Task
or Delivery Order under Indefinite Delivery, Indefinite Quantity
Contract |
Comptroller
General - Key Excerpts |
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The Fiscal Year 2012 NDAA amended our jurisdiction to
reinstate the FASA task or delivery order bar, as well as
the $10 million exception to the bar established under the
FY 2008 NDAA (in addition to the exception concerning
scope, as discussed above). It also established a new
sunset date, whereby the grant of jurisdiction to hear
protests in connection with orders issued under the
authority and procedures established by Title 41, valued
in excess of $10 million, expired after September 30,
2016.
(section deleted)
Here, there is no
dispute that the protesters are challenging their
elimination from further consideration for a task order
that will be issued under a multiple-award IDIQ contract
vehicle awarded by GSA, a civilian agency under the
authority and procedures set forth in Title 41. There is
also no dispute that these protests were filed after
September 30, 2016. Thus, it is clear that the protesters
filed their protests after the sunset of our jurisdiction
to resolve protests in connection with task and delivery
orders issued under civilian agency IDIQ contracts.
Analytic Strategies contends that our Office has
jurisdiction over its protest under 10 U.S.C. § 2304c(e),
rather than 41 U.S.C. § 4106(f), because the task order
contemplated here will provide services to a Department of
Defense (DoD) agency; will be funded by DoD; and
incorporates various DoD regulations.[4] Analytic
Strategies’ Response to Agency’s Request for Dismissal at
1-2.
As set forth above, however, there is no dispute that the
task order at issue here will be issued under a civilian
agency IDIQ, or that these protests were filed after
September 30. The protesters’ arguments that we have
jurisdiction under Title 10 because of DoD’s role in these
procurements are misplaced. We see nothing in the relevant
provisions of Titles 10 or 41 that authorize a different
result because the agency that will benefit from the task
order, will fund the task order, or will place the order,
is an agency covered by Title 10. Instead, the statutory
scheme under Title 41 sets forth the authority of civilian
agencies to award IDIQ contracts, describes the process
for ordering against those contracts, and in some
instances, limits the jurisdiction of forums like GAO to
hear protests in connection with the placement of these
orders.
Accordingly, we conclude that the jurisdictional bar to
protests applies here because the bar is established under
the statutory framework authorizing multiple-award IDIQ
contracts within Title 41. Moreover, the protesters do not
otherwise argue that the order to be issued under the TOR
increases the scope, period, or maximum value of the
underlying IDIQ contract. In short, our Office does not
have jurisdiction to consider these protests.
The protests are dismissed. See
Analytic Strategies LLC; Gemini
Industries, Inc. B-413758.2, B-413758.3: Nov 28, 2016
The Fiscal Year 2012 NDAA amended our jurisdiction to
reinstate the FASA task or delivery order bar, and the $10
million exception to the bar established under the FY 2008
NDAA (in addition to the exception concerning scope, as
discussed above). It also established a new sunset date,
whereby the grant of jurisdiction to hear protests of
orders issued pursuant to Title 41, valued in excess of
$10 million, expired after September 30, 2016.
Specifically, as it is relevant to the protest at issue,
section 4106(f) of Title 41 was amended to provide as
follows:
(f) Protests--
(1) Protest not authorized. A protest is not authorized in
connection with the issuance or proposed issuance of a
task or delivery order except for
(A) a protest on the ground that the order increases the
scope, period, or maximum value of the contract under
which the order is issued; or
(B) a protest of an order valued in excess of $10,000,000.
(2) Jurisdiction over protests. Notwithstanding section
3556 of title 31, the Comptroller General shall have
exclusive jurisdiction of a protest authorized under
paragraph (1)(B).
(3) Effective period. Paragraph (1)(B) and paragraph (2)
of this subsection shall not be in effect after September
30, 2016.
41 U.S.C. § 4106(f).
Here, there is no dispute that Ryan filed its protest on
October 14, 2016 challenging a task order issued by HUD
under a multiple-award IDIQ contract vehicle awarded by
NIH. Thus, it is clear that Ryan filed its protest after
our specific authority to resolve protests in connection
with civilian agency task and delivery orders in excess of
$10 million had expired. While Ryan asks that we “consider
grandfathering” its protest, Ryan’s Response to Agency
Dismissal Request at 1 (Oct. 25, 2016), we have no
authority to do so. As set forth above, our jurisdiction
to resolve a protest in connection with a civilian agency
task order, such as the one at issue, expired on September
30, 2016, pursuant to the express terms of 41 U.S.C. §
4106(f)(3). Moreover, the protester does not otherwise
argue that the order at issue increases the scope, period,
or maximum value of the underlying IDIQ contract.
Accordingly, our Office does not have jurisdiction to
consider the protest.
The protest is dismissed. (Ryan
Consulting Group, Inc. B-414014: Nov 7, 2016)
Pursuant to 10 U.S.C. § 2304c(e)(1), our Office has
jurisdiction to entertain protests in connection with the
issuance or proposed issuance of a task or delivery order
only if the order has a value in excess of $10,000,000, or
it is alleged that the order increases the scope, period,
or maximum value of the contract under which the order is
placed. Karthik does not argue that the order here exceeds
the scope, period, or maximum value of the underlying
contract; rather, it contends that we have jurisdiction
over its protest because the potential value of the order,
as announced by the Navy in the on-line SeaPort Enhanced
Order report, is over $33 million. In response, the agency
maintains that over $30 million of the $33 million
represents cash stipends that the awardee will distribute
on behalf of the Navy to the interns participating in the
programs. As a result, the actual value of the order is
less than $2 million, according to the Navy.
The RFP provides that one of the tasks to be performed by
the selected contractor is the preparation of “checks or
electronic payments and relevant documents to distribute
applicable . . . stipends to interns.” RFP at 6. The
solicitation explains that the contractor will be issued
funds for the stipends under a separate contract line item
number (CLIN) in the task order, and that the CLIN will
provide for reimbursement of the stipends only (i.e., no
fee will be included). Id. The RFP’s price schedule, in
turn, includes CLINs for stipend payments for the base and
each of the four option years. Id. at 2. The solicitation
includes the agency’s estimates of overall stipend
payments for each year of performance, which range from $6
million in the base year to approximately $6.7 million in
the final option period. Id. at 30. The RFP advises that
no detailed justification is required if the offeror uses
the exact government estimate stipend amounts in its
proposal. Id.
In Qwest Gov’t Servs., Inc., B-404845, Mar. 25, 2011, 2011
CPD ¶ 77, we recognized that there are circumstances in
which the successful contractor’s proposed price is not
the sole determinant of the value of an order. See, e.g.,
U.S. Bank, B‑404169.3, Feb. 15, 2011, 2011 CPD ¶ 43 at
3-4; ESCO Marine, Inc., B‑401438, Sept. 4, 2009, 2009 CPD
¶ 234 at 5-6. We noted that in certain cases, the
operative inquiry concerns the value of the goods or
services being provided, and for which the contractor is,
in fact, being compensated, under the order. Qwest Gov’t
Servs., Inc., supra, at 3. In Qwest, the RFQ at issue
provided for adding approximately $14 million to the
evaluated prices of nonincumbent contractors to account
for costs associated with transition of new government
furnished equipment to a new location. The agency
maintained that the transition costs should not be
considered part of the value of the order because the
government was not asking the contractor to incur, and
would not be compensating the contractor for, these costs.
We agreed, finding that because the transition costs did
not reflect a value to be provided by the contractor under
the order for which it would be compensated, the value of
these costs could not be considered for the purpose of
invoking our task order protest jurisdiction.
Application of the above principle to the facts of this
case results in the conclusion that the value of the order
is less than $10 million, and, as a consequence, that we
lack jurisdiction over the protest. While, as pointed out
by the protester, the RFP required offerors to include the
stipend payment amounts in their price schedules, and the
agency included these amounts in calculating the potential
value of the order as announced in the on-line SeaPort
Enhanced Task Order report, the fact remains that the
stipend amounts do not reflect a value to be provided by
the contractor under the order. Rather, as argued by the
agency, the stipends are, in effect, “‘a pass through’
payment from the Navy to the student through the awardee.”
Agency Request for Dismissal at 2. Because absent the
inclusion of the stipend amounts, the value of the order
to AESS is substantially less than $10 million, we lack
jurisdiction over the protest. (Karthik
Consulting, LLC B-411496: May 26, 2015) (pdf)
Protests filed with our Office in connection with the
issuance or proposed issuance of a task or delivery order
under a multiple-award contract are not authorized except
where the order is valued over $10 million, or where the
protester can show that the order increases the scope,
period, or maximum value of the contract under which the
order is issued. 10 U.S.C. § 2304c(e) (2012); Edmond
Scientific Co., B‑410187.2, Dec. 1, 2014, 2014 CPD ¶ ___
at 2.
As an initial matter, for reasons unrelated to the dollar
value of the task order at issue, the first issued raised
by Serco--whether issuance of the bridge contract
constituted a de facto override of the CICA stay--is not a
matter for consideration by this forum. See 4 C.F.R. §
21.6 (2014) (“GAO does not administer the requirements to
stay award or suspend contract performance under CICA”).
The second issue--whether the agency properly issued the
task order on a sole source basis--does, however, turn on
our $10 million jurisdictional threshold. In this regard,
we conclude, notwithstanding the protester’s arguments to
the contrary, that we have no basis to consider the value
of the original order when determining the value of the
bridge task order. Rather, for purposes of determining our
jurisdiction, the value of the bridge task order on its
face is controlling since the terms of the order define
the scope and terms of the contractual commitment between
the contractor and the government. See Goldbelt Glacier
Health Servs., LLC, B‑410378, B-410378.2, Sept. 25, 2014
CPD ¶ 281 at 3 (actual dollar amount of order issued was
appropriate measure of task order value). Accordingly,
because the value of the bridge task order is less than
$10 million, we lack jurisdiction to consider the
protester’s challenge.
The protest is dismissed. (Serco
Inc., B-410676.2: Dec 12, 2014) (pdf)
Protests filed with our Office in connection with the
issuance or proposed issuance of a task or delivery order
under a multiple-award contract are not authorized except
where the order is valued over $10 million, or where the
protester can show that the order increases the scope,
period, or maximum value of the contract under which the
order is issued. 10 U.S.C. § 2304c(e) (2012); see e.g.,
e-Management Consultants, Inc.; Centech Group, Inc.,
B-400585.2, B-400585.3, Feb. 3, 2009, 2009 CPD ¶ 39 at 6.
At issue here is whether the value of the task order will
be above or below the $10 million threshold for our
jurisdiction. The [task order proposal request] TOPR, as
amended, provides for evaluation of price and non-price
factors, and states that the evaluated total price of a
proposal will be “the total of all the priced line items
for the base year and all options.” Agency Report (AR),
Tab 14, TOPR amend. 3, at 21, 22. The independent
government estimate (IGE), which the Army calculated by
including estimates for the base year, three one-year
options, and one ten-day transition option, values the
order at approximately $[deleted] million. AR, Tab 3, IGE,
at 3.
Edmond argues that the IGE does not accurately represent
the value of the order, because the TOPR also included FAR
clause 52.217-8, which reserves for the government a
six-month option to extend services. Comments at 8. In
this regard, the protester relies on the statement in the
TOPR that the total evaluated price would include “all
option periods,” and maintains that “all option periods”
must include the option to extend. Comments at 9; AR, Tab
14, TOPR amend. 3, at 21, 22. Edmond contends that
including the value of the option to extend in the IGE--which
in the protester’s view, should be valued at half the
value of the third option year--would increase the task
order’s value above the $10 million threshold. Comments at
9, 10.
Edmond is mistaken. Our Office has determined that the
value of a task order may include the value of options,
including an option to extend services under FAR clause
52.217-8, when the value of the option (if exercised) is
evident from the face of the solicitation. Serco Inc.,
B-406061, B-406061.2, Feb. 1, 2012, 2012 CPD ¶ 61 at 6-7.
While the TOPR here required contractors to submit prices
for the base period and option periods 1-4, it did not
require submission of prices that would be used if the
Army exercised its option to extend services under FAR
clause 52.217-8, nor did it provide any formula for
calculating these prices. In this regard, Edmond’s
reliance on the TOPR’s statement that “the total evaluated
price for orders would include all priced line items for
the base year and all option periods” is misplaced, since
the option-to-extend period here is not to be priced in
proposals nor included in the evaluation of proposals.
In sum, the protester has not shown the agency’s IGE to be
inconsistent with the terms of the TOPR or an inaccurate
measure of the total value of the task order. Since that
value is below $10 million, our Office does not have
jurisdiction to consider the protest. (Edmond
Scientific Company, B-410187.2: Dec 1, 2014) (pdf)
Our Office is authorized to hear protests of task orders that
are issued under multiple-award contracts (or protests of the
solicitations for those task orders) where the task order is
valued in excess of $10 million, or where the protester asserts
that the task order increases the scope, period, or maximum
value of the contract under which the order is issued.
California Indus. Facilities Res., Inc., d/b/a/ CAMSS Shelters,
B-406146, Feb. 22, 2012, 2012 CPD ¶ 75 at 2. Our Office has held
that the value of a task order may include the total anticipated
funds to be recovered by the successful offeror. See Serco Inc.,
B-406061, B-406061.2, Feb. 1, 2012, 2012 CPD ¶ 61 at 7.
Here, the task order issued to NSI under its IDIQ contract has a
maximum value below the $10 million floor necessary to invoke
our bid protest jurisdiction. In this regard, the record
reflects that the task order is comprised of four contract line
item numbers (CLINs)--three fixed‑price CLINs (one of which is
for optional transition-out work) and a single cost‑type CLIN
for travel costs up to a maximum of $500,000. The agency issued
the order to NSI on September 5 in the amount of $9,620,556.42
(including the optional transition work and assuming the maximum
$500,000 for travel costs).
Glacier argues that the $10 million jurisdictional threshold is
met here because, but for the agency’s flawed evaluation, it
would have received an order under its IDIQ contract in an
amount greater than $10 million. Throughout its protest, and in
its submission addressing the jurisdictional question at issue,
Glacier focuses on what it believes to be the true value of the
work to be performed under the task order. Glacier contends that
the work cannot be performed for an amount less than $10
million, where it, as the incumbent, proposed a price of
$11,431,544. The protester maintains that we should invoke our
jurisdiction since, as properly issued to Glacier, the order
would have a value in excess of $10 million.
