SP Systems, Inc. v. United States

86 Fed. Cl. 1, 2009 WL 484590
CourtUnited States Court of Federal Claims
DecidedFebruary 24, 2009
DocketNo. 08-853C
StatusPublished
Cited by17 cases

This text of 86 Fed. Cl. 1 (SP Systems, 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
SP Systems, Inc. v. United States, 86 Fed. Cl. 1, 2009 WL 484590 (uscfc 2009).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

This is a post-award bid protest action pertaining to a contract for programmatic support services within the Flight Project Directorate of the National Aeronautics and Space Administration (“NASA”) at Goddard Space Flight Center in Maryland. After an initial award to SP Systems, Inc., disappointed bidder ASRC Research and Technology Solutions, Inc. (“ARTS”) filed a protest with the Government Accountability Office (“GAO”). GAO sustained ARTS’ protest, concluding that NASA had used certain labor rates provided in connection with the Request for Proposal (“RFP”) in an unsupportable manner. GAO recommended that NASA conduct a limited re-evaluation of the proposals. NASA did so, and that re-evaluation resulted in an award of the contract to ARTS. SP Systems then filed this bid protest action, alleging various improprieties in GAO’s recommendation and in NASA’s reevaluation process. For the reasons stated below, the Court denies SP Systems’ protest.

I. Background

NASA currently contracts for the planning and managing of space flight projects, including managing flight hardware, ground systems, and launch vehicles, through a contract known as the Program Analysis and Control (“PAAC”) II contract. Decision of the Government Accountability Office, B-400217, B-400217.2, August 21, 2008 (“GAO Decision”) at 2, AR Tab 44 at 005624. In October of 2007, NASA issued an RFP for the PAAC III contract, which was to be awarded to the offeror “representing the best value to the government, considering three evaluation factors: mission suitability, past performance, and cost.” Id. In evaluating proposals, the mission suitability factor was most important, with cost and past performance given approximately equal weight. Id. at n. 2.

A Mission Suitability

Mission suitability was graded on a 1,000-point scale consisting of the following: 275 points for understanding the statement of work; 275 points for the technical approach to Representative Task Orders (“RTO’s”), 400 points for the offeror’s management plan, and 50 points for safety and health considerations. Id.; RFP at 116, AR Tab 7 at 000520. The RFP indicated that any plan to capture the incumbent workforce (that is, retain the personnel currently performing these tasks at NASA under the present contract) would be “evaluated for reasonableness and consistency with other parts of the proposal.” RFP at 113, AR Tab 7 at 000517-518.

The offerors were required to propose, among other things, their direct labor rates for eighteen specified non-management labor categories, consisting of six primary categories (Scheduling Specialist, Configuration Management Specialist, Documentation Specialist, Information Technology Specialist, Project Support Specialist and Accounting Specialist), with three sub-categories for each (Junior, Intermediate, and Senior). GAO Decision at 3, AR Tab 44 at 005265. The offerors could propose different labor subcategories, but they had to identify the percentage of effort for each, which the Govern[4]*4ment used to calculate a “weighted” average direct labor rate for each of the 18 labor categories. Id.

A reading library NASA provided to offer-ors contained “average labor rates” which “reflect the incumbent’s current direct labor categories and average ... unburdened direct labor hourly rates for those categories being used under the incumbent contract for PAAC II Services.” RFP at 89-90, AR Tab 7 at 000493-94. These average labor rates, referred to by all parties as the “library rates,” were “provided for information purposes only,” id., although the instructions to offerors who proposed to retain the incumbent workforce required them to “clearly explain variances from their proposed unburdened Offeror Direct Labor Rates ... and those of the current incumbent’s unburdened rates.” Id. (¶ L.15). In response to industry questions, NASA explained that the library rates were “straight” rather than “weighted” averages: that is, they “did not take into account the number of individuals in any specific category.” Responses to Industry Questions at 18, AR Tab 6 at 000395.

Although mission suitability was to be evaluated separately from cost, NASA reserved the right to adjust an offeror’s mission suitability score based on a lack of cost realism, because this “may be a significant indicator of an Offeror’s understanding and ability to perform.” RFP at 116, AR Tab 7 at 000520; GAO Decision at 4. The RFP indicated in several locations NASA’s concern with retaining the personnel presently working on the contract. RFP at ¶¶ M.l(b), (c), M.4, AR Tab 7 at 000512, 000514.

B. Past Performance

The RFP also provided that each offeror would be evaluated on past performance, specifically “each offeror’s record (including the record of any significant subcontractors and/or teaming partners) of performing services or delivering products that are similar in size, content and complexity to the requirements of this solicitation.” RFP at 119, AR Tab 7 at 000523. Offerors were to provide information for relevant contracts and subcontracts exceeding $2 million in value that were performed or completed within the past three years. GAO Decision at 4, AR Tab 44 at 005266; RFP at 100, AR Tab 7 at 000504.

Past performance was considered both for the substantive reviews given to the offeror’s performance and for the similarity of the contract to the present solicitation. RFP at 119, AR Tab 7 at 000523. On the criterion of similarity, a contract could be “highly relevant,” “very relevant,” “relevant,” “somewhat relevant,” or not relevant, based upon its “similarity in size, content and complexity” to the PAAC III contract. RFP at 119-20, AR Tab 7 at 000523-24.

C. Initial Award and GAO Review

NASA received four proposals and the Source Evaluation Board (“SEB”) drew the following conclusions:

Mission
Suitability Proposed Recommended
Mission Adjectival Cost Plus Cost Plus Past
Offeror_Suitability Rating_Award Fee_Award Fee_Performance
SP Systems 914_Excellent $191,086,870.00 $192,448,817.00 Excellent
A2_592_Good_$187,014,782.00 $189,426,766.00 Excellent
ARTS_864_Very Good $176,914,763.19 $189,331,294.37 Excellent
B 382 Fair $191,339,121.20 $196,763,915.36 Very Good

GAO Decision at 4; SEB Final Report at 2, AR Tab 37 at 004186. The Source Selection Authority (“SSA”), based upon this eval[5]*5uation, concluded that SP Systems’ proposal represented the best value to the Government. Source Selection Statement at 17, AR Tab 39 at 004500 (“SP’s overall excellent Mission Suitability proposal coupled with their excellent Past Performance and competitive cost proposal outweighs the slight probable cost advantages proposed by ARTS and DB.”).

ARTS received its debriefing on the contract award on May 28, 2008, and filed a bid protest with the GAO on June 2, 2008. Contracting Officer’s Statement of Facts, AR Tab 44 at 005062.

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86 Fed. Cl. 1, 2009 WL 484590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sp-systems-inc-v-united-states-uscfc-2009.