York Telecom Corporation v. United States

130 Fed. Cl. 186, 2017 U.S. Claims LEXIS 19, 2017 WL 149960
CourtUnited States Court of Federal Claims
DecidedJanuary 11, 2017
Docket15-489C
StatusPublished
Cited by2 cases

This text of 130 Fed. Cl. 186 (York Telecom 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
York Telecom Corporation v. United States, 130 Fed. Cl. 186, 2017 U.S. Claims LEXIS 19, 2017 WL 149960 (uscfc 2017).

Opinion

Post-Award Bid Protest; Judgment upon the Administrative Record, RCFC 52.1; Supplementing the Administrative Record; Standing; FAR 62.212-1; Non-Manufacturer Rule; NAICS Code Size Standard.

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, York Telecom Company (“York-tel”), brought this post-award bid protest matter, challenging the National Aeronautics and Space Agency’s (“NASA”) determination that Yorktel was not an eligible small business for a contract to provide certain information technology products and services, because Yorktel failed to meet the size standard for the contract. Yorktel has moved for judgment upon the administrative record, pursuant to Rule 52.1 of the Rules of the United States Court of Federal Claims (“RCFC”). The government has moved to dismiss this matter or, in the alternative, for judgment upon the administrative record, pursuant to RCFC 12(b)(1) and RCFC 52.1. In addition, the government has filed a motion to supplement the administrative record with the declaration of the contracting officer for the contract. For the reasons set forth below, the Court (1) GRANTS-IN-PART the government’s motion to dismiss; (2) GRANTS the government’s motion for judgment upon the administrative record; (3) DENIES Yorktel’s motion for judgment upon the administrative record; and (4) DENIES the government’s motion to supplement the administrative record.

II. FACTUAL AND PROCEDURAL BACKGROUND 1

A. Factual Background

In this post-award bid protest matter, Yorktel challenges NASA’s determination that Yorktel was not eligible for a contract to provide certain information technology products and services (“SEWP V Contract”), because Yorktel failed to meet the size standard for this small business set-aside contract. See generally Compl. Specifically, Yorktel alleges that NASA erred in determining that Yorktel is ineligible for award of the SEWP V Contract, because (1) the relevant request for proposals requires that of-ferors that are non-manufacturers of goods and services satisfy a 500-employee size standard and (2) Yorktel meets this size requirement. See, e.g., id. at ¶¶ 2-3; see PI. Mot. at 13-16, As relief, Yorktel requests that the Court enjoin NASA from terminating its contract. Compl. at ¶ 1, Requests for Relief.

1. The Request For Proposals

The salient facts in this bid protest matter are undisputed. On August 16, 2013, NASA issued a Solutions For Enterprise-Wide Procurement (“SEWP V”) request for proposals as a commercial item procurement (“RFP”). AR at 1-262. The principal purpose of the procurement is to provide information technology products and services to the entire federal sector. Id. at 2036. The contracts resulting from the procurement, including the SEWP V Contract, are multiple-award, indefinite-delivery, indefinite-quantity contracts. Id. at 16, 116. All of the contracts have a five-year ordering period, with a minimum amount of supplies and services to be ordered of $25.00 and a maximum value of $20 billion for each contract. Id. at 2089.

*191 The multi-award procurement involved four different groups of offerors. Id. at 1. The relevant portion of the solicitation at issue in this matter contemplated the award of small business set-aside contracts. AR at 1. And so, NASA utilized the North American Industry Classification System (“NA-ICS”) code and the accompanying size standards to determine whether an offeror was a small business. See Advanced Sys. Tech., Inc. v. United States, 69 Fed.Cl. 474, 475 n.1 (2006)); 13 C.F.R. §§ 121.401, 121.402; see also Rotech Healthcare Inc. v. United States, 71 Fed.Cl. 393, 407 (2006) (“Rotech I").

In this regard, NASA assigned the relevant category in this matter-Category B, Group C-a NAICS code of 541519 for Information Technology Value Added Resellers (“ITVAR”). AR at 1, 4; see also 13 C.F.R. § 121.201 (2015). This NAICS code requires that offerors meet a size standard of 150 employees or less. AR at 1, 4; 13 C.F.R. § 121.201.

The RFP also includes Federal Acquisition Regulation (“FAR”) 52.212-1(a), which provides:

INSTRUCTIONS TO OFFERORS-COM-MERCIAL ITEMS (52.212-1) (JUL 2013) (a) North American Industry Glassification System (NAICS) code and small business size standard. The NAICS code and small business size standard for this acquisition appear in Block 10 of the solicitation cover sheet (SF 1449). However, the small business size standard for a concern which submits an offer in its own name, but which proposes to furnish an item which it did not itself manufacture, is 500 employees.

AR at 130; see also 48 C.F.R. § 12.301(b)(1); 48 C.F.R. § 52.212-1. This provision derives from a provision in the Small Business Act known as the statutory non-manufacturer rule, which provides that:

(A) An otherwise responsible business concern that is in compliance with the requirements of subparagraph (B) shall not be denied the opportunity to submit and have considered its offer for any procurement contract for the supply of a product to be let pursuant to this subsection or subsection (a) of section 644 of this title solely because such concern is other than the actual manufacturer or processor of the product to be supplied under the contract.
(B) To be in compliance with the requirements referred to in subparagraph (A), such a business concern shall — ...
(ii) be a small business concern under the numerical size standard for the Standard Industrial Classification Code assigned to the contract solicitation on which the offer is being made; ....

15 U.S.C. § 637(a)(17). The United States Small Business Administration (“SBA”) has promulgated two relevant regulations to implement the statutory non-manufacturer rule. First, 13 C.F.R. § 121.402 provides, in relevant part, that:

A concern that submits an offer or quote for a contract or subcontract where the NAICS code assigned to the contract or subcontract is one for supplies, and furnishes a product it did not itself manufacture or produce, is categorized as a non-manufacturer and deemed small if it has 500 or fewer employees and meets the requirements of § 121.406(b).

13 C.F.R.

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Bluebook (online)
130 Fed. Cl. 186, 2017 U.S. Claims LEXIS 19, 2017 WL 149960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/york-telecom-corporation-v-united-states-uscfc-2017.