4
CFR 21.5 (a): Contract
Administration |
Comptroller
General - Key Excerpts |
New
Turning to Discover’s allegation that Triple-i’s
quotation should have been found “Not Satisfactory” or
“noncompliant” based on the web hosting vendor’s alleged
noncompliance with FISMA, the agency responds that there
was no basis for such a finding because the solicitation
did not contemplate the consideration of whether a
vendor’s approach was compliant with FISMA prior to
performance. Supp. Mem. of Law at 2-3. In this regard,
the agency points out that nothing in the solicitation
required vendors to demonstrate or provide proof that
their systems qualified as FISMA compliant at the time
that quotations were submitted. Id. Rather, the agency
continues, vendors were to describe their approach for
maintaining security‑‑consistent with the applicable
federal standards and guidance‑‑during performance of
the requirement. Supp. Mem. of Law at 2-3. The agency
also points out that, consistent with this framework,
the solicitation’s provisions regarding FISMA, and other
information security guidance and standards, refer to
the “contractor,” rather than the “vendor,” “quoter,” or
other term connoting an entity’s pre-source-selection
status. See id. at 3 (citing RFQ at 19-20, 35).
For the reasons discussed below, we agree with the
agency that the terms of the solicitation here provide
no basis to find that the agency should have assessed
Triple-i’s quotation as “Not Satisfactory” or
“noncompliant” with the solicitation. At the outset,
however, we observe that where, as here, an agency
issues an RFQ to GSA FSS contractors under FAR subpart
8.4 and conducts a competition, we will review the
record to ensure that the agency’s evaluation is
reasonable and consistent with the terms of the
solicitation and applicable procurement laws and
regulations. See Digital Solutions, Inc., B-402067, Jan.
12, 2010, 2010 CPD ¶ 26 at 3-4; DEI Consulting,
B-401258, July 13, 2009, 2009 CPD ¶ 151 at 2. A
protester’s disagreement with the agency’s judgment,
without more, does not establish that an evaluation was
unreasonable. See DEI Consulting, supra.
Here, although the solicitation’s evaluation criteria
included consideration of a vendor’s approach to
ensuring security, the criteria did not require a
showing of current compliance with FISMA or other
information security standards.[4] See RFQ at 49-50.
Further, the solicitation provisions that reference
FISMA and the other information security standards refer
to the “contractor’s” performance after the BPA has been
established. Id. at 12, 19-20, 35. Requirements such as
this, which impose obligations on the “contractor,” are
performance requirements that need not be met before the
source selection decision; therefore, whether Triple-i
ultimately performs in a way that meets the requirement
is a matter of contract administration, which our Office
will not review. See 4 C.F.R. § 21.5(a) (2016); HS
Support, B‑409937, Sept. 18, 2014, 2014 CPD ¶ 276 at 3;
Freedom Sci., Inc., B‑401173.3, May 4, 2010, 2010 CPD ¶
111 at 3. In sum, the record reflects that there was no
basis for the agency to have evaluated Triple-i’s
quotation as not satisfactory or noncompliant, as
Discover alleges should have been done. We therefore
deny this basis of protest. (Discover
Technologies LLC B-412773, B-412773.2: May 27, 2016)
(pdf)
Ashland
protested the award to the agency, complaining that
Creighton was not registered in the E-Verify system as
required by the RFP. Among other things, Ashland
asserted that Creighton had been awarded other contracts
by the same contracting activity containing the same
employment eligibility verification clause, and had not
enrolled in the E-Verify system as required. DLA denied
Ashland’s agency-level protest, and Ashland protested to
our Office.
Our Office considers bid protest challenges to the award
or proposed award of contracts. 31 U.S.C. § 3552 (2006).
Therefore, we generally do not review matters of
contract administration, which are within the discretion
of the contracting agency and for review by a cognizant
board of contract appeals or the Court of Federal
Claims. 4 C.F.R. § 21.5(a) (2013); Colt Defense, LLC,
B-406696.2, Nov. 16, 2012, 2012 CPD ¶ 319 at 5; Ceradyne,
Inc., B-402281, Feb. 17, 2010, 2010 CPD ¶ 70 at 3 n.4;
see also Kitco, Inc., B-221386, Apr. 3, 1986, 86-1 CPD ¶
321 at 9.
Here the solicitation required contractors not enrolled
in the E-Verify system at the time of contract award to
enroll within 30 calendar days thereof (which Creighton
did). We find this postaward requirement, which applies
to contractors, to be a matter of contract
administration having no effect upon the validity of an
award. See Deere & Co., B-224275, Oct. 31, 1986, 86-2
CPD ¶ 504 at 4. The fact that a contractor’s actual
compliance with E-Verify requirements would thereby
escape our review, as Ashland contends, does not
constitute a valid reason to ignore the statutory limits
of our bid protest jurisdiction.
Ashland does not dispute that Creighton enrolled in the
E-Verify program within 30 days of the contract award
here. Rather, the protester argues that DLA was
prohibited from contracting with Creighton because of
the awardee’s previous noncompliance with applicable
E-Verify requirements. As a result, Ashland argues,
Creighton’s proposal was technically unacceptable under
the terms of the solicitation and ineligible for award.
