Serco Inc. v. United States

81 Fed. Cl. 463, 2008 U.S. Claims LEXIS 69, 2008 WL 623803
CourtUnited States Court of Federal Claims
DecidedMarch 3, 2008
DocketNos. 07-691C, 07-741C, 07-747C, 07-760C, 07-761C, 07-766C, 07-771C, 07-803C
StatusPublished
Cited by115 cases

This text of 81 Fed. Cl. 463 (Serco 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
Serco Inc. v. United States, 81 Fed. Cl. 463, 2008 U.S. Claims LEXIS 69, 2008 WL 623803 (uscfc 2008).

Opinion

OPINION

ALLEGRA, Judge.

This consolidated post-award bid protest ease is before the court on the parties’ cross-motions for judgment on the administrative record. It involves a government-wide acquisition contract (GWAC)2 awarded by the General Services Administration (GSA) to provide technology products and services to the entire Federal government. Sixty-two offerors competed for a chance to perform task orders under this GWAC. In ranking the technical proposals of these of-ferors, GSA teams assigned adjectival ratings to various subfactors and then converted them into whole numbers (e.g., 3, 4, 5). Combining, averaging and weighting these figures, the agency ended up with technical scores that were carried out to three decimal points (e.g., 3.817)—and it made critical distinctions among the sixty-two offerors based upon the thousandths of a point. Based upon these technical scores, twenty-eight contractors were designated by the agency as “presumptive awardees.” GSA then purported to conduct price reasonableness and tradeoff analyses to take into account price—but, conspicuously, none of these comparisons resulted in any of the “presumptive awardees” being displaced by a lower-priced offeror. Indeed, GSA ultimately made awards to offerors whose prices were 59th, 60th and 61st out of the sixty-two offers—prices that the agency claims were “fair and reasonable” despite being twice as high as the lowest winning offer, as much as thirty percent higher than the independent government cost estimate, and more than two standard deviations to the mean of the evaluated prices for all the offerors.

Eight unsuccessful offerors—Serco, Inc. (Serco); CGI Federal Inc.(CGI); STG, Inc. (STG); Artel, Inc. (Artel); Advanced Technology Systems Inc. (ATS); Apptis, Inc. (Apptis); Nortel Government Solutions, Inc. (Nortel); and The Centech Group (Cen-tech)—vigorously assert that the process used to make the awards under this GWAC was arbitrary, capricious, and contrary to law. They contend that they were prejudiced by an array of errors—some broad and systemic, others heterogeneous. Not so, responds defendant and five of the awardees (here as defendant-intervenors), arguing that GSA acted reasonably, and well within its lawful discretion, in making distinctions that were admittedly fine, but, nonetheless, compelled by the breadth and complexity of this procurement.

In the main, plaintiffs are correct. For the reasons that follow, the court concludes that GSA, in attaching talismanic significance to technical calculations that suffer from false precision, made distinctions that, in their own right, likely were arbitrary, capricious and contrary to law, but certainly became so when the agency failed adequately to account for price and to make appropriate tradeoff decisions. Those compounding errors prejudiced the plaintiffs and oblige this court to set aside the awards in question and order appropriate injunctive relief.

I. BACKGROUND

The administrative record in this case reveals the following:

[466]*466The so-called “Alliant” GWAC is to be administered by GSA pursuant to section 5112(e) of the Clinger-Cohen Act, 40 U.S.C. § 11302(e) (formerly 40 U.S.C. § 1412(e)).3 Alliant is designed to provide federal agencies with a broad range of information technology (IT) products and services, including computers, ancillary equipment, software, firmware and similar applications, network design, support services, and related resources such as telecommunication and security. Alliant contemplates the multiple-award of indefinite delivery, indefinite quantity (MA/IDIQ) contracts, with a ceiling of $50 billion, to be performed, on a task order basis, during a five-year base period and one, five-year option period.4 Under the Alliant Solicitation No. TQ2006MCB0001 (the Solicitation), individual task orders could range as high as $1 billion in value; successful offer-ors, however, are guaranteed a minimum take of only $2,500. Alliant offers a wide range of contract types, including fixed-price, cost reimbursement, labor-hour and time and material.

A. The Solicitation

GSA issued the Solicitation on September 29, 2006. The Solicitation advised that GSA “contemplate[d making] approximately 25 to 30 awards ... but reserves the right to place fewer or more awards, depending upon the quality of the proposals received.”5 Those receiving awards under the Solicitation are eligible to perform task orders under the contract. The Solicitation indicated that “[a]ward will be made to responsible Offerors whose proposals are determined to provide the ‘best value’ to the Government.”

The Solicitation indicated that the procedure for evaluating proposals would begin with an “acceptability review,” to be graded on “pass/fail” basis, focusing on whether a given offer contained all requested information in the appropriate formats. Acceptable proposals were then to be subject to a technical evaluation, a cost/price evaluation and, ultimately, a best value tradeoff. Regarding this last step, the Solicitation advised: “Consistent with FAR 15.101-1, the Government will conduct a ‘best value’ tradeoff, in which differences in non-price factors and evaluated price will be compared between the Offerors in order to determine which Offeror represents the best value to the Government.”6 This provision emphasized that technical factors would be “significantly more important than cost or price,” but added an important caveat, stating “the closer the technical [467]*467scores of the various proposals are to one another, the more important cost or price considerations become in determining the overall best-value for the Government.”

1. Proposal Requirements

The Solicitation indicated that two technical evaluation factors—Past Performance and the Basic Contract Plan—“are approximately equal in importance to each other, and when combined, are significantly more important than Cost or Price.” The Solicitation encouraged offerors to include their “best terms from a technical and cost/price standpoint,” as GSA “intend[ed] to evaluate proposals and award contracts without discussions with Offerors, except for clarifications, as described in FAR 15.306(a).”

a. Past Performance Proposal Requirements

The Solicitation indicated that in evaluating past performance, the agency would “look ‘retrospectively’ and consider the Offer- or’s history of success in delivering high quality service and solutions on contract efforts of similar scope and complexity to those anticipated under the Affiant Contract.” To facilitate this, the Solicitation required offer-ors to present information about contracts comparable to Affiant in two tables. Table 1 was to include contracts the offeror had performed in a “multiple-award environment,” such as GWACs and other forms of multiple award contracts, while Table 2 was to highlight the offeror’s efforts under unique, single-award contracts. Offerors could list up to twenty and fifty efforts in Tables 1 and 2, respectively, and could select up to three of the customers identified in Table 2 for the Government to contact as references.

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81 Fed. Cl. 463, 2008 U.S. Claims LEXIS 69, 2008 WL 623803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serco-inc-v-united-states-uscfc-2008.