Sheela, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedMarch 3, 2026
Docket25-1498
StatusUnpublished

This text of Sheela, Inc. v. United States (Sheela, 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
Sheela, Inc. v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims No. 25-1498 (Originally filed: February 6, 2025) (Re-issued: March 3, 2026) 1 NOT FOR PUBLICATION

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SHEELA INC.,

Plaintiff,

v.

THE UNITED STATES,

Defendant.

OPINION

Bruggink, Judge

This is a protest of the Air Force’s decision not to award plaintiff a contract for future construction services. The matter is fully briefed on cross- motions for judgment on the administrative record. Oral argument was held on January 23, 2026. As we announced at the end or oral argument and confirmed by order shortly thereafter, we deny the protest because plaintiff has not shown that the agency’s past performance evaluation was illegal or irrational.

1 This opinion was originally filed under seal to afford the parties an opportunity to propose appropriate redactions. They did not propose any redactions. the opinion THUS appears in full, though several clerical errors have been corrected in the public version. BACKGROUND 2

Sheela Inc. is a small New Jersey business protesting award of six contracts under Solicitation No. FA448424R0017 (“Solicitation”). The Air Force sought requests for proposals on an indefinite quantity, indefinite delivery multiple award construction contract (“MACC”) at Joint Base McGuire Dix Lakehurst, New Jersey. The Air Force issued the solicitation on September 5, 2024, in accordance with Federal Acquisition Regulation (“FAR”) part 15 and subpart 36.3. The procurement was set aside for small businesses. The solicitation provided for a one-year base contract with six option years. The Air Force contemplated five awards but permitted more based upon proposals for a “seed” project. Administrative Record (“AR”) at 373. The project was to convert a dorm room into a common area kitchenette, a project worth approximately $100,000. Id. The entire contract will be worth up to $300,000,000 over the course of the six possible years.

Section L of the solicitation outlines the proposal requirements. AR at 360-65. Offerors were “required to meet all solicitation requirements” including small business certifications and technical requirements under section L-1.4. Id. at 360. “Failure to meet a requirement” carried the possibility of disqualification from the award. Id. The bid proposals were to be submitted in three separate tranches: (1) Volume I – Contract Documents; (2) Volume II – Past Performance; and (3) Volume III – Price. Id. (§ L-2.1). Offerors were required to provide information demonstrating “customer satisfaction with overall job performance and quality” in section L-2.2.2.2. Id. at 363. They were permitted to “provide a list of no more than three (3) of the most relevant contracts performed . . . within the last five (5) years. Id. (§ L-2.2.2.4). These contracts were to “include efforts that have an award value” of at least $100,000 “with a minimum scope, magnitude and complexity of the seed project.” Id.

Section L-2.2.2.4 also required offerors to submit past performance qualifications (“PPQ”) through customer surveys. Id. Offerors were directed to approach customers for whom they had recently performed work like the seed project, request they complete a questionnaire, and have the customers submit the questionnaires directly to the Air Force. See id. Section L-2.2.2.4 include a prominent disclaimer stating, “past and present performance questionnaires will not be accepted from the offeror.” Id. at 364. Each offeror

2 These facts are drawn from the Administrative Record unless otherwise indicated. 2 was required to attach a breakdown of its price with the label J-8 “Seed Project Bid Schedule.” AR at 837. The price was required to reflect all “personal, supplies, services, management, overhead, other direct costs, G&A [general and administrative expenses], and profit” required by the proposal. Id.

The solicitation lays out the review methodology for proposals in section M. AR at 366-69. The review was to be conducted by five people constituting the Source Selection Evaluation Board (“SSEB” or “board”). The SSEB would recommend awards to offerors providing the best value based on an evaluation of past performance and price. Id. at 367. Past performance was weighed “significantly more important” than “cost or price considerations” under section M-2.2. AR at 367. After the SSEB finished its review, the Source Selection Authority (“SSA”) was to assess the board’s work and award the contracts.

The bid proposals were initially ranked according to quoted price and then analyzed in groups of five. The board examined the five lowest priced offerors to determine whether their past performance merited the contract. Id. After evaluating each offeror, the board would assign one of five confidence ratings: substantial, satisfactory, neutral, limited, or no confidence. Only offerors receiving a “Substantial Confidence” rating would receive an award. Id. However:

If the lowest five (5) priced offerors were not determined to have a “Substantial Confidence” performance confidence assessment, the next five (5) lowest priced offerors would be evaluated, and the process would continue (in order by price) until a target of five (5) offerors were determined to have a “Substantial Confidence” performance assessment, or until all offerors re-evaluated.

Id.

In making its confidence ratings, the SSEB was required to evaluate “the offeror’s performance based on the recency and relevance of the information . . . context of the data, and general trends in” the contractor’s performance. Id. at 368. In section M-3.1.1, the solicitation framed recency as the five years before the solicitation’s issuance – from September 5, 2019, to September 5, 2024. Id. Relevancy was measured against the kitchenette (seed) project: submitted contract references had to be “no less than $100k 3 with a minimum scope, magnitude, and complexity of the seed project.” Id. Complexity was defined as “the ability to perform and manage several task orders at the same time and successfully perform similar or higher magnitudes than described in the solicitation.” Id. The solicitation informed offerors that the Past Performance Information Retrieval System and Federal Awardee Performance & Integrity Information Systems, along with any other Government-sponsored information available might be employed to determine confidence ratings under FAR Subpart 9.104. AR at 836.

The initial deadline for submissions was October 21, 2024, but was subsequently amended to November 12, 2024. Sheela submitted its unredacted bid proposal to the Contracting Officer for JBMDL, Dana Wright, on November 11, 2024. Plaintiff acknowledged all amendments to the solicitation. The Air Force received a total of 25 proposals. Defendant alleges that all company-specific references and data were redacted by staff prior to the SSEB’s review. Def‘s Resp. 8. 3

In addition to the PPQs received, the SSEB also used present/past performance evaluations as provided by the offerors, CPARS, questionnaires sent to cognizant Government Program Managers (PMs), Administrative Contacting Officers (ACOs), Procuring Contracting Officers (PCOs), and contractors to rate confidence in each offeror. The board reviewed the prices under FAR 15.404-1(b). If a price were unreasonable per FAR 15.404 and 31.201-3 or unbalanced under FAR15.404-1, the bid was rejected. Id. at 3782. A reasonable price represents “a price to the government that a prudent person would pay” in competitive business. Id. On the other hand, unbalanced pricing exists, despite an acceptable total evaluated price, if “the price of one or more line items is significantly over or understated as indicated by the application of cost or price analysis techniques.” FAR 15.404-1(g).

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