Protest at 2-5. While we do not condone Creighton’s
prior failure to enroll in the E-Verify system as
required, we find this does not render its proposal here
technically unacceptable, nor is contract award
otherwise precluded by any procurement statute or
regulation. (Ashland
Sales & Service Company B-408969, Nov 1, 2013)
(pdf)
As a
preliminary matter, the Forest Service questions our
jurisdiction to decide the protest, arguing that the
modification of a [blanket purchase agreement] BPA
concerns a matter of contract administration that is
beyond the scope of our bid protest function. See AR at
6-7. The agency contends that our jurisdiction in this
regard is limited to whether a modification triggers
competition requirements where there is a material
difference between the modified contract and the
contract as originally awarded. Id., citing, inter alia,
DOR Biodefense Inc.; Emergent BioSolutions, B-296358.3,
B-296358.4, Jan. 31, 2006, 2006 CPD ¶ 35 at 6. The
Forest Service maintains that not only is a BPA not a
contract, but that the protested modification does not
change the scope of work and only represents a
foreseeable, annual change in price rankings. See id. at
7, citing, inter alia, Crewzers Fire Crew Transport,
Inc., v. United States, 98 Fed. Cl. 71, 79 (2011) (BPA
not a contract but merely framework for future
contracts).
Under the Competition in Contracting Act of 1984 (CICA)
and our Bid Protest Regulations, we review protests of
alleged violations of procurement statues and
regulations by federal agencies in the award or proposed
award of contracts for the procurement of goods and
services, and solicitations leading to such awards.[8]
31 U.S.C. §§ 3551, 3552 (2006); 4 C.F.R. § 21.1(a)
(2012). We have found our jurisdiction to encompass
objections to agency actions that result in the “award”
of instruments that are not in themselves contracts,
such as blanket purchasing agreements, which give rise
to a binding contract when an order is placed, or rate
tenders, which become binding when a government bill of
lading is issued. See C&B Constr., Inc., B-401988.2,
Jan. 6, 2010, 2010 CPD ¶ 1 (BPA protest);[9] Abba Int’l,
Inc. et al., B-311225.4, Feb. 2, 2009, 2009 CPD ¶ 28 at
4 (rate tender protest); Humco, Inc., B-244633, Nov. 6,
1991, 91-2 CPD ¶ 431 at 3, recon. denied, Department of
State--Recon., B-244633.2, Apr. 2, 1992, 92-1 CPD ¶ 339
at 3 (CICA’s broad authority extends to protests of
procurements and encompasses acquisition of tenders of
service).
Because the price evaluation formula here forms the
basis for the placement of orders under the terms of the
BPA, our Office will consider the protest of the
agency’s modification of the BPA’s formula. In this
respect, although the BPA itself is not a contract, the
terms of the BPA and the agency’s ordering procedures
provide that the vendor that submits the lowest
evaluated price will be the vendor first in line to
receive orders. Crewzers’ BPA at 35-36; see also
Department of State, supra, at 3 (jurisdiction to decide
protest of award of tender of service agreement where
offeror submitting lowest-price will be first carrier in
line for issuance of government bills of lading under
solicitation’s source selection criteria and agency
procedures); Abba Int’l, Inc. et al. supra at 4-5
(considering protest of request for competitive rate
tenders that will form basis for placement of government
bills of lading); Biblia, Inc., B-403006, Sept. 13,
2010, 2010 CPD ¶ 203 at 3 (jurisdiction over protest of
issuance of government bill of lading for one-time
shipment where agency issues formal solicitation,
provides evaluation factors, and makes best value source
selection decision). (Crewzers
Fire Crew Transport, Inc., B-406601, Jul 11, 2012)
(pdf)
Solar
Plexus alleges that the award was improper because Oasis
Montana is not a registered construction contractor and,
according to Solar Plexus, Montana law requires a
company to be registered as a construction contractor in
order to complete the installation of the solar-powered
systems sought under the RFP. Solar Plexus asserts that
the award is therefore in violation of the RFP, which
states that “[t]he Contractor shall comply with all
applicable Federal, State and local laws, executive
orders, rules and regulations applicable to its
performance under this contract.” RFP at 41. Solar
Plexus also cites the RFP’s “Permits and
Responsibilities” clause, Federal Acquisition Regulation
sect. 52.236-7, which states that “[t]he Contractor
shall, without additional expense to the Government, be
responsible for obtaining any necessary licenses and
permits, and for complying with any Federal, State, and
municipal laws, codes, and regulations applicable to the
performance of the work.” Id. at 43.
The protester’s arguments provide no basis to sustain
the protest. Although the RFP calls for compliance with
state law through its “Permits and Responsibility” and
other similar clauses, normally, general solicitation
provisions mandating that the “contractor” comply with
the requirements of state laws, codes, and regulations
do not require that a bidder or offeror demonstrate
compliance prior to award. Mid-America Mgmt. Servs.,
Inc., B-244103, June 5, 1991, 91-1 CPD para. 537 at 1‑2.
Rather, compliance with applicable state or local
requirements is a performance requirement that may be
satisfied during contract performance and does not
affect the award decision except as a general
responsibility matter. HAP Constr., Inc., B‑278515, Feb.
9, 1998, 98-1 CPD para. 48 at 2‑3. Whether Oasis Montana
ultimately complies with the requirements of the RFP is
therefore a matter of contract administration which we
will not review. 4 C.F.R. sect. 21.5(a). As such, Solar
Plexus’ arguments provide us with no basis to question
the agency’s award decision. (Solar
Plexus, LLC, B-402061, December 14, 2009) (pdf)
BP's
award for Item 0207 was made at the price of $2.881704
per gallon. In accordance with the solicitation's
partial small business concern set-aside procedures,
Petro Star was then awarded the set-aside volume for
Item 0207, at its offered price of $2.825179. This award
was made on September 18. Petro Star began performance
shortly thereafter and it has made a delivery of fuel
under the contract.
