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2024 Procurement Review: Protests



Contents

 

Successful GAO Protests

Court of Federal Claims

CAFC

SBA Office of Hearings and Appeals

Introduction

Jurisdiction/Timeliness/Standing/Override

Jurisdiction/Standing/Ripeness

Jurisdiction/Timeliness/Standing

Defective Solicitations

Responsiveness/Late Bids/Proposals

Evaluations

Ostensible Subcontractor

Evaluations

Solicitations

Solicitation Language

Other Affiliation Issues

Responsiveness/Late Bids

Evaluations

Sole Source /Small Business

Other Miscellaneous Size Issues

Sole Source/Small Business

Sole Source /Small Business

Miscellaneous

8(a) / SDVOSB / WOSB Status

Recovery of Costs

Corrective Action & CICA Stays

 

NAICS

Conflict of Interest

EAJA

 

 

Corrective Action

OCI

 

 

Miscellaneous

 

Responsiveness

   

 

Successful GAO Protests

Introduction

So far this year, the GAO has published 17 decisions sustaining protests on the merits (some of which were originally dated in 2023 but not issued to the public as redacted versions until this year).

Solicitation Terms 

Flawed Evaluation / Lack of Meaningful Discussions 

The GAO sustained a protest by American Material Handling, Inc. because in a solicitation for a brand name or equal Caterpillar 980 wheel loader, the agency rejected a quote for failure to comply with certain salient characteristics of the loader mentioned on the manufacturer's website but nowhere listed as required in the solicitation. 

The GAO sustained a protest by SierTeK-Peerless JV LLC  because the agency failed to adequately document its evaluation of the awardee's proposal under the prior experience factor, specifically what led the agency to conclude that the size of the prior experience projects submitted by the awardee was comparable to the work to be performed under the task order resulting from the current solicitation. 

Deloitte Consulting, LLP won its protest because the record did not show that the agency had considered the impact on contract performance of the awardee's elimination of a proposed team partner in order to mitigate an OCI.  

In Kauffman and Assocs., Inc., the GAO held that (i) the agency's assignment of a weakness to the protester's quotation in the Technical evaluation area for lack of experience was based on the agency's interpretation of a solicitation provision that the GAO determined to be latently ambiguous; (ii) the agency did not evaluate the quotations on an equal basis where it assessed a significant weakness to the protester's quotation for failing to outline a plan to track and deploy CEUs, while not assessing a similar significant weakness to the awardee's quotation, which proposed a similar plan in this area; (iii) it was unreasonable for the agency to assign the awardee an Excellent rating in the Personnel evaluation factor when its quotation failed to meet the solicitation's requirements; (iv) the agency erroneously concluded the awardee had met the solicitation requirements in the Management factor; (v) the Past Performance evaluation of the awardee was flawed because it was based in significant part on the experience of its proposed project director described in the Technical volume of the quotation rather than the past performance examples included in the Administrative volume, which was supposed to be the source of the past performance evaluation; and (vi) there was no basis for agency's conclusion that the awardee's pricing was fair and reasonable where it did not comply with the solicitation requirement that its pricing be in line with its underlying GSA Schedule pricing.

In Deloitte Consulting, LLP; Softrams, LLC, the GAO held that: (i) the agency conceded it treated the protesters' proposals disparately from the awardees' in several areas where the agency had assigned strengths only to the awardees' proposals even though the protesters' proposals were not meaningfully different, and such disparate treatment was prejudicial given the closeness in rankings of the proposals; (ii) the agency's evaluation failed to take into account that an awardee took exception to a material solicitation requirement; (iii) where the solicitation specifically stated that price would be evaluated on the basis of an estimated number of hours per labor category, the agency could not choose a different method of price evaluation (even though that method would have been acceptable had it been specified in the solicitation) and decline to estimate hours for the majority of labor categories; (iv) the agency failed to conduct the required qualitative Past Performance evaluation of proposals, and record did not support its conclusion that all offerors were equal in this area; (v) the best value tradeoff was flawed because it determined a  preliminary group of awardees based solely on price, the lowest ranked evaluation factor, and then compared the protesters' proposals only in relation to the lowest ranked (i.e. highest priced) proposal in that initial group, based primarily on just counting strengths rather than any real qualitative comparison.  

The GAO sustained a protest by Conti Federal Services, LLC due to a flawed cost realism analysis. Specifically, after concluding the protester's proposed labor rates were too low in two categories, the agency adjusted them upward to equal the protester's own proposed rate for another labor category (superintendent) requiring higher qualifications rather than just to the IGE, which resulted in the protester's offer not being the lowest offer. 

LOGMET LLC won its protest because there was no indication in the agency's price evaluation in a FAR Part 8.4 procurement that the agency had considered whether several labor categories contained in the PWS were within the scope of the supposedly corresponding labor categories contained in the awardee's underlying FSS contract. 

The GAO sustained a protest by Global Patent Solutions, LLC, because: (i) although the Patent and Trademark Office's (PTO) ability to use the unique alternative competition method authorized by The Patent and Trademark Office Efficiency Act (PTOEA) and implemented through section 6.1.1 1 of the PTO Acquisition Guidelines (PTAG) exempts the agency from most requirements of standard procurement statutes, the PTO is not free to award without regard to the factors stated in the solicitation; and (ii) the awardee's proposal did not comply with the solicitation's requirements regarding small business participation. 

TLS Joint Venture, LLC, won its protest because the awardee’s required registration in the SAM pursuant to FAR 52,204-7 lapsed between the close of the solicitation period and the award of the contract. 

The GAO sustained a protest by Life Science Logistics, LLC because: (i) the awardee's facility availability letter did not comply with the solicitation's requirements; and (ii) the agency failed to engage in meaningful discussions because it did not mention a significant weakness in its discussions with the protester.  

