THOMAS C. WHEELER, Judge.
In this post-award bid protest brought under 28 U.S.C. § 1491(b)(1), Plaintiff Davis Boat Works, Inc. challenges the United States Coast Guard's proposal evaluation process in a procurement for inspection, maintenance, repair, and storage of a fleet of cutter boats. The parties have cross-moved for judgment on the administrative record, pursuant to Rule 52.1(c) of the Court's rules ("RCFC"). For the reasons set forth below, the Court finds that Davis has failed to establish its entitlement to relief on any of the protest grounds alleged. Accordingly, the Court denies Davis's motion for judgment on the administrative record, and grants the Government's cross-motion for judgment on the administrative record.
On March 19, 2012, the United States Coast Guard ("USCG") issued Solicitation No. HSCG40-12-R-50008 for "the retrieval, inspection, maintenance, repair/refit, testing, storage, and transportation for a rotating pool of up to 33 Cutter Boat Over-The-Horizon (CB-OTH) MKIIs and MKIIIs and trailers to support Coast Guard cutters throughout the United States." Administrative Record ("AR") 96. Under the pre-solicitation operations for the USCG's Cutter Boat management program, the USCG assigns each "Major Cutter" a set of accompanying Over-The-Horizon Cutters ("OTHs"), with the result that "[w]hile the parent Cutter is in port, or in programmed depot maintenance the assigned Cutter Boat(s) [i.e., the OTHs] remain idle, and not utilized for operational service."
The solicitation states that the procurement is for a "non-commercial fixed-price Requirements contract with time-and-material [contract line items, or `CLINs'] consisting of one (1) base year and four (4) option years."
The USCG advised prospective offerors that it would award the contract "to the offeror whose proposal provides the best overall value to the Government."
The USCG explained in the solicitation that it would perform a price reasonableness analysis by comparing the prices of all offerors "with the government's estimate and historical and market research results."
The USCG received proposals from seven offerors in response to the solicitation, including Davis Boat Works, Inc. ("Davis"), BMT Designers & Planners, Inc. ("BMT"), and Crowley Technical Services LLC ("Crowley"). AR Tabs 25-38. The USCG conducted an evaluation of these proposals, AR Tabs 39-45, and requested clarifications from some of the offerors, AR Tabs 46-50.
On August 21, 2012, the USCG awarded the contract to BMT. AR 4206. Following a debriefing, Crowley filed a bid protest at the Government Accountability Office ("GAO"), but the GAO dismissed this protest as untimely. AR Tabs 98, 101. Crowley then filed an action in this Court. AR Tab 102;
At the conclusion of the reevaluation, the USCG again concluded that BMT's proposal contained a superior technical solution and would, on balance, provide the best value to the Government.
The USCG again selected BMT for contract award, and on January 23, 2013, Davis filed the present bid protest. Davis asserts that the USCG did not evaluate proposals in accordance with the solicitation's evaluation criteria, and did not treat all offerors equally. In particular, Davis questions the manner in which the USCG modified its rating of proposals in the second evaluation. After the parties cross-moved for judgment on the administrative record, the Court held oral argument on May 7, 2013.
This Court has jurisdiction over post-award protests pursuant to the Tucker Act, 28 U.S.C. § 1491. Specifically, 28 U.S.C. § 1491(b)(1) provides this court with the authority "to render judgment on an action by an interested party objecting 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." The jurisdictional grant is "without regard to whether suit is instituted before or after the contract is awarded."
The Federal Circuit has defined an "interested party" as an "actual or prospective bidder or offeror whose direct economic interest would be affected by the award of the contract or by failure to award the contract,"
The Government does not dispute that Davis, as a qualified offeror whose proposal was found to be technically acceptable and within the competitive range, has standing as an "interested party" with a direct economic interest in the award of the contract. The Court finds that Davis was an actual offeror with a direct economic interest in the procurement, and therefore has standing to bring this suit.
In a bid protest, a court reviews an agency's procurement actions under the standards set forth in the Administrative Procedure Act ("APA"), 5 U.S.C. § 706, which provides that a reviewing court shall set aside the agency action if it is "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law."
The inquiry at this first step is "highly deferential,"
Accordingly, "[i]f the court finds a reasonable basis for the agency's action, the court should stay its hand even though it might, as an original proposition, have reached a different conclusion as to the proper administration and application of the procurement regulations.'"