The Federal Acquisition Streamlining Act, as amended by the
National Defense Authorization Act of Fiscal year 2012,
specifically provides, in relevant part, that a protest is not
authorized in connection with the issuance of a task or delivery
order except for “a protest of an order valued in excess of
$10,000,000.” 10 U.S.C. § 2304c(e)(1) (2006). Notwithstanding
Glacier’s arguments to the contrary, where an order has in fact
been issued by the government, we view the jurisdictional limit
to turn on the value of the disputed order, which is reflected
in the terms of the order itself since the order defines the
scope and terms of the contractual commitment between the
selected contractor and the government. Accordingly, we do not
consider the alleged underlying value of the work apart from the
terms of the disputed order, or the value of a theoretical order
issued to a different contractor, as advocated by Glacier. Our
view in this regard is consistent with the other decisions of
this Office where we have considered the value of an order
issued by the government. In each case, the focus of our inquiry
has been on the total anticipated funds (or other economic
value) to be received as compensation for the goods and services
to be provided under the order as reflected in the contractual
agreement between the government and contractor, not the value
of the work separate and apart from the terms of the underlying
contractual agreement, or the value of a different order issued
to a different firm. See, e.g., Serco Inc., supra, (total
evaluated price, to include option, appropriate measure of task
order value because it reflects the amount that the contractor
may be compensated in performing the task order); ESCO Marine,
Inc., B-401438, Sept. 4, 2009, 2009 CPD ¶ 234 at 4-6 (holding
value of task order for jurisdictional purposes to be the
anticipated funds to be recovered by the contractor); U.S. Bank,
B-404169.3, Feb. 15, 2011, 2011 CPD ¶ 43 at 3-4 (vendor’s total
anticipated fee is value for determining jurisdiction).
In this case, there is no reasonable dispute that the challenged
order, as issued by the government, has a maximum value less
than $10 million. Accordingly, our Office does not have
jurisdiction to consider the protest. (Goldbelt
Glacier Health Services, LLC, B-410378, B-410378.2: Sep 25,
2014) (pdf)
We do not have
jurisdiction to hear Kevcon’s challenge because it concerns a
task order valued at less than $10 million. In this regard, the
government estimate for the task order was $2.7 million, and
Kevcon’s quoted price was $2.64 million. Request for Dismissal
at 2.
In 1994, the Federal Acquisition Streamlining Act (FASA) barred
protests concerning task or delivery orders issued under ID/IQ
contracts, other than those challenging the scope, period, or
maximum value of the underlying contract. See Pub. L. No.
103-355, 108 Stat. 3243, 3264 (1994) (codified in Titles 10 and
41 of the U.S. Code). The Fiscal Year (FY) 2008 National Defense
Authorization Act (NDAA) amended FASA to grant GAO jurisdiction
to hear protests concerning task or delivery orders valued at
more than $10 million (in addition to those concerning scope, as
discussed above). See Pub. L. No. 110-181, 122 Stat. 3, 237
(2008). The FY 2008 NDAA amendment to FASA also contained a
sunset provision, which stated that the amended “subsection
shall be in effect for three years.” Id.
As explained in our decision in Technatomy Corp., B-405130, June
14, 2011, 2011 CPD ¶ 107, the sunset provision of the FY 2008
NDAA took effect on May 27, 2011, with regard to procurements
conducted under Title 41 of the U.S. Code. Despite this sunset,
we concluded that, with respect to Title 41 procurements, the
plain language of the FY 2008 NDAA resulted in the elimination
of FASA bar on protests; consequently, our Office had
jurisdiction to consider protests concerning task or delivery
orders of any size. Id. at 4.
On December 31, 2011, the FY 2012 NDAA amended our Office’s
jurisdiction, and effectively reinstated the FASA task or
delivery order bar and the $10 million exception established
under the FY 2008 NDAA. FY 2012 NDAA, Pub. L. 112–81 125 Stat.
1298, 1491 (2011). Specifically, section 813 of the FY 2012 NDAA
amended the sunset provision of the FY 2008 NDAA, as follows:
Paragraph (3) of section 4106(f) of title 41, United States
Code, is amended to read as follows:
“(3) EFFECTIVE PERIOD.--Paragraph (1)(B) and paragraph (2) of
this subsection shall not be in effect after September 30,
2016.”.
Id.
As a result of this amendment, the jurisdiction of our Office
concerning task or delivery orders, under both Titles 10 and 41,
returns to its status before May 27, 2011. Specifically, our
Office has jurisdiction to hear protests concerning task or
delivery orders issued under ID/IQ contracts only where: (1) the
protest challenges the scope, period, or maximum value of the
underlying contract; or (2) the order is valued at more than $10
million.
Kevcon argues that because the task order solicitation was
issued prior to the reinstatement of the $10 million threshold
by the FY 2012 NDAA, our Office has jurisdiction to hear this
protest based on the analysis set forth in Technatomy. The
protester’s reading of Technatomy is incorrect. In that case, we
interpreted our jurisdiction to hear task or delivery order
protests based on the filing date of the protest, rather than
the date of the underlying procurement action. Technatomy Corp.,
supra, at 5-6.
In Standard Communications, Inc., B-406021, Jan. 24, 2012, 2012
CPD ¶ 51, we confirmed our view that the authority of this
Office to hear a protest relates to the date when the protest
was filed. Specifically, we held that although the enactment of
the FY 2012 NDAA reinstated the $10 million threshold, we had
jurisdiction to consider and issue a decision regarding a
protest of a task order valued at less than $2 million because
the protest had been filed before the enactment of the FY 2012
NDAA. Id. at 3.
Here, Kevcon’s protest was filed on February 13, 2012; on that
date, the FY 2012 NDAA had taken effect. For this reason, our
Office does not have jurisdiction to hear this protest because
it concerns a task order valued at less than $10 million.
(Kevcon, Inc., B-406418, Mar 7,
2012) (pdf)
The Competition
in Contracting Act of 1984 (CICA) established GAO's statutory
authority to hear bid protests concerning challenges to the
terms of solicitations and the award or proposed award of
contracts. See Pub. L. No. 98-369, 98 Stat. 1175 (1984)
(codified at 31 U.S.C. sect. 3551 et seq. (2006)). Prior to
1994, the statutory authority of our Office under CICA did not
distinguish between protests of contract awards and protests of
task or delivery orders, as discussed more fully below.
In 1994, Congress enacted the Federal Acquisition Streamlining
Act (FASA), which, as relevant here, provided statutory guidance
for the award of ID/IQ contracts. See Pub. L. No. 103-355, 108
Stat. 3243 (1994) (codified in Titles 10 and 41 of the U.S.
Code). FASA also amended CICA by limiting the jurisdiction of
our Office with respect to protests of task or delivery orders
placed under ID/IQ contracts under both Title 10 and Title 41 of
the U.S. Code. FASA's bar on protests of orders applicable to
ID/IQ contracts under Title 41 read as follows:
(e) Protests.--
A protest is not authorized in connection with the issuance or
proposed issuance of a task or delivery order except for a
protest on the ground that the order increases the scope,
period, or maximum value of the contract under which the order
is issued.
Id. 108 Stat. at 3264 (codified at 41 U.S.C. sect. 253j (1994)).
In other words, after 1994, protests over task or delivery
orders were barred unless these protests alleged that the order
increased the scope, period, or maximum value of the underlying
contract through which the orders were issued.
In 2008, Congress modified FASA's bar on protests of task or
delivery orders with the passage of the National Defense
Authorization Act (NDAA). See Pub. L. No. 110‑181, 122 Stat. 3
(2008). As relevant here, the 2008 NDAA amended FASA (which in
turn, had amended CICA) by "striking subsection (e)," and
"inserting the following new subsection (e)":
(e) Protests.--
(1) A protest is not authorized in connection with the issuance
or proposed issuance of a task or delivery order except for--
(A) a protest on the ground that the order increases the scope,
period, or maximum value of the contract under which the order
is issued; or
(B) a protest of an order valued in excess of $10,000,000.
(2) Notwithstanding section 3556 of title 31, the Comptroller
General of the United States shall have exclusive jurisdiction
of a protest authorized under paragraph (1)(B).
(3) This subsection shall be in effect for three years,
beginning on the date that is 120 days after the date of the
enactment of the National Defense Authorization Act for Fiscal
Year 2008.
Id. 122 Stat. at 237 (codified at 41 U.S.C. sect. 253j(e) (2006
& Supp. III 2009)).
The 2008 NDAA amendment, in essence, expanded the jurisdiction
of our Office under FASA to include protests of task or delivery
orders valued in excess of $10 million. 41 U.S.C. sect.
253j(e)(2). The NDAA also contained a sunset provision, which
stated that the "subsection shall be in effect for three years."
Id. sect. 253j(e)(3). The sunset took effect after May 27,
2011--4 days after this protest was filed.
In our view, the sunset provision in 41 U.S.C. sect. 253j(e)(3)
applies to the entirety of subsection 253j(e). As a result, the
entirety of subsection 253j(e) has no effect--including both the
bar on task order protests under FASA, and the exceptions to
that bar under FASA, and the 2008 NDAA. Accordingly, GAO's
jurisdiction reverts to that originally provided in CICA.
Our view of the sunset provision is based on the plain meaning
of the text of the 2008 NDAA. The starting point of any analysis
of the meaning of a statutory provision is the language used by
Congress. International Program Grp., Inc., B-400278, B-400308,
Sept. 19, 2008, 2008 CPD para. 172 at 4 (citing Consumer Prod.
Safety Comm'n v. GTE Sylvania, Inc., 447 U.S. 102, 108 (1990)).
Where, as here, the language of a statute is clear on its face,
its plain meaning will be given effect. Carcieri v. Salazar, 555
U.S. 379, 129 S. Ct. 1058, 1063-64 (2009); see also Mission
Critical Solutions, B‑401057, May 4, 2009, 2009 CPD para. 93 at
3-8 (applying plain meaning of Small Business Act), recon.
denied, Small Business Admin.-Recon., B-401057.2, July 6, 2009,
2009 CPD para. 148 at 5 (same).
Here, the plain meaning of the sunset provision unambiguously
refers to the whole of subsection 253j(e). As discussed above,
the 2008 NDAA struck the prior "subsection" added by FASA in its
entirety and replaced it with "new subsection (e)." Pub. L. No.
110-181, 122 Stat. 3, 237 (2008). The revised subsection (e)
stated that "[t]his subsection shall be in effect for three
years." Id.; 41 U.S.C. sect. 253j(e)(3). Thus, upon operation of
the sunset provision on May 27, 2011, the entire subsection,
i.e., 41 U.S.C. sect. 253j(e), no longer has effect.
As a result of the sunset of 41 U.S.C. sect. 253j(e), the
jurisdiction of our Office over protests of task or delivery
orders has, effectively, reverted to the jurisdiction we had
under CICA, prior to its amendment by FASA. As mentioned above,
prior to FASA, our Office's statutory authority under CICA to
hear protests did not distinguish between protests of contracts,
and protests of task or delivery orders. Consistent with this
authority, our Office heard protests prior to the passage of
FASA concerning the issuance of task or delivery orders,
including challenges to orders that exceeded the scope of the
underlying ID/IQ contract, as well as protests that did not
involve challenges to scope.[4] See, e.g., Astronautics Corp. of
Am., B-242782, June 5, 1991, 91-1 CPD para. 531 (challenge to
scope of task order issued under a multiple-award ID/IQ
contract); Computer Scis. Corp., B-213287, Aug. 6, 1984, 84‑2
CPD para. 151 (non-scope challenge to competitive task order
issued under ID/IQ contract); Nautica Int'l Inc., B-254428, Dec.
15, 1993, 93-2 CPD para. 321 (non-scope challenge to order
issued under the Federal Supply Schedule); Integrated Sys. Grp.,
Inc., B-246447, Mar. 9, 1992, 92-1 CPD para. 268 (same);
Diversified Comp. Consultants, Inc., B-241764, Feb. 27, 1991,
91-1 CPD para. 224 (same); AZTEK, Inc., B-236612, Dec. 6, 1989,
89-2 CPD para. 521 (same).
In sum, the plain meaning of 41 U.S.C. sect. 253j(e)(3)
eliminates any bar to our jurisdiction to hear and issue
decisions concerning bid protests arising from task or delivery
orders of any value. For this reason, we conclude that we have
jurisdiction over the task order protest here.
Effective Date of the Sunset Provision
Even if we were to view the sunset provision as barring our
jurisdiction as of May 27, 2011, as DISA argues, it would not
end our jurisdiction to complete our review of protests filed
with our Office prior to the effective date of the sunset on May
27, 2011. In other words, even if we were to agree with DISA
concerning the general effect of the sunset provision, we would
not view the sunset as affecting pending protests.
As noted above, 41 U.S.C. sect. 253j(e)(1), added to CICA by
FASA and amended by the 2008 NDAA, stated that "[a] protest is
not authorized in connection with the issuance or proposed
issuance of a task or delivery order except" for the identified
exceptions. (Emphasis added.) CICA defines a "protest" as a
"written objection by an interested party" to a solicitation, or
the award or proposed award of a contract. 31 U.S.C. sect. 3551
(2006). CICA further states that "[a] protest concerning an
alleged violation of a procurement statute or regulation shall
be decided by the Comptroller General if filed in accordance
with this subchapter." Id. sect. 3552(a). That is, CICA's
definitions of "protest" are based on the filing of a written
objection. Thus, reading the 2008 NDAA amendment to CICA in
conjunction with CICA's protest definition, we think that the
prohibition of protests in the 2008 NDAA, which states that "[a]
protest is not authorized," can only be reasonably interpreted
as meaning a protest may not be filed.
Moreover, a conclusion that the sunset provision applies to
protests filed prior to the sunset date would require us to give
retroactive effect to the sunset provision. In the absence of
statutory direction, however, retroactivity is not favored by
the law. KPMG Peat Marwick, LLP--Costs, B-259479, July 25, 1996,
96-2 CPD para. 43 at 4 (citing Bowen v. Georgetown Univ. Hosp.,
488 U.S. 204 (1988); OAO Corp. v. Johnson, 49 F.3d 721 (Fed.
Cir. 1995)). Thus, in the absence of such an express statement,
we do not view the sunset provision as applying to pending
protests even assuming arguendo that the sunset terminates GAO's
jurisdiction.
In sum, we conclude that our Office has jurisdiction to complete
our review of protests concerning the issuance of task orders
that were filed prior to May 27, 2011, including the order
challenged here by Technatomy. (Technatomy
Corporation, B-405130, June 14, 2011) (pdf)
LaBarge argues
that our Office has jurisdiction to hear this protest because
the delivery order issued to DRS is outside the scope of the
underlying indefinite-delivery/indefinite-quantity (ID/IQ)
contract. The protester points to the solicitation for the
underlying ID/IQ contract for fuel and water pump assemblies,
solicitation No. W56HZV-09-R-0461, and argues that the
solicitation did not notify protesters that the pump assemblies
would be used in connection with the Assault Hoseline System;
the protester argues that this system imposes additional
requirements for the parts, and contends that these additional
requirements are not found in the underlying ID/IQ contract.