MVM, Inc. won its protest because: (i) the record did not establish how the agency concluded one of the awardee's key personnel met all the solicitation's experience requirements; and (ii) the record did not explain whether, or how, the Contracting Officer, who should have been aware of the awardee's prior False Claims Act settlement, took that into account in making his updated affirmative responsibility determination.  

The GAO sustained a protest by Criterion Corp. because the agency's price realism analysis, which concluded the protester's price was unreasonably high, did not take into account its proposed technical approach, including its proposed labor mix or labor utilization strategy. 

ITility, LLC won its protest because:  (i) the agency failed to respond to the supplemental protest allegation that the agency unreasonably assigned a positive rating to the awardee's proposal, thereby effectively conceding that allegation; and (ii) the agency failed to conduct the required qualitative evaluation of proposals in two areas. 

Spatial Front, Inc., won its  protest after the agency conceded it had not contemporaneously examined the awardee's proposed labor categories from its FSS contract to determine whether they encompassed the geospatial services work required by the solicitation.  

The GAO sustained a protest by Sparksoft Corp. because the agency conceded it had treated offerors disparately in the evaluation of one key personnel position, and the GAO concluded (despite the agency's denial ) that the error prejudiced the protester. 

In BAE Systems Technology Solutions & Services Inc., although the protester's OCI allegations were dismissed as late and its protest that the awardee's revised proposal violated the corrective action ground rules was denied, the GAO held that the agency misevaluated professional compensation by failing to follow the solicitation requirement that the evaluators compare the costs proposed in the cost proposal with the approach set forth in the management approach proposal. 

Responsiveness, Late Bids, Expired Bids

 

Sole Source/Small Business/Restricted Competitions

Conflicts of Interest

Deloitte Consulting, LLP won its protest because the record did not show that the agency had considered the impact on contract performance of the awardee's elimination of a proposed team partner in order to mitigate an OCI.

The GAO sustained a protest by A Square Group, LLC because: (i) the agency's conclusion that the awardee's mitigation plan (a firewall) adequately mitigated an impaired objectivity OCI was unreasonable because the plan failed to cover a significant aspect of the work subject to the OCI; and (ii) the agency failed to evaluate the effect of the mitigation plan on the awardee's proposed technical approach. 

Corrective Action 

Pernix Federal, LLC won its protest because the State Department's determination upon voluntary corrective action that the original awardee was not properly qualified under The Omnibus Diplomatic Security and Antiterrorism Act of 1986 and SAM registration requirements to submit a proposal in a multi-phase solicitation for an overseas construction project was based on an impossible requirement for a de facto joint venture to register in SAM, which could not be harmonized with the phase 1 and 2 prequalification notices and the Department of State’s current regulations that permit a de facto joint venture to qualify under the Security Act, and specifically, for the offeror to be awarded a contract and provide performance guarantees from its affiliates. The interesting part of the decision is that the GAO relied on the "significant issue" exception (4 C.F.R. § 21.2(c)) to its timeliness rules to permit an untimely protest of an unambiguous requirement in the original solicitation language  

Recovery of Costs

Discovery/Miscellaneous

Court of Federal Claims

Timeliness/Standing/Jurisdiction/Automatic Stay 

In Superior Waste Management LLC, the court  strongly criticized the Federal Circuit's 2023 decision in CACI, Inc.-Federal. The court described what it viewed as the questionable part of the CACI holding as follows:

On appeal, the Federal Circuit — not sitting en banc, but in a panel decision — concluded that the "interested party" issue "presents a question of statutory standing rather than Article III standing," which is not a controversial statement per se. CACI, 67 F.4th at 1151.19 But the Federal Circuit then swept away decades of its own jurisprudence in holding that: (1) "[o]ur prior caselaw treating the interested party issue as a jurisdictional issue . . . is no longer good law[,]" id.; and (2) "the issue of prejudice is no longer jurisdictional unless it implicates Article III considerations, and our cases to the contrary are no longer good law[,]" id. at 1153 (emphasis added). With respect to the latter point, the Federal Circuit further explained that "[t]he issue of prejudice can properly be resolved by the Claims Court initially only if . . . the issue need not be remanded to the agency, for example, if the issue is a purely legal question." Id. at 1153-54 (emphasis added). Otherwise, "if the issue has not been addressed in the first instance by the contracting officer, a remand is necessary for the contracting officer to address the issue of prejudice." Id. at 1154.

The court then discussed at length the what it perceives as the many problems with CACI, including procedural problems (e.g., overruling prior CAFC precedent without an en banc decision) and practical ones (the ambiguities it creates for courts trying to analyze particular cases). Finally,  the court addressed the merits of the protest, concluding that: (i) the protester did not establish prejudicial errors in the Government's allegedly flawed unbalanced pricing analysis; (ii) the mathematical method the protester advocated the Government should have used in conducting the unbalanced pricing analysis actually would have diminished any unbalancing in the awardee's pricing while not diminishing the protester's own (admittedly) unbalanced pricing; (iii) the description of the unbalancing analysis in the solicitation was patently ambiguous, the Government's interpretation was a reasonable one, and the protester failed under Blue & Gold Fleet to raise the issue prior to bidding; (iv) the solicitation did not prohibit the Government from comparing total prices to the IGE as part of its pricing analysis; and (v) although the agency's unbalanced pricing analysis deviated from the FAR's requirements and was arbitrary and capricious, the protester did not show it was prejudiced because the solicitation did not mandate rejection of an unbalanced bid and the source selection official documented his assessment of the risk associated with the awardee's out-of-line pricing, even though the agency did not label it unbalanced.

