Rotech Healthcare, Inc. v. United States

121 Fed. Cl. 387, 2015 U.S. Claims LEXIS 672, 2015 WL 3507351
CourtUnited States Court of Federal Claims
DecidedJune 1, 2015
Docket14-1129C
StatusPublished
Cited by14 cases

This text of 121 Fed. Cl. 387 (Rotech Healthcare, 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
Rotech Healthcare, Inc. v. United States, 121 Fed. Cl. 387, 2015 U.S. Claims LEXIS 672, 2015 WL 3507351 (uscfc 2015).

Opinion

Bid Protest; Technical Evaluation; Past Performance Evaluation; Price Evaluation; Deference to Agency;' Requirements in the Solicitation; Denial of Motion to Supplement Administrative Record

OPINION ON CROSS-MOTIONS FOR JUDGMENT ON THE ADMINISTRATIVE RECORD

FIRESTONE, Judge.

Plaintiff Rotech Healthcare, Inc. (“Ro-tech”), the incumbent contractor, is challenging the decision of defendant Department of Veterans’ Affairs (“VA,” “agency,” or “government”) to award a contract to defendant-intervenor Community Surgical Supply, Inc. (“CSS”). 1 Pursuant to Rule 52.1(c)(2) of the Rules of the United States Court of Federal Claims (“RCFC”), the parties have filed cross-motions for judgment on the administrative record. Rotech has also filed a motion to supplement the administrative record.

This ease concerns a contract to provide home health care services in New England. During the evaluation process, the agency awarded Rotech and CSS the same rating on the Technical and Past Performance factors, and CSS’s bid was approximately $5.6 million less than Rotech’s final bid. Therefore, the VA found that CSS proposal represented the best value to the government and awarded the contract to CSS. Rotech argues that CSS’s ratings on the Technical and Past Performance factors were unsupported by CSS’s experience and bid, and that the agency did not follow the terms of the solicitation in giving CSS its high ratings on those factors. In particular, Rotech argues that CSS would not have been able to complete a transition in the time period specified by the contract, and therefore the company’s ratings were unreasonable. Rotech also argues that CSS’s price was so low that it was unrealistic for the job. Rotech asserts that the solicitation required the agency to perform a price realism analysis, and that the VA failed to perform such an analysis.

■ For the reasons that follow, the court now GRANTS the government and CSS’s respective motions for judgment on the administrative record and DENIES Rotech’s motion for judgment on the administrative record. The record demonstrates that the VA acted reasonably and complied with the terms of the solicitation in its evaluation of CSS’s bid. The court also DENIES Rotech’s motion to supplement the administrative record. The documents Rotech seeks to add to the record, which only came into existence after the agency made its decision to award the contract to CSS, do not shed light on any issue this court must decide in this case, and thus are properly excluded.

I. FACTS

A. The Solicitation

On January 17, 2014, the VA issued Request for Proposals (“RFP” or “the solicitation”) No. VA241-14-R-0003 for a contract to provide home respiratory supplies and services to veterans and beneficiaries in all the states in New England, which is classified by the Veterans Integrated Service Network (“VISN”) as geographical area No. 1, or “VISN 1.” AR 48. The VISN 1 contractor is to run the VA’s Home Respiratory Care *391 Program, Pulmonary Section, Medical Service, at all VISN 1 facilities. The VISN 1 contractor admits patients into the Home Respiratory Care Program after performing assessment of their clinical condition, furnishes home oxygen and respiratory equipment, conducts in-home pulmonary assessments and re-assessments by respiratory therapists, sets up and completes overnight oximetries, and provides documentation of patient education. Id. at 52. The RFP stated that the contractor “shall provide all transportation, labor, fuel, parts, and supervision for the furnishing of home respiratory care as identified within the Statement of Work.” Id. The RFP contemplated the award of a five-year firm, fixed-price, indefinite quantity contract. Id. at 156.

The RFP specified that the contract would be awarded on a best value tradeoff basis, and proposals were to be evaluated under three factors: (1) Technical; (2) Past Performance; and (3) Price. Id. at 135. The RFP explained that non-price factors, when combined, “are significantly more important than price,” and stated that after all the factors are considered together the contract “may be awarded to other than the lowest priced offeror or other than to the highest technically rated proposal.” Id. at 140. Though the evaluators were instructed to consider multiple subfactors when awarding a rating for the Past Performance and Technical factors, no ratings were to be given on the subfactor level, nor would an offeror receive a rating from any individual evaluator. See id. at 41. Instead, “[rjatings are given by team consensus and at the Factor level only.” Id.

1. Technical Factor

The Technical factor is further divided into five subfactors: (1) Management Approach; (2) Personnel Qualifications; (3) Operations & Quality Assurance; (4) Contingency Plan & Security; and (5) Veterans Preference. Id. 137. Each subfactor listed multiple elements that the proposal was to discuss, and required bidders to provide information on, among other things, its plan to ensure continuity and care; procedures regarding compliance with VA rules; and information about personnel (including respiratory therapists and management) who would implement the contract. Id. at 135138.

Offerors were assigned a Technical Factor rating on a five-level scale. The possible ratings were, from highest to lowest, “Blue,” “Green,” “Yellow,” “Pink,” and “Red.” Id. at 138. The highest rating, “Blue,” represents a proposal that “meets all solicitation requirements, demonstrates an excellent understanding of the requirements and offers approaches that offer significant advantage to the Government.” Id. The worst Technical Factor rating a proposal could receive was “Red,” which represents a proposal that “demonstrates little to no understanding of the requirements; or approach fails to adequately meet acceptable performance expectations.” Id. A “Yellow” rating was the lowest rating a proposal could receive and still be considered technically acceptable. Id.

2. Past Performance Factor

In order to determine an offeror’s score on the Past Performance factor, the RFP required the government to conduct a two-part analysis of the (1) relevancy of the bidder’s past experiences and (2) the quality of the bidder’s past performance. Id. at 139. Of-ferors were instructed to “identify three or more Federal, State, or private sector contracts of similar type, scope, size, and complexity that are ongoing, and/or have been completed within the last five years.” Id. In order to determine relevancy, the VA instructed that all proposals were to “[p]rovide the details of those contracts to include dates of contract, dollar value, patients served and scope of services provided.” Id. If the offer- or did not have a record of relevant past performance, it would not necessarily be fatal to the offeror’s proposal; however, “an offer- or with no record of past performance, while rated ‘neutral’ in past performance, may not be the most advantageous proposal to the government all factors being considered.” Id.

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121 Fed. Cl. 387, 2015 U.S. Claims LEXIS 672, 2015 WL 3507351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rotech-healthcare-inc-v-united-states-uscfc-2015.