LaBarge requests that our Office recommend that the agency
terminate DRS's order, and issue the order to LaBarge, since
LaBarge is, in its view, the only supplier of pumps that meet
the agency's requirements. Protest at 6.
When a protester alleges that an order is outside the scope of
the contract, we analyze the protest in essentially the same
manner as those in which the protester argues that a contract
modification is outside the scope of the underlying contract.
The fundamental issue is whether issuance of the task or
delivery order, in effect, circumvents the general statutory
requirement under the Competition in Contracting Act of 1984 (CICA)
that agencies "obtain full and open competition through the use
of competitive procedures" when procuring their requirements.
See 10 U.S.C. sect. 2304(a)(1)(A) (2000); see Anteon Corp.,
B‑293523, B-293523.2, Mar. 29, 2004, 2004 CPD para. 51 at 4-5.
In determining whether a task or delivery order (or
modification) is outside the scope of the underlying contract,
and thus falls within CICA's competition requirement, our Office
examines whether the order is materially different from the
original contract. See Specialty Marine, Inc., B-293871,
B-293871.2, June 17, 2004, 2004 CPD para. 130 at 4.
Although LaBarge cites our decision in Specialty Marine in
support of its arguments that its protest here concerns a matter
of scope, the protester fails to recognize that our concern in
scope cases is not for aggrieved competitors for the issuance of
an order (that is, current holders of an ID/IQ contract under
which the orders were issued). Rather, our concern was whether
the issuance of an order would circumvent the competition
requirements of CICA and deprive other entities--that did not
compete for and receive one of the underlying contracts--of an
opportunity to compete for what was, in essence, a new
procurement. See, e.g., LBM, Inc., B‑290682, Sept. 18, 2002,
2002 CPD para. 157 at 5-7.
In contrast, LaBarge is concerned with whether the agency has
properly issued a delivery order to DRS, rather than LaBarge.
Thus, although LaBarge has framed its arguments as raising a
question about the scope of the contract, the crux of its
protest concerns the agency's evaluation of the competing
quotes. Because the value of the delivery order is below $10
million, we do not have authority to review the issuance of this
order. (LaBarge Products, Inc.,
B-402280, January 19, 2010) (pdf)
This protest
involves the issuance of a task order. Our jurisdiction to
consider protests of orders issued under task or delivery order
contracts is limited to protests where the order is valued over
$10 million, or where the protester can show that the order
exceeds the scope, term, or maximum value of the task or
delivery order contract. 41 U.S.C.A sections 253j(e), (g),
253k(1) (West 2009); e.g., e‑Management Consultants, Inc.;
Centech Group, Inc., B‑400585.2, B-400585.3, Feb. 3, 2009, 2009
CPD para. 39 at 6; see also Armorworks Enters., LLC, B-401671.3,
Nov. 6, 2009, 2009 CPD para. 225 at 3 (protest dismissed where
agency issued orders valued under $10 million under a delivery
order contract).
In reviewing the agency report, our Office noted that the task
order at issue had been issued under the terms of another
contract vehicle, the FERM BPA, and the task order itself was
clearly valued under $10 million. Since the agency report did
not contain a copy of a FERM BPA, and the terminology used in
the agency report was not precise, we asked the Forest Service
to provide additional documentation about the FERM BPA, and
invited both parties to submit additional briefs. Based on
information produced by the Forest Service, the relevant facts
regarding our jurisdiction follow.
The FERM BPAs were established pursuant to request for
quotations (RFQ) No. AG‑04N0‑S‑09‑0004, which was issued by the
Forest Service on May 6, 2009. The FERM RFQ requested quotations
to provide 13 types of forest engineering and road maintenance
services, including stream restoration and rehabilitation
services, across 11 geographic areas in Oregon. FERM RFQ at 2.
In addition to providing a price quotation for the relevant line
items, the FERM RFQ instructed vendors to submit a technical
statement, a "benefit to local community" statement, and past
performance information. FERM RFQ at 53-55.
The FERM RFQ emphasized that the procurement was expected to
conclude with the establishment of multiple BPAs, and expressly
stated that no contracts would be awarded. FERM RFQ at 15.
Consistent with this approach, the FERM RFQ did not include a
guaranteed minimum quantity, although the RFQ did specify an
annual ceiling amount of $1 million per vendor.
After the Forest Service evaluated quotations from numerous
vendors, including both Aquatic and C&B, the agency established
FERM BPAs with 43 vendors. The BPAs established with Aquatic and
C&B included the services relevant here: stream restoration and
rehabilitation services within Area 1.
In response to our inquiry, the Forest Service now argues that
our Office does not have jurisdiction to consider this protest
because the FERM BPA is functionally equivalent to a task order
contract, and the value of the task order is less than $10
million. We disagree.
In order for the task order protest bar to apply, there must be
a task or delivery order contract pursuant to which the order is
being placed. A task order contract for purposes of 41 U.S.C.
sect. 253j--the section that sets forth the limitation of our
jurisdiction to hear protests challenging the issuance of task
or delivery orders under such contracts--is defined as
a contract for services that does not procure or specify a firm
quantity of services (other than a minimum or maximum quantity)
and that provides for the issuance of orders for the performance
of tasks during the period of the contract.
41 U.S.C. sect. 253k(1) (2006).
To be an enforceable contract, an
indefinite-delivery/indefinite-quantity task or delivery order
contract must require the government to order, and the
contractor to furnish, at least a stated minimum quantity of
supplies or services. Federal Acquisition Regulation (FAR) sect.
16.504(a)(1). Additionally, to ensure that the contract is
binding, the minimum quantity must be more than a nominal
quantity, but should not exceed the amount that the government
is fairly certain to order. FAR sect. 16.504(a)(2). Information
Ventures, Inc., B-299255, Mar. 19, 2007, 2007 CPD para. 80 at 6.
In contrast, a BPA is generally not a contract, and a BPA does
not obligate the agency to enter into future contracts with the
vendor. FAR sect. 13.303-1(a); see also Logan, LLC, B-294974.6,
Dec. 1, 2006, 2006 CPD para. 188 at 2-3 n.2. Here there is no
underlying task order contract; the task order is being placed
under a BPA.
Since GAO's jurisdiction at 41 U.S.C. sect. 253j(e) to consider
protests of task orders is limited with respect to task orders
under task or delivery order contracts, and since a BPA is not a
contract, we have no basis to dismiss C&B's challenge for lack
of jurisdiction. See, e.g., Envirosolve LLC, B‑294974.4, June 8,
2005, 2005 CPD para. 106 at 7-8 (sustaining protest against
orders placed under multiple-award BPAs where orders were valued
under $100,000). (C&B
Construction, Inc., B-401988.2, January 6, 2010) (pdf)
As a preliminary
matter, the Navy argues that we should dismiss ESCO’s protest
for lack of jurisdiction because the task order issued to ISL is
in the amount of $.06 and our jurisdiction to review task order
protests is limited to those valued in excess of $10 million
(except under certain limited circumstances not applicable
here). ESCO disagrees, arguing that our Office has jurisdiction
because the value of the task order should include consideration
of the ship scrap values, which both offerors estimated to be in
excess of $13 million and which offerors were required to factor
into their proposed prices.
The Federal Acquisition Streamlining Act of 1994 (FASA), Pub. L.
No. 103-355, sect. 1004, 108 Stat. 3243, 3252-53 (1994),
codified at 10 U.S.C. sect. 2304(c) (2006), provides that “[a]
protest is not authorized in connection with the issuance or
proposed issuance of a task or delivery order except for a
protest on the ground that the order increases the scope,
period, or maximum value of the contract under which the order
is issued.” However, section 843 of the National Defense
Authorization Act of Fiscal Year 2008 (NDAA), Pub. L. No.
110-181, 122 Stat. 3, 236-39 (2008) (to be codified at 10 U.S.C.
sect. 2304c(e)) modified FASA’s prior limitations on task order
protests. Specifically, the NDAA provides that, in addition to
previously permitted task order protests, a protest is also
authorized with regard to “an order valued in excess of
$10,000,000.” 122 Stat. 237 (to be codified at 10 U.S.C. sect.
2304c(e)(1)).
Here, the protester does not allege that the task order will
exceed the scope, period, or maximum value of the underlying
ID/IQ contract. Nor is there any dispute that offerors’ proposed
prices for the task order are less than $10 million, while the
sum of each offeror’s price and estimated scrap value was, in
both instances, in excess of $10 million. Rather, the
determination of GAO’s jurisdiction turns on the meaning of the
term “valued” as used in the NDAA.
In matters concerning the interpretation of a statute, the first
question is whether the statutory language provides an
unambiguous expression of the intent of Congress. If it does,
then the matter ends there, for the unambiguous intent of
Congress must be given full effect. Connecticut National Bank v.
Germain, 503 U.S. 249, 253-54 (1992) (when the words of a
statute are unambiguous, the judicial inquiry is complete);
Robinson v. Shell Oil Co., 519 U.S. 337, 340-41 (1997) (when the
statutory language at issue has a plain and unambiguous meaning
with regard to the particular dispute in the case, the judicial
inquiry must cease). It is a fundamental canon of statutory
construction that words, unless otherwise defined by the
statute, will be interpreted consistent with their ordinary,
contemporary, common meaning. State of California v. Montrose
Chem. Corp., 104 F.3d 1507, 1519 (9th Cir. 1997); GAO,
Principles of Federal Appropriations Law, vol. 1, at 2-89 (3d
ed. 2004); see Mallard v. United States District Court for the
Southern District of Iowa, 490 U.S. 296, 301 (1989).
The NDAA provision at issue here extends GAO’s jurisdiction to
protests involving the issuance of task orders of a certain
size--those “valued” in excess of $10 million. However, neither
the language of the statute nor the legislative history of the
NDAA defines the term “valued.” Without specific definitions to
guide our review, we look to the plain meaning of the word used
in the statute.
The ordinary and commonly understood meaning of the term “value”
is “a fair return or equivalent in goods, services, or money for
something exchanged,” Merriam-Webster’s Dictionary (http://www.merriam-webster.com/dictionary/value),
or “an amount, as of goods, services, or money, considered to be
a fair and suitable equivalent for something else.” The American
Heritage Dictionary of the English Language (4th ed. 2004). As
explained below, while an order’s “value” often may be
synonymous with its price, under the procurement scheme here, we
think it is proper to take into account the estimated scrap
values when determining the “value” of the task order in
question.
As set forth above, the provisions of the underlying ID/IQ
contracts require the contractor to sell or dispose of any scrap
or reusable equipment/material removed from the ship as part of
the dismantling efforts. Further, the contractor was to retain
the proceeds of the scrap sales. Accordingly, the contractors
were required to factor estimated proceeds from scrap sales into
their task order prices for towing and dismantling services.
Specifically, the contracts state that “[t]he contractor
shall use the [scrap] sale proceeds to offset the price or cost
of work covered by this contract,” and that “[t]he
Contractor shall retain proceeds from the sale of scrap and
reusable equipment/material from the vessel being dismantled . .
. and shall apply them to the cost of performance of the
contract.” AR, Tab 1, ISL Contract, sections B, C.4.2; Tab 2,
ESCO Contract, sections B, C.4.2.
The terms and procedures of the ID/IQ contracts here implement
the provisions of 10 U.S.C. sect. 7305a, Vessels stricken from
Naval Vessel Register: contracts for dismantling on net-cost
basis, which states:
(a) Authority for net-cost basis contracts. When the Secretary
of the Navy awards a contract for the dismantling of a vessel
stricken from the Naval Vessel Register, the Secretary may award
the contract on a net-cost basis.
(b) Retention by contractor of proceeds of sale of scrap and
reusable items. When the Secretary awards a contract on a
net-cost basis under subsection (a), the Secretary shall provide
in the contract that the contractor may retain the proceeds from
the sale of scrap and reusable items removed from the vessel
dismantled under the contract.
(c) Definitions. In this section:
(1) The term “net-cost basis”, with respect to a contract for
the dismantling of a vessel, means that the amount to be paid to
the contractor under the contract for dismantling and for
removal and disposal of hazardous waste material is discounted
by the offeror’s estimate of the value of scrap and reusable
items that the contractor will remove from the vessel during
performance of the contract. . . .
10 U.S.C. sect. 7305a.
The ID/IQ contracts awarded to both ISL and ESCO also contain
Federal Acquisition Regulation (FAR) clause sect. 52.245-2,
Government Property (Fixed-Price Contracts) (May 2004), which
states in relevant part that “[t]he contractor shall credit the
net proceeds from the disposal of Government property to the
price or cost of work covered by this contract or to the
Government as the Contracting Officer directs.” FAR sect.
52.245-2(i)(9).
The task order issued here essentially provides the contractor
with two different forms of payment for the towing and
dismantling services being supplied to the Navy: 1) payment in
appropriated funds (i.e., the price); and 2) payment-in-kind
(i.e., the right to keep the scrap sale proceeds). As evidenced
by their proposals, both ESCO and ISL valued the payment-in-kind
at more than $13 million. In fact, the only reason the Navy
received the prices that it did from ISL and ESCO was because of
the additional $13 million in payments-in-kind that the
contractor would receive as part of the task order. Under the
payment scheme contemplated by the applicable statute and the
ID/IQ contracts themselves, we think that the price of the task
order does not represent the task order’s entire value, and that
consideration of the estimated scrap value is also necessary to
determine the task order’s value.
As the “value” of the task order here, as measured by sum of
ISL’s price and estimated scrap value proceeds, is in excess of
$10 million, we conclude that we have jurisdiction to review
ESCO’s protest of the task order issued to ISL. (ESCO
Marine, Inc., B-401438, September 4, 2009) (pdf)
On September 9,
Armorworks, one of the ID/IQ contract holders, protested the
terms of the RFQs, arguing that it was improper to split the
requirement for the plates into three separate RFQs by size.
According to Armorworks, no body armor requirement has ever been
divided this way in the past. Rather, Armorworks asserts, SAPI
plates are always ordered in combined groups of small, medium,
and large, so that when they are delivered to the users, there
is no risk that soldiers of one particular size--small, medium,
or large--will be left without protection. In addition,
Armorworks maintains that the agency should have "set these
procurements aside for small business, in whole or in part."
Protest at 2.
The agency responded by asserting that our Office does not have
jurisdiction over the protest challenging the RFQs because each
RFQ concerns the award of a separate delivery order with an
estimated value of less than $10 million, the statutory
threshold for our Office's task and delivery order protest
jurisdiction. We agree.