In FYI - For Your Information, Inc., an unsuccessful protest, the court held that: (i) under FASA, it lacked jurisdiction over a protest of the agency's determination that the plaintiff was not eligible to compete for a task order procurement set aside for WOSBs because the plaintiff was not a certified WOSB under the new regulations requiring such a certification; and (ii) the plaintiff had waived its objections to clear provisions in two solicitations requiring WOSB certification by failing to object prior to submitting its proposals (such a protest would have been fruitless even if it had been timely raised). 

In Global K9 Protection Group LLC and Michael Stapleton Assocs. LTD. v. United States, after a detailed recitation of the lengthy history of the underlying protests and a scathing condemnation of the Postal Service's inadequate procurement guidelines, the court held that: (i) an awardee's long belated motion to intervene in a bid protest was mooted by the fact that it had been terminated for default by the time of its attempted intervention; and (ii) that party had waited far too long (11 months) to attempt to intervene after it was aware or should have been aware of its right to do so. The motion to intervene was in essence a motion for reconsideration of an injunction the court already had issued. 

Solicitation Language

 In Jacqueline R. Sims d/b/a JRS Staffing Services, an unsuccessful preaward protest, the court held that the solicitation's terms relating to how the agency would check the credit reports of proposed contractor employees were sufficiently clear to comply with all applicable FAR requirements. The court reached the same conclusion in a companion case.

In Crowley Government Services, Inc., an unsuccessful preaward protest, the court  held, inter alia, that: (i) the contractor's argument (that provisions in a United States Transportation Command ("TRANSCOM") solicitation permitting the GSA to audit the transportation bills of the contract carriers under pursuant to the Transportation Act (31 U.S.C. § 3726(b)) were improper) had already been preclusively decided against the contractor by the D.C. District Court (even though that decision was currently on appeal); (ii) TRANSCOM had the authority to designate that the firms performing under the contract are "carriers"; and (iii) this suit was not in the proper forum for addressing the contractor's argument that there was an OCI in the manner in which the GSA, as a separate agency, employs firms to conduct its audits under GSA contracts separate from this one.   

Responsiveness

 

Evaluations/Discussions

In Samsara, Inc., a successful post-award protest, the court held that although the agency was not required to level the playing field by ignoring  a capability obtained by the awardee on a prior contract and properly downgraded the protester's proposal for failing to address one required area in the solicitation, the agency improperly used an unstated evaluation criterion to downgrade the protester's proposal for lacking a capability at award that it was not required to have until 180 days after award. 

In Aegis-KK/GardaWorld Federal Africa, a Joint Venture, a partially successful post-award protest, the court held that: (i) the agency's evaluation of the awardee's pricing was not objectionable because the solicitation did not require the level of granularity in pricing proposals alleged by the protester; (ii) although the solicitation did not require that a joint venture offeror have been in existence for a year, joint venture partners  existing under the same corporate umbrella did not satisfy the solicitation requirement that the partners have experience working together with one another for a year; (iii) letters from proposed key personnel expressing their interest in the contract and referring to their "agreement" with the awardee did not satisfy the solicitation requirement that offerors provide the actual employment agreements with  key personnel, and the agency failed to explain why it waived this requirement for the awardee, which requires the court to remand the matter to the agency for further explanation; (iv) the agency had a rational basis for accepting the awardee's explanation that it would meet the solicitation's licensing requirements within six months and the steps it would undertake to do so, especially given the nine-month period between the submission of offers and award; and (v) to the extent the awardee failed to provide sufficient information required by the solicitation concerning affiliates and officers, the failure was not prejudicial to the protester.  

In ASRC Federal Technology Solutions, LLC, an unsuccessful post-award protest, the court denied challenges to multiple aspects of the evaluation, holding: (i) where the solicitation explicitly informed offerors to base staffing levels on current requirements rather than historical levels, the agency's assignment of a weakness to the plaintiff's proposal in this area would not be second-guessed where the plaintiff's proposal was based on historical levels; (ii) there were rational bases for the assignment of a weakness to the protester's management proposal based on a perceived inconsistency between its proposed key personnel and that proposed approach; (iii) the agency rationally concluded the protester's proposal lacked sufficient information regarding its proposed labor categories to perform the work; and (iv) there was a rational basis for the agency's assignment of a strength to the awardee's organizational structure. 

In Health Net Federal Services, LLC, an unsuccessful post-award protest following corrective action, the protester attacked the evaluation of the awardee's proposed small business participation in multiple ways, but the court held that: (i) the agency's evaluation of the awardee's revised subcontracting plan, including goals and participation by proposed subcontractors, had a rational basis; (ii) the awardee's revised proposal did not include material misrepresentations as to its planned subcontract participation and commitments; (iii) during discussions, the agency adequately investigated various aspects of the awardee's proposal concerning its small business participation; (iv) the solicitation's subcontracting percentage was a goal rather than a requirement; and (v) there were rational bases for the agency's past performance evaluation related to small business participation and the agency's responsibility determination related to the awardee. 

In Ekagra Partners, LLC, et al., which involved unsuccessful post-award, consolidated protests of awards in each of two tracks in a solicitation for the award of multiple BPAs, the court held, inter alia, that: (i) the agency (a) had properly determined from looking at available information in public databases that certain proposed subcontractors were not small businesses under the only NAICS code assigned to the small-business-set-aside solicitation and (b) had not, thereby, conducted a "size determination" within the jurisdiction of the SBA; (ii) the agency correctly determined that it was not free to rely solely on the offerors' proposed small businesses' self-certification as small businesses under allegedly similar NAICS codes because the definition (scope) of a particular NAICS code is different from the size standard under that code; (iii) under Blue & Gold Fleet, the plaintiffs waived their argument that the solicitation was unclear as to how the NAICS code requirement would be verified by failing to protest until after award; (iv) the agency did not engage in disparate treatment by not reducing one awardee's self-score for using a large business subcontractor because awardee had properly scored it as a large business (while the protester had incorrectly scored it as a small business); (v) the agency had a rational basis for using the Federal Procurement Data System to verify whether an offeror's past performance references met the minimum required dollar value; (vi) even if the agency made mistakes in evaluating some of these references, only one failure was required and, therefore, the plaintiffs were not prejudiced by any mistakes; (vii) one of the plaintiffs lacked standing to complain that one awardee should have been declared ineligible because that plaintiff did not show it would have had a substantial chance of award had that ineligibility determination been made; (viii) the agency had a rational basis for finding a protester did not follow the solicitation requirement to propose labor categories "appropriate" for the required tasks; (ix) in most of the numerous cases alleged by the protesters, the agency did not apply unstated evaluation criteria and where there were errors, they were not prejudicial because there were other valid reasons the protesters were found ineligible for award; and (x) the agency's explanations for its findings of ineligibility were either adequate in the circumstances or, in the cases where they were not adequate, were non-prejudicial because there were other adequate reasons for finding the proposals ineligible for award. 