On October 6, Petro Star filed an agency-level protest
with DESC, which was dismissed as untimely. On February
17, 2009, Petro Star filed a protest with our Office
alleging that under Clause I237.06 (quoted above) DESC
should have permitted Petro Star to increase its
proposed price for the set-aside portion to match BP's
higher price for the unrestricted portion. What Petro
Star seeks here is an increase in its contract price,
that is, reformation of its contract. This is a matter
of contract administration for which our Office does not
have jurisdiction.[2] FruCon Construction Corp.,
B-253882, Oct. 1, 1993, 93-2 CPD para. 200 at 4-5. Our
Office considers bid protest challenges to the award or
proposed award of contracts. 31 U.S.C. sect. 3552
(2006). In exercising this authority, we do not review
matters of contract administration (with exceptions not
relevant here), which are within the discretion of the
contracting agency and are, under the Contract Disputes
Act of 1978, for review by a cognizant board of contract
appeals or the Court of Federal Claims. Bid Protest
Regulations, 4 C.F.R. sect. 21.5(a) (2008); Hawker
Eternacell, Inc., B-283586, Nov. 23, 1999, 99-2 CPD para.
96 at 3. (Petro Star,
Inc., B-401108, April 29, 2009) (pdf)
Where, as here, an agency uses parallel contracts for
the development and production of products to conduct a
competition among the contractors resulting in the
elimination of one or more contractors as sources for
the agency’s requirements for the duration of the
contracts in question, we will consider protests
concerning that competition and the decisions to
eliminate contractors. Electro-Voice, Inc., B‑278319,
B-278319.2, Jan. 15, 1998, 98-1 CPD para. 23 at 5;
Fermont Div., Dynamics Corp. of Am., B-257373.3, et al.,
Dec. 22, 1995, 96-1 CPD para. 78 at 1-2 n.1; Mine Safety
Appliances Co., B-238597.2, July 5, 1990, 90-2 CPD para.
11 at 4; see Westinghouse Elec. Corp., B-189730, Mar. 8,
1978, 78-1 CPD para. 181 at 6. In the above cited cases,
there was a “downselection” of a contractor based on a
limited competition among the contract holders, as
contemplated by the terms of the parallel contracts, and
this downselection was implemented by issuing or not
issuing delivery orders under the contracts, or
exercising or not exercising contract options. Here, the
agency is using the options under these contracts to
determine which firms will continue to be considered for
GPO’s procurement of electronic passport covers. Options
corresponding to the pilot program would be exercised on
a go/no-go basis based on passing the Stage 2 tests. RFP
sect. C1.2.6. Ultimately, the agency would select one
primary production contractor and secondary production
contractors based on a best-value determination. Agency
Report at 2, 8; RFP sect. C1.2.8. Thus, this is a
limited competition between the firms awarded contracts
under the RFP. While GPO argues that the decision
protested is a matter of contract administration because
OTI was eliminated from further consideration after it
was awarded a contract, the substance of what is
occurring--regardless of its contractual form--is a
multi-step competition for a contract to produce
electronic passport covers. Because OTI timely protested
its elimination from that competition, we conclude that
our Office has jurisdiction to consider the protest. In
considering protests against an agency’s evaluation
resulting in a downselection, we do not evaluate
competing technical solutions anew in order to make our
own determinations as to their acceptability or relative
merits. Instead, we examine the record to determine
whether the evaluation was fair, reasonable, and
consistent with stated evaluation factors.
Electro-Voice, Inc., supra, at 5-6. (OTI
America, Inc., B-295455.3; B-295455.4, August 10,
2005) (pdf)
Indeed, far from possible acts of bad faith on the part
of government officials, it appears that the agency had
no knowledge of the inaccuracies in WorldCom's financial
statements until after award, thus making this matter
more one of contract administration (a matter beyond our
bid protest authority, 4 C.F.R. § 21.5(a)), rather
than a protest of the agency's award decision. While
we recognize that the protests were timely filed within
10 days of WorldCom's initial public disclosure, we
nevertheless have reservations in the unusual
circumstances present here about the appropriateness of
our Office considering a protest filed well after award
and after contract performance has begun, particularly
where, as here, the agency has authority to address the
alleged impropriety as part of contract administration.
(Sprint
Communications Company LP; Global Crossing,
B-288413.11; B-288413.12, October 8, 2002)
The
primary contention in MAS's protests is that the awards
under these RFQs breach MAS's requirements contract,
which assertedly contemplates that these services would
be provided by MAS. The Navy responds that these
services were not required to be ordered under that
contract. Resolving this issue would require
interpreting MAS's existing contract and determining
whether the Navy's actions constituted a contract
breach, which are matters of contract administration.
Under the Competition in Contracting Act of 1984, our
jurisdiction to resolve bid protests extends to
resolving disputes concerning the alleged violation of
procurement laws and regulations in connection with the
award of contracts by federal agencies. 31 U.S.C. §§
3551-3552 (2000). In exercising this authority (with
exceptions not relevant here), we do not review matters
of contract administration, which are within the
discretion of the contracting agency and are, under the
Contract Disputes Act of 1978, for review by a cognizant
board of contract appeals or the Court of Federal
Claims. 4 C.F.R. § 21.5(a) (2002); Hawker Eternacell,
Inc., B-283586, Nov. 23, 1999, 99-2 CPD ¶ 96 at 3.
