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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 32 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 

The GAO sustained a protest by Maxim Healthcare Staffing Services, Inc. because (at least in the GAO's view) the Christian doctrine does not apply to solicitations, so the protester should not have been disqualified for a lapsed SAM registration because neither the underlying IDIQ contract nor the solicitation at issue contained mandatory FAR clause 52.204-7 ("System for Award Management"), requiring an active SAM registration at the time of the submission of its offer.

In MAXIMUS Federal Services, Inc., although the GAO rejected the protester's challenges to the use of a Labor Management Agreement (LHA) clause in a recompeted solicitation, it sustained the allegation that the clause was ambiguous because it did not make clear the period of time during which an apparently successful offeror would have to negotiate a pre-award LHA with a qualifying labor organization. According to a footnote in the decision:

An LHA is an agreement between a labor organization and an employer before the union has been selected or recognized as the collective bargaining representative of the employer’s personnel. . . .  Under a typical LHA, the labor organization will give up its right to strike, and the employer will provide numerous concessions, including permitting the labor organization to recruit and organize its employees, remaining neutral in any organizing campaign, and providing employees’ names and contact information.  

In Wilson 5 Service Co., the GAO held the record did not establish that the agency's minimum needs justified an FSS RFQ provision favoring quoters who had experience managing performance at geographically dispersed facilities under a single contract over those with experience performing the same type of requirements under multiple contracts at the same time.

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.  

The GAO sustained a protest by Maxim Healthcare Staffing Services, Inc. because (at least in the GAO's view) the Christian doctrine does not apply to solicitations, so the protester should not have been disqualified for a lapsed SAM registration because neither the underlying IDIQ contract nor the solicitation at issue contained mandatory FAR clause 52.204-7 ("System for Award Management"), requiring an active SAM registration at the time of the submission of its offer. 

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. 

The GAO sustained a protest by Cadre5, LLC, because: (i) the agency provided no explanation either in contemporaneous or in post-protest documentation to support the reasonableness of its rating of the protester's quotation for technical understanding; and (ii) the best value tradeoff evaluation relied only on differences in the underlying adjectival ratings without any additional analysis of the significance of those differences. 

Guidehouse Inc. won its GAO protest because: (i) the agency provided no contemporaneous documentation to support its assertion that it evaluated the awardee's proposed personnel for several expert labor categories to determine whether they met the solicitation's requirements or had equivalent qualifications; and (ii) the agency's assignment of a weakness to the protester's proposed program manager was not reasonable because the evaluators’ stated basis for the weakness--a lack of proposal information detailing his relevant -experience--did not reasonably account for information provided within the protester's proposal describing his duties managing programs for federal agencies. 

The GAO sustained a protest by Hometown Veterans Medical, LLC, finding that the agency had used unstated evaluation criteria where, during an initial cursory review of proposals, the agency rejected the protester's proposal (and others) that had not submitted copies of two representations even though the solicitation did not expressly require their submission with the proposal or state that such a review would be used to evaluate proposals. 

The GAO sustained consolidated protests by KBR Services, LLC; Vectrus Systems Corp. because the agency improperly concluded the awardee's proposal was acceptable. Specifically, the awardee's technical and cost proposals both stated the offeror would self-perform all the work, which conflicted with its small business participation proposal and the solicitation requirement in that area. After discussions closed, the agency asked the offeror to "clarify" (simply, yes or no) whether it intended to comply with the solicitation requirement, and it replied that it did. The agency then concluded that the proposal was acceptable despite the fact that it still contained the internal inconsistency.  In a separately published decision on the same procurement by Vectrus Systems, LLC [?; even though the first line in the body of the decision identifies the protester as the Vectrus Systems Corp. in the consolidated decision above], the GAO sustained the protest, inter alia, because the agency did not respond to the merits of the protester's claims that its technical proposal had been misevaluated, arguing only that the protester was not prejudiced by the alleged errors. The GAO concluded there was a reasonable possibility the protester was prejudiced by the unrebutted alleged errors.

The GAO sustained one of the grounds of protest by GovCIO, LLC, because the agency's assignment of a significant strength to the awardee's proposal for exceeding the daily requirements for conversion of source materials was based on the use of calendar days rather than workdays (which formed the basis of the awardee's quote).  

The GAO also sustained one of five grounds of protest by IBSS Corp. because the record failed to establish that the agency had meaningfully evaluated the awardee’s proposed staff compensation figures (which were lower than the compensation in the predecessor contract) as required by the terms of the FAR 52.222-46 ("Evaluation of Compensation for Professional Employees"). 

Responsiveness, Late Bids, Expired Bids

The GAO sustained a protest by HPI Federal, LLC because the agency’s acceptance of a firm's representation that several quoted items complied with the Trade Agreements Act was unreasonable where the representation did not state that the end products to be delivered were U.S.-made, qualifying country, or designated country end products, but only stated that the quoted items were assembled in a designated country. 

Sole Source/Small Business/Restricted Competitions

Knudsen Systems, Inc. won its protest against the agency's decision to restrict a solicitation to small businesses because the agency’s market research was insufficient to conclude that the agency would likely receive proposals from at least two responsible small business concerns that could meet solicitation’s requirements at a fair market price. 

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. 

In Kropp Holdings, Inc., although the GAO found that the agency's evaluation of the awardee's proposed OCI mitigation plan was unobjectionable in itself, the agency failed to evaluate the contradiction between the plan and the awardee's proposed technical approach under the technical capability factor.  

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. 

In Associated Energy Group, LLC, an unsuccessful protest, the court held that the plaintiff lacked standing to protest a second sole-source bridge contract extension because: (i) it failed to express interest in the bridge contract by submitting a capability statement; and (ii) it admittedly did not have the capability to timely perform the bridge contract work.  