In Thalle Constr. Co., an unsuccessful post-award protest, the court held that: (i) the alleged inadequacy of a commitment letter from the awardee's proposed subcontractor was irrelevant because, in its revised offer, the awardee proposed to self-perform the work; and (ii) the awardee's revised proposal included the correct duration for its construction schedule. The court, however, found that the agency had not followed "best practices" in its imprecise description of its evaluations in both these areas, which had given the protester grist for its arguments and had made the court's job of assessing their validity more difficult. 

In L3Harris Technologies, Inc., an unsuccessful scattershot post-award protest, the court held, inter alia, that: (i) the agency properly evaluated the awardee's proposal in accordance with the stated evaluation criteria rather than the proposal preparation instructions; (ii) the plaintiff misinterpreted an evaluation criterion that applied to one subfactor as if it should be the standard for them all; (iii) the agency assigned a weakness to the awardee's proposal under the correct subfactor rather than the one espoused by the plaintiff; (iv) there was a rational basis for the weakness (rather than deficiency) assigned to one aspect of the awardee's proposal; (v) the allegation that the agency should have assigned multiple weaknesses, rather than a single weakness, to the awardee's proposal was mere quibbling with the agency's judgment, to which court owed deference; (vi) there was a rational basis for the agency's cost realism analysis, including the spare parts cost analysis;  (vii) there was a reasonable basis for the agency's evaluation of the awardee's costs associated with exercising options; (viii) the agency did not treat proposals unequally because the sections of the competing proposals in question were  not substantially identical; (ix)  the agency's evaluation was adequately documented; and (x) the plaintiff failed to allege the necessary hard facts demonstrating any agency impropriety in handling a possible issue of conflict of interest or unfair advantage. 

In SSI Claimsnet, LLC, and Availity, LLC, which involved unsuccessful consolidated post-award protests, the court denied the protesters' motions to supplement the administrative record with the results of evaluations from a similar, but separate, procurement that allegedly would have shown evaluation results inconsistent with the challenged evaluation in the current protests  and then held that: (i) under the agency's reasonable interpretation of the protester's less that perfectly clear proposal on this point, the evaluators' finding that the protester's proposed approach was "infeasible" had a rational basis; (ii) the agency treated one aspect of the protester's proposal unequally with a substantially indistinguishable aspect of the awardee's proposal but there was no prejudice because correcting that error would not have overcome the other technical advantages of the awardee's proposal; (iii) the agency's price reasonableness analysis had a rational basis, as did its finding that the protester's price was "unreasonable," making it ineligible for award, especially given that the protester's price was more than a standard deviation higher than the average; (iv) the agency's conclusion that the protester's pricing was unbalanced had a rational basis and was consistent with all applicable regs; and (v) the agency was not required to consider each of the awardee's CLINs separately in evaluating whether its pricing was unbalanced. 

In Eagle Hill Consulting, LLC, an unsuccessful post-award protest, the court held, inter alia, that: (i) an erroneous spreadsheet initially filed by the Government in the administrative record was not the spreadsheet actually provided to offerors, and thus was not the basis for a protest; (ii) the solicitation was not ambiguous concerning the method the agency would use to conduct the price analysis; (iii) the solicitation contained a patent ambiguity concerning the information the offerors were to include on the pricing worksheet, which the protester failed to timely challenge under the Blue & Gold Fleet standard;  (iv) the solicitation did not require the awardee to provide a "crosswalk" between the labor categories in its offer and those in its GSA schedule contract, and the agency did review the two sets of information, which was all that was required; and (v) there was an adequate explanation in the record for the agency's evaluation of Corporate Experience, which court would not second-guess. 

In L3Harris Technologies, Inc., an unsuccessful scattershot post-award protest, the court held, inter alia, that: (i) the agency properly evaluated the awardee's proposal in accordance with the stated evaluation criteria rather than the proposal preparation instructions; (ii) the plaintiff misinterpreted an evaluation criterion that applied to one subfactor as if it should be the standard for them all; (iii) the agency assigned a weakness to the awardee's proposal under the correct subfactor rather than the one espoused by the plaintiff; (iv) there was a rational basis for the weakness (rather than deficiency) assigned to one aspect of the awardee's proposal; (v) the allegation that the agency should have assigned multiple weaknesses, rather than a single weakness, to the awardee's proposal was mere quibbling with the agency's judgment, to which court owed deference; (vi) there was a rational basis for the agency's cost realism analysis, including the spare parts cost analysis;  (vii) there was a reasonable basis for the agency's evaluation of the awardee's costs associated with exercising options; (viii) the agency did not treat proposals unequally because the sections of the competing proposals in question were  not substantially identical; (ix)  the agency's evaluation was adequately documented; and (x) the plaintiff failed to allege the necessary hard facts demonstrating any agency impropriety in handling a possible issue of conflict of interest or unfair advantage. 