Thus, we will not review the parties' dispute concerning
whether these services were required to be ordered under
MAS's requirements contract. (Military
Agency Services Pty., Ltd., B-290414; B-290441;
B-290468; B-290496, August 1, 2002) (pdf)
Our Office
will not consider an incumbent contractor's protest of
an agency's refusal to exercise an option under an
existing contract since this decision is a matter of
contract administration outside the scope of our bid
protest function. American Consulting Servs., Inc.,
B-276149.2, B-276537.2, July 31, 1997, 97-2 CPD para. 37
at 9. We will not consider the matter even where, as
here, the protester alleges that the agency's decision
to not exercise an option in its contract was made in
bad faith. Walmac, Inc., B-244741, Oct. 22, 1991,
91-2 CPD para. 358 at 2. (Jones,
Russotto & Walker, B-283288.2, December 17,
1999)
|
|
Comptroller
General - Listing of Decisions |
For
the Government |
For
the Protester |
New
Discover Technologies LLC
B-412773, B-412773.2: May 27, 2016 (pdf) |
|
Ashland Sales & Service Company
B-408969, Nov 1, 2013 (pdf) |
|
Crewzers Fire Crew Transport, Inc.,
B-406601, Jul 11, 2012 (pdf) |
|
Solar Plexus, LLC, B-402061,
December 14, 2009 (pdf) |
|
Petro Star,
Inc., B-401108, April
29, 2009 (pdf) |
|
OTI America, Inc.,
B-295455.3; B-295455.4, August 10, 2005 (pdf) |
|
Sprint Communications Company LP; Global Crossing,
B-288413.11; B-288413.12, October 8, 2002 (pdf) |
|
Military
Agency Services Pty., Ltd., B-290414; B-290441; B-290468;
B-290496, August 1, 2002 (pdf) |
|
Jones,
Russotto & Walker, B-283288.2, December 17, 1999 (PDF
Version) |
|
Hawker
Eternacell, Inc., B-283586, Nov. 23, 1999 (pdf) |
|
U.
S. Court of Federal Claims |
1. Contract Administration Issues
Must Be Brought as CDA Claims
The first two counts of the complaint
are challenges to the substance of the Air Force CPAR. In
the first count, ITility alleges that the assessment of
its contract performance “includes inaccurate and
misleading facts, as well as material omissions,” Compl. ¶
43, in violation of 48 C.F.R. § 42.1503(b), Compl. ¶ 42.
In the second count, plaintiff contends that the official
who reviewed the assessment failed to “consider
disagreements between the parties,” in violation of 48
C.F.R. § 42.1503(d), and failed to ensure that the record
contained accurate information based on objective facts,
reiterating the alleged violation of 48 C.F.R. §
42.1503(b). See Compl. ¶¶ 52–55. Because these counts
allege violations of a regulation in connection with a
procurement, ITility maintains that they may be brought
under our court’s 28 U.S.C. § 1491(b)(1) bid protest
jurisdiction.
There are several problems with this
argument. Perhaps the most fundamental problem is that,
while the CPAR was indeed created “in connection with a
procurement,” 28 U.S.C. § 1491(b)(1), the procurement in
question was one in which ITility performed as the
contractor, not one in which plaintiff was merely an
offeror or prospective offeror. As the Court has
explained, see Kellogg Brown & Root Servs., Inc. v. United
States, 117 Fed. Cl. 764, 768–69 (2014), a long line of
our cases has held that the “interested party” standing to
bring a bid protest does not extend to the complaints of
contractors concerning the administration of contracts
they have been awarded and performing. When a party
objects to a decision by a federal agency that was made
because that party was a government contractor, and not
because the party was an offeror for a contract to be
awarded, then the matter is properly viewed as seeking
“relief arising under or relating to the contract” held by
the party, 48 C.F.R. § 2.101, rather than presenting a
circumstance in which the party’s “direct economic
interest would be affected by the award of the contract or
by failure to award the contract,” 31 U.S.C. § 3551(2).
Although a procurement may run through “contract
completion and closeout,” see Distributed Sols., Inc. v.
United States, 539 F.3d 1340, 1345 (Fed. Cir. 2008)
(quoting what was then 41 U.S.C. § 403(2), now found at 41
U.S.C. § 111), the impact of a contract award (or the
failure to award) ceases to be relevant once a party
becomes the contractor for that procurement. At that
stage, the interest of the party changes from that of an
offeror to that of a contractor, and the CDA becomes the
vehicle for resolving disputes. See Kellogg Brown & Root
Servs., 117 Fed. Cl. at 769–70.
That a contractor’s challenge to the
substance of an agency’s performance evaluation may be
brought as a CDA claim is beyond doubt. In Todd
Construction, L.P. v. United States, 656 F.3d 1306 (Fed.
Cir. 2011), the Federal Circuit held that such a challenge
constituted a claim for CDA purposes, as it related to the
federal contract. Id. at 1311–16. ITility attempts to
distinguish Todd Construction as turning on the
declaratory relief sought, in contrast to the injunction
it seeks in this matter. See Pl.’s Opp’n at 3 (citing Todd
Constr., 656 F.3d at 1311). But while the Federal Circuit
did describe the relief sought as “in essence a
declaratory judgment that the government’s performance
evaluations were unfair and inaccurate,” Todd Constr., 656
F.3d at 1311, and did leave undecided “whether an
injunction was available pursuant to the . . . ‘power to
remand appropriate matters to any administrative or
executive body or official with such direction as it may
deem proper and just,’” id. at 1311 n.3 (quoting 28 U.S.C.
§ 1491(a)(2)), the Circuit’s analysis did not concern the
type of relief at issue, see id. at 1311–15. Instead, the
subject of the relief sought was what mattered, as the
Circuit found that “the unsatisfactory performance
evaluations . . . relate to Todd’s performance under the
contract,” and concluded that a valid CDA claim was one
that “relates to [the contractor’s] performance under the
contract.” Id. at 1313–14.
In any event, even if injunctive
relief were not available under the CDA, a contractor does
not convert a dispute relating to its contract performance
into a bid protest by seeking such relief. As the Court
explained above, the claim could still not rest on the
interested party standing of an offeror. If Congress chose
to withhold a form of relief from contractors in their
disputes with government agencies, their recourse is to
accomplish what they may with the tools that are given.
For instance, a declaration that a CPAR was arbitrarily
issued and contained inaccurate information could be
communicated to procurement officials in subsequent
contract competitions, and would set the stage for
injunctive relief in a bid protest if that CPAR is relied
upon to an offeror’s prejudice.