This Office's authority to consider task and delivery order
protests was recently expanded by section 843 of the National
Defense Authorization Act of Fiscal Year 2008 (NDAA). In this
regard, the NDAA authorizes this Office to consider protests
filed in connection with task orders that are valued in excess
of $10 million. Pub. L. No. 110-181, 122 Stat. 3, 239 (2008).
There is no dispute that each of the contemplated delivery
orders is valued at less than $10 million. Rather, Armorworks
argues that our Office should consider the RFQs as reflecting a
single requirement with a combined value of $21 million. In this
regard, Armorworks contends that the agency's decision to divide
the plates into three separate delivery orders was essentially a
pretext, designed to avoid the $10 million threshold and thereby
avoid the protest jurisdiction of our Office. Armorworks reaches
this conclusion based on the fact that dividing the orders by
plate size is allegedly without precedent, coupled with its
belief that such a division is "irrationally dangerous to troops
and morale." Protester's Response to Agency's Memorandum, at 4.
Fundamentally, Armorworks' pretext argument is premised on the
notion that the agency's decision to separately procure the
plates by size was made in bad faith. Government officials are
presumed to act in good faith, Logistics Solutions Group, Inc.,
B-294604.7, B-294604.8, July 28, 2005, 2005 CPD para. 141 at 4,
and we will not aggregate separate task or delivery orders in
connection with a multiple-award ID/IQ contract, for the purpose
of establishing the $10 million jurisdictional threshold, absent
a clear showing that the agency's decision to issue separate
orders was made solely to evade our protest jurisdiction.
Here, the record does not support a finding that the agency's
decision to separately order its plates by size was a pretext as
Armorworks suggests. Rather, the agency has explained that it
divided the requirements into three separate orders according to
size based on its understanding that contractors' SAPI
production lines are established for a particular size; issuing
separate delivery orders for the SAPIs by size, the agency
reasoned, would allow prospective contractors to focus on making
only one size. This in turn would encourage more contractors to
compete and thereby help ensure that all of the urgently needed
items would be provided within the short 90-day timeframe for
delivery. Agency Memorandum, Sept. 10, 2009. Given the agency's
rationale for separating the orders by plate size, we have no
basis to conclude that the agency's decision to issue three
separate task orders was a pretext, that is, a deliberate effort
to evade our protest jurisdiction. Accordingly, because each RFQ
is for a delivery order which is valued at less than $10
million, our Office does not have jurisdiction to hear
Armorworks' protest of the RFQs. (Armorworks
Enterprises, LLC, B-401671.3,November 6, 2009) (pdf)
As a
preliminary matter, the agency asserts that this Office is not
authorized to consider the issues raised in the protests due to
the limitations of the Federal Acquisition Streamlining Act of
1994 (FASA), 10 U.S.C. sect. 2304c (2006).[12] However, as
discussed below, this Office's consideration of the protest
issues is authorized by the recent enactment of section 843 of
the National Defense Authorization Act of Fiscal Year 2008 (NDAA),
Pub. L. 110-181, 122 Stat. 3, 236-39 (2008), which modified
FASA's prior limitations on task order protests. Specifically,
the NDAA provides that protests of task order awards are not
authorized "except for . . . a protest of an order valued in
excess of $10,000,000." 122 Stat. 237.
The agency acknowledges that the NDAA not only modified FASA's
prior limitations on protests, but further, in order to meet the
"fair opportunity to be considered" requirements, the NDAA
requires that, for orders in excess of $5,000,000, procuring
agencies must, among other things: (1) provide potential
competitors with a clear statement of the agency's requirements;
(2) disclose the significant factors and subfactors, along with
their relative importance, that the agency expects to consider;
and (3) provide a written statement documenting the basis for
the task order award where, as here, award is to be made on a
"best value" basis. Id. The agency further acknowledges that the
NDAA authorizes protests challenging an agency's failure to
comply with these "fair opportunity to be considered"
requirements. Army's Legal Memorandum (DTA 2) at 9.
Nevertheless, the agency maintains that GAO is only permitted to
review whether the "process" for issuing task orders is
followed--that is, whether solicitations identify the agency's
requirements, whether solicitations contain evaluation criteria,
and whether best value award decisions are documented; GAO is
not permitted to review the agency's "judgments" or otherwise
review the reasonableness of the agency's evaluation and award
decision. Army's Legal Memorandum (DTA 2) at 4. Thus, the agency
asserts that although the NDAA's provisions permit a protester
to challenge an agency's failure to inform offerors regarding
the ground rules under which a task order competition will be
conducted, it does not authorize a protest that challenges the
agency's failure to actually follow those rules.
We reject the agency's arguments. Initially, as noted above, the
NDAA authorizes "a protest of an order valued in excess of
$10,000,000." 12 Stat. 237. The Competition in Contracting Act
of 1984 (CICA), as modified by FASA, specifically defines the
term "protest," as follows:
The term "protest" means a written objection by an
interested party to any of the following:
(A) A solicitation or other request by a Federal agency for
offers for a contract for the procurement of property or
services.
(B) The cancellation of such a solicitation or other request.
(C) An award or proposed award of such a contract.
(D) A termination or cancellation of an award of such a
contract, if the written objection contains an allegation that
the termination or cancellation is based in whole or in part on
improprieties concerning the award of the contract.
31 U.S.C. sect. 3551(1) (2000).
In the context of CICA and FASA, and our Office's
well-established practices and procedures employed to implement
the protest jurisdiction conferred by those statutes, we view
the NDAA's authorization to consider "a protest of an order
valued in excess of $10,000,000" as providing the same
substantive protest jurisdiction conferred by those statutes. In
this regard, we find no basis to conclude that, in enacting the
NDAA and authorizing certain task order protests, Congress
intended to establish a system under which an agency is
obligated to advise offerors of the bases for task order
competition, and enforces that requirement through authorization
of bid protests, but which provides no similar enforcement
authority to ensure that agencies actually act in accordance
with the guidance they are required to provide to offerors.
Rather, consistent with this Office's past practice and CICA's
provisions that define a protest as an "objection . . . to . . .
an award or proposed award," we view the NDAA's authorization to
consider protests of task orders in excess of $10,000,000 as
extending to protests asserting that an agency's award decision
failed to reasonably reflect the ground rules established for
the task order competition. Accordingly, our review of the
protests here includes our assessment of whether the agency's
source selection decisions were reasonably consistent with the
terms of the solicitation and applicable procurement laws and
regulations. Triple Canopy, Inc., B-310566.4, Oct. 30, 2008,
2008 CPD para. __ at 5-7. (Bay
Area Travel, Inc.; Cruise Ventures, Inc.; Tzell-AirTrak Travel,
B-400442; B-400442.2; B-400442.3; B-400547; B-400547.2;
B-400547.3; B‑400564; B-400564.2; B-400564.3, November 5, 2008)
(pdf)
Next, with regard to Centech's protest challenging the
agency's interim issuance of a task order to Bowhead, this
Office is not authorized to consider the matter.
Specifically, the Federal Acquisition Streamlining Act of
1994 (FASA) provides that this Office is authorized to
consider task order protests only under limited
circumstances, stating:
A protest is not
authorized in connection with the issuance or proposed
issuance of a task or delivery order except for a protest
on the ground that the order increases the scope, period,
or maximum value of the contract under which the order is
issued.
41 U.S.C. sect. 253j(d) (2008).
This Office's
authority to consider task order protests was recently
expanded by section 843 of the National Defense
Authorization Act of Fiscal Year 2008 (NDAA). In this
regard, the NDAA authorizes this Office, in addition to
the circumstances identified above, to consider protests
filed in connection with task orders that are valued in
excess of $10 million. Pub. L. 110-181, 122 Stat. 3, 239
(2008).
Here, Centech's protest does not allege that the task
order issued to Bowhead increased the scope, period, or
maximum value of the contract against which the order was
issued. Further, the record is undisputed that the value
of the task order is less than $10 million. Accordingly,
pursuant to the statutory limitations discussed above,
this Office is not authorized to consider Centech's
protest challenging the agency's issuance of an interim
task order to Bowhead. (e-Management
Consultants, Inc.; Centech Group, Inc., B-400585.2;
B-400585.3, February 3, 2009) (pdf)
As a preliminary
matter, the agency asserts that this Office is not
authorized to consider the issues raised in Triple
Canopy’s protest due to the protest limitations previously
imposed by the Federal Acquisition Streamlining Act of
1994 (FASA), 10 U.S.C. § 2304(c)(2000). As discussed
below, this Office’s consideration of the various issues
raised by Triple Canopy is authorized by section 843 of
the National Defense Authorization Act for Fiscal Year
2008 (NDAA), Pub. L. 110-181, 122 Stat. 3, 236-39 (2008),
which modified the prior FASA limitations regarding
permissible protests. Specifically, the NDAA provides
that, in addition to previously permitted task order
protests, a protest is authorized with regard to “an order
valued in excess of $10,000,000.” 122 Stat. 237.
The agency acknowledges that the NDAA not only modifies
FASA’s prior limitations on protests, but further, in
order to meet the “fair opportunity to be considered”
requirements, the NDAA requires that, for orders in excess
of $5,000,000, procuring agencies must provide ID/IQ
contract holders with specific information regarding the
bases for pending task order competitions. The agency
further acknowledges that the NDAA authorizes protests
challenging an agency’s failure to comply with these “fair
opportunity to be considered” requirements. Agency Legal
Memorandum, Sept. 2, 2008, at 12.
Nonetheless, the agency maintains that, while task order
contractors are “entitled to receive the information
[regarding the bases for competitions],” and may protest
the agency’s failure to provide such information,
contractors are “not entitle[d] . . . to challenge the
merits of the award determination.” Id. at 14. That is,
the agency asserts that while the NDAA’s provisions permit
a protester to challenge an agency’s failure to inform
offerors regarding the ground rules under which a task
order competition will be conducted--it does not authorize
a protest that challenges the agency’s failure to actually
follow those rules. (Triple Canopy, Inc.,
B-310566.4, October 30, 2008) (pdf)
We reject the agency’s arguments. Initially, as noted
above, the NDAA authorizes “a protest of an order valued
in excess of $10,000,000.” 122 Stat. 237. The Competition
in Contracting Act of 1984 (CICA), as modified by FASA,
specifically defines the term “protest,” stating:
The term “protest” means a written objection by an
interested party to any of
the following:
(A) A solicitation or other request by a Federal agency
for offers for a
contract for the procurement of property or services.
(B) The cancellation of such a solicitation or other
request.
(C) An award or proposed award of such a contract.
(D) A termination or cancellation of an award of such a
contract, if the
written objection contains an allegation that the
termination or
cancellation is based in whole or in part on improprieties
concerning the
award of the contract.
31 U.S.C. § 3551(1)(2000).
In the context of CICA and FASA, along with this
Office’s well-established practices and procedures
employed to implement the protest jurisdiction conferred
by those statutes, we view the NDAA’s authorization to
consider “a protest of an order valued in excess of
$10,000,000” as providing the same substantive protest
jurisdiction conferred by those statutes. In this regard,
we find no basis to conclude that, in enacting the NDAA
and authorizing certain task order protests, Congress
intended to establish a system that requires agencies to
advise offerors of the bases for task order competitions,
and enforces that requirement through authorization of bid
protests--but provides no similar enforcement authority to
ensure that agencies actually act in accordance with the
guidance they are required to provide to offerors. Rather,
consistent with this Office’s past practice, and CICA’s
provisions that define a protest as an “objection . . . to
. . . an award or proposed award,” we view the NDAA’s
authorization to consider protests of task orders in
excess of $10 million as extending to protests asserting
that an agency’s award decision failed to reasonably
reflect the ground rules established for the task order
competition. Accordingly, our review of Triple Canopy’s
protest includes consideration of whether the agency’s
source selection decision was reasonably consistent with
the terms of the underlying solicitation and applicable
procurement laws and regulations. (Triple
Canopy, Inc., B-310566.4, October 30, 2008) (pdf)
GCE’s protest raises various challenges to the Coast
Guard’s decision to modify the SETS II task order to
include federal financial IT support services. The
protester principally argues that the services are beyond
the scope of the SETS II task order and should have been
separately and competitively procured. In support of its
position, the protester argues that the federal financial
IT support services are materially different from those in
the statement of work in the original SETS II task order.
Importantly, GCE does not argue that the task order
modifications here are beyond the scope of the ITOP II
ID/IQ contract. GCE also protests that the agency’s
decision to modify QSS’s SETS II task order violated the
Small Business Act by improperly bundling work
requirements that had previously been performed by
separate small business concerns. Protest, Nov. 16, 2007,
at 11-13; Protest, Jan. 9, 2008, at 2, 29-30. For the
reasons set forth below, we conclude that we do not have
jurisdiction to consider GCE’s challenges and, therefore,
we dismiss the protest. Our Office is generally precluded
from considering protests challenging the issuance of task
or delivery orders under ID/IQ contracts. In this regard,
the Federal Acquisition Streamlining Act of 1994 (FASA),
Pub. L. No. 103-355, sect. 1004, 108 Stat. 3243, 3252-53
(1994), codified at 41 U.S.C. sect. 253j(d) (2000),
provides that “[a] protest is not authorized in connection
with the issuance or proposed issuance of a task or
delivery order except for a protest on the ground that the
order increases the scope, period, or maximum value of the
contract under which the order is issued.” Here, GCE does
not allege that the modifications issued by the Coast
Guard adding federal financial IT support services
increase the scope, period, or maximum value of the ITOP
II ID/IQ contract; rather, the protester asserts only that
the modifications at issue are outside the scope of the
SETS II task order. Accordingly, as GCE’s protest here
does not fit within the exceptions provided in the
statute, we lack jurisdiction to review the matter. See
Cartographics, LLC, B-297121, Nov. 15, 2005, 2005 CPD para.
207 at 2; United Info. Sys., Inc., B-282895, B-282896,
June 22, 1999, 99-1 CPD para. 115 at 1-2. GCE does not
dispute that its protest is premised on the assertion that
the modifications regarding federal financial IT support
services are beyond the scope of the SETS II task order.
Instead, the protester argues that consideration of its
protest here is not statutorily precluded. Specifically,
GCE argues that the express language of FASA refers to and
prohibits two types of protests: 1) those involving the
proposed issuance of task and delivery orders; and 2)
those involving the issuance of original task and delivery
orders. GCE Comments, Jan. 18, 2008, at 5 (emphasis
added). By contrast, the modification of an existing task
order, GCE maintains, involves neither the issuance nor
the proposed issuance of a task order and is, therefore,
not barred from protest. GCE argues that Congress did not
intend the FASA bar on protests to encompass task order
modifications: the statute does not mention task order
modifications, and if Congress had intended the statute to
apply as well to task order modifications, it would have
added specific language to this effect. Id.