In Anders Constr., Inc., a successful protest leading to a permanent injunction, the court held that there was no rational basis for any of the five reasons advanced by the agency to justify finding the plaintiff's proposal technically unacceptable following corrective action after finding it acceptable originally, e.g., (i) the protester's alleged failure to provide a "sample" completion report with its offer when the solicitation only required a completion report during contract performance, (ii) the protester's alleged failure to label certain documents submitted with its proposal in a certain way when the solicitation did not require them to be labeled, and (iii) the protester's alleged failure to provide a diver's certificate for a proposed employee when its proposal unambiguously labeled that individual as a Supervisor, rather than a diver. The court also held that it lacked jurisdiction over the protester's alternative claim under the Declaratory Judgment Act.  

In Trumble Constr., Inc., an unsuccessful post-award protest, the court held, inter alia, that: (i) under the key management evaluation factor, the evaluators reasonably assigned deficiencies to the protester's proposal for failing to demonstrate adequate experience of its proposed managers after the agency had communicated those deficiencies to the protester and had given it a chance to revise its proposal, and the agency was under no obligation to discuss the deficiencies with the protester further after it failed to adequately address the deficiencies in its revised proposal; (ii) similarly, the agency reasonably assigned a deficiency to the protester for failing to list its proposed subcontractors, as required by the solicitation, even after being given a second chance to do so following discussions; (iii) the agency reasonably assigned the protester a weakness for having only a vague schedule;  (iv) the agency had a rational basis in the record for amending the solicitation to extend the performance period; and (v) the agency rationally evaluated the awardee's price as fair and reasonable and was not required to compare it to the protester's lower price because the protester's proposal was unawardable and, therefore, the agency had no basis to determine that the protester's price was fair and reasonable.

In Safal Partners LLC, an unsuccessful post-award protest, the court held that, although the protest was timely under Blue & Gold Fleet and stated a sufficiently plausible claim to survive a 12(b)(6) motion to dismiss, the agency did not mislead the protester by allegedly changing the definition of "strength" from the list of strengths provided to the protester in an initial debriefing to the strengths found by the agency after a subsequent evaluation because "strength" was never a defined term in any version of the solicitation and the information regarding strengths initially provided to the protester was too nebulous to have a definition inferred from it. 

In HealthRev, LLC, an unsuccessful post-award protest, the court held that: (i) the agency properly evaluated the offer by a mentor-protégé joint venture under 13 C.F.R. § 125.8(e) by evaluating each member's strengths and weaknesses in order to determine the capability of the joint venture as a whole ("in the aggregate"); and (ii) the agency did not evaluate proposals disparately or apply unstated evaluation criteria.  

In PMCG CollaborateUp JV LLC, the court held that the Contracting Officer had erred in concluding a JV was ineligible for award based on the preliminary suspension of one of its members without investigating further when the firm had challenged the suspension and it was lifted before any task order awards were made.  

In AccelGov, LLC, an unsuccessful post-award protest, the court held that: (i) in a procurement conducted under FAR Part 8.4, the agency was not required to hold FAR Part 15 discussions before determining proposals were unacceptable, especially where the solicitation clearly stated the agency intended to award without discussions; (ii) the agency's evaluation of the protester's technical proposal was reasonable and would not be second-guessed by the court; and (iii) the protester had waived its right to object to the solicitation's personnel experience requirement by waiting until after proposals were submitted. Concerning the second holding, the court noted:

This Court routinely holds that contracting officers enjoy "broad discretion with respect to evaluation of technical proposals," and the Court typically does not “second-guess the technical ratings that the source selection committee gave to each offeror.” [citations omitted] However, unsuccessful offerors repeatedly ignore this. To again emphasize this important point, agencies exercise broad discretion when determining the scope of an evaluation factor. [Emphasis added] 

 

Sole Source/Small Business/Restricted Competitions

In Federal Performance Management Solutions, LLC, an unsuccessful protest, the court upheld the OHA's decision that a mentor-protégé JV was not small for the procurement in question because its bid was submitted years after the JV's two-year limit for submitting offers had expired pursuant to 13 C.F.R.  121.103(h). 

In Clean Team Janitorial Service, Inc., an unsuccessful protest by the incumbent contractor against the award of a follow-on set-aside 8(a) contract, the court held that: (i) although the plaintiff's reporting of alleged PIA violations was timely (because informal statements to its on-site janitorial staff would not be immediately imputed to the business owners),  the agency's two independent investigations finding no merit to the allegations were "more than sufficient"; (ii) even after correcting for admitted ministerial errors, the value of procurement fell below the amount that would require competition among eligible 8(a) firms; and (iii) regardless of its status at the beginning of this process, the awardee was an 8(a) certified joint venture by the time of the latest award to it after series of corrective actions undertaken by the agency in response to earlier protests. 

Responsiveness/Late Bids

 

Corrective Action/Stay Pending Protest

In NetCentrics Corp., the court  denied the Government's motion to remand the case to permit limited corrective action because the proposed corrective action would not moot all the challenges raised by the protester and would likely only delay the resolution of the protest.  

In StraCon Services Group, LLC, over the protester's objection, the court dismissed a protest as moot (which the protester conceded) after the Government undertook corrective action based on its conclusion that an OCI existed with regard to the original awardee. The protester basically wanted to keep the protest open so that it could argue the original awardee should not be allowed to compete on the revised solicitation after the corrective action.

In PDS Consultants, Inc., an unsuccessful protest of corrective action, the court held that: (i) the plaintiff waived its right to seek reinstatement of its contract award by agreeing to the broad release language in a bilateral settlement agreement terminating its contract for convenience; and (ii) the agency had a rational basis to "go back to the drawing board" and undertake corrective action to correct errors in the procurement.  

