Strategic Business Solutions, Inc. v. United States

129 Fed. Cl. 621, 2016 U.S. Claims LEXIS 1968, 2016 WL 7575675
CourtUnited States Court of Federal Claims
DecidedNovember 23, 2016
DocketNo. 16-81C (BID PROTEST)
StatusPublished
Cited by28 cases

This text of 129 Fed. Cl. 621 (Strategic Business 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
Strategic Business Solutions, Inc. v. United States, 129 Fed. Cl. 621, 2016 U.S. Claims LEXIS 1968, 2016 WL 7575675 (uscfc 2016).

Opinion

Keywords: Bid Protest; Solicitation Requirements; Redaction; Negotiated Procurement; Non-Conforming Proposal; Minor Informality or Irregularity.

OPINION AND ORDER

KAPLAN, Judge.

In this post-proposal, pre-evaluation bid protest, Plaintiff Strategic Business Solutions, Inc. (SBSI) challenges the Defense Intelligence Agency’s (DIA) decision to exclude its proposal from consideration for a contact award. DIA’s decision was based on SBSI’s failure to comply with the solicitation’s requirement that it provide redacted copies of its proposal that would conceal its identity and the identity of any of its proposed subcontractors.

Each party has moved for judgment on the administrative record. As discussed below, the Court concludes that SBSI’s proposal did not conform to the solicitation and that the agency did not abuse its discretion when it excluded SBSI’s proposal from consideration. Accordingly, the government’s motion for judgment on the administrative record is GRANTED, and SBSI’s cross-motion is DENIED.

BACKGROUND

I. The Solicitation

On August 22, 2014, DIA issued solicitation number HHM402-14-R-0005. Administrative Record (AR) Tab 4a at 410. The solicitation was a request for proposals (RFP) seeking contactors to provide “financial management and related services” to “assist the Agency[’s] efforts to establish internal controls and demonstrate and sustain audit readiness by the end of FY 2016.” Id. at 410-12, 433. The contract vehicle was titled “Solutions for Intelligence Financial Management,” or “SIFM II.”1 Id. at 412. The contract would be a “Multiple Award—Indefinite Delivery Indefinite Quantity (IDIQ) Contract” with minimum orders of $2,500 and a five-year contract ceiling of approximately $75,000,000. Id.

The RFP directed prospective offerors to submit their proposals in three volumes: (1) Security Plan and Technical/Management; (2) Past Performance; and (3) Price. Id. at 518. It also included a table with instructions regarding how many copies of each volume the offeror should submit and what form those copies should take. Id. at 619. In particular, those instructions provided that offer-ors were to provide for each of the first two volumes one written, non-redaeted copy; one electronic, non-redacted copy; and seven written, redacted copies. Id.

In a provision derived from the FAR, the RFP informed offerors that the government “intend[ed] to make a single or multiple award(s) ... to the responsible offeror(s) whose offer(s), conforming to the solicitation, will be the best value to the Government.” Id. at 532 (quotation omitted); see also FAR 52.212-2(a) (“The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered.”). Further, the government “reserve!® the right to award this effort based on the initial proposal, as received, without discussion.” AR Tab 4a at 522; see also id. at 514 (“The Government intends to evaluate offers and award a contract without discussions with offerors.” (quoting FAR 52.212-1(g))); FAR 15.306(a)(3) (“Award may be made without discussions if the solicitation states that the Government intends to evaluate proposals and make award without discussions.”). Finally, the RFP included a provision derived from FAR 52.212-l(g) stating that the government “may reject any or all offers if such action is in the public interest; accept other than the lowest offer; and waive informalities and minor irregularities in offers received.” AR Tab 4a at 513-14.

On September 18, 2014, DIA issued Amendment 04 to the RFP. Id, Tab 4i at 601. The amendment included a list of questions [625]*625from prospective offerors and the government’s answers to those questions. Id. at 691-732. Question 22 noted that the solicitation “d[id] not provide any guidance on what is meant by ‘Redacted’ ” and asked the government to:

[P]lease address whether or not the following information is required to be redacted:
• Prime Offeror company name
• Subcontractors company name(s)
• Prime Offeror individual personnel name(s)
• Subcontractor individual personnel name(s)
• Prime Offeror’s proposed Key Personnel name(s)
• Information identifying the Prime Of-feror or any proposed subcontractors’ [sic] status as a current incumbent on the SIFM I contract vehicle.

Id. at 695'. The government responded that “[a]ll bulleted info shall be redacted and no additional information needs to be redacted.” Id.

II.SBSI’s Proposal. and DIA’s Decision to Exclude the Proposal from Consideration

SBSI submitted its proposal on October 6, 2014. Id. Tab 5a at 733. In a cover letter, SBSI expressly took “no exceptions” to the solicitation and acknowledged all of the RFP’s amendments, including Amendment 04. Id. SBSI’s proposal, however, did not fully comply with the RFP’s redaction requirements. Specifically, in more than 100 places throughout the proposal, SBSI failed to redact its name, the names of its subcontractors, and the names of several of its proposed personnel (including the names of some of its proposed key personnel). See id. Tab 6b at 1011 (contracting officer’s summary of failures to redact).

The agency received seventeen proposals. Id. Tab 2 at 17. The contracting officer (CO) then convened a source selection evaluation board (SSEB) and provided its members with the redacted volumes received from each offeror. See id. On November 18, 2015, the SSEB’s chair emailed the CO to explain that “there might be an issue with [SBSI’s] [proposal in that it is not fully redacted.” Id. Tab 6a at 1007. The chair observed that “[t]his would directly impact my level of confidence in [SBSI] if they can’t get the redaction right.” Id.

On November 25, 2014, the CO notified SBSI by letter that he had excluded SBSI’s proposal from further consideration. Id. Tab 6b at 1010. In the letter, the CO excerpted the portion of Amendment 04 that explained the redaction requirements. Id. He then informed SBSI that “[b]ased on SBSI’s failure to submit redacted copies of its proposal in accordance with the terms of the solicitation,” he found its proposal unacceptable. Id. at 1011. He also listed several representative places in the proposal where SBSI had failed to comply with the redaction requirement, and noted that the list was “not necessarily exhaustive.” Id. Because its proposal was unacceptable, the CO informed SBSI that it “w[ould] not be considered for award.” Id. at 1010.

III. GAO Protest

On December 10, 2014, SBSI filed a protest with the Government Accountability Office (GAO). Id. Tab 3a at 24. It contended that the CO improperly rejected its proposal on the ground that the non-redactions constituted “a minor informality that should have been waived by the Contracting Officer (as it had been in previous DIA competitions under a predecessor contract).” Id. Alternatively, it argued that “if this was a technical evaluation resulting in an ‘unacceptable’ rating, it was an improper evaluation based on undisclosed criteria.” Id.

GAO denied the protest. Id. Tab 8 at 1019. Addressing only SBSI’s first argument, GAO “disagree[d] with SBSI’s characterization of its failure to redact information as ...

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129 Fed. Cl. 621, 2016 U.S. Claims LEXIS 1968, 2016 WL 7575675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strategic-business-solutions-inc-v-united-states-uscfc-2016.