Moreover, if plaintiff’s request for
injunctive relief addressing the alleged substantive
inaccuracies of the Air Force CPAR were to place the
matters outside our court’s CDA jurisdiction, the relief
would still not be available in a bid protest. In
considering a challenge to an agency’s failure to assess a
contractor’s rebuttals to its performance evaluations, the
Federal Circuit held that “a bid protest is not the proper
forum, under FAR § 42.1503(b), to litigate [performance
evaluation] disputes.” Bannum, Inc. v. United States, 404
F.3d 1346, 1353 (Fed. Cir. 2005). Although the procedural
challenge to the evaluations was found to be properly
brought in a bid protest, the substantive challenge was
not. Id. at 1351–53.
(sections deleted)
As explained above, plaintiff’s
challenges to the substance of the Air Force CPAR involve
questions of contract administration that must be brought
under the CDA. Since ITility had not submitted a claim to
the contracting officer under the CDA’s requirements, see
41 U.S.C. § 7103(a), our court lacks subject-matter
jurisdiction over the first two counts of the complaint.
See Kellogg Brown & Root Servs., 117 Fed. Cl. at 770.
(ITility, LLC, v U. S., No.
15-237C, January 7, 2016) (pdf)
Here defendant-intervenors asseverate that jurisdiction is
lacking because, inter alia, plaintiffs’ claims raise questions
of contract administration not properly considered in a bid
protest context. See Contract Disputes Act of 1978 (CDA), 41
U.S.C. §§ 7101-09; see generally, Francis M. Allegra & Daniel B.
Garrie, “Plugged In: Guidebook to Software and the Law,” § 11:2
(2015).
The United States, of course, “is immune
from suit save as it consents to be sued.” United States v.
Sherwood, 312 U.S. 584, 586 (1941); see also Dolan v. U.S.
Postal Serv., 546 U.S. 481, 498 (2006); Hercules, Inc. v. United
States, 516 U.S. 417, 422 (1996). As such, this court is
required to dismiss a complaint in cases where it finds that it
lacks subject matter jurisdiction. RCFC 12(h)(3); Smith v.
United States, 495 Fed. Appx. 44, 47 (Fed. Cir. 2012), cert.
denied, 133 S. Ct. 1288 (2013) (“If the Court of Federal Claims
determines at any time that it lacks subject matter
jurisdiction, it must dismiss the action.”); Trailboss Enters.
Inc. v. United States, 111 Fed. Cl. 338, 340 (2013); see also
Arbaugh v. Y & H Corp., 546 U.S. 500, 514 (2006). Section
1491(b)(1) grants this court “jurisdiction to render judgment on
an action by an interested party objecting to a solicitation by
a Federal agency for bids or proposals for a proposed contract
or to a proposed award or the award of a contract or any alleged
violation of statute or regulation in connection with a
procurement or a proposed procurement.” 28 U.S.C. § 1491(b)(1);
see RAMCOR Serv. Group, Inc. v. United States, 185 F.3d 1286,
1289 (Fed. Cir. 1999).
Despite the arguably broad language of this
subsection, “the Federal Circuit has made it crystal clear” that
matters of contract administration are beyond this court’s bid
protest jurisdiction. Gov’t Technical Servs., LLC v. United
States, 90 Fed. Cl. 522, 527 (2009).9 The CDA, rather, is the
“exclusive mechanism” to resolve disputes of this sort. Dalton
v. Sherwood Van Lines, Inc., 50 F.3d 1014, 1017 (Fed. Cir.
1995); see also Wildflower Intern., Ltd. v. United States, 105
Fed. Cl. 362, 383 (2012); Harris Patriot Healthcare Solutions,
LLC v. United States, 95 Fed. Cl. 585, 594-95 (2010). Thus, for
example, this court has held that it does not possess
jurisdiction pursuant to section 1491 to enjoin a contracting
agency’s termination of a contract, Data Monitor Sys., Inc. v.
United States, 74 Fed. Cl. 66, 71-72 (2006), and that a
government failure to exercise an option raises issues of
contract administration outside the court’s bid protest
jurisdiction, Jones Automation, 92 Fed. Cl. at 371-72. As
recently adumbrated by Judge Wolski –
when a party brings a challenge in our
court to an agency action which affects that party because it is
a contractor and not because it is (or might be) an offeror, the
only vehicle it may use is the CDA. Although most federal
contractors were at one point offerors for the contracts they
received, once the contracts are awarded their interests in
disputes with the government are those of contractors, not
offerors.
Kellogg Brown & Root Servs., 117 Fed. Cl.
at 769; see also Gov’t Tech. Servs., 90 Fed. Cl. at 526 (holding
that defendant’s failure to exercise an option is governed by
the CDA, 41 U.S.C. § 601-31 [now codified at 41 U.S.C. § 7101
et. seq.], and is not a bid protest); Am. Consulting Servs.,
Inc., 97–2 C.P.D. ¶ 37 (1997) (“agency’s decision whether to
exercise an option is a matter of contract administration
outside the scope of our bid protest function.”)
So are the cases in question ones involving
contract administration or are they, instead, appropriately
viewed as bid protests? In the court’s view, the former is
demonstrably the case for several reasons. These cases arose
from, and reflect, the agency’s exercise of its discretion,
limited primarily, if not exclusively, by the express terms in
the original 2009 task orders, especially Clause H.4, thereof.
The award-term extensions added more work to the existing
contract only in the context of those task order provisions –
but nothing more. There is no change in scope either measured by
the law or the procedures set forth in the contract so as to
trigger this court’s jurisdiction. See AT&T Commc’ns, Inc. v.
Wiltel, Inc., 1 F.3d 1201, 1205 (Fed. Cir. 1993); CI², Inc.,
11-2 B.C.A. ¶ 34823 (2011); cf. Magnum Opus Techs., Inc. v.