In Samsara, Inc., an unsuccessful request for an injunction against contract performance pending resolution of a protest, the court held that: (i) exhaustion of the USPS' two-step agency dispute resolution procedure (including review by the agency's Supplier Disagreement Resolution Officer) is not required for CoFC jurisdiction; (ii) the agency's decision to reaffirm a contested award constituted final agency action, rendering the current suit ripe for review by the court; but (iii) the protester was not entitled to injunctive relief because  the court "has consistently found unpersuasive arguments [that] seek to base a showing of irreparable harm on the possibility that the successful offeror would gain advantages" during the pendency of a bid protest.  

In Kearney & Co., P.C., et al., a successful protest by the original awardee, the court held that the agency's corrective action, based on a GAO attorney's erroneous statements in a predictive outcome conference, lacked a rational basis because the solicitation did not, as the GAO attorney had claimed, require an exact match between the PWS requirements for the key personnel position of Statistician-Senior and a labor category in the contractor's GSA Schedule contract.  

.  

Conflicts of Interest/PIA

In The District Communications Group, LLC and CruxDGC, LLC, a successful protest, the court held that the Contracting Officer's determination of an impaired objectivity OCI was irrational, in part because the solicitation contained a provision that eliminated the possibility of such an OCI in the circumstances posited by the Contracting Officer in attempting to justify the finding.  

In Raytheon Co., an unsuccessful protest against the protester's elimination from competition due to the "appearance of impropriety" in its hiring of retired agency technical expert, the court noted the broad discretion given Contracting Officers in making such a determination, requiring only that the determination be supported by reasonable evidence in the administrative record, with no requirement that there be a showing of an adverse effect on the challenged competition.  

In Associated Energy Group, LLC, an unsuccessful preaward protest alleging that the agency failed to adequately mitigate an inadvertent disclosure of competitively useful information to the plaintiff's competitor/incumbent, the court: (i) refused to consider a lengthy declaration by the plaintiff's CEO consisting largely of post hoc speculations as to how a competitor might use the information at issue; and (ii) held that the agency's investigation of the situation was reasonable, as were its conclusion that the information was not competitively useful and that further mitigation was unnecessary.  

 

EAJA/Fees/Costs

In Accura Eng'g and Consulting Services, Inc., the court granted the protester's motion for the award of EAJA attorneys' fees after a successful bid protest because: (i) the Government's litigation position was based on an interpretation of the controlling statute that was contrary to its plain language; (ii) a prior GAO decision favoring the Government was irrelevant, especially when the GAO's decision did not address the argument that ultimately prevailed; and (iii) the fact that only one of several arguments prevailed was irrelevant to the size of the award because there was a clear win and all the arguments had been interrelated and directed at the same result. 

Miscellaneous

In Construction Helicopters, Inc., a decision interesting only for its thorough discussion of the standards the court uses to evaluate various types of requests for additional discovery in bid protests, the court held that some of the discovery requested by the plaintiff would be permitted as the court could not effectively review the protest allegations without it, but most of what the protester was seeking was not necessary for the court's review.  

In Safal Partners, LLC, a protest being dismissed as moot upon the agency's undertaking of corrective action, the court denied the plaintiff's motion to modify the protective order to permit it to use protected materials in other protests at the GAO or the agency related to the same procurement.  

In Rockwell Collins, Inc., a successful protest, the court held that the agency's cancellation of a solicitation for proposals to refresh the center console Fuel System and Flight Display System on the KC-135 aircraft lacked a rational basis because the agency relied exclusively on FAR 15.206(e) but did not identify a proposed amendment to the Government’s requirements or terms and conditions as required by that provision.

In Superior Optical Labs, Inc., the court granted a competitor's motion to intervene in a preaward protest alleging that if the protester were disqualified as the agency intended, award would be made essentially on sole-source basis to the intervenor, about which protester made disparaging allegations.  

 

 

Court of Appeals for the Federal Circuit

Jurisdiction/Standing

In REV, LLC, the CAFC reversed the prior CoFC decision that the protester lacked standing and held that, assuming (for purposes of deciding standing) the protester were to prevail on its allegations of errors in the evaluations of six of the nine offerors that were ranked ahead of it, the protester would have had a substantial chance of being selected as one of the awardees in a solicitation that contemplated at least seven awardees. 

In Percipient.ai, Inc., the Court of Federal Claims initially held it had bid protest jurisdiction over an allegation that the Government had violated the requirement in 10 U.S.C. § 3453 that defense agencies and their contractors must acquire commercial products to the maximum extent practicable. Subsequently, however, the court vacated its own opinion in an unpublished order and held it lacked jurisdiction.  Now, the CAFC has reversed, holding that: (i) FASA's task order bar does not apply to a protest that does not challenge the issuance or proposed issuance of a task order and, therefore, is not "in connection with" a task order; and (ii) the CoFC has jurisdiction under the third prong of the Tucker Act 28 U.S.C. § 1491(b)(1) because the protest was "in connection with" a procurement or proposed procurement. So, the protest was not "in connection with" a task order but was "in connection with" a procurement.  

Solicitation Language

In Michael Stapleton Assocs., Ltd., the Court of Appeals for the Federal Circuit upheld the prior CoFC decision finding that the procuring agency had rational bases for (a) revising the solicitation to separate it into two procurements and (b) shortening the prior look-back period for evaluating past performance, but reversed the CoFC's conclusion that the agency had not taken adequate steps to mitigate the incumbent's conflict of interest in order to permit it to participate in the revised procurement.  

Evaluations

 

Small Business Issues/Set-Asides

 

 

 

SBA Office of Hearings and Appeals

Jurisdiction/Standing/Timeliness/Procedure

In VSBC Protest of MicroTechnologies LLC, the SBA's OHA dismissed a protest as nonspecific because, even after being ordered to do so, the protester did not provide any credible evidence that the challenged firm failed to meet any of VOSB or SDVOSB requirements listed at 13 C.F.R. Part 128 or the joint venture requirements at 13 C.F.R. § 128.402.