In Independent Rough Terrain Center, LLC, an unsuccessful protest, the court held that although it had jurisdiction over a protest concerning a follow-on production contract issued under the Army’s statutory Other Transaction ("OT") authority pursuant to 10 U.S.C. §§ 4021 and 4022, rather than under the FAR, because it was a procurement for purposes of the court’s bid protest jurisdiction (a holding of first impression), the protester lacked standing because its SAM registration had lapsed between the submission of proposals and award, in violation of a solicitation requirement that offerors be registered at the time of award. 

In Advanced Simulation Technology Inc., an unsuccessful protest, the court held that the Government's actions in further improving government software that it began developing 20 years ago without issuing any solicitations or requests for information did not constitute a protestable procurement or proposed procurement, and a protest against possible future procurements was not ripe. 

In Island Creek Assocs., LLC, an unsuccessful post-award protest, the court  (while recognizing there were differing opinions among CoFC judges concerning the appropriate standard of standing to apply in these situations) held that an awardee of a MAC contract award lacked standing to protest the agency's modification to the MAC (which the protester claimed gave an unfair advantage to mentor-protégé JVs and their member companies) because the protester was no longer an actual or prospective offeror and could not show direct economic injury. 

In Computer World Services Corp., an unsuccessful protest, despite the plaintiff's efforts to characterize its protest in a way to avoid the result, the court held that, under FASA, it lacked jurisdiction over a protest aiming to empanel a new technical evaluation committee for corrective action in connection with the proposed issuance of a task order. 

In Technatomy Corp., et al., which involved only preliminary motions to dismiss in a case with a large number of consolidated protests of a VA solicitation that resulted in the award of 30 contracts, the court held that: (i) under Blue & Gold Fleet, by not protesting prior to award, the plaintiffs had waived their right to contest the Government's decision to award only 30 contracts because the solicitation made clear that was the Government's intent, and neither of two caveats in the solicitation (one allowing additional awards in case of a tie at the 30th position ranking, and the other creating an option solely within the Government's discretion to add contractors in an "on-ramp" situation) changed the solicitation's clear designation of 30 awards; (ii) the plaintiffs' allegation that the VA acted arbitrarily by failing to evaluate and validate the offerors’ small business participation commitments survived the Government's motion to dismiss because the solicitation contemplated some amount of review for any offeror’s small-business-participation proposal and awarded points for it in the evaluation; (iii) the plaintiffs' allegation that the VA failed to meaningfully review investigate the veracity of the offerors’ self-reported veteran employment figures also survived a motion to dismiss because the solicitation contemplated some amount of review; (iv) the plaintiff's allegation that the Government failed to review certain supporting documents submitted by offerors in connection with evaluation of relevant experience was a valid challenge to the evaluation; (v) allegations that certain joint venture offerors were not certified SDVOSBs must be dismissed because the solicitation was clear that joint ventures did not need to be independently certified in VetCert to be eligible for an SDVOSB-reserved award and required only that the joint venture’s managing partner be certified (the OHA having recently reached the same conclusion); and (vi) the agency properly disqualified one joint venture offeror for failing to comply with the solicitation requirement that it name its responsible manager in its proposal. 

In Acuity Edge, Inc., the court held that the protester lacked standing because its offer was expressly made valid for a time period much shorter than that required by the solicitation. The protester argued that it should have been permitted to cure the problem through discussions because the agency conducted discussions with the awardee. However, the solicitation expressly carved out discussions concerning an offeror's OCI plan from the general requirements of FAR 15.306 concerning discussions, and the protester had failed to object to that solicitation provision and subsequently had expressly waived that argument in its briefing. The court also noted in dicta that, even if the protester had established standing, it had failed to show prejudice from the agency's use of an undisclosed evaluation factor and from the agency's alleged failure to give it a strength for an aspect of its staffing plan. 

In Advanced Simulation Technology, Inc., the court granted the Government's motion to dismiss the case because it had no continuing jurisdiction over a protest after the Government had terminated the contract that was originally protested and cancelled the only two delivery orders that had been issued under it. Specifically, in response to each of the protester's arguments to retain jurisdiction, the court held that: (i) the Government's continuing internal development of software it had started decades ago was not a procurement; (ii) the Government's continuing need for the product canceled under the prior contract was not yet a procurement; and (iii) assertions that the Government intended to use outside contractors to aid in the internal software development work were not sufficient to sustain this protest because, inter alia, the protester had not provided evidence of exactly what was being done, and outside contractors may be used to augment or assist government employees in a project. Moreover, those outside contractors would deserve notice of a protest against their work and have not been given such notice. The court also denied (as futile) the plaintiff's requests to amend the Complaint or transfer the case. The protester's otion for reconsideration was denied.

 

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. 

In AirBoss Defense Group LLC and StringKing Lacrosse LLC, an unsuccessful request for a preliminary injunction against the terms of a revised solicitation, the court held that in a solicitation for personal protective equipment in the form of Level 2 isolation gowns to create a stockpile of disposable  gowns, the agency's decision to modify the solicitation during corrective action so that shelf life beyond three years would not receive any additional evaluation credit had a rational basis, as did the new deadline for the submission of revised proposals after the modification.  

In BCG Federal Corp., an unsuccessful preaward protest against the terms of the GSA's OASIS+ MAS solicitation, the court held, inter alia, that: (i) in a solicitation covering both commercial and noncommercial services and various contract types, the agency's market research was appropriate to the circumstances and adequate under both FASA and FAR Part 10, and the agency's conclusion that the master contract should be considered non-commercial (because classifying it as commercial would not allow issuance of cost-type task orders) had a rational basis; and (ii) requiring offerors to submit indirect cost data did not violate FAR subpart 15.4 because the Contracting Officer had a rational basis for concluding that such data was needed to establish price reasonableness. 

In Associated Energy Group, LLC (d/b/a AEG Fuels), an unsuccessful preaward protest of foreign licensing and pricing requirements included in an agency’s resolicitation of a three-year, firm fixed-price contract to supply contract automotive, diesel, and jet fuel to a United States military base and nearby airfield located in the Republic of Djibouti, the court held that the requirements had a rational basis given Djibouti's requirements concerning, inter alia, Petroleum Activities Licenses. 

