Technatomy Corporation v. United States

CourtUnited States Court of Federal Claims
DecidedOctober 10, 2024
Docket24-451
StatusPublished

This text of Technatomy Corporation v. United States (Technatomy Corporation 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
Technatomy Corporation v. United States, (uscfc 2024).

Opinion

In the United States Court of Federal Claims Nos. 24-451, 24-456, 24-463, 24-483, 24-495, 24-515, 25-519, 24-525, 24-530, 24-532, 24-535, 24-539, 24-540, 24-542, 24-547, 24-553, 24-571, 24-578, 24-579, 24-584, 24-588, 24-590, 24-604, 24-618, 24-623, 24-630, 24-654, 24-655, 24-673, 24-797

TECHNATOMY CORP., et al,

Plaintiffs,

v.

THE UNITED STATES, Consol. No. 24-451 C Defendant, Filed: October 10, 2024

and

GOVCIO, LLC, et al.,

Intervenor-defendants.

OPINION AND ORDER Granting in Part and Denying in Part the Government’s and Intervenors’ Motions to Dismiss

SILFEN, Judge.

This is a very large bid protest case. 1 The Department of Veterans Affairs (VA) solicited

offers to overhaul its information technology system over the next five to ten years. The solicitation

stated that the VA would award the contract to the thirty offerors (or possibly more) with the

highest-rated bids, and the VA planned to then issue task and delivery orders to the awardees.

After receiving 173 offers, the VA chose its top thirty. Technatomy and twenty-nine other

1 This opinion was originally issued under seal. The parties had no proposed redactions. The court reissues the opinion publicly. unsuccessful offerors sued the VA for alleged violations of the solicitation or other government

obligations, and fifteen of the awardees intervened to defend their positions.

The government moves to dismiss one complaint in its entirety and parts of twenty-one

other complaints, alleging that the solicitation was clear, and the parties who filed those complaints

waived any challenges to the terms of solicitation by not raising them before the close of the bid-

ding process. Eight of the intervenors also move to dismiss certain claims, some on the same

grounds as the government and some on other grounds. The court grants in part and denies in

part the government’s motion to dismiss and grants in part and denies in part the intervenors’

motions to dismiss.

I. Background

This consolidated bid protest concerns the VA’s Transformation Twenty-One Total Tech-

nology Next Generation Two (T4NG2) contract. AR1793. The T4NG2 contract is for the delivery

of “total [information technology] service solutions” to the VA, including software and hardware

for “program management, strategy, enterprise architecture and planning; systems / software en-

gineering; software technology demonstration and transition; test and evaluation; operations and

maintenance; cybersecurity; training; [information technology] facilities; and other solutions en-

compassing the entire range of [information technology] and [healthcare information technology]

requirements.” AR1794.

The VA issued a request for proposals in March 2023. AR1793. After some amendments,

the VA issued a fifth and final version of the solicitation three months later. AR1779-80. The

proposed contract has a five-year term with one optional five-year extension. AR1798. The maxi-

mum overall value for the full ten years is $60.7 billion. AR1792. The VA planned to award the

contract to the thirty highest-rated offerors offering a fair and reasonable price. AR1939. The VA

reserved fifteen of the thirty contracts for service-disabled veteran-owned small businesses,

2 reserving one of the fifteen spots for a woman-owned business and another of the fifteen for a

historically underutilized business zone. Id. This opinion sometimes refers to those allocations as

the reserve requirement.

The solicitation outlined the process for evaluating offerors’ proposals. AR1939-45. The

VA would evaluate each proposal on a point system. AR1939-41. The solicitation listed factors

that would warrant points, including commitment to spending contract-obligated funds on certain

types of entities such as small businesses, the percentage of employees with veteran status, and

past performance on relevant projects. AR1944-45. The VA intended to award contracts without

conducting post-offer discussions with offerors but reserved the right to engage in discussions and

request clarifications if necessary. AR1939.