In Size Appeal of Sanford Federal, Inc., the OHA held that, even if (as the challenged firm contented) the original size protest was non-specific, the challenged firm did not (i) raise this argument to the Area Office, (ii) respond to the protest allegations, or (iii) submit requested information, and, therefore, failed to meet its burden of establishing that it was a small business.  

In VSBC Protest of JBL System Solutions, LLC, the OHA dismissed a protest alleging (without any evidence) only that the challenged firm was not a certified SDVOSB, especially where the record showed the challenged firm was certified.  

In VSBC Appeal of Dank Blossom, Inc., the OHA dismissed the appeal because the firm challenging the denial of its SDVOSB status failed to allege any errors in that decision and failed to respond to an OHA show cause letter, essentially conceding its appeal was deficient. Similarly, in VSBC Protest of MicroTechnologies, LLC, the OHA held that a firm that failed to respond to an OHA show cause notice essentially admitted its protest was fatally nonspecific.

In VSBC Protest of DataCom Solutions, Inc., the OHA dismissed an unsigned, untimely "protest" that lacked specific allegations, but was characterized by its author as an "inquiry."

In Size Appeal of Radiant Infotech, LLC, the OHA denied the appeal because private parties lack standing to bring size protests against sole-source 8(a) awardees, and neither the Contracting Officer nor the SBA was obligated to initiate a size protest after being alerted of the alleged size issue by the appellant. 

In Size Appeal of Prak-Integrity JV, the OHA held that the appellant lacked standing to protest another offeror's size because the protester's offer was nonresponsive for failure to comply with the solicitation requirement to be registered in SAM, even if the Contracting Officer had not notified it of its nonresponsiveness.  

Ostensible Subcontractor

In Size Appeal of Diversified Elevator Service and Equipment Co., the OHA held, inter alia, that an undated, unaddressed letter from a large firm touting its abilities to perform all the contract work and included in the challenged firm's proposal was not sufficient to establish the two firms had an actual relationship at the time that the proposal was submitted whereby the large firm would perform the primary and vital contract requirements in violation of the ostensible subcontractor rule. 

Other Affiliation Issues

In Size Appeal of BC Technical Center, LLC d/b/a BC Engineered Products, the OHA held that the Area Office erred in finding affiliation via the newly organized concern rule because the challenged firm was not spun off from the alleged affiliate.  

In Size Appeal of HealthVerity, Inc., the OHA granted the appeal in part and remanded the case to the Area Office to investigate further whether the CEO and several co-founders of the challenged firm were former officers or key employees of Microsoft, which would create affiliation under under the newly organized concern rule. The OHA also held, however, that the Area Office was not required to further investigate an identity of interest allegation that the protester made only generally and without specific evidence. 

In Size Appeal of FRM Socks, LLC, the OHA held that, in determining affiliation, a Term Sheet setting out the elements of an upcoming merger fell under the "present effect" rule (13 C.F.R. § 121.103(d)) because it was an agreement in principle that included all significant details of the merger and did not leave substantive steps to be accomplished. 

In Size Appeal of Red Orange LLC, the OHA upheld the Area Office's application of an adverse inference to establish affiliation after the challenged firm failed to provide any information requested by Area Office to respond to a size protest. The challenged firm argued unsuccessfully that the emails from the agency requesting information from it had been sent to the wrong department (accounts receivable). However, the OHA noted that the emails had been sent to the address of the firm's President who was listed on the firm's SAM website as the firm's primary point of contact. 

 Other Miscellaneous Size Issues

In Size Appeal of Sanford Federal, Inc., the OHA held that, even if (as the challenged firm contented) the original size protest was non-specific, the challenged firm did not (i) raise this argument to the Area Office, (ii) respond to the protest allegations, or (iii) submit requested information, and, therefore, failed to meet its burden of establishing that it was a small business. 

In Size Appeal of Imagine One Technology & Management, Ltd., the OHA held that: (i) the  challenged firm was not required to recertify its size for a set-aside task order award under the former version of the SBA's regs applicable at that time; and (ii) there was no change in controlling ownership necessitating a recertification because the owner retained a majority interest.

In Size Appeal of McLaughlin Research Corp., the OHA held that although the arguments raised by the appellant, itself, on appeal were meritless, the prior version of 13 C.F.R. § 121.404(a)(1)(iv) effective at the relevant time for this appeal stated that size for an unpriced IDIQ MAC was to be determined at the time of initial award rather than at time of an order, so the OHA remanded the case to the SBA to examine the issue under the correct version of the reg. In Size Appeal of Saalex Corp. d/b/a Saalex Solutions, Inc., the OHA once again held that, for an unrestricted, unpriced MAC, the previous version of 13 C.F.R. § 121.404(a)(1)(iv) applicable at the time stated that size was to be determined as of the date of the original award.

In Size Appeals of Tech-Marine Business, Inc., the OHA held that, consistent with its recent holdings in McLaughlin Research, Imagine One Technology & Management, Ltd., and Saalex Corp., a firm was not required to recertify its size for a set-aside task order award under an unpriced MAC pursuant to the former version of the applicable SBA reg that was in effect at the time.  

In Size Appeal of Colt-Sunbelt Rentals JV, LLC, the OHA held that a mentor-protégé joint venture agreement that failed to identify the respective responsibilities of the parties for the contract at issue was defective and could not be cured by an unsigned addendum (where the agreement stated addendums must be signed) that was not shown to be in effect at the time of final proposal revisions.

In Size Appeal of Colossal Contracting, LLC, the OHA held that, contrary to 13 C.F.R. § 121.104(a), the Area Office improperly used evidence beyond a firm's tax returns to calculate its receipts for purposes of determining its size.