Responsiveness

In Superior Optical Labs, Inc., which involved unsuccessful consolidated preaward protests, the court upheld the agency's rejection of the protester's proposals for two VA solicitations set-aside for VOSBs because they did not include the proper certification of compliance with the limitations on subcontracting rules required by VAAR § 852.219-76(d).

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 and SLICOM JV, which involved consolidated protests, the Court of Federal Claims held that  one plaintiff's protest should be denied because there was no prejudicial error: (i) the solicitation did not require that "engineering experience" be limited to experience after receiving an engineering degree; (ii) there was no basis for challenging the agency's assignment of a strength for a proposed personnel's LEED training, especially where the protester was also assigned a strength for LEED "accreditation," and the solicitation required neither training nor accreditation; and (iii) there was a rational basis for agency to assign a strength for proposing a transition manager when the solicitation did not require one. As for the other plaintiff, the court held that the source selection document's trade-off decision, which merely recited that the awardee's price premium was worth it because of its technical superiority, without more, was circular and inadequate, and the case was remanded for another trade-off decision.  

In Barbaricum LLC, a heavily redacted (due to classified information), unsuccessful protest of the plaintiff's exclusion from the competitive range, the court held that: (i) under the deferential standard the court must utilize, the agency's evaluation (that the plaintiff's proposal for the production of Geospatial Intelligence was technically unacceptable) had a rational basis; (ii) the competitors' proposals were sufficiently different from one another in that area that the agency could not be found to have treated offerors disparately; (iii) the plaintiff's failure to provide an analysis in the area of "intelligence scenario response" required by the solicitation justified finding that its proposal was technically unacceptable in that area, too; (iv) even if agency engaged in disparate treatment in evaluating this latter section of the proposals, the plaintiff was not prejudiced because the agency had another basis for finding the proposal technically unacceptable; and (v) there was no good cause to supplement the administrative record as requested by the plaintiff. 

In AccelGov, LLC and SLICOM JV, which involved consolidated protests, the court held that  one plaintiff's protest should be denied because there was no prejudicial error: (i) the solicitation did not require that "engineering experience" be limited to experience after receiving an engineering degree; (ii) there was no basis for challenging the agency's assignment of a strength for a proposed personnel's LEED training, especially where the protester was also assigned a strength for LEED "accreditation," and the solicitation required neither training nor accreditation; and (iii) there was a rational basis for agency to assign a strength for proposing a transition manager when the solicitation did not require one. As for the other plaintiff, the court held that the source selection document's trade-off decision, which merely recited that the awardee's price premium was worth it because of its technical superiority, without more, was circular and inadequate, and the case was remanded for another trade-off decision. 

In RTD Middleburg Heights, LLC, a partially successful post-award protest of the agency's reevaluation in a procurement to lease building space, the court: (i) remanded the case to the agency for additional explanation of its price evaluation because agency had not not provided sufficient documentation to enable the court to evaluate the validity of the protester's claim of disparate treatment in the price reevaluation; but (ii) held that (a) the agency's use of cost-benefit analysis was permissible and did not prejudice the protester, and (b) the protester had failed to prove that it was prejudiced by the agency's admitted error of using the wrong midpoint-of-construction date in its price analysis. 

In Repeat Consultants Int'l, LLC, an unsuccessful post-award protest, the court held that: (i) the use of the word "exclusive" in multiple letters of commitment from fuel suppliers did not amount to a material misrepresentation by offerors as to the availability of fuel and did not render the  proposals technically unacceptable; (ii) during corrective action, the agency had adequately investigated the protester's Procurement Integrity Act allegations against its competitors and had a rational basis for concluding the allegations were unsubstantiated; (iii) the price realism analysis, which compared the three offered prices to one another, was adequate; and (iv) the agency used the correct standard in making its responsibility determinations and made an affirmative findings of responsibility.  

In Assessment and Training Solutions Consulting Corp., an unsuccessful post-award protest, the court held that the plaintiff could not succeed because its proposal employed the same font-size interpretation that it complained the awardee was allowed to use: "The pot may choose to call the kettle black, but it is a surefire way to lose a case." 

In Onésimus Defense, LLC, an unsuccessful post-award protest, the court held that: (i) the  agency had rational bases for its Past Performance and Confidence ratings based upon the (a) scope and (b) magnitude of the offerors' past performance references and did not treat offerors' disparately or apply unstated evaluation criteria; and (ii) the protest was basically just a subjective disagreement with the agency's ratings. 

In CAN Softech, Inc., an unsuccessful post-award protest of an FSS procurement conducted pursuant to FAR 8.4, the court held, inter alia, that: (i) the technical evaluation properly gave weight to the awardee's incumbency because the solicitation did not require the agency to neutralize the incumbent's natural advantage; (ii) the awardee's clear disclosure of planned staff reductions in option years in its Price Volume but not in its Technical Volume did not violate a solicitation requirement for "consistency" between the volumes, especially where the solicitation stated that pricing information would be available to the technical evaluators; (iii) the solicitation did not require a detailed comparison of the competitors' proposed full time employees, but rather only a qualitative assessment of degree to which each offeror's proposed staffing was consistent with meeting the contract's requirements; and (iv) although the record was unclear whether the agency conducted a qualitative level of effort assessment of the awardee's proposed full time employees, the protester had not established "significant prejudice" because changing the evaluation as protester desired did not compel the conclusion that the protester would then have had a substantial chance of award. 

In Hanford Tank Disposition Alliance, LLC, an unsuccessful post-award protest, the court held, inter alia, that: (i) a lapse in the eventual awardee's SAM registration in the original procurement was irrelevant because the agency undertook corrective action, which involved the submission of revised proposals and a reevaluation, and the awardee's SAM registration was effective on the date of submission of revised proposals and from that time through award; and (ii) the cost realism analysis was not objectionable for having examined proposals more fully than the proposal element specifically identified in the solicitation. 