We recognize that the FASA protest bar does not expressly
address the issue of modifications of task and delivery
orders issued under ID/IQ contracts. We think, however,
that the restriction on protests of orders placed under a
task order contract as contained in 41 U.S.C. sect.
253j(d) also applies here. Congress passed FASA as part of
an effort to reform federal procurement activities “by
greatly streamlining and simplifying [the federal
government’s] buying practices.” 140 Cong. Rec. H9240,
H9240 (1994) (statement of Rep. Conyers). Bid protests
were one area targeted by FASA for reform. In particular,
FASA established that, when agencies utilize ID/IQ
contracts--with a statutory preference for the use of
multiple-award ID/IQ contracts, thereby creating a
competitive pool of contractors for individual work
projects--the issuance of individual task and delivery
orders to these contractors would not be subject to
protests. The intent of Congress “was to [generally]
exempt from protest the issuance of individual task orders
to contractors who had already received awards, subject to
protest, of their master ID/IQ contracts.” A & D Fire
Protection Inc. v. U.S., 72 Fed. Cl. 126, 134 (2006). The
protester essentially argues that although protests
regarding an agency’s issuance of task orders under ID/IQ
contracts are precluded, protests regarding an agency’s
modification of such task orders are permitted. We find
this position to be inconsistent with both the language of
FASA and the underlying congressional intent. Moreover, we
see no logic in holding that an agency’s decision to
modify an existing task order could be subject to protest
when it is clear that an agency’s decision to perform the
very same action by means of a new task order would not be
subject to protest; that is, had the Coast Guard issued a
separate task order to QSS for federal financial IT
support services rather than modifying the existing SETS
II task order, it is undisputed that this action would not
be subject to protest. In our view, accepting GCE’s
position--which would permit protests regarding task order
modifications but not the task orders themselves--would
elevate form over substance. In sum, we conclude that
FASA’s bar on protests in connection with the issuance or
proposed issuance of task orders encompasses protests
concerning the issuance or proposed issuance of task order
modifications. (Global
Computer Enterprises, Inc., B-310823; B-310823.2;
B-310823.4, January 31, 2008) (pdf)
Where a solicitation for an ID/IQ contract contemplates
only a single competitive source selection for specific
items, based on the proposals submitted in response to
the RFP, and is not for work to be assigned based on
further competitions among the awardees, we have found
that 10 U.S.C. § 2304c(d) does not preclude
our bid protest jurisdiction by virtue of the
implementation of these source selections by the
issuance of task or delivery orders. Teledyne-Commodore,
LLC--Recon., B‑278408.4, Nov. 23, 1998, 98-2 CPD
¶ 121 at 3-4; Electro-Voice, Inc.,
B-278319, B-278319.2, Jan. 15, 1998, 98-1 CPD
¶ 23 at 5. As discussed in detail below,
that is precisely the situation here, where the RFP
contemplated that awards for the CLINs for existing
INMARSAT services would be based on the proposals,
including the pricing, submitted in response to the RFP
and would not be based on further competitions among the
awardees of the ID/IQ contracts under this RFP. (Global
Communications Solutions, Inc., B-291113, November
15, 2002)
We agree with LBM that the limitation on our bid protest
jurisdiction in 10 U.S.C. S: 2304c(d) does not apply
here. Contrary to the Army's arguments, LBM is not
challenging the proposed issuance of a task order for
these services, but is raising the question of whether
work that had been previously set aside exclusively for
small businesses could be transferred to LOGJAMSS,
without regard to the Federal Acquisition Regulation
(FAR) S: 19.502-2(b) requirements pertaining to small
business set-asides. This is a challenge to the terms of
the underlying LOGJAMSS solicitation and is within our
bid protest jurisdiction. See N&N Travel &
Tours, Inc. et al., B-285164.2, B-285164.3, Aug. 31,
2000, 2000 CPD P: 146 at 6. In our view, the limitation
on our bid protest jurisdiction was not intended to, and
does not, preclude protests that timely challenge the
transfer and inclusion of work in ID/IQ contracts
without complying with applicable laws or regulations,
but was to preclude protests in connection with the
actual or proposed issuance of an individual task or
delivery orders under those contracts. This view is
consistent with the legislative history to this
particular section, which was enacted in the Federal
Acquisition Streamlining Act of 1994 (FASA), Pub. L. No.
103-355, 108 Stat. 3243, 3253. (LBM,
Inc., B-290682, September 18, 2002) (pdf)
Protest that
contracting agency improperly proposes to issue a task
order under an indefinite-delivery/indefinite-quantity
contract is dismissed pursuant to 10 U.S.C. sect.
2304c(d) (1994), which provides that "[a] protest
is not authorized in connection with the issuance or
proposed issuance of a task or delivery order except for
a protest on the ground that the order increases the
scope, period, or maximum value of the contract under
which the order is issued," where the enumerated
exceptions do not apply. (Hospital
Klean, Inc., B-286791, December 8, 2000)
Protests alleging that
contracting agency improperly evaluated protester's
proposals submitted in response to solicitations issued
pursuant to indefinite-quantity, indefinite-delivery
contract are dismissed pursuant to 41 U.S.C. sect.
253j(d) (1994), which provides that "[a] protest is
not authorized in connection with the issuance or
proposed issuance of a task or delivery order except for
a protest on the ground that the order increases the
scope, period, or maximum value of the contract under
which the order is issued," where the enumerated
exceptions do not apply. (United
Information Systems, Inc., B-282895; B-282896, June
22, 1999)
|
|
Comptroller
General - Listing of Decisions |
For
the Government |
For
the Protester |
New
Analytic
Strategies LLC; Gemini Industries, Inc. B-413758.2,
B-413758.3: Nov 28, 2016 |
C&B Construction, Inc.,
B-401988.2, January 6, 2010 (pdf) |
Ryan Consulting Group, Inc.
B-414014: Nov 7, 2016 |
ESCO Marine, Inc., B-401438,
September 4, 2009 (pdf) |
Karthik Consulting, LLC
B-411496: May 26, 2015 (pdf) |
LBM,
Inc., B-290682, September 18, 2002 (pdf) |
Serco Inc., B-410676.2: Dec
12, 2014 (pdf) |
Global
Communications Solutions, Inc., B-291113, November 15, 2002 |
Edmond Scientific Company,
B-410187.2: Dec 1, 2014 (pdf) |
|
Goldbelt Glacier Health Services,
LLC, B-410378, B-410378.2: Sep 25, 2014 (pdf) |
|
Kevcon, Inc., B-406418, Mar 7,
2012 (pdf) |
|
Technatomy Corporation, B-405130,
June 14, 2011 (pdf) |
|
LaBarge Products, Inc., B-402280,
January 19, 2010 (pdf) |
|
Armorworks Enterprises, LLC,
B-401671.3,November 6, 2009 (pdf) |
|
Bay Area Travel, Inc.; Cruise
Ventures, Inc.; Tzell-AirTrak Travel, B-400442; B-400442.2;
B-400442.3; B-400547; B-400547.2; B-400547.3; B‑400564;
B-400564.2; B-400564.3, November 5, 2008 (pdf) |
|
e-Management Consultants, Inc.; Centech
Group, Inc., B-400585.2; B-400585.3, February 3, 2009 (pdf) |
|
Triple Canopy, Inc., B-310566.4,
October 30, 2008 (pdf) |
|
Global Computer Enterprises, Inc.,
B-310823; B-310823.2; B-310823.4, January 31, 2008 (pdf) |
|
Hospital
Klean, Inc., B-286791, December 8, 2000 (PDF
Version) |
|
Corel
Corporation, B-283862, November 18, 1999 (PDF
Version) |
|
United
Information Systems, Inc., B-282895; B-282896, June 22,
1999 (PDF
Version) |
|
U.
S. Court of Federal Claims - Key Excerpts |
D. Whether The Federal Acquisition Streamlining Act [FASA]
Precludes The Court From Adjudicating Plaintiff’s Bid
Protest.
1. The Government’s Argument.
The Government argues that the court does not have
jurisdiction to adjudicate Plaintiff’s claim, “because
this protest ‘is in connection with’ the cancellation of
an RFQ for a proposed delivery[.]” Gov’t Mot. at 6–7
(citing 10 U.S.C. § 2304c(e); SRA Int’l, 766 F.3d at 1413
(“The statutory language of FASA is clear and gives the
court no room to exercise jurisdiction over claims made
‘in connection with the issuance or proposed issuance of a
task or delivery order.’”)). “Guam Shipyard is protesting
the cancellation of an RFQ [that] . . . contemplated the
issuance of a task or delivery order under an existing
IDIQ contract and is directly ‘in connection with’ a
proposed task or delivery order.” Gov’t Mot. at 9. “[A]
direct challenge to the delivery order would undeniably
fall within the FASA ban,” and Plaintiff “is attempting to
circumvent the clear language of FASA by indirectly
seeking relief that would be unavailable in a direct
challenge[.]” Gov’t Mot. at 9.
The FASA ban is not limited
to situations in which a task or delivery order will
necessarily be issued. Rather, the statute applies when
the agency issues a task or delivery order and when the
issuance is only “proposed.” See 10 U.S.C. § 2304c(e).
FASA does not require that a proposed task or delivery
order actually be issued. Id. Therefore, the fact that a
cancellation will not lead to a delivery order does not
remove the agency decision from the clear terms of the
FASA ban. . . . MSC’s decision to cancel the RFQ was
inextricably connected with the decision of whether to
issue the proposed delivery order. It is the issuance of
that proposed delivery order that [Plaintiff] hopes to
gain if it prevails in this protest.
Gov’t Reply at 3 (emphasis
in original).
2. Plaintiff’s Response.
Plaintiff responds that the
court “has jurisdiction . . . because the cancellation of
the VRA RFQ ‘may be viewed as a discrete procurement
decision’ distinct from the proposed issuance of a
delivery order.” Pl. Reply at 2 (quoting BayFirst
Solutions, LLC v. United States, 104 Fed. Cl. 493, 507
(2012)). Plaintiff “is protesting the cancellation of a
solicitation,” not the issuance or proposed issuance of a
delivery order. Pl. Reply at 2. “By its very nature, the
cancellation of a solicitation is a decision that is
conceptually severed from the issuance or proposed
issuance of a task order and clearly will not ‘lead to the
proposed issuance of a task order.’” Pl. Reply at 3
(quoting Mori Assocs., Inc. v. United States, 113 Fed. Cl.
33, 38 (2013)).
Here, the cancellation of
the VRA RFQ does not have a direct and causal relationship
to the issuance or proposed issuance of a delivery order.
The cancellation is a discrete procurement decision that
does not implicate the FASA task and delivery order ban.
As such, th[e c]ourt has jurisdiction to entertain [Plaintiff]’s
protest.
Pl. Reply at 4 (emphasis in
original).
3. The Court’s
Resolution.
The Tucker Act authorizes
the United States Court of Federal Claims:
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).
But, FASA provides that “[a]
protest is not authorized in connection with the issuance
or proposed issuance of a task or delivery order,” except
in two circumstances not relevant to this case. 41 U.S.C.
§ 4106(f)(1).
The United States Court of
Appeals for the Federal Circuit has held:
The statutory language of
FASA is clear and gives the court no room to exercise
jurisdiction over claims made “in connection with the
issuance or proposed issuance of a task or delivery
order.” Even if the protestor points to an alleged
violation of statute or regulation, . . . the court still
has no jurisdiction to hear the case if the protest is in
connection with the issuance of a task order. We
acknowledge that this statute is somewhat unusual in that
it effectively eliminates all judicial review for protests
made in connection with a procurement designated as a task
order—perhaps even in the event of an agency’s egregious,
or even criminal conduct. Yet Congress’s intent to ban
protests on the issuance of task orders is clear from
FASA’s unambiguous language.
SRA Int’l, 766 F.3d at 1413
(quoting 41 U.S.C. § 4106(f)(1)).
Here, the parties rely on
two cases from the United States Court of Federal Claims
to support their positions: Plaintiff cites BayFirst; and
the Government cites Mori.
In BayFirst, the plaintiff
filed a pre-award protest against the United States
Department of State (“State Department”). 104 Fed. Cl. at
497. In 2006, the contract work originally was awarded as
a small business set aside. Id. at 498. In 2010, when the
incumbent lost its small business status, the State
Department issued a solicitation to other small
businesses. Id. Meanwhile, it anticipated awarding an
interim three-month contract to BayFirst’s competitor
until the solicitation could be awarded. Id. BayFirst
filed a bid protest, because it sought to bid on the
interim contract as well as the longer-term solicitation.
Id.
In determining whether FASA
precluded BayFirst’s protest, the court stated that
“[t]here seems to be some variation in this court’s
approach to interpreting the term ‘in connection with’
when applying the ban on task order protests in particular
cases.” Id. at 502. “It appears that these variations in
interpretation . . . arise in the complex and distinct
fact patterns of individual bid protests.” Id. at 503. The
court concluded, “Although this is a close question, the
court views the State Department’s decision to cancel the
Solicitation as a decision not ‘in connection with’ the
proposed issuance of a task order.” Id. at 507. In
support, the court stated that “[t]he cancellation of the
Solicitation may be viewed as a discrete procurement
decision and one which could have been the subject of a
separate bid protest.” Id. Although acknowledging that
“the [United States Court of Appeals for the] Federal
Circuit has a broad view of the agency actions that are
‘in connection with’ a proposed procurement,” the court
concluded that it “must draw a line where one ‘in
connection with’ series of actions ends, and another ‘in
connection with’ series of actions begins. In the court’s
view, in this case that line falls squarely at the
cancellation of the Solicitation.” Id. at 508. But, “the
record before the court could be read either way, and the
law is not entirely clear on the application of the task
order protest ban.” Id. at 507.
The following year, the Mori
court determined that it “[was] not even a close question”
that FASA prevented a challenge to solicitation
cancellation. 113 Fed. Cl. at 37. In that case, the
protestor was the incumbent contractor providing
information technology (“IT”) services to the National
Institutes of Health (“NIH”). Id. at 35. Upon expiration
of the incumbent contract, NIH awarded the contract to a
competitor. Id. at 36. Following several bid protests, NIH
cancelled the solicitation and awarded the contract by
requesting proposals from holders of existing task order
contracts—a mechanism under which the plaintiff was unable
to compete. Id.
The Mori court stated that
“the phrase ‘in connection with’ means that there is a
direct and causal relationship between two things that are
mutually dependent.” Id. at 37 (quoting DataMill, Inc. v.