On the other hand, "[a] court must find an agency decision arbitrary and capricious if the government `entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or [the decision] was so implausible that it could not be ascribed to a difference in view or the product of agency expertise.'"
If the Court finds that the agency acted without a rational basis or contrary to law, it must then, at the second step, "determine... if the bid protester was prejudiced by that conduct."
Moreover, in reviewing a motion for judgment on the administrative record made pursuant to RCFC 52.1(c), the court determines "whether, given all the disputed and undisputed facts, a party has met its burden of proof based on the evidence in the record."
Thus, in order to prevail on the merits of its case, Davis must demonstrate by a preponderance of the evidence that, if not for errors in the USCG's proposal evaluation process, it "would have had a substantial chance of securing the contract."
In its motion for judgment on the administrative record, Davis raises a number of protest grounds relating to the USCG's process in reevaluating the proposals it received in response to the solicitation. First, Davis contends that the Government violated the Competition in Contracting Act ("CICA"), 10 U.S.C. § 2305(b)(1), by failing to "evaluate [the] proposals and make [its] award[] based on the criteria stated in the Solicitation." Pl. Mem. at 15. Davis also argues that it was not treated equally with the other offerors. As evidence for this assertion, Davis contends that it was downgraded in three categories, as compared to the scores it received in its initial evaluation.
Davis also questions the USCG's treatment of the proposal submitted by the chosen offeror, BMT. Here, Davis contends that the USCG afforded an unfair advantage to BMT by giving it, and no others, the opportunity to "augment [its] proposal," Pl. Mem. at 6, and also that the USCG gave BMT preferential treatment in considering its proposed personnel. Pl. Reply at 11-12.
The Court will address each of these arguments below. For the reasons explained, the Court finds that Davis has failed to meet its burden on any of the protest grounds asserted.
Davis's first contention is that the USCG evaluated its proposal not on the basis of the factors specified in the solicitation, as required by CICA, 10 U.S.C. § 2305(b)(1), but rather against the substance of other offerors' proposals. Pl. Mem. at 8. As the basis for this argument, Davis offers the sworn affidavits of its President, Frank Wagner, and Vice President, Algie Spurlock. Messrs. Wagner and Spurlock allege that in their post-award debriefing with the USCG, Contract Officer Kelly Wyatt stated repeatedly that Davis's proposal had been rated against the competing proposals, rather than against the terms of the solicitation itself. Wagner Aff. ¶ 7(e); Spurlock Aff. ¶ 7(d).
However, as the Government points out, these assertions are plainly belied by the administrative record, which contains clear evidence of the USCG's proposal evaluations. The record demonstrates that the USCG in fact evaluated both Davis and the other offerors against the standards set forth in the solicitation.
Davis next alleges that the USCG retaliated against both it and Crowley in the second round of proposal evaluations for objecting to the agency's award decision following the first round. In Davis's words:
Pl. Mem. at 5-6.
The USCG interprets this argument as an allegation of bad faith. Gov't Mem. at 9. The Court agrees with this characterization, and also agrees that Davis has not provided compelling evidence to support its contention.
Even assuming that Davis was substantially downgraded in the reevaluation of proposals (an assertion the USCG contests), the Court finds this bare fact to fall far short of a showing of bad faith. As the Government notes, "[a]n agency is afforded the discretion to change its mind during the course of an evaluation." Gov't Mem. at 12 (citing
Davis makes a number of arguments that the USCG failed to properly evaluate its proposal in the areas of its stated capacity for boat storage, its reprioritization plan, its proposed teaming arrangements, and its price proposal. The Court will address each of these grounds below.
As noted, the USCG anticipated that during the six-month pilot program, it would require storage space for "an average of 7 and up to 10 boats in storage/maintenance at any time." AR 244. The solicitation stated an expectation that this number of boats would "increase incrementally," and that the USCG therefore required that "[t]he Contractor's facility ... be indoor and climate controlled [and] capable of storing up to 16 boats on trailers."
Davis challenges the USCG's determination that it lacks the requisite boat storage capacity. See AR 4527 (USCG reevaluation, finding that Davis's proposal "depicts room for 13 boats, vice the 16 required by the RFP"). First, apparently referencing the lesser storage requirements for the pilot period only, Davis argues that "[t]he storing of 16 boats at the same time was not a requirement of the solicitation." Pl. Mem. at 10. This argument contradicts the terms of the solicitation, as quoted above.