In Two Knights Defense LLC, an unsuccessful post-award protest of an award following corrective action, the court held, inter alia, that: (i) the Government did not adopt inconsistent positions at court from its prior position at the GAO merely by inserting an ellipsis in solicitation language to emphasize which terminology in the solicitation's requirements the protester's proposal failed to address; (ii) the Government's language in its evaluation did not signify the use of unstated evaluation criteria because the pertinent words were present in the solicitation's evaluation scheme; (iii) the Government was not required to look to other sections of protester's proposal to fill in the blanks in the section that formed the basis for the negative evaluation; (iv) the evaluators properly faulted the protester's proposal for failing to discuss a required capability ("hybrid cloud computing environments") at all, and did not add a requirement concerning such capabilities; and (v) the Government followed the solicitation's evaluation scheme in assessing the relevancy of the protester's Past Performance references and was not required to elevate consideration of two elements of the relevancy evaluation (contract type and dollar value) above their status in the solicitation's stated evaluation scheme.  

In Tech Systems, Inc. a unsuccessful protest, the court held that, contrary to the protester's allegations, the Government's rationales for its technical and past performance allegations were sufficiently documented in the record, and the awardee's failure to provide  duty and cost descriptions for five out of 102 positions in its technical proposal was immaterial, especially where they appeared in the cost volume:

First, only five positions—out of 102—lacked duty and cost descriptions. . . .  [The Awardee] provided the costs for those five positions in its cost proposal, and the Army (in its cost-realism analysis) found that those positions matched with SCA/CBA positions. . . .  Third, the solicitation explicitly vested the Army with discretion in how to address technical uncertainties. AR 128 (stating that a proposal “may”—not must—be rejected for technical uncertainty); see also ITellect, LLC v. United States, No. 24-935 . . . (Fed. Cl. Oct. 21, 2024) (“While the use of the permissive ‘may’ does not confer plenary discretion to the contracting officer, in the absence of any prescribed standards . . . the government’s discretion is at its apex.”). Hence, the Army did not have to reject the proposal merely because [the awardee] did not list costs and duties for five positions. And contrary to [the plaintiff's] assertion that the Army had to provide a detailed explanation for why the defect did not render [the awardee's] proposal unacceptable, nothing in the solicitation required the Army to do so. 

In The Tolliver Group, Inc., an unsuccessful post-award protest, the court was faced with a protest by the original winner of the procurement which had been overturned because (in DigiFlight) the court had found the price realism analysis had been flawed. After corrective action, the original protester had been selected for award, and now the original winner is protesting the price reasonableness evaluation. The court held that (despite some errors in the agency's analysis): (i) using FAR 15.404-1(b)(2) to conduct a "robust"  price reasonableness evaluation (by comparing offered prices) was proper, as was the separate determination that adequate price competition existed. The court also held that the use of the IGCE was appropriate for the price analysis:

While "tie goes to the runner" may be an improper recitation of the rules of baseball, tie goes to the government may best describe this bid protest. . . .  For the reasons that follow, the Court determines that the protestor . . . has not met its burden to show the agency acted in a manner that was arbitrary, capricious[], an abuse of discretion, or otherwise not in accordance with law. Although [the protester] has demonstrated shortcomings with individual aspects of the price reasonableness analysis, it has not demonstrated that, as a whole, the price reasonableness analysis was irrational.

. . .

In sum, contrary to [the protester's] position, the contracting officer did not "[do] exactly what [the sources the protester relies on] say the government can never do—assume prices are fair and reasonable just because there is competition." . . . Rather, the contracting officer conducted a robust comparison of the offerors’ prices in which he broke down the prices and option periods compared to each other, found the composite labor rate, and compared the prices inclusive of the six-month extension option. . . .  That alone would be enough to satisfy the FAR. But the contracting officer further found there was adequate price competition. . . . This "normally" is a stand-alone technique to find prices fair and reasonable. See 48 C.F.R. § 15.404-1(b)(2)(i). . . . [The protester] has offered the Court nothing that satisfies [its] burden to show that the price comparison under FAR § 15.404-1(b)(2)(i) was irrational. [citations omitted] 

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. 

In ELB Services, LLC, which involved a challenge to a prior decision by the SBA's OHA that a joint venture was not an eligible SDVOSB, the court held that: (i) the plaintiff's motion to supplement the administrative record should be denied, in part, because it would include documents not considered by the OHA in its decision; (ii) the OHA did not err (a) by refusing to dismiss the underlying protest based on allegations of the protest's lack of specificity or (b) by failing to adopt the underlying SBA determination on the basis of collateral estoppel; but (iii) the OHA's decision (that a joint venture agreement was deficient for lack of specificity in defining its members' roles in the contract at issue) was based on an incorrect reading of 13 C.F.R § 128.402(c)(7), which requires only only a reduced level of specificity in the JV agreement whenever an indefinite contract is involved. The applicable sentence from the regulation reads as follows:

If a contract is indefinite in nature, such as an indefinite quantity contract or a multiple award contract where the level of effort or scope of work is not known, the joint venture must provide a general description of the anticipated responsibilities of the parties with regard to negotiation of the contract, source of labor, and contract performance, not including the ways that the parties to the joint venture will ensure that the joint venture and the certified VOSB or SDVOSB partner(s) to the joint venture will meet the limitations on subcontracting requirements set forth in paragraph (d) of this section, or in the alternative, specify how the parties to the joint venture will define such responsibilities once a definite scope of work is made publicly available.

The court held that "where the level of effort or scope of work is not known" applies only to the phrase "multiple award contract" and not to the phrase "indefinite quantity contract."