In Size Appeal of LinTech Global, Inc., the OHA held that a firm could compete for a small business set-aside task order solicitation that did not contain a specific request for size recertification issued under an FSS unrestricted MAC contract, despite the fact that, as a result of a merger, the firm had become other than small between the award of the MAC contract and the task order solicitation because 13 C.F.R. 121.404(g) only restricts the agency's ability to count an award to the firm in the agency's small business contracting goals.

8(a)/VSBC/SDVOSB/CVE/WOSB Status

In VSBC Protest of McKenna Brytan Industries LLC, the OHA sustained the protest because there was no evidence the challenged firm had applied for SDVOSB certification prior to the date of its self-certification, and during the protest, the challenged firm produced no evidence to substantiate its claimed SDVOSB status or even argued that it was at least 51% owned, and fully controlled, by one or more SDVs.  

In VSBC Protest of Thunderyard Liberty JV II, LLC, the OHA denied challenges to the effective date of an  SDVOSB JV agreement and to various of its provisions, including the requirement for two signatures on a bank account and descriptions of the division of responsibilities by the JV members and the resources required to perform the contract, both of which were only generally described due to the nonspecific nature of the solicitation. 

In VSBC Protest of Systematic Innovations, LLC, the OHA held that the challenged firm was a qualified SDVOSB JV because: (i) the joint venture agreement (as supplemented by the joint venture operating agreement and addendum) adequately described the equipment and services to be provided by each member of the JV, especially for this indefinite procurement; (ii) references to "collaboration" between the members in the agreements did not give the non-managing member of the JV negative control where the agreements did not give that firm any decision-making authority or the power to block actions or decisions of the managing venturer, which retained the exclusive power and authority to manage the business and the affairs of the JV; and (iii) the JV's recordkeeping requirements did not violate SBA regulations.  

In VSBC Appeal of NIJI, LLC, the OHA denied an appeal of a decision rejecting a firm's application for certification as an SDVOSB because conflicting and ambiguous provisions in firm's Operating Agreement and other documentation did not clearly establish that the SDV exercised full discretion and decision-making authority over the firm's day-to-day operations.

In VSBC Protest of Systematic Innovations, LLC, the OHA denied a protest of a firm's SDVOSB status because the challenged SDVOSB JV included a certified SDVOSB as its managing venturer, and the JV agreement was sufficiently detailed as to the parties' respective responsibilities considering the indefinite nature of the contract contemplated by the solicitation. 

In VSBC Protest of Aero-Tel Wire Harness Corp., the OHA upheld a protest of a firm's SDVOSB status because the challenged firm was not a certified SDVOSB for purposes of the current solicitation and had not completed the process of re-establishing an expired certification.

In VSBC Protest of Marathon Industrial Equipment, LLC, a successful protest, the OHA held that the challenged firm failed to provide requested information concerning whether its SDV's continued employment with an outside firm would allow him time to exercise the required control over the challenged firm. 

In VSBC Protest of Aldevra LLC, the  OHA held that a solicitation was small business set-aside, as stated on its cover sheet, and the inclusion of two clauses associated with an SDVOSB set-aside was merely an administrative error.  Thus, the SDVOSB status of the protested firm was irrelevant.

In VSBC Protest of Panakeia, LLC, the OHA dismissed a protest that the challenged firm would be unusually reliant on a non-SDVOSB subcontractor because: (i) the protester failed to respond to the motion to dismiss; and (ii) in a contract for services, the challenged firm need only meet the "Limitations on Subcontracting" provision, and, here, the challenged firm's proposal indicated that it would self-perform a majority of the work and would subcontract less than 50% of the contract value to its two subcontractors. 

In Matter of Irby Spine Care Professional Corp., the OHA upheld a firm's termination from the 8(a) program for repeated failures to submit required documentation. 

NAICS

In NAICS Appeal of Elevated Technologies, Inc., the OHA held that in a solicitation to replace an elevator system, the Contracting Officer's choice of NAICS 238290 ("Other Building Equipment Contractors") was preferable to the contractor's choice of NAICS 236220 ("Commercial and Institutional Building Construction") because the former code specifically covers elevator installation and repair according the the NAICS Manual.

In NAICS Appeal of CueBid Technologies, Inc., the OHA held that in a solicitation to provide sludge dewatering/drying technology or alternatives for reducing the weight and volume of daily sludge production with maximum drying efficiency through additional equipment installation in a waste treatment plant, the appropriate choice was NAICS code 541330 ("Engineering Services") as opposed to the Contracting Officer's choice of NAICS 562211 ("Hazardous Waste Treatment and Disposal"). 

In NAICS Appeal of First Nation Group, LLC, the OHA held that the proper NAICS code in a solicitation to procure Medical Emergency Alert Devices for the agency's Prosthetics Sensory Aid Service was the  Contracting Officer's choice of 334220 ("Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing") as opposed to the appellant's choice of NAICS 334510 ("Electromedical and Electrotherapeutic Apparatus Manufacturing"). 

In NAICS Appeal of Salvadorini Consulting, LLC, the OHA held that in a solicitation to lease an MRI machine and accompanying trailer, the Contracting Officer's designation of NAICS code 532490 ("Other Commercial and Industrial Machinery and Equipment Rental and Leasing") was preferable to the appellant's choice of NAICS 621512 ("Diagnostic Imaging Centers"). 

In NAICS Appeal of Cynergy Professional Systems, LLC, the OHA held that in a solicitation to provide weapons detection system services to VA medical centers, one of the contractor's choices (NAICS 334290 ("Other Communications Equipment Manufacturing")) with a size standard of 800 employees was preferable to the Contracting Officer's choice of NAICS 561621 ("Security Systems Services (except Locksmiths)"). 


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