Savantage Financial Services, Inc. v. United States

123 Fed. Cl. 7, 2015 WL 5158968
CourtUnited States Court of Federal Claims
DecidedSeptember 3, 2015
Docket14-307C
StatusPublished
Cited by6 cases

This text of 123 Fed. Cl. 7 (Savantage Financial Services, 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
Savantage Financial Services, Inc. v. United States, 123 Fed. Cl. 7, 2015 WL 5158968 (uscfc 2015).

Opinion

OPINION AND ORDER

SWEENEY, Judge

In this bid protest, plaintiff Savantage Financial Services, Inc. challenges the decisions of the United States Department of Homeland Security (“DHS”) and its components to acquire financial management software systems and related services without competition. 1 Before the court are defendant’s motion to dismiss, the parties’ cross-motions for judgment on the administrative record, plaintiffs motion to supplement the administrative record, and plaintiffs motion for leave to file a second amended complaint. As explained in more detail below, the court concludes that many of plaintiffs claims should be dismissed on jurisdictional and justiciability grounds, that plaintiffs surviving claims lack merit, and that neither supplementation of the administrative record nor another amended complaint is warranted.

I. BACKGROUND

A. Facts

1. DHS’s Financial Management Software Systems

Plaintiff is one of five companies that sell financial management software systems and related services to the federal government. 2 *12 AR 195-96. Several DHS components use plaintiffs software system, and the remaining DHS components use software systems from among one of the other four companies. Id. Specifically:

• Plaintiffs software system (Alti-mate/FFMS 3 ) is used by Immigration and Customs Enforcement (“ICE”), United States Citizenship and Immigration Services (“USCIS”), the National Protection and Programs Directorate (“NPPD”), the Science and Technology Directorate (“S & T”), the Office of Health Affairs (“OHA”), and the Office of the Secretary and Under Secretary for Management (“DHS Management”). 4
• Oracle’s software system (Oracle Federal Financials) is used by the United States Coast Guard (“Coast Guard” or “USCG”), the Transportation Security Administration (“TSA”), the United States Secret Service (“Secret Service”), and the Domestic Nuclear Detection Office (“DNDO”).
• SAP’s software system (MySAP Enterprise Resource Planning) is used by United States Customs and Border Protection (“CBP”).
• Digital Systems Group, Inc.’s software system (Integrated Financial Management Information Systems) is used by the Federal Emergency Management Administration (“FEMA”).
• CGI Group Inc.’s software system (Momentum) is used by the Federal Law Enforcement Training Center (“FLETO”), the Office of Intelligence and Analysis (“I & A”), and the Office of Operations Coordination (“OPS”).

Id.

2. The Policy Underlying DHS’s Current Efforts to Modernize Its Financial Management Software Systems

Over the previous decade, DHS twice attempted to implement a department-wide update of its financial management software systems. Id. at 8549. Those attempts were unsuccessful, leading DHS to conclude that a department-wide modernization effort was not viable. Id. Consequently, as reflected in a September 21, 2011 memorandum, DHS decided to- modernize its financial management software systems on a decentralized, eomponent-by-component basis. Id. DHS’s Office of the Chief Financial Officer was to oversee the components’ modernization efforts, and no funds could be expended on modernization until an analysis of alternatives was presented to DHS’s Management Directorate for approval. Id. at 8549-50. DHS also indicated that it would “require that all financial system modernizations or upgrade projects deliver core accounting functionality within 18 to 24 months....” Id. at 8549; accord id. at 995 (noting, in a September 5, 2013 DHS Acquisition Decision Memorandum titled “Financial System Modernization,” that each modernization effort *13 “[m]ust ... deliver core accounting functionality with[in] 18-24 months of initiation”).

DHS’s third attempt to modernize its financial management software systems was informed, in part, by the policies and guidance of the Office of Management and Budget (“OMB”). For example, in the then-effective version of Circular No. A-127, pertaining to financial management systems, OMB required executive agencies to consider the use of a federal shared service provider (“FSSP”) when upgrading or modernizing them financial management software systems:

7. Service Provider Requirements
A. Use of External Providers
When upgrading to the next major release of its current core financial system or modernizing to a different core financial system, an agency must use an external provider which is either [an FSSP] that has been designated by-OMB or a commercial vendor....
C. Competitive Process
Agencies are required to hold a competition among the OMB designated Federal providers and commercial vendors when upgrading their current core financial system or modernizing to a different core financial system.
D. Competition Exemption
Agencies may be allowed to conduct a non-competitive migration or a competitive migration involving only commercial providers (if authorized by law) or OMB designated providers if they prepare a full justification, generally including the type of information called for by section 6.303-2 of the Federal Acquisition Regulation [ (“FAR”) ]. The justification shall be approved by the agency’s Chief Financial Officer, Chief Information Officer, and Chief Acquisition [Ojfficer. Agencies shall confer with OMB prior to proceeding with a migration that is noncompetitive or is otherwise limited in accordance with this paragraph.... The justification shall be documented in the same general manner prescribed in Part 6 of the FAR for the use of other than full and open competition.

Id. at 64-65; see also id. at 999, 1006-07 (rescinding OMB Circular No. A-127, effective October 1, 2013, and noting that the “requirements for selecting a service provider” were removed “[t]o narrow the scope” of • the document). In addition, in Memorandum M-10-26, issued on June 28, 2010, and titled “Immediate Review of Financial Systems IT Projects,” OMB suggested that the duration of financial management software system modernization projects “should not exceed 24 months,” id. at 2, and further indicated its support for the use of shared service providers (“SSPs”):

Shared Services. OMB supports shared service arrangements when cost effective, but will no longer mandate them in all cases for financial management systems.

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Bluebook (online)
123 Fed. Cl. 7, 2015 WL 5158968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savantage-financial-services-inc-v-united-states-uscfc-2015.