United States, 91 Fed. Cl. 740, 756 (2010)). “An agency’s
underlying decision to procure goods or services without
competition through a delivery order has a direct and
causal relationship to the ‘issuance’ or ‘proposed
issuance’ of the delivery order that the agency ultimately
utilizes to effectuate the procurement.” Id. at 38
(quoting DataMill, 91 Fed. Cl. at 756). “Not every
decision that precedes the selection of a task order
vehicle is so bound up with the proposed issuance of a
task order that a protest of the decision would be
prohibited by FASA.” Id. “Discrete, preliminary matters
that may not necessarily lead to the proposed issuance of
a task order may still be protested.” Id. “But when a
protest challenges a decision to obtain services by
requesting proposals from [IDIQ] task order contract
holders, the FASA prohibition on protests clearly
applies.” Id.
In the court’s judgment,
this bid protest is more analogous to Mori than BayFirst.
In Bayfirst, the solicitation sought bids for a new
contract, not a new task order. See Bayfirst, 104 Fed. Cl.
at 507. But, in both Mori and this case, the Government
cancelled a solicitation for a task order under an IDIQ
contract. See Mori, 113 Fed. Cl. at 37 (finding that the
protestor’s “protest of the decision to use the task order
. . . . is not even a close question”); see also AR 111–16
(issuance of RFQ), 1020–28 (issuance of delivery order to
Cabras). As the court in Mori determined, “when a protest
challenges the decision to obtain services by requesting
proposals from [IDIQ] task order contract holders, the
FASA prohibition on protests clearly applies.” Mori, 113
Fed. Cl. at 38.
In any event, whatever
“variations in interpretation” might have existed at the
time of BayFirst, the United States Court of Appeals for
the Federal Circuit subsequently clarified in SRA
International that FASA prohibits bid protests in
connection with task orders, even if it renders judicial
review impossible. See SRA Int’l, 766 F.3d at 1413; see
also Palladian Partners, Inc. v. United States, 783 F.3d
1243, 1254 (Fed. Cir. 2015) (quoting RAMCOR Servs. Grp.,
Inc. v. United States, 185 F.3d 1286, 1289 (Fed. Cir.
1999) (holding that, in construing the Tucker Act, the
“operative phrase ‘in connection with’ is very sweeping in
scope”); see also Chameleon Integrated Servs., Inc. v.
United States, 111 Fed. Cl. 564, 570 (2013) (stating that
“FASA applies broadly”); see also Innovative Mgmt.
Concepts, Inc. v. United States, 119 Fed. Cl. 240, 245
(2014) (dismissing a bid protest when the protestor
challenged a task order award, but not “the underlying
procurement vehicle”). The parties have not disclosed, and
the court has not found, any post-SRA International case
holding that the United States Court of Federal Claims has
jurisdiction to adjudicate a bid protest concerning the
cancellation of a task order solicitation. In light of SRA
International, the court has determined that cancelling a
task order under an IDIQ contract is “in connection with”
a task order.
As such, the court has
determined that FASA bars this bid protest. Because FASA
bars Plaintiff’s bid protest, it is not necessary to
decide the merits of the case. (Guam
Industrial Services, Inc. v U. S. and Cabras Marine Corp.,
No. 15-588C, August 3, 2015) (pdf)
Under the
Tucker Act, this Court has “jurisdiction to render
judgment on an action by an interested party objecting to
. . . any alleged violation of statute or regulation in
connection with a procurement.” 28 U.S.C. § 1491(b)(1)
(2012). However, 10 U.S.C. § 2304c (2012), entitled “Task
and delivery order contracts: orders,” imposes a
restriction on the Court’s protest jurisdiction over task
orders as follows:
(e) Protests. (1) A
protest is not authorized in connection with the issuance
or proposed issuance of a task or delivery order except
for —
(A) a protest on the ground
that the order increases the scope, period, or maximum
value of the contract under which the order is issued; or
(B) a protest of an order in excess of $10,000,000.
(2) Notwithstanding section
3556 of title 31, the Comptroller General of the United
States shall have exclusive jurisdiction of a protest
authorized under paragraph (1)(B).
10 U.S.C. § 2304c(e).
The first exception in
paragraph (1)(A) above does not apply here because the
Navy did not alter “the scope, period, or maximum value of
the contract” by issuing the modified task orders. The
scope of the contract remained at all times an agreement
to provide meteorological support services, both before
and after the Navy’s issuance of the new task orders. The
period and maximum value of the contract did not change.
Indeed, Trident does not contend that this first exception
applies.
The second exception in
paragraph (1)(B) does not apply because the Navy awarded
the Atlantic region task order to ATSC for $7,527,233.28,
and thus the task order did not exceed $10,000,000 in
value. Even if the task order were valued greater than
$10,000,000, a bid protest challenging the task order
could only be brought at the GAO. 10 U.S.C. § 2304c(e)(2).
Accordingly, neither exception applies, and the Court
lacks subject matter jurisdiction of Trident’s protest.
Trident nevertheless
requests the Court to accept jurisdiction based upon the
requirements of 10 U.S.C. § 2304c(d), entitled “Enhanced
competition for orders in excess of $5,000,000.” This
section describes a series of competition objectives
designed to “provide all contractors a fair opportunity to
be considered.” Id. Trident asserts that Congress must
have erred in creating these obligations for orders
exceeding $5,000,000, but then limiting protests to those
orders that exceed $10,000,000. Trident contends that, for
orders valued between $5,000,000 and $10,000,000, such as
the Atlantic region task order, Congress created a right
without any remedy. Trident wants the Court to find that
the protest threshold should have been $5,000,000, and
asks the Court to read that change into the statute.
However, Trident fails to
acknowledge that there are at least two remedies available
for task orders between $5,000,000 and $10,000,000. First,
under 10 U.S.C. § 2304c(f), an agency ombudsman is
responsible for reviewing complaints and ensuring that a
fair opportunity is afforded to all contractors competing
for task orders. Under the statute, the ombudsman must be
“a senior agency official who is independent of the
contracting officer for the contracts and may be the
agency’s competition advocate.” Id. Thus, an aggrieved
contractor may always pursue relief with the designated
agency ombudsman. Second, any task order that expands the
scope of the underlying contract may be protested, even if
it falls below the $10,000,000 threshold. The statutory
scheme created in 10 U.S.C. § 2304c fits together in all
respects, and the Court does not perceive any “drafting
errors” by Congress. The Court will follow the legal maxim
that when “statutory language is plain and unambiguous,
then it controls.” Res-Care, Inc. v. United States, 735
F.3d 1384, 1388 (Fed. Cir. 2013) (citations omitted).
(Trident Technologies, LLC v. U.
S., No. 14-531C, September 22, 2014) (pdf)
Under the
Tucker Act, as amended by the Administrative Dispute
Resolution Act of 1996, Pub. L. No. 104-320, § 12(a)-(b),
110 Stat. 3870, 3874 (1996), our court would normally:
have 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) (2006). But this jurisdiction is
curtailed by a provision of FASA, which states that “[a]
protest is not authorized in connection with the issuance
or proposed issuance of a task or delivery order,” except
in circumstances that are not relevant to this matter. 41
U.S.C. § 4106(f)(1) (2006). The question of our
jurisdiction turns on whether a protest of the decision to
request proposals from holders of a task order contract,
instead of using the GSA Schedule 70, should be considered
too connected to the proposed issuance of a task order to
survive the FASA prohibition.
It has been brought to the
attention of the Court that dictum from an opinion in the
related MORI Associates case suggested an interpretation
of the term “proposed issuance” that would place the
current matter outside the FASA prohibition. See Pl.’s Br.
at 15 (citing MORI Assocs., 102 Fed. Cl. at 534 n.33.);
Def.’s Br. at 10-12. It was there presumed that a
“proposed issuance” of a task order would not occur until
“after a source has been selected among the task order
contract holders.” MORI Assocs., 102 Fed. Cl. at 534 n.33.
Thus, the Court mused that a protest “in connection with”
the issuance or proposed issuance of a task order
concerned the decision to select an awardee of a task
order, “not the decision to use the task order contracts
to obtain the relevant services.” Id.
At that time, the Court was
equating a “proposed issuance” with a proposed contract
award --- the latter having been a significant concept
when our equitable relief extended only to pre-award
protests, since the selection of another offeror was often
what allegedly deprived the protester of fair and honest
consideration of its offer. See, e.g., CACI, Inc.-Fed. v.
United States, 719 F.2d 1567, 1574 (Fed. Cir. 1983).
Whether a protest affecting a solicitation for task order
proposals was “in connection with” a “proposed issuance”
of a task order was not at issue in the related MORI
Associates opinion, as the Court held that a small
business set-aside decision was a “logically distinct
step” that was required prior to the selection of a
procurement vehicle. MORI Assocs., 102 Fed. Cl. at
533-34.4 Now that the issue is more squarely presented,
the Court is of the opinion that the term “proposed
issuance of a task or delivery order” is more akin
conceptually to a term in the Tucker Act other than
“proposed award.” Just as a “proposed contract” is the
object of “a solicitation by a Federal agency for bids or
proposals,” 28 U.S.C. § 1491(b)(1), the “proposed issuance
of a task or delivery order,” 41 U.S.C. § 4106(f), is the
object of the decision to solicit goods or services from
holders of task order contracts.
The “proposed issuance of a
task or delivery order,” thus, has already occurred with
the issuance of the NITAAC CIO-SP3 solicitation for help
desk services proposals. DA at 17-48. The question still
remains whether MORI’s protest of the decision to use the
task order vehicle instead of a GSA Schedule 70
competition is a protest “in connection with” this
proposed issuance. Upon careful reflection, the Court
concludes it is not even a close question. The Court finds
persuasive the interpretation of the phrase “in connection
with” that is contained in the DataMill opinion. See
DataMill, Inc. v. United States, 91 Fed. Cl. 740, 756
(2010). It was there explained that “the phrase ‘in
connection with’ means that there is a direct and causal
relationship between two things that are mutually
dependent,” and determined that “[a]n agency’s underlying
decision to procure goods or services without competition
through a delivery order has a direct and causal
relationship to the ‘issuance’ or ‘proposed issuance’ of
the delivery order that agency ultimately utilizes to
effectuate the procurement.” Id.
Not every decision that
precedes the selection of a task order vehicle is so bound
up with the proposed issuance of a task order that a
protest of the decision would be prohibited by FASA.
Discrete, preliminary matters that may not necessarily
lead to the proposed issuance of a task order may still be
protested. Thus, in the related MORI Associates case, a
“Rule of Two” determination under 48 C.F.R. § 19.502-2(b)
was found to be required prior to the selection of a
particular procurement vehicle, since whether the work
must be set aside for small business must be known before
an agency can select the means of fulfilling its needs.
MORI Assocs., 102 Fed. Cl. at 533-34. In Savantage
Financial Services, the choice of particular brand name
products was found to be distinct from the use of a task
order solicitation to obtain those products. See Savantage
Fin. Servs., Inc. v. United States, 81 Fed. Cl. 300, 305,
308 (2008). And in BayFirst Solutions, the cancellation of
a solicitation (under which the protester had competed for
an award) was found to be distinct from the decision to
issue a task order for a bridge contract to be performed
while a new competition was held. BayFirst Solutions, LLC
v. United States, 104 Fed. Cl. 493, 498-99, 507-08 & n.11
(2012).
Procurement decisions that
are made after task orders have been issued are similarly
not affected by the FASA prohibition. These include the
assignment of new work to an existing task order through a
modification, see Global Computer Enters., Inc. v. United
States, 88 Fed. Cl. 350, 410-15 (2009), or the use of an
already-issued task order to obtain products and services
through subcontracts, see Distributed Solutions, Inc. v.
United States, 104 Fed. Cl. 368, 371 n.5, 372, 380, 385
n.24 (2012). There is no direct, causal relationship
between these decisions and the issuance of task orders to
fulfill an agency’s needs, since the task orders had
already issued.
But when a protest
challenges the decision to obtain services by requesting
proposals from indefinite delivery/indefinite quantity
task order contract holders, the FASA prohibition on
protests clearly applies. See Mission Essential Pers., LLC
v. United States, 104 Fed. Cl. 170, 179 (2012). This is
the situation presented by this case. Plaintiff is not
protesting the selection of a particular brand of help
desk services, which can be conceptually severed from the
choice of the task order vehicle, or the use of
already-issued task orders to perform these services. Nor
was there a cancellation of a formal solicitation of
proposals from the GSA Schedule 70 contractors. Instead,
MORI protests the agency’s decision to use the NITAAC
CIO-SP3 Small Business GWAC instead of GSA Schedule 70 to
obtain help desk services. In choosing to solicit
proposals from the CIO-SP3 task order contract holders,
see DA at 17-48, the agency has proposed the issuance of a
task order to fulfill its help desk needs. Plaintiff’s
protest is thus clearly in connection with the proposed
issuance of a task order, and our jurisdiction is
prohibited by FASA. See 41 U.S.C. § 4106(f)(1). The
government’s motion to dismiss the case is GRANTED, and
MORI’s motion for a preliminary injunction is DENIED as
MOOT.
III. CONCLUSION
For the foregoing reasons,
the Court concludes that plaintiff protests a procurement
decision in connection with the proposed issuance of a
task order --- a matter which is beyond our jurisdiction
due to 41 U.S.C. § 4106(f)(1). Accordingly, the
government’s motion to dismiss the case under RCFC
12(b)(1) is GRANTED, and plaintiff’s motion for a
preliminary injunction is DENIED as MOOT. The Clerk shall
close the case. (MORI
Associates, Inc., v. U. S., No. 13-671C, October 1,
2013) (pdf)
Defendant moves to dismiss the complaint for lack of jurisdiction. It
asserts that FASA exempts this task order award from protest. Defendant is
correct that FASA generally is an impediment to the assertion of jurisdiction
by this court over the protest of a task order. 41 U.S.C. §§ 4106(a), 4106(f)
(Supp. V 2011); see, e.g., A & D Fire Protection Inc. v. United States, 72 Fed.
Cl. 126, 133-34 (2006). In this case USDA issued an order under a preexisting
task order contract, which appears to have been issued subject to
FASA. See 41 U.S.C. § 4103(a) (defining task order contracts); STARS II §
I.1.1 (stating that it is an indefinite delivery/indefinite quantity contract).