For the first step of the evaluation process, the offerors would score their own proposals

using a worksheet. AR1940; see AR1763-66 (model worksheet). The VA would then review the

thirty top-scoring proposals for “acceptability” by verifying the self-reported scores. AR1940;

AR1941 (M.1.2 Acceptability Review). If the VA found any score inaccurate, the VA would re-

calculate that score and re-sort the proposals. AR1940. If the recalculation knocked an offeror out

of the top thirty, the VA would review the next highest self-scored offeror. Id. Once the VA vali-

dated thirty proposals with scores that were higher than the remaining self-scored proposals, de-

termined that the top thirty proposals collectively satisfied the reserve requirement, and determined

that each offered a fair and reasonable price, the VA would end its review and offer awards to

those offerors. AR1940-41.

The solicitation included a process that the VA would use in case of a tie. AR1939. If

between two and six offerors tied for the thirtieth spot, the VA would award a contract to all of the

tied offerors, but if more than six offerors tied, none would receive a contract. AR1939-40. Instead,

3 only the top twenty-nine offerors would receive a contract. Id. If a tie occurred at any other posi-

tion, the tied offerors would not share one position; each would be assigned its own position within

the top thirty. Id. The solicitation also reserved to the VA the right to award more or fewer than

thirty contracts in other scenarios. AR1940-41.

Offerors had until June 2023 to submit their proposals. AR1780. The VA received 173

eligible proposals. AR193528-29 [¶2]. The VA exercised its right to seek clarification from some

offerors (AR204024-27) but did not engage in any discussions (AR193539).

The VA determined the thirty highest-rated proposals after evaluating 78 proposals.

AR193537. According to the VA, those top thirty proposals offered fair and reasonable prices

(AR193559) and were qualified for the award (AR193567-69). At least fifteen of the top thirty

offerors satisfied the solicitation’s reserve requirement. AR193538. The VA issued a public notice

of its decision to award contracts to those top thirty offerors (AR193868-69), notified the unsuc-

cessful offerors of their right to a debriefing (AR193551), and executed contracts with the thirty

awardees.

Multiple unsuccessful offerors filed protests with the Small Business Administration

(SBA). AR193551. The SBA found that two of the awardees, Veterans EZ and Sierra7, did not

qualify as small businesses. AR202193-96; AR201510-14; AR203286. Thus, the VA re-scored

those two awardees. AR193475; AR193517-18; AR193520-21; AR193551. With its new score,

Veterans EZ dropped from fifth to seventeenth place. AR193240; AR193517-18; AR193551

[¶10]; AR204035-36. Although Veterans EZ was still eligible for the contract award, it no longer

qualified for one of the reserve positions, and a different awardee, Zetta Solutions, took its spot as

the fifteenth reserved position awardee to satisfy the solicitation’s reserve requirement.

AR193519; AR193551-51 [¶10]; AR203897. Re-scored, Sierra7 fell from twenty-eighth place to

4 forty-ninth place and was no longer eligible for a contract award. AR193521; AR193551 [¶10].

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Smith v. Texas
550 U.S. 297 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Tyler Construction Group v. United States
570 F.3d 1329 (Federal Circuit, 2009)
St. Christopher Associates, L.P. v. United States
511 F.3d 1376 (Federal Circuit, 2008)
Blue & Gold Fleet, L.P. v. United States
492 F.3d 1308 (Federal Circuit, 2007)
Allied Technology Group, Inc. v. United States
649 F.3d 1320 (Federal Circuit, 2011)
Government Systems Advisors, Inc. v. The United States
847 F.2d 811 (Federal Circuit, 1988)
Laguna Hermosa Corp. v. United States
671 F.3d 1284 (Federal Circuit, 2012)
McAbee Construction, Inc. v. United States
97 F.3d 1431 (Federal Circuit, 1996)
Daniel A. Lindsay v. United States
295 F.3d 1252 (Federal Circuit, 2002)
Comint Systems Corp. v. United States
700 F.3d 1377 (Federal Circuit, 2012)
Bannum, Inc. v. United States
779 F.3d 1376 (Federal Circuit, 2015)
Dimare Fresh, Inc. v. United States
808 F.3d 1301 (Federal Circuit, 2015)
Inserso Corp. v. United States
961 F.3d 1343 (Federal Circuit, 2020)
Optimal Data Corp. v. United States
35 Cont. Cas. Fed. 75,708 (Court of Claims, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
Technatomy Corporation v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/technatomy-corporation-v-united-states-uscfc-2024.