Second, Davis argues that its proposal did, in fact, identify the company's capacity to store the requisite 16 boats. Pl. Reply at 10-11. Here, Davis contends, in addition to the space in its secure climate controlled storage building, the company also is able to make its tube and trailer repair shops, as well as its Inflatable Boat division facility available for additional storage in order to bring its proposal in line with solicitation requirements.
However, as the Government points out, Davis's proposal makes no mention of the qualifications or capacity of these potential auxiliary storage facilities. Moreover, in its written clarification, Davis stated that its proposal "showed 14 OTH's." AR 4509. The Court agrees with the USCG that, under the terms of the solicitation, the responsibility to identify adequate storage capacity belonged to Davis, and not to the USCG inspectors performing a site visit.
Davis asserts that the USCG "downgraded Davis because Davis did not provide for re-prioritization — which is NOT a requirement of this solicitation." Pl. Mem. at 8-9 (emphasis in original). However, the solicitation in fact stated: "[t]he Contractor shall prioritize work as to ensure at least one boat is ready for delivery at all times. The Contractor shall have a `Ready Boat' designated at all times. Unless otherwise directed, this Ready Boat will be the next boat utilized for a boat delivery." AR 264.
Since Davis failed to address this requirement in its proposal, there was nothing improper in the USCG's decision to assign Davis a "minor weakness" for its omission.
Next, Davis argues that the USCG improperly downgraded it for proposing to sub-contract only one percent of its electronics work under the contract, where the solicitation did not require offerors to subcontract any such work. Pl. Mem. at 9. The Government agrees that the solicitation did not contain subcontracting requirements or goals for this work, but contends that a lack of clarity in Davis's proposal regarding the electronics portion of the contract led it to properly downgrade the company. Specifically, Davis's proposal stated that a particular subcontractor, [* * *], would perform "100%" of the necessary electronics work, "but less than 1% of [the] total contract." AR 3027. Because electronics work accounted for more than 1% of the total contract value, the USCG states that it perceived Davis as having less than perfect understanding of the contract's requirements. Accordingly, it downgraded the company's proposal.
The USCG review panel noted that:
Davis contends that it always intended to perform the remaining electronics work itself, and that it has the capacity to do so. Pl. Mem. at 9. The Court agrees with the Government, however, that because the solicitation required Davis to state its capabilities in its proposal, the adverse consequences of an omission are properly Davis's responsibility.
d. Price Proposal
Davis raises various arguments regarding the USCG's evaluation of its price proposal, which was the lowest received.
Once again, Davis's contention is contradicted by the plain language of the solicitation. As relevant, the solicitation states "it is requested that you provide a breakdown of your costs, to include but not be limited to: Cost/hour/trade[;] Supplies/materials (description & cost of each[;] Sub-total[;] Pensions Plans[;] Overhead rate[; and] Profit[.]" AR 220. However, whether or not this language, and in particular, the use of the term "requested," can be construed as merely precatory in this context, the USCG expressly clarified in the Question and Answer section that the inclusion of such information was mandatory. That section contains the following exchange:
AR 296.
Further, in its Reply brief Davis relies on
Finally, Davis makes two arguments that the USCG gave BMT preferential treatment. First, Davis contends that in the first round of evaluation, "[t]he USCG allowed BMT to augment [its] proposal without providing the same opportunity to the other Proposers." Pl. Mem. at 6. Second, Davis claims that the USCG gave unequal consideration to the work experience of certain BMT and Davis personnel. Pl. Reply at 11. The Court will address each of these arguments below.
The Government does not dispute that in the circumstances of this solicitation, it was not permitted to afford BMT (or any offeror) an opportunity to amend or revise its proposal. However, the USCG argues that the BMT document about which Davis complains — a "Process Guide," discussed below — constituted a permissible clarification, not a substantive proposal revision.
The Federal Acquisition Regulation ("FAR") distinguishes between two types of actions in the proposal evaluation process: a "clarification" on the one hand, and a "negotiation" or "discussion" on the other. The former is a "limited exchange[], between the Government and [an] offeror[], that may occur when award without discussion is contemplated," and which gives the offeror "the opportunity to clarify certain aspects of proposals ... or to resolve minor or clerical errors." FAR § 15.306(a)(1)-(2).
