Viromed Laboratories, Inc. v. United States

62 Fed. Cl. 206, 2004 U.S. Claims LEXIS 258, 2004 WL 2212092
CourtUnited States Court of Federal Claims
DecidedAugust 26, 2004
DocketNo. 04-0021C
StatusPublished
Cited by9 cases

This text of 62 Fed. Cl. 206 (Viromed Laboratories, 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
Viromed Laboratories, Inc. v. United States, 62 Fed. Cl. 206, 2004 U.S. Claims LEXIS 258, 2004 WL 2212092 (uscfc 2004).

Opinion

OPINION

HORN, Judge.

This is a post-award bid protest brought by ViroMed Laboratories, Inc. (ViroMed), challenging the United States Army Medical Command’s (MEDCOM’s) decision to award a contract to Center for Disease Detection, [207]*207LLC (CDD) on September 5, 2003.2 roMed seeks declaratory and injunctive relief in this court, raising two issues in its complaint: (1) whether MEDCOM improperly accepted a proposal that failed to comply with a mandatory requirement in the solicitation to complete two HIV screening “proficiency panel” tests using procedures that precisely matched those the offeror proposed to use under the contract and (2) whether MEDCOM erred in failing to conduct a price realism evaluation of the awardee’s proposed prices. Under the solicitation as issued, proper certification is a threshold to meeting solicitation requirements. Without the required certification, bids should have been disqualified and the price realism issue thereby is rendered moot. Vi-

The defendant filed a motion for remand of the procurement to the agency, requesting that the case be returned to the MEDCOM contracting officer because the administrative record reveals that neither ViroMed nor CDD submitted the testing certification required by the solicitation. The defendant believes that neither party was eligible for the award because they failed to comply with the solicitation requirements. In addition, defendant has advised the court that the contracting officer, Raineye Holmes, intends, if permitted, to terminate the contract award to CDD, delete the certification requirement by issuing an amendment to the solicitation, and give CDD and ViroMed the opportunity to submit limited revisions to their proposals stemming from the minimally amended solicitation. The contracting officer would then make a new source selection decision. Defendant, at the court’s request, also outlined three other alternatives to the deletion of the certification requirement, but requested that the appropriate form of corrective action be left to the Army’s discretion, with the court’s role limited to advising the defendant of any options the court deemed foreclosed to the Army as a matter of law. Defendant also advised the court that cancellation and resoli-citation of the medical testing services, as an alternative, would be costly for the Army to implement, and would be the most time consuming. The intervenor similarly did not recommend cancellation and resolicitation, and suggested other alternatives similar to the defendant’s alternatives to address the certification issue. Plaintiff advised the court that cancellation and resolicitation would be acceptable as a way to address the certification issue, but opposed other alternatives which simply deleted the certification requirement, or which permitted CDD to cure its certification deficiencies, leading, in plaintiffs view, inexorably to a re-award of the contract at issue to CDD.

FINDINGS OF FACT

On May 23, 2001, MEDCOM issued solicitation No. DADA10-01-R-0009 at Fort Sam Houston, Texas, seeking fixed-unit-price proposals to perform various blood testing and related services, including the testing of samples provided by members of the United States Army, United States Army Reserve, National Guard, and the United States Coast Guard. MEDCOM announced its initial contract award to CDD in February, 2002. The plaintiff, ViroMed, has been the incumbent contractor for this effort since 1997, and has been performing under extensions and bridge contracts since 2002 when plaintiff protested MEDCOM’s initial award of the contract to CDD under the solicitation. The plaintiff continues to perform the contract pending resolution of this case.

ViroMed filed this action following a series of bid protests at the GAO beginning in February, 2002. ViroMed filed its initial protest (B-289959.1) on February 20, 2002, challenging MEDCOM’s award to CDD. Because of MEDCOM’s decision to take corrective action, including a new technical evaluation, past performance evaluation, and source selection decision, the GAO dismissed the protest as- “academic.” ViroMed filed its second protest (B-289959.2) on August 14, 2002 and a supplemental protest (B-289959.3) on September 23, 2002. MED-COM advised the GAO of its intention to take corrective action, consisting of a required proof of United States Food and Drug Administration (FDA) blood bank certification from both offerors and re-evaluation of the existing final price proposals from both [208]*208offerors. On November 8, 2002, the GAO dismissed ViroMed’s second protest as “academic.” ViroMed filed its third protest (B-.£89959.4) on January 2, 2003, challenging MEDCOM’s implementation of its corrective action of allowing offerors to submit proof of current FDA registration, thereby relaxing solicitation requirements. On April 1, 2003, the GAO dismissed the protest as untimely. ViroMed filed its fourth protest (B-289959.5) on June 2, 2003, regarding a material mathematical error that inflated the perceived price differential between ViroMed and CDD. On July 23, 2003, because of MED-COM’s decision to take corrective action, the GAO dismissed the protest as “academic.” On July 24, 2003, ViroMed filed a request to the GAO (B-289959.6) for reimbursement of the costs incurred as a result of having to file a protest caused by MEDCOM’s material mathematical error and previous successful protests. On September 16, 2003, ViroMed filed its fifth protest (B-289959.7), asserting that MEDCOM improperly evaluated CDD’s and ViroMed’s technical proposals as substantially equal, failed to perform a proper price realism analysis, and failed to properly evaluate the offerors’ past performance. In this final GAO bid protest (No. B-289959.7), ViroMed argued both of the two protest grounds that it later raised in the complaint before this court. On December 19, 2003, the GAO denied ViroMed’s protest (No. B-289959.7), rejecting ViroMed’s allegations concerning price realism and holding that ViroMed’s challenge to CDD’s proficiency panel certification was untimely.

In response to the GAO bid protests, MEDCOM took corrective action on three occasions. In each instance, MEDCOM determined that ViroMed’s and CDD’s technical proposals were substantially equivalent, thereby making price the determinative evaluation factor. CDD’s proposed price of $21,361,184.00 was lower than ViroMed’s proposed price of $21,994,203.10 by $633,019.10. ViroMed protested each of MEDCOM’s award decisions at the GAO. As a result of each of these protests, CDD’s performance of the contract awarded to it under the solicitation was stayed pending resolution of the protest.

The solicitation contemplated a negotiated, fixed-price, indefinite-dehvery/mdefinite-quantity (ID/IQ) procurement of various laboratory testing services, principally including HIV screening tests. The solicitation included ten different contract line item numbers (CLINs) in each year, which were organized in the base year as follows:

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CLINs 0001-0003, which involved HIV screening, were the most significant portions of the solicitation from the standpoint of both the estimated quantity of tests performed and price.3 For HIV screening, blood samples were initially to be tested using the Enzyme-Linked Immuno Sorbent Assay (ELISA) methodology. If any of these initial screening tests produced a positive result, confirmatory testing was required to be undertaken through the use of the more expensive, but more precise, Western Blot methodology.

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Cite This Page — Counsel Stack

Bluebook (online)
62 Fed. Cl. 206, 2004 U.S. Claims LEXIS 258, 2004 WL 2212092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/viromed-laboratories-inc-v-united-states-uscfc-2004.