United States, 94 Fed. Cl. 512, 522 (2010).11 Consistent with
the cases cited above, claims like those made by plaintiffs may
only be brought under the CDA, subject to the limitations
associated with that statute.
To otherwise treat the award-term
extensions as new contracts elevates form over substance,
essentially creating a potential flock of claims unenvisioned by
this court’s bid protest jurisdiction. See Jones Automation, 92
Fed. Cl. at 371-72; Gov’t Tech. Servs., 90 Fed. Cl. at 526. The
same can be said of plaintiffs’ claims to invoke the Competition
in Contracting Act (CICA), 10 U.S.C. § 2304, as modified by
other applicable procurement statutes. These statutes afford
plaintiffs no relief, under the circumstances available. In the
court’s view, as emphasized in the oral argument of this case,
plaintiffs’ view of the court’s jurisdiction “would unlock a
veritable Pandora’s box of bid protest challenges to many
internal agency decisions that never ripen into government
procurements . . . ,” potentially allowing protests of “every
agency decision not to procure a product or service.” Int’l
Genomics Consortium, 104 Fed. Cl. at 677-78; see also VFA, Inc.
v. United States, 118 Fed. Cl. 735, 743 (2014). That this court
will not allow.
At least some of plaintiffs particularly
err in characterizing the CO decision not to issue an award-term
extension under H.4 as one excluding certain contractors from a
supposed “competitive range” determination under FAR 15.306(c).
Contrary to plaintiffs’ claims, there was no competitive range
determination made here, no discussions and, for that matter,
none of the other features typical of a negotiated procurement
here. The concept of “competitive range” envisioned under FAR
15.306(c) particularly does not encompass internal agency
decisions applicable to different contracts with respect to
different multiple-award contract holders. Rather, it refers to
the development of a process solely intended to reduce the
number of offerors – a process of source selection that did not
occur here.
Not surprisingly, this case thus does not
involve other typical FAR concepts like “past performance,”
“discussions,” “disparate treatment,” and other aspects of the
regulatory spectrum that plaintiffs have attempted to diffuse
awkwardly into this procurement case.12 See generally, John
Cibinic, Jr., Ralph C. Nash, Jr. & Christopher R. Yukins,
Formation of Government Contracts 784-85, 845-58 (4th ed. 2011).
There were no technical proposals here, no price proposals, nor
any other form of related source-selection evaluation. Id. at
757-70, 937. Nor should there have been, given the agency’s
directives and intentions. That the regulatory terms in the FAR
invoked by plaintiffs mismatch those that plaintiffs would wield
in seeking to invoke this court’s jurisdiction, provides strong
evidence that the latter does not represent a warranted
invocation of this court’s jurisdiction.
Other disjointed concepts invoked by
plaintiffs suffer the same fate. For example, contrary to
several of plaintiffs’ claims, this case does not involve
so-called “down-select contracts.” Performing a “down-select” is
the process through which multiple contractors and/or
subcontractors are eliminated, leaving a remaining contractor to
fulfill the order.13 This court has exercised bid protest
jurisdiction when “the agency has entered into identical
multi-award contracts that essentially involve a competition in
stages to develop a new product, and ultimately to procure that
product, and the protest concerns objections to the agency’s
actions in eliminating one of the competitors at an intermediate
stage.” OTI Am., Inc. v. United States, 68 Fed. Cl. 108, 114
(2005). But, the TOs did not involve developing or procuring a
new product through stages of competition, and the award-term
extension was not the ultimate procurement.
The purpose of the TOs was to procure the
PCAs’ performance of debt collection services starting in 2009,
not to evaluate the PCAs’ performance over the last five and
half years just to decide which contractor(s) would receive an
award-term extension. The agency was free to issue award-term
extensions to all of the qualifying contractors; there was no
competition or “winnowing” of the candidates required or
intended by the agency. See OTI, 68 Fed. Cl. at 117; see also
Electro-Voice, Inc., 98-1 C.P.D. ¶ 23 (Comp. Gen. Jan. 15,
1998).
Having considered and reviewed the
remainder of plaintiffs’ jurisdictional arguments, the court
does not find them persuasive.14 Instead, the court finds that
defendant and defendant-intervenors are correct in asserting
that this case involves matters of contract administration,
requiring the court to dismiss this case for lack of
jurisdiction. (Coast
Professional, Inc., National Recoveries, Inc., Enterprise
Recovery Systems, Inc., Pioneer Credit Recovery, Inc. v. U. S.
and Financial Management Systems, Inc., Account Control
Technology, Inc., Continental Service Group, Inc., Windham
Professionals, Inc., GC Services LP, Nos. 15-207C, 15-242C,
15-249C and 15-265C, April 22, 2015) (pdf)
In this case, plaintiff, of course, is objecting to neither a
solicitation nor a
proposed or actual award of a contract. Rather, it predicates
jurisdiction on the notion that it is
asserting “an alleged violation of a statute or regulation in
connection with a procurement or
proposed procurement.” However, in Gov’t Tech. Servs. LLC v.
United States, 90 Fed. Cl. 522,
527-28 (2009), this court squarely held that the government’s
failure to exercise an option is not
an action covered by section 1491(b)(1), but rather is a matter
of contract administration
reviewable, if at all, under the Contract Disputes Act, 41 U.S.C.
§§ 601-13. In so holding, this
court soundly rejected the notion that a plaintiff could elect
between raising its claim under the
CDA or as a bid protest, finding that “the Federal Circuit has
made it crystal clear that the CDA
is the ‘exclusive mechanism’ for the resolution of disputes
arising, as here, in contract
management.” Gov’t Tech. Servs., 90 Fed. Cl. at 528 (citing
Dalton v. Sherwood Van Lines, Inc., 50 F.3d 1014, 1017 (Fed.
Cir. 1995)).
