Rivada Mercury, LLC v. United States

131 Fed. Cl. 663, 2017 U.S. Claims LEXIS 264, 2017 WL 1193704
CourtUnited States Court of Federal Claims
DecidedMarch 17, 2017
Docket16-1559C
StatusPublished
Cited by3 cases

This text of 131 Fed. Cl. 663 (Rivada Mercury, 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
Rivada Mercury, LLC v. United States, 131 Fed. Cl. 663, 2017 U.S. Claims LEXIS 264, 2017 WL 1193704 (uscfc 2017).

Opinion

Keywords: Pre-Award Bid Protest; Competitive Range Determination; FAR 15.306; Discussions; Unstated Evaluation Criteria; Unequal Evaluation.

OPINION AND ORDER

KAPLAN, Judge.

This pre-award bid protest involves a unique and complex procurement which implements a critical public safety recommendation made by the 9/11 Commission. In it, the government seeks a contractor to build-out, deploy, and operate a nationwide public safety broadband network (NPSBN). Once deployed, the NPSBN will transform the nation’s emergency response system by consolidating public safety use of the radio spectrum, which will permit emergency re *667 sponders across the country to use devices that are compatible with one another. The NPSBN will thus enable the public safety community to transition away from a patchwork of antiquated, analog systems and into a modem, digital communication environment.

The plaintiff in this protest, Rivada Mercury, LLC (Rivada), is a telecommunications company formed specifically to pursue the NPSBN contract. It brought this action when, after receiving and evaluating proposals, the procuring agency, the First Responder Network Authority (FirstNet or “the agency”), established a competitive range that excluded Rivada and included only De-fendanb-Intervenor AT & T Corp. (AT & T). Rivada contends that the agency erred when it allegedly entered into discussions before it established the competitive range and then failed to ensure that those discussions were meaningful and not misleading. Further, it claims that FirstNet’s evaluation of its proposal and its decision to eliminate Rivada from consideration were flawed in myriad ways.

The parties have filed cross-motions for judgment on the administrative record. For the reasons discussed below, Rivada’s claims lack merit. Accordingly, Rivada’s motion for judgment on the administrative record is DENIED, and the government’s and the in-tervenor’s cross-motions for judgment on the administrative record are GRANTED.

BACKGROUND

I. Statutory Background

A. Overview and Purpose of the First-Net Program

In the wake of its in-depth examination of the September 11, 2001 terrorist attacks, the 9/11 Commission determined that communication problems plagued the public safety response to the emergency. Specifically, radio traffic had overwhelmed existing communications channels, and emergency responders had difficulty coordinating because their radios operated on different bands of the radio spectrum. 1 The 9/11 Commission Report 319-23 (2004). The Commission thus identified a pressing need for “the expedited and increased assignment of radio spectrum for public safety purposes.” Id. at 397.

In February 2012, acting on the Commission’s recommendation, Congress created FirstNet, which is an independent authority within the National Telecommunications and Information Administration (NTIA). 2 See Middle Class Tax Relief and Job Creation Act of 2012 (FirstNet Act or “the Act”) § 6204, 47 U.S.C. § 1424 (2012). In the Act, Congress directed FirstNet to “ensure the establishment of a nationwide, interoperable public safety broadband network.” 3 See 47 U.S.C. § 1422(a).

*668 Congress specified that the NPSBN “shall be based on a single, national network architecture” with two primary components: a “core network” and a “radio access network.” Id. § 1422(b). The core network would “consist[ ] of national and regional data centers” that would “provide[] the connectivity between the radio access network[] and the public Internet or the public switched [telephone] network, or both.” Id. § 1422(b)(l)(A)-(B) (internal subsections omitted). The radio access network would “consist[] of all cell site equipment, antennas, and backhaul equipment ... that are required to enable wireless communications with devices using the public safety broadband spectrum.” Id § 1422(b)(2)(A).

The Act also instructed the Federal Communications Commission (FCC) to reallocate a substantial portion of the 700 megahertz band of the spectrum for public safety use. 4 See id. § 1411. This portion is known as “Band 14.” See AR Tab 1 at 17. Congress further directed the FCC to grant FirstNet an exclusive, ten-year license for the use of Band 14. See 47 U.S.C. § 1421.

B. FirstNet’s Responsibilities and Funding Mechanism

Congress set forth an elaborate set of requirements for FirstNet to carry out in establishing the NPSBN. See id. § 1426(b). As most relevant here, with respect to building and deploying the network, FirstNet was to, among other things, “speed deployment of the network” by “leveraging], to the maximum extent economically desirable, existing commercial wireless infrastructure.” Id. § 1426(b)(1)(C).

Congress allocated $7 billion to FirstNet to fund the network build-out process. See id. §§ 1426(e), 1467(b)(3). Congress intended, however, that FirstNet would ultimately become “permanently] self-funding.” See id. §§ 1428(b), (d). Thus, to meet its continuing financial needs, Congress authorized First-Net to collect payments for the use of its network capacity and any network infrastructure that it “constructed, owned, or operated.” Id. § 1426(b)(4)(C). Such fees could include user fees collected from any “entity, including any public safety entity or secondary user, that seeks access to or use of the [NPSBN],” as well as lease fees for the use of its excess spectrum capacity. Id. § 1428(a)(l)-(2).

II. Preliminary Procurement Activities and Acquisition Plan

Following its creation, FirstNet spent three years gathering information to lay the groundwork to procure the extensive services it would need to build and operate the NPSBN. Based on the information it collected, FirstNet drafted a fifty-page acquisition plan. AR Tab 28. Noting that the NPSBN undertaking was “an unprecedented Government project,” id. at 686, the plan specified that FirstNet’s objective was to “maximize the network’s value to public safety while meeting its financial sustainability obligations under the Act,” id. at 668.

To meet its financial sustainability obligations, the agency planned to have offerors “propose a level of fixed payments to First-Net over time” based on the offerors’ estimations of “the value of FirstNetfs] assets”— i.e., the funds appropriated by Congress and FirstNet’s exclusive license to use the bandwidth in Band 14. See id. at 673 (noting that “in addition to the available FirstNet funding, potential offerors may utilize Band 14 excess network capacity and revenues derived from public safety entities, as well as revenue from them commercial users on *669 Band 14, to support the operations of the NPSBN”).

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131 Fed. Cl. 663, 2017 U.S. Claims LEXIS 264, 2017 WL 1193704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivada-mercury-llc-v-united-states-uscfc-2017.