In RBVETCO, LLC, an unsuccessful post-award protest involving a solicitation set aside for SDVOSBs, the court held that: (i) the agency properly evaluated the awardee's mentor-protégé JV under 13 C.F.R. 128.8(e) by examining the strengths and weaknesses of the JV members in the aggregate in accordance with the interpretation of that provision recently stated by the court in HealthRev, LLC; and (ii) the agency did not violate 13 C.F.R. 128.8(c) because that section applies to contract performance, not to pre-contract evaluation, and the awardee certified that it would meet all technical requirements, including that the protégé had the capability to perform the required 40% of the work, and there was no countervailing evidence available to the evaluators. 13 C.F.R. 128.8(e) reads as follows:

When evaluating the capabilities, past performance, experience, business systems and certifications of an entity submitting an offer for a contract set aside or reserved for small business as a joint venture established pursuant to this section, a procuring activity must consider work done and qualifications held individually by each partner to the joint venture as well as any work done by the joint venture itself previously. A procuring activity may not require the protégé firm to individually meet the same evaluation or responsibility criteria as that required of other offerors generally. The partners to the joint venture in the aggregate must demonstrate the past performance, experience, business systems and certifications necessary to perform the contract. 

In Legacy Corporation of Illinois, an unsuccessful protest, the court held that the agency had a rational basis for (i) referring the plaintiff to the SBA for a CoC based on problems with the firm's past and ongoing performance and (ii) declining to consider plaintiff's offer further after the SBA declined to issue the CoC where the plaintiff had an adequate opportunity to respond to the Government's concerns at the SBA.  The court rejected the plaintiff's arguments that (i) the agency and SBA did not give adequate weight to the plaintiff's corrective actions for the problems and (ii) the agency was required to generate a CPAR before the matter could be referred to the SBA. 

In Superior Optical Labs, Inc., which involved unsuccessful consolidated preaward protests, the court upheld the agency's rejection of the protester's proposals for two VA solicitations set-aside for VOSBs because they did not include the proper certification of compliance with the limitations on subcontracting rules required by VAAR § 852.219-76(d). 

In Rotair Aerospace Corp., an unsuccessful protest against a sole source procurement, the court held that: (i) the available records demonstrated that the agency conducted a reasonable investigation (even though it was not as exhaustive as the protester maintained it should be) before concluding that the item being procured was proprietary to the sole source recipient and that the agency did not have data rights in it; (ii) although the agency violated FAR 9.207(b) by failing to provide the protester with timely notice of its removal from the approved sources list, the protester had not shown that the basis for its removal was improper or arbitrary, and since receiving the tardy notice of its removal, the protester had not sought to attain requalification, so it was unclear what the outcome of that process would have been, which precluded the court from finding that, had the agency timely notified protester of its removal as an approved source, the protester would have had a substantial chance at receiving an award (i.e., there was no proof of prejudice); and (iii) the protester failed to prove a clear violation of 10 U.S.C. § 3243, which provides instructions for establishing a qualification requirement, because the record did not show that the protester requested the qualification requirements for the sole-source items or that the agency refused to provide them, and while § 3243 (c)(3) provides that a potential offeror may not be denied the opportunity to submit an offer solely because the offeror is not on the qualified bidders list, this applies only when the potential offeror demonstrates that it or its product meets the qualification requirements or can meet such requirements before the contract award date, and the record does not show that the protester attempted to make such a demonstration for the either of the sole source items or that it was denied an opportunity to do so.  

 

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.  .

In Samsara Inc., an unsuccessful protest of corrective action by the USPS, the court held that the agency (i) had articulated a rational basis for limiting its corrective action to addressing the problem identified by the court in its previous decision and (ii) was not required to amend the solicitation.  

In AirBoss Defense Group LLC and StringKing Lacrosse LLC, an unsuccessful request for a preliminary injunction against the terms of a revised solicitation, the court held that in a solicitation for personal protective equipment in the form of Level 2 isolation gowns to create a stockpile of disposable  gowns, the agency's decision to modify the solicitation during corrective action so that shelf life beyond three years would not receive any additional evaluation credit had a rational basis, as did the new deadline for the submission of revised proposals after the modification.  

In Zolon PCS II, LLC, a successful protest against an agency decision during corrective action, the court held that the agency provided no rational basis for issuing an individual deviation removing the continuous SAM registration requirement imposed by FAR 52.204-7(b)(1) (which requires offerors to be continuously registered in SAM from the time of submission of initial proposals) in order to keep original awardees in contention for the award.

In FreeAlliance.com, LLC, et al., the court permitted an original protester to amend its Complaint following corrective action on remand because: (i) amendments filed 10 days after the agency's decision on remand were not "unduly delayed" since the amendments related to (a) a purportedly unstated evaluation criterion that first appeared in the agency’s reevaluation decision during corrective action and (b) the allegedly unequal application of that unstated criterion; and (ii) the amendments were not "futile" because they "plausibly g[a]ve rise to an entitlement to relief. 

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.   

In ITellect, LLC, an unsuccessful post-award protest by the incumbent, the court held that, after investigating an alleged OCI, the Contracting Officer reasonably concluded there was no evidence that the awardee's President and his wife (who had been the Contracting Officer on the incumbent's contract for two months two years prior to the current award) had engaged in anything that could create even the appearance of impropriety so there was no reason for the awardee to disclose the relationship in its proposal:

No evidence in the record shows or even suggests that [the awardee's] president’s wife either provided any confidential information to, or communicated with, her husband regarding the solicitation or the incumbent contract. Further, the conflicted contracting officer played no role in any decision regarding the development and issuance of the solicitation, the evaluation of offers to the solicitation, or the subsequent contract award. [The agency] did not rely upon the alleged omission of [the awardee], and an OCI neither affected the award nor created the appearance of any impropriety. Therefore, the contracting officer’s conclusion, finding that the alleged appearance of an OCI was not disqualifying, was reasonable.  

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.

In MetroIBR JV LLC, the court held that the plaintiff/protester had presented sufficient evidence (in the form of affidavits) of possible bias by the agency in evaluating bids to warrant granting part of the plaintiff's motion for additional written discovery concerning the evaluators' files and its motion to conduct depositions of agency personnel, but the court held there was not a sufficient showing to justify discovery of the intervenor's files. 

