The Ginn Group, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedMay 3, 2022
Docket22-18
StatusPublished

This text of The Ginn Group, Inc. v. United States (The Ginn Group, 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
The Ginn Group, Inc. v. United States, (uscfc 2022).

Opinion

In the United States Court of Federal Claims No. 22-18 Filed: April 14, 2022 Reissued: May 3, 2022†

THE GINN GROUP, INC.,

Plaintiff,

v.

THE UNITED STATES,

Defendant,

and

GOVERNMENT CONTRACTING RESOURCES, INC.,

Intervenor-Defendant.

Nathanael D. Hartland and Courtney E. Walsh, Nelson Mullins Riley & Scarborough LLP, Baltimore, Maryland, for Plaintiff.

Elizabeth M.D. Pullin, Trial Attorney, Douglas K. Mickle, Assistant Director, Patricia M. McCarthy, Director, Commercial Litigation Branch, Brian M. Boynton, Principal Deputy Assistant Attorney General, Civil Division, U.S. Department of Justice, Washington, D.C., with Robert Greg Palmer and Luke F. Killam, Associate Counsel for U.S. Navy, of counsel, for Defendant.

Meghan F. Leemon, PilieroMazza PLLC, Washington, D.C., for Intervenor-Defendant.

MEMORANDUM OPINION AND ORDER

TAPP, Judge.

The United States Department of Navy (“the Agency” or “the Navy”) awarded Government Contracting Resources, Inc. (“GCR”) a contract (over five other offerors) to provide base operations support services at two U.S. Navy facilities in Florida. The disappointed offeror,

† This Opinion was filed under seal on April 14, 2022. On April 29, 2022, the parties filed a joint status report proposing redactions of protected information. (ECF No. 44). This public version reflects those redactions. the Ginn Group, proposed expanding one subset of the services requested: recycling services. When the Agency did not assign a strength to Ginn Group’s proposal for that technical approach, and more importantly, when it did not view this additional investment as worthy of the higher price tag, Ginn Group challenged the award. The Court finds that the Agency’s determinations fell squarely within the zone of reasonable decisions in reviewing and deciding awards in the context of negotiated, best-value procurements. In this case, the Agency’s best-value determination—particularly when reviewed in the context of the layers of deference owed to it— did not lack a rational basis.

Accordingly, the Court DENIES Ginn Group’s Motion for Judgment on the Administrative Record and GRANTS the United States’ and the Government Contracting Resources, Inc.’s cross-motions for judgment on the Administrative Record.

I. Background1

The Navy sought to procure base operation support services at Naval Air Station in Panama City, Florida, and the surrounding areas, including Naval Operations Support Center at Tallahassee, Florida.2 The Navy conducted market research and selected service-disabled, veteran-owned, small businesses (“SDVOSB”) set-aside as part of its acquisition strategy. (AR 9). Six offerors applied. (AR 6157).

The solicitation called for a single, indefinite delivery, indefinite-quantity contract. (Def.’s xMJAR at 10, ECF No. 36). The request for proposal (“RFP”) anticipated that the resulting contract would have a 12-month base period and seven 1-year option periods, and another pair of 6-month option periods should an extension of services be necessary under FAR 52.217-8 (spanning from October of 2021 to March 2030). (AR 27–28). The contract contemplates an eight-year ordering period and is valued at $54,929,956.73. (AR 8123, 8189). The Navy evaluated six offerors on both price and non-price factors, among them Ginn Group and GCR. (AR 6330).

The Navy evaluated offerors’ proposals for performing the following services: (1) Facility Management; (2) Facility Investment; (3) Custodial; (4) Pest Control; (5) Integrated Solid Waste Management (“ISWM”); (6) Other (Swimming Pools); (7) Grounds Maintenance and Landscaping; (8) Pavement Clearance; and (9) Environmental.3 The solicitation described

1 The facts recited in this Memorandum Opinion and Order are taken from the Administrative Record (“AR”) (ECF No. 24); Ginn Group’s memorandum in support of its Motion for Judgment upon the Administrative Record (“Pl.’s MJAR”),(ECF No. 33); and the United States’ and GCR’s respective Cross-Motions for Judgment upon the Administrative Record (“Def.’s xMJAR” and “Def.-Int.’s xMJAR”),(ECF Nos. 36, 37). 2 RFP N6945021R0056 consolidated two previous contracts, Contract No N69450-16-D-2104 (awarded to Ginn Group in 2016) and Contract No 69450-17-D-1707 (awarded to GCR in 2017). (AR 1–9, Market Research Report, and AR 10–16). 3 The Navy referred to these services as sub-annexes, in line with how they appeared in the PWS all under one annex titled “Annex 15 Facilities Support.” (AR 188).

2 each of these services as sub-annexes. (AR 188). A Performance Work Statement (“PWS”) accompanied the RFP which further outlined the performance objectives for each sub-annex. (AR 188). For example, the PWS further broke down the ISWM sub-annex into various subtasks, or “Spec Items,” that included collection, disposal, or recycling of different types of waste. (AR 167–69).

The solicitation provided that the award would be made to the offeror whose proposal presented the best value to the Government. (AR 27). The best-value determination involved assessment of proposals against the criteria in the solicitation to determine which proposal would be overall “most advantageous” to the Government. (AR 55). This best-value evaluation involved considering price and four non-price factors: (1) corporate experience, (2) technical approach, (3) safety, and (4) past performance. (AR 46–47). Under the best-value evaluation criteria, corporate experience, technical approach, and safety were all of equal importance to each other, and, when combined, were equal in importance to past performance. (Id.). Furthermore, all of the above non-price factors, when combined, were weighted “approximately equal” to price. (Id.)

The initial assessment of the proposals was divided into two areas—a Price Team and a Technical Evaluation Team (“Technical Team”). Both teams met separately to evaluate the proposals for those respective elements. (AR 6344–75, 8086–8102). The Source Selection Evaluation Board (“SSEB”) convened to evaluate those findings and issue its own report. (AR 6344–75, 8086–8102).

To be evaluated for their technical approach, offerors submitted proposed labor hours and provided a rationale for the basis of their estimated proposed labor hours by completing a labor hours worksheet. (AR 142). Offerors were asked to provide a “narrative” justification explaining the foundation of their estimates and demonstrate how the proposed approach would translate into achieving performance objectives. (Id.). The RFP stated that omitting the total efforts of either category or providing labor hours without a logical explanation of how they would achieve that staffing level would lead to the proposal being evaluated as “less favorable” or “unacceptable.” (AR 142). To properly assess the total labor hours offered by each offeror, the Technical Team referenced two estimates—one based on a mixture of the mean labor hours proposed by all offerors for each sub-annex of work and one a formal Independent Government Estimate (“IGE”). (AR 5841). The Technical Team used the following methodology for rating technical approaches: if proposed labor hours (for any sub-annex or Spec Item) fell short of the labor hours anticipated by the Government by more than 25%, the offeror received a deficiency mark for that section. However, if the sub-annex in question was “non-critical” or the difference was “nominal,” the Technical Team would only give “[c]onsideration” for assigning “weakness, significant weakness, or deficiency.” (AR 8031).

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