMAS BLADES, Case: 22-1759 Document: 56 Page: 2 Filed: 01/29/2024

JR., MICHAEL GRANSTON, PATRICIA M. MCCARTHY.

JOHN PRAIRIE, Wiley Rein, LLP, Washington, DC, for defendant-appellee Aptive Resources, LLC. Also repre- sented by JENNIFER EVE RETENER, CARA LYN SIZEMORE. ______________________

Before REYNA, TARANTO, and STARK, Circuit Judges. STARK, Circuit Judge. REV, LLC (“REV”) is a veteran-owned small business that provides software consulting services to private and public entities. In response to a solicitation (“Solicitation”) by the Department of Veterans Affairs (“VA”), REV partic- ipated in a bid process in hopes of joining the vendor pool for the VA’s Transformation Twenty-One Total Technol- ogy-Next Generation (“T4NG”) program. To determine who to add to its vendor pool, the VA conducted a two-step evaluation of the bids it received. While REV was among the successful participants in the first step, REV was elim- inated at the second stage, never making it to the compet- itive range from which awardees were ultimately selected. REV filed suit against the VA in the Court of Federal Claims. Several winning bidders intervened and also be- came defendants. The Court of Federal Claims granted the motions of the VA and the intervenor-defendants for judg- ment on the administrative record. In doing so, the trial court rejected on the merits REV’s critiques of the VA’s evaluation of the strength of REV’s own proposal. The court then dismissed for lack of standing REV’s challenges to the VA’s evaluation of rival bidders’ submissions and the VA’s establishment of the competitive range. REV now appeals only the portion of the judgment based on its lack of standing. We agree with REV that be- cause REV showed it had a greater than an insubstantial chance of securing an award had certain awardees been ex- cluded from the bid process, which REV alleged they Case: 22-1759 Document: 56 Page: 3 Filed: 01/29/2024

REV, LLC v. US 3

should have been, it has standing. We reverse this portion of the judgment and remand for the Court of Federal Claims to address the merits of REV’s claims attacking the VA’s assessment of competing bids and its establishment of the competitive range. I A According to the VA’s Solicitation, “T4NG is a Multi- Agency, Indefinite Delivery/Indefinite Quantity (IDIQ), Multiple Award Task Order contract with a base ordering period of five years with one five-year option period.” J.A. 2055. “The program has a ceiling of $22.3B and supports Contractor-provided solutions of Information Technology (IT), health IT, and telecommunications, to include services and incidental hardware/software for customer require- ments that vary across the entire spectrum of existing and future technical environments.” Id. As the Solicitation explained, the VA intended to eval- uate the offerors 1 who submitted bids in two phases. In the first phase, referred to as “Step One,” all offerors were re- quired to submit certain deliverables for a sample task aptly named “Sample Task 1.” J.A. 2431; see also J.A. 2502 (describing Sample Task 1). To be eligible at Step One, “[o]fferors must [have been] verified in the Vendor Infor- mation Pages (VIP) Database as a [Service-Disabled Vet- eran Owned Small Business] SDVOSB and qualify as a small business . . . at the time of Step One Price Volume submission.” J.A. 2431. After evaluating the submissions for Sample Task 1, the VA would establish a first competi- tive range and select the most highly rated offerors to pro- ceed to the next phase, “Step Two.” Id.

1 Throughout this opinion we use the terms “offe- rors” and “bidders” interchangeably. Case: 22-1759 Document: 56 Page: 4 Filed: 01/29/2024

At Step Two, the remaining offerors were given an- other sample task, “Sample Task 2.” J.A. 2432. As in Step One, “[e]ligible Offerors must [have] be[en] verified in the VIP Database at the time of [their] Step Two proposal sub- mission;” the VA would not “evaluate Step Two proposal submissions from ineligible Offerors.” Id. The Solicitation explained that following the evaluation of Step Two sub- missions, the VA would establish another competitive range before selecting the awardees. It also specifically ad- vised that “if the Contracting Officer determined that the number of proposals that would otherwise be included in any competitive range exceeds the number at which an ef- ficient competition can be conducted, the Contracting Of- ficer may limit the number of proposals in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals.” Id. The VA intended to “on-ramp seven (7) SDVOSBs to replenish the pool of SDVOSB[s],” although the VA also ex- pressly “reserve[d] the right to make additional awards or fewer awards if doing so is deemed to be in the best interest of the Government.” J.A. 2194; see also J.A. 2431. Award decisions were to be “based on the best overall (i.e., best value) proposals that are determined to be the most bene- ficial to the Government, with appropriate consideration given” to five factors: Technical, Past Performance, Veter- ans Employment, Small Business Participation Commit- ment Factor (“SBPC”), and Price. J.A. 2431. While all of these factors would be considered, the VA was explicit that “[t]he Technical Factor is significantly more important than” the other factors. Id. Ratings on the Technical Fac- tor were based on the Sample Task 1 (“ST1”) sub-factor, Sample Task 2 (“ST2”) sub-factor, and Management sub- factor, with “[t]he Sample Task Sub-factor[s] [being] signif- icantly more important than the Management Sub-factor.” Id. “To receive consideration for award,” the Solicitation continued, “a rating of no less than ‘Acceptable’ must be Case: 22-1759 Document: 56 Page: 5 Filed: 01/29/2024

REV, LLC v. US 5

achieved for the Technical Factor, all Technical Sub-Fac- tors, and the SBPC Factor.” J.A. 2432. The Solicitation defined an “Acceptable” rating as “[a] proposal that meets all of the Government’s requirements, contains at least minimal detail, demonstrates at least a minimal under- standing of the problems, and is at least minimally feasible (moderate to high degree of risk).” J.A. 3781. Other possi- ble ratings were “Outstanding,” “Good,” “Susceptible to Be- ing Made Acceptable,” and “Unacceptable.” Id. B Consistent with the Solicitation, the VA made the first competitive range determination after reviewing offerors’ submissions for Sample Task 1. A total of 33 offerors, in- cluding REV and defendants-intervenors Aptive Re- sources, LLC (“Aptive”) and Decisive Point Consulting Group, LLC (“Decisive Point”), were part of the first com- petitive range and proceeded to Step Two. After the VA evaluated the submissions for Sample Task 2, all 33 re- maining offerors were given an overall technical rating.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Labatt Food Service, Inc. v. United States
577 F.3d 1375 (Federal Circuit, 2009)
Weeks Marine, Inc. v. United States
575 F.3d 1352 (Federal Circuit, 2009)
Rex Service Corp. v. United States
448 F.3d 1305 (Federal Circuit, 2006)
Kingdomware Technologies, Inc. v. United States
579 U.S. 162 (Supreme Court, 2016)
Clinicomp International, Inc. v. United States
904 F.3d 1353 (Federal Circuit, 2018)
Sekri, Inc. v. United States
34 F.4th 1063 (Federal Circuit, 2022)
Caci, Inc.-Federal v. United States
67 F.4th 1145 (Federal Circuit, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
Rev, LLC v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rev-llc-v-united-states-cafc-2024.