Plaintiff asserts, however, that appearances can be deceiving and that
the STARS II GWAC under which the award was issued is not a task order
contract subject to FASA. It argues that FASA applies only to “traditional task
and delivery order contracts.” Pl.’s Reply 3. A traditional task and delivery
order contract, according to plaintiff, involves a small number of contractors
who then bid on subsequent orders. Plaintiff cites for support the decisions in
Wildflower International, Ltd. v. United States, 105 Fed. Cl. 362 (2012), and
Solute Consulting v. United States, 103 Fed. Cl. 783 (2012). These decisions,
according to plaintiff, “involve[d] . . . one or a small handful of contractors.”
Pl.’s Reply 2. Plaintiff contends that such a scenario is fundamentally
different from a situation, such as the STARS II GWAC here, in which
hundreds of contractors obtain access to a master contract. Plaintiff points out
that STARS II is issued to “over 580 companies,” id. at 3, and further states it
is “open to any 8(a) company.” Id. at 2.
Plaintiff contends that such mass contracting at the master contract
level is similar to the GSA Federal Supply Schedule (“FSS”) program, which
is not subject to the protest restrictions attendant to task order contracts
authorized by FASA. See, e.g., Data Mgmt. Servs. Joint Venture v. United
States, 78 Fed. Cl. 366, 371 n.4 (2007). It urges the court not to be bound by
what plaintiff believes are the agency’s gratuitous references to FAR Subpart
16.5 in the STARS II GWAC. Instead, it argues that we should ignore the
agency’s attempt to characterize what it did as pursuant to a FASA contract
vehicle and instead deem it to be some other, unidentified contracting device,
but one which is subject to the court’s bid protest jurisdiction. Plaintiff does
not, we note, contend that STARS II is an FSS contract. It would be difficult
to do so, as the services were not sought from that program.
There is no support in statute, regulation, or case law for plaintiff’s
attempt to bracket the reach of FASA. The definition of task order contract
in section 4103 of FASA does not limit these contracts to procurements
involving a “small handful of contractors.” See 41 U.S.C. § 4103(a) (defining
task order contracts and containing no limits on the number of vendors). FAR
Subpart 16.5 parrots this definition. See 48 C.F.R. § 16.501 (2012) (“Task
order contract means a contract for services that does not procure or specify
a firm quantity of services (other than a minimum or maximum quantity) and
that provides for the issuance of orders for the performance of tasks during the
period of the contract.”).
GWACs, moreover, are specifically embraced within FAR Subpart
16.5, which sets out rules for task order contracts. See 48 C.F.R. §
16.505(a)(8) (addressing interagency contracts, including GWACs); see also
48 C.F.R. § 2.101 (defining a GWAC as a “task-order or delivery-order
contract for information technology established by one agency for
Governmentwide use”). The assumption that follows is that the entirety of
FAR 16.505 applies to GWACs. See John Cibinic, Jr., Ralph C. Nash, Jr., &
Christopher R. Yukins, Formation of Government Contracts 1195 (4th ed.
2011) (stating that FAR 16.505 applies to orders under GWACs).
Nor do the cases cited by plaintiff show that FASA limits itself to a
certain type of task order contract. In Solute Consulting, the Navy awarded the
order under a task order contract that had been awarded to a single entity. 103
Fed. Cl. 783, 784-85. Nothing in that case provides a basis for limiting
FASA’s application to only task order contracts with a limited number of
awardees. In Wildflower International, the court discussed whether FASA
applied to a task order in which four bids were submitted. 105 Fed. Cl. 362,
371-72. The case makes no reference to the size of the master contract, see id.
at 367-68, and does not comment on whether that would matter.
Plaintiff cites Idea International Inc. v. United States, 74 Fed. Cl. 129
(2006), for the proposition that “FASA itself makes it clear that its task order
protest limitation only applies to traditional task and delivery order contracts.”
Pl.’s Reply 3. The language “traditional task and delivery order contracts”
does not appear in the long excerpt plaintiff quotes from that decision. The
court merely notes that GSA Schedule contracts existed before FASA was
adopted, 74 Fed. Cl. at 135, and were authorized pursuant to a completely different regulatory program, id. at 135-36. It also notes that FASA
specifically did not purport to affect GSA Schedule contracts. Id. at 135-36
(citing 10 U.S.C. § 2304a(g) (2000)).
Our prior precedent shows that FASA applies broadly. In MED Trends,
Inc. v. United States, 102 Fed. Cl. 1, 2 (2011), this court analyzed the GSA
“VETS GWAC.” Although we found that the FASA protest bar did not apply
because of a sunset provision, we recognized: “There is no question that, had
this protest been brought one month earlier, the court would not have been able
to exercise jurisdiction.” Id. at 4; see also Enterprise Info. Servs, Inc., B-
403028, 2010 WL 3554592 at *1 n.1 (Comp. Gen. Sept. 10, 2010) (exercising
jurisdiction over the protest of an award under the predecessor to STARS II
because characteristics of the order satisfied FASA requirements); Global
Computer Enters., Inc., B-310823, 2010 WL 314520 at *3-5 (Comp. Gen. Jan.
31, 2008) (addressing a protest to the change in scope of a task order issued
under a GWAC and stating that FASA barred jurisdiction).
Plaintiff also argues that the fact that the STARS II GWAC is
interagency in nature (with USDA as the customer and GSA as the executive
agent) makes it look like the GSA FSS program. That is true, but immaterial.
Plaintiff does not contend that the procurement here is subject to the FSS and
offers no category other than FASA under which to treat the task order.
Plaintiff fails to rebut the presumption that FASA applies to the STARS II
contract. We therefore do not have jurisdiction. (Chameleon
Integrated Services, Inc. v. U. S. and CSSS.net, No 13-144C, May 29., 2013)
(pdf)
A. The Federal Acquisition Streamlining
Act’s Limitation on Protests of Civilian
Agency Task or Delivery Orders Did Not Bar Wildflower’s Action
When It Was
Filed in November 2011 Because the Limitation Expired on May 27,
2011
In 1994, Congress passed the Federal Acquisition Streamlining
Act (“FASA”), Pub. L.
No. 103-355, 108 Stat. 3243. FASA contained a provision stating
that “[a] protest is not
authorized in connection with the issuance or proposed issuance
of a task or delivery order
except for a protest on the ground that the order increases the
scope, period, or maximum value
of the contract under which the order is issued.” FASA, § 1054,
108 Stat. at 3264 (codified as
amended at 41 U.S.C. § 4106(f)). That provision pertained to the
issuance or proposed issuance
of task or delivery orders by civilian agencies. FASA also
contained a provision limiting
protests of defense agency task or delivery orders. See FASA, §
1004, 108 Stat. at 3253
(codified as amended at 10 U.S.C. § 2304c(e)).
Initially, it was not entirely clear whether FASA’s limitation
applied to civil actions in
this court. See A & D Fire Prot., Inc. v. United States, 72 Fed.
Cl. 126, 133 (2006); Labat-
Anderson Inc. v. United States, 50 Fed. Cl. 99, 105 (2001).
Since that time, the courts have
interpreted FASA’s limitation, which refers to “a protest,” as
applying to actions in the Court of
Federal Claims. See, e.g., A & D Fire Prot., Inc., 72 Fed. Cl.
at 133 (“This court cannot frustrate
the intent of Congress . . . . In the place of agency protests,
[GAO] protests or judicial review, Congress saw fit to offer
disappointed task order bidders recourse to the agency’s task
and
delivery order ombudsman.”).
The Court of Federal Claims has held that FASA’s limitation on
protests of task or
delivery orders is jurisdictional. See, e.g., Solute Consulting
v. United States, No. 12-37C, 2012
WL 826721, at *11 (Fed. Cl. Mar. 13, 2012); Furniture by
Thurston v. United States, No.
11-663, 2012 WL 591622, at *4 n.8 (Fed. Cl. Feb. 21, 2012); MORI
Assocs., Inc. v. United
States, 102 Fed. Cl. 503, 541 (2011); MED Trends, Inc. v. United
States, 102 Fed. Cl. 1, 4–5
(2011); DataMill, Inc. v. United States, 91 Fed. Cl. 740, 762
(2010); Global Computer Enters.,
Inc. v. United States, 88 Fed. Cl. 350, 409 (2009), modified on
other grounds by 88 Fed. Cl. 466
(2009); A & D Fire Prot., Inc., 72 Fed. Cl. at 133 n.7.
In 2008, as part of the National Defense Authorization Act for
Fiscal Year 2008 (“2008 NDAA”), Congress authorized protests of civilian agency task or
delivery orders valued in
excess of $10 million and gave GAO exclusive jurisdiction to
hear such protests. Pub. L. No.
110-181, § 843(b)(2)(C), 122 Stat. 3, 239 (codified as amended
at 41 U.S.C. § 4106(f)).
Congress also added a three-year sunset date. The provision in
the 2008 NDAA governing
protests of civilian agency task or delivery orders read as
follows:
(e) PROTESTS.—(1) A protest is not
authorized in connection with the issuance
or proposed issuance of a task or delivery order except for—
(A) a protest on the ground that the order
increases the scope, period, or
maximum value of the contract under which the order is issued;
or
(B) a protest of an order valued in excess of $10,000,000.
(2) Notwithstanding section 3556 of title
31, United States Code, the Comptroller
General of the United States shall have exclusive jurisdiction
of a protest
authorized under paragraph (1)(B).
(3) This subsection shall be in effect for three years,
beginning on the date that is
120 days after the date of the enactment of the National Defense
Authorization
Act for Fiscal Year 2008.
Id. The 2008 NDAA was enacted on January
28, 2008. Accordingly, paragraph (3) provided
that “this subsection” would expire on May 27, 2011. The 2008
NDAA made similar
amendments to the provision limiting protests of defense agency
task or delivery orders. See
2008 NDAA, § 843(a)(2)(C), 122 Stat. at 237 (codified as amended
at 10 U.S.C. § 2304c(e)).
In January 2011, before the sunset date,
Congress extended the sunset date with respect to
the FASA provision limiting the protests of defense agency task
or delivery orders. See Ike
Skelton National Defense Authorization Act for Fiscal Year 2011
(“2011 NDAA”), Pub. L. No.
111-383, § 825, 124 Stat. 4137, 4270 (codified as amended at 10
U.S.C. § 2304c(e)). The
amended sunset provision identified the paragraphs to which it
applied: “(3) Paragraph (1)(B)
and paragraph (2) of this subsection shall not be in effect
after September 30, 2016.” Id.
(emphasis added).
May 27, 2011 came and went without an
extension of the sunset date with respect to the
provision limiting protests of civilian agency task or delivery
orders. This raised the question whether paragraph (3) of 41
U.S.C. § 4106(f), which provided that “this subsection” would
expire, referred to the entire subsection (f) of § 4106 or only
to paragraphs (1)(B) and (2)—
whether the sunset date caused the limitation on protests of
civilian agency task or delivery
orders to expire on May 27, 2011 or caused only the
authorization of protests of orders valued in
excess of $10 million and the GAO’s exclusive jurisdiction over
such protests to expire.
In November 2011, Wildflower filed this bid
protest action challenging a civilian agency
delivery order in the Court of Federal Claims, after having
withdrawn its protest at GAO. It is
undisputed that Wildflower’s protest is neither a protest of an
order valued in excess of $10
million nor a protest on the ground that the order increases the
scope, period, or maximum value
of the contract under which the order is issued. After
Wildflower filed this action in November
2011, the president on December 31, 2011 signed the National
Defense Authorization Act for
Fiscal Year 2012 (“2012 NDAA”), Pub. L. No. 112-81, 125 Stat.
1298 (2011). The 2012 NDAA
extended the sunset date in paragraph (3) of 41 U.S.C. § 4106(f)
and amended the language of
paragraph (3) so that it stated to which paragraphs the sunset
date applied: “(3) EFFECTIVE
PERIOD.—Paragraph (1)(B) and paragraph (2) of this subsection
shall not be in effect after
September 30, 2016.” 2012 NDAA, § 813, 125 Stat. at 1491.
Whereas the sunset date in the
2008 NDAA applied to “this subsection,” the paragraph containing
the sunset date as amended
by the 2012 NDAA referred only to the authorization of protests
of orders valued in excess of
$10 million and GAO’s exclusive jurisdiction over such protests.
Based on the plain and unambiguous language
of the 2008 NDAA, the limitation on
protests of civilian agency task or delivery orders expired on
May 27, 2011. See MORI Assocs.,
102 Fed. Cl. at 536–37; see also Hughes Aircraft Co. v.
Jacobson, 525 U.S. 432, 438 (1999)
(“[W]here the statutory language provides a clear answer, [the
court’s analysis] ends there
. . . .”); Conn. Nat’l Bank v. Germain, 503 U.S. 249, 253–54
(1992) (“[C]ourts must presume
that a legislature says in a statute what it means and means in
a statute what it says there. When
the words of a statute are unambiguous, then, this first canon
is also the last: ‘judicial inquiry is
complete.’” (citations omitted) (quoting Rubin v. United States,
449 U.S. 424, 430 (1981)));
United States v. Ron Pair Enters., Inc., 489 U.S. 235, 241
(1989). In this case, relying on the
plain and unambiguous language does not lead to an absurd
result. See MORI Assocs., 102 Fed.
Cl. at 539–40. The legislative history of the 2008 NDAA does not
embody an extraordinary
showing of intentions contrary to the plain and unambiguous
language of the statute. See Glaxo
Operations UK Ltd. v. Quigg, 894 F.2d 392, 395 (Fed. Cir. 1990)
(“[T]he legislative history
should usually be examined at least ‘to determine whether there
is a clearly expressed legislative
intention contrary to the statutory language.’” (quoting Madison
Galleries, Ltd. v. United States,
870 F.2d 627, 629 (Fed. Cir. 1989))).
Defendant and Govplace ask the Court to
depart from the plain and unambiguous
language of the 2008 NDAA in light of statutes enacted
subsequent to the 2008 NDAA and their
legislative history—specifically, the 2012 NDAA and the 2012
NDAA’s legislative history as
well as the 2011 NDAA. “The question of how much weight a court
should accord to
subsequent legislation and subsequent legislative history is one
that has troubled many judges
throughout the years.” In re Conner Home Sales Corp., 190 B.R.
255, 259 (E.D.N.C. 1995).
“[T]he views of a subsequent Congress form a hazardous basis for
inferring the intent of an
earlier one.” United States v. Price, 361 U.S. 304, 313 (1960).
The Federal Circuit has observed that
“[t]here appears to be some confusion as to the role
of later statutes in interpreting earlier ones.”4 Thompson v.