 

 

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.  

In The Boeing Co., the CAFC reversed (for the second time) a prior CoFC decision and held that: (i) pursuant to 28 U.S.C. § 1491(a)(2), the CoFC had jurisdiction over the counts in a Complaint challenging a Contracting Officer's decision demanding reimbursement for allegedly increased costs resulting from changes to a contractor's cost accounting practices even if the gravamen of the contractor's Complaint was a challenge to the validity of a regulation (in this case FAR § 30.606) because those counts were basically a contract dispute governed by the dispute resolution provisions of the CDA; and (ii) pursuant to 28 U.S.C. § 1491(a)(1)), the court also had jurisdiction over a count in the Complaint based on an alternative illegal exaction claim.  

Solicitation Language

In Michael Stapleton Assocs., Ltd., the CAFC 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

In Oak Grove Technologies, LLC, the CAFC vacated the prior CoFC decision favoring the original protester because: (i) under Blue & Gold Fleet, the original protester waived its argument that the agency should have conducted discussions because the agency's intent not to do so was clear from the solicitation; (ii) an offeror's failure to provide a teaming agreement with its proposal did not violate a "material" solicitation requirement because, inter alia, such agreements were to be provided in an administrative volume that was not to be evaluated; (iii) the CoFC was required to, but failed, to provide deference to the agency's investigation of an alleged conflict of interest, which was adequate; and (iv) the record was inadequate for the CoFC to conclude that another offeror was financially incapable of performing--if there were a question about responsibility, it should have been referred to SBA. The court, however, upheld the CoFC's sanctions against the Government for discovery violations.  

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.  

In Size Appeal of RBVetCo, LLC d/b/a Rocky Bleier Construction Group, the OHA affirmed the dismissal of all eight grounds of a size protest because six of them questioned the conduct of the procurement and were outside the OHA's jurisdiction and the remaining two were insufficiently specific.

In VSBC Appeal of Tower Sales and Consulting, the OHA dismissed an appeal of a firm's decertification as an SDVOSB because: (i) it was untimely and the fact that notice of the proposed decertification was routed to the firm's junk folder was not an excuse); and (ii) it was deficient in failing to identify any errors in the decertification decision. The OHA also denied the firm's attempt to submit new evidence for the first time on the the appeal.  

In the Matter of Allaires Management Information Technology Consulting Firm LLC, the OHA dismissed the appeal because it lacks jurisdiction over a decision by the SBA's Director of Government Contracting to deny or decertify a concern's participation in the WOSB program. 

In Size Appeal of Magnolia Contracted Services, the OHA held that a size protest merely asserting that the challenged firm "has publicly reported revenue estimates in excess of $49 million annually and has raised over $90 million in venture capital” (without even specifying the time period to which the allegations pertained or identifying any source for the allegations) was properly dismissed as nonspecific.  

The OHA dismissed an appeal by Chips Renovations LLC concerning the denial of its certification as an SDVOSB because (a) it did not allege errors in the original denial decision, and (b) the appeal was based on documentation corrected after that decision. Ditto for an appeal by SSC Construction Management, LLC. Similarly, in VSBC Appeal of Patton Myhre Sourcing, LP, the OHA dismissed another appeal of the denial of SDVOSB certification because it was not signed by appellant or its attorney, did not allege errors in the original decision, and requested help in achieving SDVOSB certification. In VSBC Protest of Northern Purchase Services, LLC, the OHA dismissed the protest of a firm's SDVOSB status because it lacked specificity and merely requested an investigation into that status.  In VSBC Appeal of 156 Genus LLC, the OHA dismissed an appeal from the denial of SDVOSB certification because the appellant did not allege any error in the underlying decision but instead offered an amended Operating Agreement in a belated attempt to cure the problem.

In VSBC Protest of Montana Septic & Sewer, LLC, the OHA dismissed a protest of another firm's SDVOSB status as moot because the protester won the procurement.

In VSBC Appeal of Sharp Solutions, Inc., the OHA dismissed an appeal of a denial of SDVOSB certification because there was no allegation of error in the original decision, and the appellant's attempt to amend its bylaws to cure the original problem came too late. The OHA reached essentially the same conclusion in VSBC Appeal of Gnosis Concepts.

In VSBC Protest of Glory to the Lord Investments, Inc., d/b/a Supply Chain Management, the OHA dismissed a protest of another firm's SDVOSB status because the original protest alleged only that a joint venture was not an SDVOSB when the regulations only require that one of its members have that status, and the protester could not cure the original defect by adding untimely allegations during its appeal.

In VSBC Appeal of EHMT LLC, the OHA dismissed an appeal of a denial of SDVOSB certification because the appeal did not allege any specific errors in the original decision. Similarly, in VSBC Appeal of 156 Genus LLC, the OHA dismissed an appeal from the denial of SDVOSB certification because the appellant did not allege any error in the underlying decision but instead offered an amended Operating Agreement on appeal in a belated attempt to cure the problem.

In VSBC Protest of Triaxx Land Management LLC, the OHA dismissed a protest as untimely, after the protester essentially conceded the point by failing to respond to a Show Cause notice.

The OHA dismissed the HubZone Appeal of Le Centre Evalgeline Corp., because the appeal did not pertain to a HUBZone status protest, was not accompanied by a copy of any formal protest determination made by the Director of SBA's Office of HUBZone (the "Director") in connection with a HUBZone status protest, did not include a representation that the appellant was either the protested concern or the protestor for a HUBZone procurement affected by a HUBZone protest, was not served on the Director and other required parties, and did not allege errors on the part of the Director.  

In VSBC Appeal of CPMC, LLC, the OHA vacated the decertification of  firm as an SDVOSB because the record did not establish that the SBA had followed the requisite procedures set forth at 13 C.F.R. § 128.310(a), by issuing a Notice of Proposed Decertification to the firm and affording it an opportunity to reply.

