Sotera Defense Solutions, Inc. v. United States

118 Fed. Cl. 237, 2014 U.S. Claims LEXIS 801, 2014 WL 3950903
CourtUnited States Court of Federal Claims
DecidedAugust 13, 2014
Docket1:14-cv-00255
StatusPublished
Cited by18 cases

This text of 118 Fed. Cl. 237 (Sotera Defense Solutions, 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
Sotera Defense Solutions, Inc. v. United States, 118 Fed. Cl. 237, 2014 U.S. Claims LEXIS 801, 2014 WL 3950903 (uscfc 2014).

Opinion

Post-Award Bid Protest; Protestor’s Standing Survives Allegation of Organizational Conflict of Interest; No Waiver of Protest Caused by Delay in Filing Protest of Agency Decision to Undertake Corrective Action; Waiver of Post-Award Protest of Cost Evaluation Scheme Set Forth in Solicitation; No Unstated Criteria in Re-evaluation of Proposals; Best Value Award Not Shown To Be Unlawful, Arbitrary, Capricious, or an Abuse of Discretion.

OPINION AND ORDER

Bush, Senior Judge.

The contract at issue in this bid protest is for the development of an Electronic Warfare Planning and Management Tool (EWPMT); the procuring agency is the United States Army. 2 This post-award protest is brought by Sotera Defense Solutions, Inc. (Sotera), the former contract awardee, after its award was nullified by corrective action undertaken by the Army in response to a protest brought by Raytheon Company (Raytheon) at the Government Accountability Office (GAO). Before the court are cross-motions for judgment on the administrative record filed under Rule 52.1(c) of the Rules of the United States Court of Federal Claims (RCFC), as well as motions to dismiss filed by the government and intevenor-defendant Raytheon.

Plaintiffs complaint was filed on April 1, 2014 and amended on April 24, 2014. The government agreed to stay performance of Raytheon’s contract during the pendency of this protest which proceeded under an expedited briefing schedule. The administrative record (AR) was filed on April 16, 2014 and subsequently corrected on April 29, 2014. The parties’ dispositive motions have been fully briefed; oral argument was held on June 11, 2014. For the reasons discussed below, plaintiffs motion for judgment on the administrative record is denied; the government’s and Raytheon’s motions to dismiss are granted in part and denied in part; and, the government’s and Raytheon’s motions for judgment on the administrative record are granted.

BACKGROUND

I. Procurement Decision

A. Electronic Warfare Planning and Management Tool (EWPMT)

As plaintiff describes the procurement,

[t]he RFP is for the award of a cost reimbursement, five-year indefinite-delivery, indefinite-quantity (“IDIQ”) contract to design, develop and field the Army’s EWPMT. [AR] Tab 7 at 486. The EWPMT is a new system intended to enhance the Army’s existing Electronic Warfare capabilities. When developed, the EWPMT software will give electronic warfare officers “mission planning capability to plan, coordinate, manage, and deconfliet unit EW activities.” Id. The RFP required the awardee to deliver the EWPMT in six “notional Capability Drops (CDs).” Id. The first task order is for CD1 and will be awarded concurrently with the IDIQ contact, while [CDs 2-6] will be awarded in subsequent task orders.

PI.’s Mot. at 3-4. This description is a largely correct overview of the solicitation and the procurement, except for plaintiffs shorthand reference to the contract as a cost reimbursement contract. The cost structure of the full IDIQ contract is fairly complex, with a eost-plus-incentive-fee structure which would include target cost, incentive fee or profit benchmarks, as well as profit or incentive fee adjustments. AR at 298-99, 740. The first task order, CD1, has a relatively straightforward eost-plus-incentive-fee structure. Id. at 740, 7878, 9751.

*243 The solicitation, also known as a Request for Proposals (RFP), issued on December 20, 2012. AR at 726, 6624, 8106. An amendment of the solicitation of little consequence to this protest occurred on January 15, 2013. Id. at 726-951, 6624, 8110. Offers were due by February 4, 2013.

B. Evaluation Scheme

The winning proposal would be the proposal offering the best value to the government. AR at 744. The four evaluation factors, in descending rank of importance, are: (1) Technical; (2) Past Performance; (3) Cost; and, (4) Small Business Participation Plan. Id. The non-cost factors are significantly more important than cost. Id.

Within the Technical Factor are two sub-factors, Technical Approach and Management. AR at 744. The Technical Approach sub-factor is more important than the Management sub-factor. Id. Within the Technical Factor three specific criteria would be reviewed in the offerors’ technical proposals: (1) Understanding the Problems; (2) Feasibility of Approach; and, (3) Adequacy of Response/Completeness. Id. Page limits were imposed for the offerors’ technical proposals. Id. at 732. For the Technical Factor, the range of ratings were Outstanding, Good, Acceptable, Marginal and Unacceptable, and the evaluation team would also identify strengths and weaknesses. Id. at 338-39.

The Cost Factor would be evaluated based on the costs of the first task order, CD1. See AR 'at 739 (“Offerors are instructed to provide proposed costs for Task Order 1 only.”). Significant amounts of detail were required for the offerors’ proposed costs. Id. at 739-40. This detailed information would allow the agency to

evaluate the realism of Offeror’s proposed costs in relation to the Offeror[’]s specific technical approach to Task Order 1. The Offeror’s proposed costs will be evaluated by determining what the Government predicts the Offeror’s approach would most probably cost the Government when the work performed under Task Order 1 is completed. To the degree that the Government’s most probable cost estimate differs from the Offeror’s proposed cost, the Offeror’s proposed cost and'incentive fee may be adjusted for the purposes of evaluation.

AR at 745.

C. Evaluation of Proposals and Award to Sotera

1. Bids Received and Discussions Held

Six timely bids were received. Raytheon was designated as “Offeror A” in the evaluation documents and Sotera was designated as “Offeror B.” Throughout the evaluation process, the ratings for Sotera and Raytheon were very close and their proposals were ranked higher than the other proposals. See, e.g., AR at 6623, 7410. Nonetheless, discussions were initiated because even the leading offerors’ proposals were [] in at least one factor. Id. at 6628. In successive competitive range determinations, two lower-ranked offerors were eliminated from the competition. Through discussions, both Sotera and Raytheon were able to improve the ratings of their proposals, but neither offeror was able to pull very far ahead of the other in the proposal ratings.

2. Best Value Award to Sotera

Once the four final proposals were evaluated, the non-cost evaluation factors for Ray-theon and Sotera were similarly rated. For Technical Approach, Raytheon received an Outstanding rating, with five strengths and one weakness. AR at 7429-30. Sotera, for this same sub-factor, also received an Outstanding rating, with five strengths and two weaknesses. Id. at 7481-83.

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118 Fed. Cl. 237, 2014 U.S. Claims LEXIS 801, 2014 WL 3950903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sotera-defense-solutions-inc-v-united-states-uscfc-2014.