The view that this court’s bid protest
jurisdiction does not extend to cases such as this is
bolstered by a number of decisions of the General Accountability
Office (GAO) holding that an
agency’s decision not to exercise an option is not a
“procurement” decision within its bid protest
jurisdiction, as defined in 31 U.S.C. §§ 3551-52. See Am.
Consulting Servs., Inc., 97-2 C.P.D. ¶
37 (1997) (“To the extent ACS challenges the agency’s refusal to
exercise the final option of its
FAST contract, this issue is not for our review since a
contracting agency’s decision whether to
exercise an option is a matter of contract administration
outside the scope of our bid protest
function.”); Fjellestad, Barret and Short, 92-2 C.P.D. ¶ 118
(1992); U.S. Defense Sys., Inc., 92-2
C.P.D. ¶ 179 (1991); Young-Robinson Assocs., Inc., 91-1 C.P.D. ¶
319 (1991); Falcon Mgmt.,
Inc., 86-1 C.P.D. ¶ 448 (1986). In so concluding, the GAO has
noted that “[c]ontract options are
exercised solely at the discretion of the government, and a
contractor cannot compel an agency to
exercise an option in its contract.” U.S. Defense Sys., Inc.,
92-2 C.P.D. ¶ 179 at *2; see also
Gov’t Sys. Advisors v. United States, 847 F.2d 811, 813 (Fed.
Cir. 1998). The GAO has further
observed that “those who bid on contracts containing option
provisions assume the risk that the
agency may not exercise that option,” and should not be heard to
complain that the government’s
failure to exercise an option left it unable to recover all its
costs. U.S. Defense Sys., Inc., 92-2
C.P.D. ¶ 179 at *2.
Accordingly, the court concludes that
plaintiff has not demonstrated a likelihood of
success on the merits. Should this case proceed, much more will
need to be shown to
demonstrate that plaintiff is entitled to relief. (Jones
Automation, Inc. v. U. S., No. 10-174C, April 22, 2010) (pdf)
3. Expansion of the Court’s Tucker Act Jurisdiction Does Not Extend to the
Government’s Failure to Exercise an Option on an Existing Contract
While the definition of “in connection with a procurement” under the ADRA has
been clarified by the Court of Appeals for the Federal Circuit in a way which
has
broadened prior interpretations of this court, the government’s failure to
exercise an
option on an existing contract is not encompassed by that clarification. See
Distributed
Solutions, 539 F.3d at 1346. Nor is plaintiff aided by an earlier Federal
Circuit
description of Tucker Act jurisdiction after its amendment by the ADRA in RAMCOR
Services Group, Inc. v. United States (RAMCOR), 185 F.3d 1286, 1289 (Fed. Cir.
1999),
as “very sweeping in scope.” Cf. Pl.’s Resp. 2. The Federal Circuit stated in
RAMCOR
that “[a]s long as a statute has a connection to a procurement proposal, an
alleged
violation suffices to supply jurisdiction.” RAMCOR, 185 F.3d at 1289. RAMCOR,
however, is distinguishable on its facts. RAMCOR had a contract with the
Immigration and Naturalization Services (INS) to provide maintenance and support
services at the
Border Patrol Academy in Charleston, South Carolina. Id. at 1287. Upon the
expiration
of a five-year contract with RAMCOR, the INS determined that the contract had
involved
an “impropriety” and decided to award a new contract to a different contractor.
Id. INS
extended the contract with RAMCOR for two six-month periods after the initial
expiration of its contract. Id. After the two extensions ran, INS began a new
contract
award process and excluded RAMCOR from that bidding process. Id. RAMCOR filed a
pre-award bid protest with the General Accounting Office (GAO), which triggered
an
automatic stay. See id. (citing Competition in Contracting Act (CICA), 31 U.S.C.
§§
3551-56 (1994)). The stay prevented INS from awarding a new contract pending a
decision by the GAO on the protest. Id. Under a provision of CICA which allows
for the
override of a stay in “urgent and compelling” circumstances, the INS issued a
“Written
Determination and Finding” setting forth “urgent and compelling circumstances.”
Id.
(citing CICA, 31 U.S.C. §§ 3551-56). After issuing its override, INS awarded the
contract to a contractor other than RAMCOR. Id. RAMCOR brought a preliminary
injunction action in the Court of Federal Claims in order to prohibit the other
contractor
from performing under the contract. Id.
The Court of Federal Claims decided that, because plaintiff had
not asked the court
to review the merits of the award of the base support services contract, it did
not have
jurisdiction. Id. at 1288. RAMCOR appealed, asserting that amendments to 28
U.S.C. §
1491 under the ADRA “granted the Court of Federal Claims jurisdiction over
RAMCOR’s action for a preliminary injunction.” Id. The Federal Circuit agreed
with
RAMCOR that the Court of Federal Claims had jurisdiction, citing the portion of
§1491(b)(1) which affords jurisdiction to the Court of Federal Claims when “the
award of
a contract or any alleged violation of statute or regulation in connection with
a
procurement or a proposed procurement” is at issue. Id. at 1288, 1291. The
Federal
Circuit held that RAMCOR’s objection to the lifting of the stay was within the
jurisdiction of the court under the ADRA because the objection to the §
3553(c)(2)
override was an objection to a statute which had a “connection to a procurement
proposal,
[and] an alleged violation suffices to supply jurisdiction.” Id. at 1289. The
RAMCOR
court determined that the case fell under the court’s ADRA jurisdiction because
of the
direct connection between the stay and the procurement. Id. Claims of bad faith
in the
exercise of options have been established to be within the province of the CDA.
E.g.,
Krygoski Constr. Co. v. United States, 94 F.3d 1537, 1541 (Fed. Cir. 1996).
RAMCOR
does not govern this case.