In Size Appeal of Clearwaters Industries Solutions, LLC, the OHA upheld the Area Office's decision dismissing a size protest as untimely for a task order set aside for small businesses under an FSS contract because offerors were not required to recertify size by the underlying contract or the task order RFQ where the answer to a solicitation question referring to registration and verification in the SBA's VetCert database did not explicitly require an offeror to certify its size, and thus was ambiguous as to whether it was requiring certification, which is not sufficient to establish that requirement, especially where the Contractor Officer, who has the discretion to request recertification, stated that it was not required. 

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. 

In Size Appeal of Kupono Government Services, LLC, the OHA remanded a case involving an alleged violation of the ostensible subcontractor rule to the Area Office for a new determination because the agency had undertaken corrective action on the procurement while the original case was pending to permit the submission of new cost proposals, so the Area Office's original determination was not based on the current documents. 

In Size Appeal of Junius J. Dion d/b/a Risen Video Production, the OHA upheld the Area Office's finding of a violation of the ostensible subcontractor rule because the prime contractor/appellant would perform only project management functions, supervising the role of its subcontractor, and the appellant failed to prove (a) that the subcontractor was a Professional Employer Organization with which the appellant had something other than a prime/sub relationship or (b) that the appellant would comply with the "Limitations on Subcontracting" clause. 

In Size Appeal of Veterans Electrical Group, LLC, the OHA held that the Area Office had erred in finding a violation of the ostensible subcontractor rule where a Teaming Agreement established that the  prime contractor would perform over 60% of the construction contract work, and the prime's CEO would be the Project Manager responsible for contract performance, absent any of the indicators of unusual reliance on the subcontractor. 

 

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. 

In Size Appeal of S3-RQ JV, which involved allegations of affiliation, the OHA remanded the case to the Area Office because it had not adequately considered whether the challenged firm's owner controlled an alleged affiliate under the multiple minority shareholder rule at 13 C.F.R. § 121.103(c)(2). 

 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.

In Size Appeal of Kako'o Spectrum Healthcare Solutions, LLC, the OHA remanded the case to the Area Office because its size determination had been based on an outdated version of the challenged firm's JVA agreement, which had been revised before final proposal revisions were due.

In Size Appeal of Truveta, Inc., although redactions make the precise facts difficult to discern, the OHA held that the Area Office had erred in finding affiliation under the newly organized concern rule (13 C.F.R. § 121.103(g)) because, under the fourth prong of the test, a large business could not be considered to be furnishing financial assistance to the challenged firm based solely on what was merely a one-time, arms-length transaction regularly offered to prospective customers as a way to attract business, which the challenged firm had not accepted and was under no obligation to do so.

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

In VSBC Appeal of LanguageArts LLC, the SBA's OHA overturned the denial of a firm's VOSB application because the denial was based on the assumption that the veteran owner did not have access to the firm's bank account when he did in fact have access prior to the time the denial decision was made.

In VSBC Appeal of Kai Makani Consulting, LLC, the OHA upheld the denial of a firm's SDVOSB status because the firm's Operating Agreement contained numerous provisions requiring the unanimous agreement of all of Appellant's Members (two of whom were not disabled veterans), including matters beyond the "extraordinary circumstances" permitted by 13 C.F.R. § 128.203(j).

In VSBC Appeal of Precise Management, Inc., the OHA upheld the denial of a firm's application as an SDVOSB because the firm had two managing members with full authority to control the firm, one of whom as not an SDV.

In VSBC Appeal of BlackHays Group LLC, the OHA upheld the denial of a firm's re-certification as an SDVOSB despite harmless errors in the original denial decision because the appellant was unable to satisfy reasonable requests for contracts signed by the individual who purportedly managed and controlled the firm's operations.

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.

In VSBC Appeal of Acorn Science & Innovation, Inc., the OHA held that the Director of the Veteran Small Business Certification Program improperly added a requirement for a showing of control not in the governing regulations in denying a firm's application for SDVOOSB status. 

In VSBC Protest of In and Out Valet Co., the OHA denied the protest because:  (i) despite having outside employment, the SDV spent the requisite the number of hours each day controlling the operations of the challenged firm; (ii) the firm established it would contract only 40% of the work to a subcontractor, which complied with "Limitations on Subcontracting" clause; and (iii) other protest grounds alleging improprieties in the conduct of the  procurement (e.g., misevaluation of proposals) were outside the OHA's jurisdiction.

In VSBC Appeal of JBELL LLC, the OHA upheld the denial of a firm's certification as an SDVOSB because the applicant submitted contradictory information concerning whether the SDV controlled the firm, and a revised version of the Operating Agreement not submitted until the appeal was too late. 

In VSBC Appeal of Snowfensive, LLC, the OHA upheld the denial of a firm's certification as an SDVOSB because the limits on the SDV's power to control in the firm's operating agreement were not among the five allowable "extraordinary circumstances" listed in 13 C.F.R. § 128.203(j).

In VSBC Protest of Systematic Innovations, LLC, the OHA denied multiple challenges to various aspects of an SDVOSB JV agreement, including, inter alia, allegations as to when it was executed, the reuse of signature pages, and whether it described the duties of its members adequately for an IDIQ contract.

In VSBC Protest of Elevated Technologies, Inc., although the OHA denied a challenge to a firm's SDVOSB status (finding that an SDV had the requisite ownership and control), the OHA held that in a solicitation for a services contract for elevator maintenance services, where the challenged firm conceded that its non-SDVOSB subcontractor would perform the primary and vital contract requirements and where the challenged firm had not demonstrated that it would comply with the "Limitations on Subcontracting" clause, it was ineligible for an award due to the ostensible subcontractor rule. 

In VSBC Appeal of McLellan Integrated Professional Services, LLC, the OHA denied a firm's appeal of its SDVOSB decertification because the firm had failed to respond properly to numerous program examination inquiries and could not cure its failures on appeal. 