Cherokee Nat. of Okla., 334 F.3d
1075, 1092 (Fed. Cir. 2003), aff’d sub nom. Cherokee Nat. of
Okla. v. Leavitt, 543 U.S. 631
(2005). The Federal Circuit has also explained “there appears to
be general agreement that a
later statute cannot be read as clarifying the meaning of an
earlier statute where the earlier statute
is unambiguous and the later statute is ambiguous.”5 Id. at
1092. The Supreme Court affirmed
the Federal Circuit, specifically rejecting the use of a later
statute to interpret earlier ones
because the earlier statutes were not ambiguous. Cherokee Nat.
of Okla., 543 U.S. at 646–47.
Here, as discussed supra, the plain and
unambiguous language of the 2008 NDAA makes
clear that the limitation on protests of civilian agency task or
delivery orders expired on May 27,
2011. The statutes enacted subsequent to the 2008 NDAA are
ambiguous with respect to
whether subsequent Congresses believed that the limitation on
protests of civilian agency task or
delivery orders expired on May 27, 2011.
In January 2011, before the enactment of
the 2012 NDAA, Congress enacted two other statutes.
In one, the provision relating to defense contracts was changed
to sunset in 2016
the subparagraph authorizing task order protests exceeding $10
million, and the
GAO’s exclusive authority over them. In the other, Congress
expressly stated its
recodification of title 41[, which included the limitation on
protests of civilian
agency task or delivery orders,] was intended to conform to the
original intent of
the enacting Congresses, with corrections to address
ambiguities, and its only
change to the FASA sunset was the housekeeping insertion of the
actual date of
passage.
MORI Assocs., 102 Fed. Cl. at 541
(citations omitted). These statutes are ambiguous—if not
irrelevant—with respect to the issue whether the 111th Congress
believed that the limitation on
protests of civilian agency task or delivery orders expired on
May 27, 2011.
With the 2012 NDAA, the 112th Congress
amended paragraph (3) of § 4106(f), which
relates to protests of civilian agency task and delivery orders,
by inserting the following
paragraph: “(3) EFFECTIVE PERIOD.—Paragraph (1)(B) and paragraph
(2) of this subsection
shall not be in effect after September 30, 2016.” The parties
have proffered at least two ways
that the 2012 NDAA’s amendment to the paragraph containing the
sunset date can be interpreted
as it relates to the paragraph containing the sunset date in the
2008 NDAA.
One could conclude from the 2012 NDAA, as
Wildflower does, that the 112th Congress
believed that FASA’s limitation on protests of civilian agency
task or delivery orders expired in
May 2011. Stated differently, the perceived need to state to
which paragraphs the 2012 NDAA
sunset date applied shows that Congress understood that the
sunset date in the 2008 NDAA
caused the entire subsection (f) to expire, not only the
provision authorizing protests of orders
valued in excess of $10 million and GAO’s exclusive jurisdiction
over such protests. Pl.’s Resp.
to Def.’s & Intervenor’s Mots. to Dismiss for Lack of
Jurisdiction (“Pl.’s Supplemental Resp.”)
8–9 (citing Med Trends, Inc., 102 Fed. Cl. at 6) (docket entry
55, Feb. 15, 2012).
However, one could also argue, as defendant
and Govplace do, that the 2012 NDAA
shows the 112th Congress believed that the 2008 NDAA sunset date
did not affect the entirety of
subsection (f). According to defendant and Govplace, the 2012
NDAA only addressed the
authorization of protests of orders valued in excess of $10
million and GAO’s exclusive
jurisdiction over such protests. Because the 2012 NDAA did not
address the limitation on
protests or the authority of the Court of Federal Claims to hear
protests of task and delivery
orders related to the scope, period, or maximum value of the
underlying contract, Congress must
have assumed that these two provisions remained in effect. See
Def.-Intervenor’s Mot. to
Dismiss for Lack of Subject Matter Jurisdiction (“Def.-Intervenor’s
Supplemental Mot.”) 4–5;
Def.-Intervenor’s Reply to Pl.’s Resp. to Def.-Intervenor’s Mot.
to Dismiss (“Def.-Intervenor’s
Supplemental Reply”) 2–6 (docket entry 60, Feb. 27, 2012);
Def.’s Mot. to Dismiss (“Def.’s
Supplemental Mot.”) 8; Def.’s Reply in Supp. of Its Mot. to
Dismiss (“Def.’s Supplemental
Reply”) 6–8 (docket entry 67, Mar. 7, 2012); Mar. 14, 2012 Hr’g
at 10:05:35.
As demonstrated by the parties’ arguments
above, the 2012 NDAA is ambiguous with
regard to the scope of the sunset provision in the 2008 NDAA.
Because the language of the
earlier statute is plain and unambiguous, this case does not
present an occasion to depart from the
plain meaning of the earlier statute based on subsequent
enactments. See Thompson, 334 F.3d at
1092.
With regard to subsequent legislative
history, defendant and Govplace cite Senate and
House reports on the 2012 NDAA to suggest that some members of
the 112th Congress believed
that the limitation on protests of civilian agency task or
delivery orders did not expire on May 27,
2011. See Def.’s Supplemental Mot. 8; Def.’s Supplemental Reply
12; Def.-Intervenor’s
Supplemental Mot. 4; Def.-Intervenor’s Supplemental Reply 4, 8.
For example, defendant and
Govplace cite a report by the House Committee on Armed Services
that stated that the 2008
NDAA had “temporarily expanded the [GAO’s] jurisdiction to hear
bid protests by authorizing it
to hear protests on task and delivery orders valued in excess of
$10.0 million” and that “[t]he
authority was provided with a sunset in 2011 in order to allow
Congress to evaluate the effectiveness of the expanded jurisdiction
and gauge the impact of increased workload on GAO.”
H.R. Rep. No. 112-78, at 171–72 (2011); see also S. Rep. No.
112-16, at 3 (2011).
The Court is not persuaded that the legislative
history of subsequent enactments sheds
significant light on the meaning of the 2008 NDAA. See, e.g.,
MORI Assocs., Inc., 102 Fed. Cl.
at 541 (finding that subsequent legislative history did not
control the meaning of the 2008
NDAA). The language of the 2008 NDAA is clear. Additionally,
subsequent legislative history
is less weighty than subsequent statutes in interpreting the
meaning of an earlier statute. See
Consumer Prod. Safety Comm’n v. GTE Sylvania, Inc., 447 U.S.
102, 118 n.13 (1980).
Moreover, as the Supreme Court has stated, “[E]ven when it would
otherwise be useful,
subsequent legislative history will rarely override a reasonable
interpretation of a statute that can
be gleaned from its language and legislative history prior to
its enactment.” Id.
For these reasons, when Wildflower’s action
was filed in November 2011, the limitation
on protests of civilian agency task or delivery orders did not
bar Wildflower’s bid protest action
because the limitation had expired. (Wildflower
International, Ltd. v. U. S. and Govplace Inc., No. 11-734C,
June 5, 2012) (pdf)
I. Jurisdiction
A. Defendant’s Motion to Dismiss Based on 41 U.S.C. § 4106(f)
There is no question that, had this protest been brought one
month
earlier, the court would not have been able to exercise
jurisdiction. Under the
Federal Acquisition Streamlining Act of 1994 (“FASA”), as
amended,
protests of FASA task orders (other than those challenging an
increase in
scope) could be brought only before the Government
Accountability Office
(“GAO”), and then only if the amount in controversy exceeded
$10,000,000.
41 U.S.C. § 4106(f) (West Supp. 2011). Section 4106(f) contains
the
following sunset provision, however: “This subsection shall be
in effect for
three years, beginning on the date that is 120 days after the
date of the
enactment of the National Defense Authorization Act for Fiscal
Year 2008.”
Plaintiff contends that, because the time prescribed in
subsection (f) expired
on May 27, 2011, the jurisdictional bar to court review of such
protests has
been eliminated. In the absence of subsection (f), there is
nothing that
prevents this court from exercising its general bid protest
jurisdiction under 28
U.S.C. § 1491(b)(1).
The government disagrees. It concedes that a literal reading of
the<
sunset provision means that all of section 4106(f) is vacated.
It points to
legislative history that it believes conclusively demonstrates
that Congress
intended the repeal to apply only to that portion of section
4106(f) that granted
jurisdiction to the GAO over any protest of a FASA task order
award greater
than $10,000,000.
The jurisdictional bar at issue first arose as part of FASA, a
“comprehensive overhaul of the federal acquisition laws,” S.
Rep. No. 103-
258, at 3 (1994), intended to “simplify and streamline” the
often burdensome
requirements for competitive acquisitions. Digital Tech, Inc. v.
United States,
89 Fed. Cl. 711, 719 (2009); see Navarro Research & Eng., Inc.
v. United
States, 94 Fed. Cl. 224, 227-28 (2010). As part of this
simplification, FASA
encouraged federal agencies to use “multiple task order
contracts, in lieu of
single task order contracts” when possible. Digital Tech, 89
Fed. Cl. at 719. Multiple task order contracts allow an agency
to use an initial competitive
process to select a contractor or pool of eligible contractors,
secure contract
terms, and make subsequent orders within that smaller group of
contractors.
As originally written, FASA generally
barred any protest concerning the
issuance or proposed issuance of a task order. The only
exception to this rule
was “on the ground that the order increased the scope, period,
or maximum
value of the contract under which the order is issued.” 41 U.S.C.
§ 253j(d)
(2006) (re-codified at 41 U.S.C. § 4106(f) by Pub. L. No.
111-350, 124 Stat.
3677 (2011)). In 2008, under the National Defense Authorization
Act
(“NDAA”), Congress added another limited exception to FASA’s
general bid
protest preclusion: task orders valued over $10 million could be
protested at
GAO. National Defense Authorization Act of 2008, Pub. L. No.
110-181, §
843, 122 Stat. 3, 236-37 (2008). Also at that time, a three-year
sunset clause
was inserted. Id. The current version of the jurisdictional
statute reads as
follows:
(f) Protests.—
(1) Protest not authorized.—A protest is
not authorized in
connection with the issuance or proposed issuance of a task or
delivery order except for—
(A) a protest on the ground that the order
increases the
scope, period, or maximum value of the contract under
which the order is issued; or
(B) a protest of an order valued in excess of $10,000,000.
(2) Jurisdiction over
protests.—Notwithstanding section 3556 of
title 31, the Comptroller General shall have exclusive
jurisdiction of a protest authorized under paragraph (1)(B).
(3) Effective period.—This subsection shall be in effect for
three years, beginning on the date that is 120 days after
January
28, 2008.
41 U.S.C. § 4106(f) (West Supp. 2011).
The question posed by the motion to dismiss
is whether section
4106(f)(3) applies to the whole of subsection (f) or only to paragraph
(f)(1)(B).
The government argues that, notwithstanding
the clear language of the statute,
the legislative history associated with the 2008 amendment makes
clear that
the grant of jurisdiction to GAO in 2008 was a short-term
experiment. The
sunset provision, it contends, was intended to affect only that
experiment and
not the whole of section 4106.
The government points to two sources to
support its interpretation of
the legislative history: the conference report regarding the
NDAA and draft
legislation that is pending before Congress. With respect to the
conference
report, the government relies on the statement: “The provision
would raise the
threshold for bid protests to $10.0 million and sunset the
authorization for bid
protests after three years. The conferees expect that the sunset
date will
provide Congress with an opportunity to review the
implementation of the
provision and make any necessary adjustments.” H.R. Rep. No.
110-477, at
956 (2007) (Conf. Rep.). With respect to the pending
legislation, the
government relies on Senate Bill 498 and House Bill 899, both of
which make
clear that the sunset date, which would be extended, applies
only to the
specific grant of jurisdiction to GAO: “Paragraph (3) of section
4106(f) of
title 41, United States Code, is amended to read as follows:
‘(3) EFFECTIVE
PERIOD.—Paragraph (1)(B) and paragraph (2) of this subsection
shall not be
in effect after September 30, 2016.’” H.R. 899, 112th Cong. § 1
(2011); see
also S. 498 112th Cong. § 2 (2011). The language in the
committee report
accompanying Senate Bill 498 explains that the purpose of the
original sunset
provision was to “allow Congress the opportunity to assess the
impact of the
[high-value] protests on [the] Federal procurement system before
deciding
whether to extend, or let expire, the authority.” S. Rep. No.
112-16, at 3
(2011).
The proposed legislation demonstrates two
things. First, the perceived
need for it suggests that Congress understands that the existing
sunset
provision does not accomplish the same result. Second, the
proposals
demonstrate that Congress can legislate with precision when it
chooses to do
so. Both observations reinforce our reluctance to follow the
government’s
invitation to tell Congress what we think it really intended in
2008.
The legislature “says in a statute what it
means and means in a statute
what it says there.” BedRoc Ltd., LLC v. United States, 541 U.S.
176, 183
(2004) (quoting Conn. Nat. Bank v. Germain, 503 U.S. 249, 253-54
(1992)).
For that reason, “our inquiry begins with the statutory text,
and ends there as
well if the text is unambiguous.” Id.; see also United States v.
Gonzales, 520
U.S. 1, 9 (1997) (“[T]he straightforward language of [the
statute] leaves no room to speculate about congressional
intent.”). In this case, the term
“subsection” used in section 4106 has a commonly understood and
unambiguous meaning: a division of a section. 17 Oxford English
Dictionary
56 (2d ed. 1989). Therefore, when section 4106(f)(3) refers to
“this
subsection,” it can mean only one thing: the division of section
4106 labeled
as (f).
While the government suggests that the
meaning of even
straightforward statutes can be subject to modification upon
resort to
legislative history, we read that practice as available only
when a straightforward
reading leads to an absurd result. See, e.g., Crooks v.
Harrelson, 282
U.S. 55, 59-60 (1930). Here, a default to the court’s general
jurisdiction over
bid protests under 28 U.S.C. § 1491(b)(1) would not be an absurd
result. (MED Trends, LLC, v. U.
S. and MicroTechnologies, LLC, No. 11-420, September
13, 2011) (pdf)
|
|
U.
S. Court of Federal Claims - Listing of Decisions
|
For
the Government |
For
the Protester |
Guam Industrial Services, Inc. v U. S. and Cabras Marine
Corp., No. 15-588C, August 3, 2015 (pdf) |
|
Trident Technologies, LLC v. U.
S., No. 14-531C, September 22, 2014 (pdf) |
|
MORI Associates, Inc., v. U. S.,
No. 13-671C, October 1, 2013 (pdf) |
|
Chameleon
Integrated Services, Inc. v. U. S. and CSSS.net, No 13-144C,
May 29., 2013 (pdf) |
|
Wildflower International, Ltd. v. U.
S. and Govplace Inc., No. 11-734C, June 5, 2012 (pdf) |
|
MED Trends, LLC, v. U. S. and
MicroTechnologies, LLC, No. 11-420, September 13, 2011 (pdf) |
|
|
|