Xpo Logistics Worldwide Government Services, LLC v. United States

134 Fed. Cl. 783
United States Court of Federal Claims·Decided November 2, 2017·No. 17-1080C·Published·Cited by 7 cases

Opinion

Keywords: Bid Protest; Motion for Judgment on the Administrative Record; Discussions; Past Performance; Corrective Action.

OPINION AND ORDER

KAPLAN, Judge.

This bid protest arises out of the award of a transportation services contract to Defendant-Intervenor Crowley Logistics, Inc. The Department of Defense, through the United States Transportation Command (US-TRANSCOM or “the agency”), awarded the contract to Crowley after taking corrective action recommended by the Government Accountability Office (GAO). The agency took the GAO-reeommended corrective action after this Court rejected bid protests filed by Crowley and by Plaintiff XPO Logistics Worldwide Government Services, LLC (XPO), in which each of them had objected to the proposed corrective action on various grounds. See XPO Logistics Worldwide Gov’t Servs., LLC v. United States (XPO I), 133 Fed.Cl. 162, appeal docketed, No. 17-2506 (Fed. Cir. Aug. 30, 2017).

In the present case, XPO has filed a protest of the award to Crowley that followed the corrective action. In its complaint, XPO reasserts certain arguments that this Court rejected in XPO I. It also contends, among other things, that the agency engaged in misleading and unequal discussions with XPO regarding XPO’s past performance and that the agency’s decision to downgrade XPO’s confidence assessment rating from “Substantial” to “Satisfactory” when it undertook its corrective action was arbitrary, capricious, and contrary to law.

Currently before the Court are the parties’ cross-motions for judgment on the administrative record, as well as XPO’s motion to supplement the administrative record. For the reasons discussed below, XPO’s motion to supplement the administrative record and its motion for judgment on the administrative record are DENIED. The government’s and Crowley’s motions for judgment on the administrative record are GRANTED.

BACKGROUND

I. The Solicitation and Previous Protests

The background of this solicitation and the subsequent bid protests was set forth in detail in the Court’s opinion in XPO I. See 133 Fed.Cl. at 167-76. To briefly recap,. US-TRANSCOM is a combatant command that provides support to the other United States combatant commands, the military services, defense agencies, and other government organizations. Admin. R. (AR) Tab 6 at 151. On March 25, 2015, it issued a solicitation seeking proposals for an indefinite-delivery, indefinite-quantity contract to provide transportation coordination services throughout the continental United States as well as in Alaska and Canada, in connection with the Department of Defense Freight Transportation Services (DFTS) program. Id at 87,150. The winning offeror would be required to provide these services to both the Defense Logistics Agency and the Defense Contract Management Agency. Id. at 152. In addition, USTRANSCOM anticipated that other government agencies would join the DFTS contract over its lifetime. See id. The contract would have a two-year base period and five one-year option periods. Id. at 89-96.

The agency initially awarded the DFTS contract to GENCO Infrastructure Solutions, Inc. on December 30, 2015. Id. Tab 57 at 11060; id. Tab 58 at 11061. Both XPO and Crowley protested the award before GAO, and GAO ultimately sustained Crowley’s protest. See id. Tabs 67, 74. USTRANSCOM then reopened the competition and announced that it would hold discussions with all offerors in the competitive range and would allow offerors to submit revised proposals. See id. Tab 88 at 11982. GENCO withdrew following the reopening of the competition, but both Crowley and XPO participated in discussions and submitted revised proposals. See id. Tab 116 at 12273; id. Tab 120 at 12442-43.

The agency evaluated the revised proposals and awarded the contract to Crowley on November 22, 2016. See id. Tab 120 at 12442; see also id. Tabs 121-22. XPO then filed a bid protest with GAO. Id. Tab 126. On March 14, 2017, GAO sustained XPO’s protest in part, agreeing that the agency’s determination that Crowley’s past performance references should be rated “Somewhat Relevant” was flawed. See id. Tab 148 at 13003-04. 1 As explained in greater detail in XPO I, GAO found: 1) that “it [was] not clear from the contemporaneous record how the agency determined that the magnitude of Crowley’s past efforts supported the ratings of somewhat relevant,” id. at 13013-14; and 2) that in any event, “the agency’s selection of only the relatively low-value base period of the contract as awarded to Crowley unreasonably distort[ed] the comparison of the magnitude of Crowley’s past efforts to the magnitude of the solicitation,” id. at 13012; see also XPO I, 133 Fed.Cl. at 174-75. Accordingly, GAO recommended that USTRANSCOM “reevaluate Crowley’s past performance in a manner that is reasonable and consistent with both the solicitation and [GAO’s] decision, and then make a new source selection determination.” AR Tab 148 at 13017.

II. The Court’s Previous Decision

Shortly after GAO issued its decision, the contracting officer announced that US-TRANSCOM would follow GAO’s recommendation and take corrective action. Id. Tab 176 at 15860. Both XPO and Crowley then filed bid protests in this Court challenging the proposed corrective action.

On June 30, 2017, this Court issued its decision, rejecting both Crowley’s and XPO’s protests. The Court held that GAO’s decision was rational, and that USTRANSCOM’s decision to take corrective action in accordance with GAO’s recommendation was therefore reasonable. XPO I, 133 Fed.Cl. at 179-80. In particular, the Court concluded that GAO’s decision and recommendation that US-TRANSCOM take corrective action were rational because the record did not reflect what factors the agency relied upon when it rated sixteen of Crowley’s past performance references Somewhat Relevant. Id. at 179. The Court also agreed that the agency’s proffered explanation before GAO, that the agency compared the dollar value of Crowley’s past references to the value of the two-year base period of the DFTS contract, was not reasonable because the five option years were significantly higher in value and performing the options was part of the “efforts” the “solicitation requires,” Id. at 179-80.

With respect to XPO’s challenges to the agency’s corrective action, the Court found that USTRANSCOM followed the requirements of the FAR for assessing unbalanced pricing by comparing the prices received in response to the solicitation. Id at 182. It also rejected both XPO’s assertion that the solicitation required the agency to consider some other, undefined concept of price beyond the total evaluated price and its argument that the agency changed its consideration of price between the first and second evaluations. Id. at 182-84. Finally, the Court rejected as contrary to the evidence in the record XPO’s claim that the agency did not look beyond adjectival ratings in assessing the proposals. Id at 185-86.

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Xpo Logistics Worldwide Government Services, LLC v. United States, 134 Fed. Cl. 783 (uscfc 2017).

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