In VSBC Appeal of Sprout Technologies, LLC, the OHA upheld the denial of a firm's certification as an SDVOSB because provisions in the Operating Agreement requiring unanimous consent by all firm members (including a non-SDV) to certain actions demonstrated a lack of control by the SDV, which could not be cured on appeal. Similarly, in VSBC Appeal of Facekay LLC, the OHA upheld the denial of a firm's certification as an SDVOSB because the Operating Agreement could not be amended without the consent of a non-SDV, which meant the SDV lacked the requisite control. 

In VSBC Appeal of American Defense Builders Trust, the OHA affirmed the denial of a firm's certification as an SDVOSB because a firm owned by irrevocable trust is not eligible for such certification. 

In VSBC Protest of Elevated Technologies, Inc., the OHA held that the challenged firm was an eligible SDVOSB for the procurement at issue because: (i) two SDVs acquired a total of 51% ownership in the firm (after the death of the prior SDV owner) prior to the date when initial priced offers were due; (ii) an alleged delay in reporting the change in ownership status to the SBA was not grounds for an SDVOSB protest; and (iii) the fact that the ownership shares were encumbered until fully paid for did not render the ownership conditional because the "pledge or encumbrance of stock or other ownership interest as collateral, including seller-financed transactions, does not affect the unconditional nature of ownership if the terms follow normal commercial practices and the owner retains control absent violations of the terms.” 13 C.F.R. § 128.202(b)(1). 

In VSBC Appeal of BCP Mechanical, LLC, the OHA upheld the denial of a firm's SDVOSB certification for lack of the requisite control because the firm's Operating Agreement allowed the SDV to delegate certain significant responsibilities to a manager, and an appendix to the Agreement made such a delegation to a non-SDV who also held the critical state license that the firm was required to maintain.  

In VSBC Appeal of Northeast Solar Design Assocs, LLC, the OHA affirmed the denial of a firm's application for certification as a VOSB because: (i) the appellant had failed, even after a specific request, to provide any information showing that it was was commercially reasonable for its non-veteran member to be more highly compensated than its veteran member; and (ii) the firm's Operating Agreement required unanimous consent (including that of the non-veteran member) for matters in addition to those permitted by the regulations.  Similarly, in VSBC Appeal of A2B Medical, LLC, the OHA upheld the denial of a firm's SDVOSB certification because, on appeal, the appellant conceded that the provisions of its Operating Agreement requiring unanimous consent of members, including its non-SDV, did not comply with the applicable regulations.

In VSBC Appeal of Clark Building Technologies, LLC, the OHA upheld the denial of a firm's application for certification as an SDVOSB (or VOSB--the decision mentioned both in different places) because the appellant was owned by a corporation which, in turn, was owned by a trust, of which the qualifying veteran  was the trustee, which did not met the regulatory requirement for direct ownership of the applicant firm by a qualifying veteran.

In VSBC Appeal of Healthy Acres LLC, the OHA reversed the denial of a firm's SDVOSB certification because: (i) the denial was based on a superseded version of the Operating Agreement; and (ii) 13 C.F.R. § 128.203(a) allows for the spouse of a permanently and totally disabled veteran to exercise control over the management and daily business operations of an SDVOSB, as though that spouse were themselves a service-disabled veteran. 

In VSBC Protest of Beshenich Muir & Assocs., and Resilient Innovations, LLC, on remand from the Court of Federal Claims, the OHA reversed its earlier decision that had sustained a protest. The OHA now holds that a joint venture agreement to perform an SDVOSB IDIQ contract is only required to comply with the more lenient provisions of the second sentence of 13 C.F.R. § 128.402(c)(7). That sentence requires only that the JV agreement contain a clause laying out the general responsibilities of the parties with respect to contract negotiation, source of labor, and contract performance, rather than specifying those responsibilities in detail. 

In VSBC Protest of Spartan Medical, Inc., the OHA held that the challenged firm was noncompliant with 13 C.F.R. § 128.401(g) governing the SDVOSB program in that it admittedly would subcontract more than 50% of the services contract dollar value to a non-SDVOSB firm. The cited regulation reads as follows:

Ostensible subcontractor. Where a subcontractor that is not a certified VOSB or SDVOSB will perform the primary and vital requirements of a VOSB or SDVOSB contract, or where a VOSB or SDVOSB prime contractor is unduly reliant on one or more small businesses that are not certified VOSBs or SDVOSBs to perform the VOSB or SDVOSB contract, the prime contractor is not eligible for award of that VOSB or SDVOSB contract. 

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)"). 

In NAICS Appeal of Mission Analytics, LLC, the OHA held that in a solicitation to acquire a dual view LED display system, the Contracting Officer's choice of NAICS 334310 ("Audio and Video Equipment Manufacturing"), with a corresponding 750 employee size standard, was appropriate and preferable to appellant's alternative suggestions of NAICS 541519 ("Other Computer Related Services (Exception), Information Technology Value Added Reseller") with a corresponding 150 employee size standard, or NAICS 334419 ("Other Electronic Component Manufacturing"). 

In NAICS Appeal of Radiance Technologies, Inc., the OHA held that in an OASIS Small Business Pool 4 MAC solicitation set aside for small businesses and seeking to procure systems engineering and technical assistance, the Contracting Officer's choice of NAICS code 541715 ("Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)") with a corresponding 1,000 employee size standard was preferable to the appellant's choice of Exception 3 to that same NAICS code 541715 ("Guided Missiles and Space Vehicles, Their Propulsion Units and Propulsion Parts") with a corresponding 1,300 employee size standard because the procurement did not call for research and development into missiles or spacecraft. 

In NAICS Appeal of Laredo Technical Services, Inc., the OHA held that in a solicitation for one full-time administrative person to perform data entry, administrative functions, and other duties related to the congressionally mandated Transition Assistance Program, the contractor's choice of NAICS 561110 ("Office Administrative Services") was preferable to the Contracting Officer's choice of NAICS 561320 ("Temporary Help Services") because the worker here would provide services for up to four years.  


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