Nor is plaintiff assisted by Ozdemir v.
United States, No. 09-432 C, 2009 U.S.
Claims LEXIS 353 (Fed. Cl. Nov. 9, 2009), which also offered an expansive
definition of
the court’s jurisdiction in bid protest matters when it held that a procurement
was not
necessary for the Court of Federal Claims to have bid protest jurisdiction. Id.
at *1. The plaintiff, Mr. Ozdemir, submitted a response to a solicitation
distributed by the
Department of Energy (DOE) which invited potential offerors to submit technical
ideas in
concept papers. Id. The impetus for the solicitation was the DOE’s receipt of a
financial
assistance award from the Advanced Research Projects Agency – Energy (ARPA-E)
which the DOE used to create a new internal organization to “foster research and
development of transformational energy-related technologies.” Id. at *1-2. Mr.
Ozdemir
failed to request an application control number (a necessary precursor to filing
a concept
paper). Id. at *2-3. When Mr. Ozdemir attempted to file his paper without the
control
number, it was rejected by the DOE, thus creating the impetus for his bid
protest. Id. at
*3. The United States filed a motion to dismiss pursuant to RCFC 12(b)(1). Id.
The
government argued that the plaintiff’s protest was not within the jurisdiction
of the court
because the call for concept papers was not a procurement. Id. at *4.
In its opinion, the Ozdemir court
discussed at length the jurisdictional grant of the
Tucker Act as modified by the ADRA. Id. at *7-9; see 28 U.S.C. § 1491(b)(1). The
court
determined that ADRA “jurisdiction . . . do[es] not require a procurement
connection.”
Ozdemir, 2009 U.S. Claims LEXIS 353, at *8. The possible expansion of
jurisdiction
contemplated by Ozdemir provides no support for GTS’s assertion that the court’s
jurisdiction under the ADRA extends to existing contracts and allegations of bad
faith
regarding the government’s failure to exercise an option. As defendant points
out, the
Federal Circuit has repeatedly pointed to the CDA as the vehicle by which
aggrieved
parties to an option contract must resolve their claims. Def.’s Mot. 15 n.9
(“Indeed all
species of challenges to the government’s decision whether to exercise a
discretionary
option, including those unrelated to allegations of bad faith, have been
resolved pursuant
to the Court’s CDA jurisdiction.”) (citing Alliant Techsys., 178 F.3d at
1264-65; Cessna
Aircraft, 126 F.3d at 1445-46; TMI Mgmt. Sys., 78 Fed. Cl. at 447).
III. Conclusion
The court lacks jurisdiction to hear plaintiff’s claim under the ADRA. Instead,
plaintiff must pursue relief pursuant to the requirements set forth in the CDA.
See
Omega World Travel, Inc. v. United States, 82 Fed. Cl. 452, 461 (2008)
(dismissing
Omega’s bad faith allegation, which was based on the government’s alleged
mishandling
of task orders under a contract with Omega, because of plaintiff’s failure to
exhaust its
CDA-mandated administrative remedies); Ravens Group, Inc. v. United States, 78
Fed.
Cl. 390, 398 (2007) (dismissing a bad faith allegation based on the government’s
failure
to exercise a discretionary option because “28 U.S.C. § 1491(b) provides no
jurisdiction
for claims of wrongful termination or breach” and “[c]laims for breach must be
brought
pursuant to the [CDA]”). The court lacks jurisdiction over GTS’s complaint
because
plaintiff did not comply with the provisions of the CDA, 41 U.S.C. §§ 601-613,
prior to
filing its Complaint. (Government Technical
Services LLC, v. U. S., No. 09-630L, December 29, 2009) (pdf)
Defendant is correct on both counts. FAR § 42.15–Contractor Performance
Information outlines the relevance of past performance information for future
source selection and describes the procedures that agencies must follow in
preparing such evaluations. This evaluation process, however, occurs “at the
time the work under the contract is completed.” FAR § 42.1502(a). Consequently,
any issue with the evaluation process itself is not appropriate for a bid
protest, which examines whether the agency examined properly all documentation
before it in making the contract award determination. See Ocean Technical Servs.,
Inc., 2001 U.S. Comp. Gen. LEXIS 172, at *9 (Nov. 27, 2001) (“Our bid protest
forum is not the place for a firm to first complain of not having received an
assessment, nor do we serve as a forum for a firm to dispute the substance of an
agency’s assessment of the firm’s work.”); Oregon Iron Works, Inc., 2000 U.S.
Comp. Gen. LEXIS 108, at **16-17 (June 15, 2000) (stating that FAR Part 15
establishes source selection policies and procedures for negotiated procurements
and declining to impute to Part 15 any requirements from FAR Part 42). (Bannum,
Inc., v. U. S. and Dismas Charities, Inc., No. 03-1751C, June 8, 2004)
(pdf) |
|
U.
S. Court of Federal Claims - Listing of Decisions |
For
the Government |
For
the Protester |
ITility, LLC, v U. S., No.
15-237C, January 7, 2016 (pdf) |
|
Coast Professional, Inc., National
Recoveries, Inc., Enterprise Recovery Systems, Inc., Pioneer
Credit Recovery, Inc. v. U. S. and Financial Management
Systems, Inc., Account Control Technology, Inc., Continental
Service Group, Inc., Windham Professionals, Inc., GC Services
LP, Nos. 15-207C, 15-242C, 15-249C and 15-265C, April 22, 2015
(pdf) |
|
Jones Automation, Inc. v. U. S.,
No. 10-174C, April 22, 2010 (pdf) |
|
Government Technical
Services LLC, v. U. S., No. 09-630L, December 29, 2009 (pdf) |
|
Bannum, Inc., v. U. S. and Dismas
Charities, Inc., No. 03-1751C, June 8, 2004 (pdf) |
|
|
|