In contrast, the FAR defines a "negotiation" or "discussion" as:
Nonetheless, as the Federal Circuit has emphasized, "[a]ny meaningful clarification would require the provision of information."
Here, Davis contends that a 25-page "Process Guide" submitted by BMT during the first round of evaluations in response to a USCG request for clarification goes beyond the limited definition of "clarification," and therefore afforded the company an unequal opportunity to engage in "discussions" with the agency. During the course of its first-round evaluation, the USCG sent BMT a letter seeking clarification on, inter alia, the company's proposed management approach. The letter stated:
AR 3826. In response, BMT sent the USCG a seven-page letter addressing this and other requests for clarification posed in the USCG's inquiry. In addressing the management plan question in particular, BMT stated that it "will meet all specification requirements. To describe how we intend to meet these requirements, we have attached our DRAFT Process Guide for the Cutter Boat Pooling Program."
The Court agrees with the Government that Davis has not carried its burden of demonstrating that the Process Guide constituted a substantive revision to its proposal. As noted above, any clarification must necessarily convey new information to the agency, and the Court finds that the Process Guide did not cross the line between a clarification and a revision.
In its opening brief, Davis argued that the USCG had improperly assigned it a "marginal" rating for that portion of its proposal relating to the Staff Experience and Key Personnel sub-factor. As relevant here, Davis had proposed [Mr. A] as the Program Manager for the contract, and [Mr. B] as Site Foreman and Planner/Estimator. AR 3022. The USCG rated this portion of Davis's proposal "marginal" for three reasons. First, the USCG expressed concern that [Mr. A], who already managed Davis's entire Inflatable Boat Division, would be "stretched thin" if he were to fill the CCBP Program Manager role. AR 4526. Second, the USCG noted that [Mr. B's]two years as a foreman and eleven years of more generalized experience "working on government small craft" fell short of the minimum required experience for both (1) the Planner/Estimator position, which required a "minimum of 5 years in boat or ship productions," and (2) the Site Foreman position, which required a "minimum of 3years experience in boat or ship repair as a foreman or [in a] leadership position."
Davis originally took issue with this assessment on two grounds. First, it argued that its personnel were not required to "remain idle while the Government performs a source selection." Pl. Mem. at 9. Second, Davis argued that the "USCG misread the resume of [Mr. B] ... and downgraded Davis's Planner/Estimator for no experience in boat production. Since this was a repair solicitation Davis reasonably interpreted the requirements as ship or boat repair production, not new boat production."
The Government, for its part, responded that "it was within the USCG's discretion to determine that [Mr. A's] dual roles would cause a risk of noncompliance with the Specification," and that "to the extent that Davis now claims [Mr. A] would have relinquished his [other] role ... after award, this is a post hoc revision" not contained within Davis's proposal. Gov't Mem. at 19-20. The Government further argued, inter alia, that Davis had failed to explain how the USCG had misperceived [Mr. B's] two years of relevant leadership of foreman experience, which was short of the three required years under the terms of the solicitation.
Apparently perceiving its weaknesses, Davis dropped the personnel argument entirely in its reply brief, and instead alleged, for the first time, that BMT's proposed Planner/Estimator also lacked any "new" boat or ship production experience and [that] no mention was ever made of that fact." Pl. Reply at 11. To the contrary, as Davis points out, the USCG evaluated BMT's proposed staff as "all exceed[ing] minimum requirements[.]"
At this point, the Government concedes that "[u]pon review of the administrative record, it appears that although BMT's proposed Planner/Estimator does not possess the solicitation's required experience," the USCG found the opposite to be the case. Gov't Reply at 17. Nonetheless, the Government contends that this error:
As explained above, Davis bears the burden of establishing, by a preponderance of the evidence, that "but for the error, [it] would have had a substantial chance of securing the contract."
In summary, none of Davis's arguments comes close to establishing its entitlement to relief on the merits of its protest. This is especially so where, as Davis itself acknowledges, "[t]he court must especially defer to the agency's technical evaluations ... and other minutiae of the procurement process ... which involve discretionary determinations of procurement officials." Pl. Mem. at 18-19 (quoting
Accordingly, the Court DENIES Davis's motion for judgment on the administrative record, and GRANTS the Government's cross-motion for judgment on the administrative record, in which Intervenor-Defendant BMT joins. No costs.
This decision is filed under seal. On or before May 24, 2012, counsel for the parties shall carefully review this opinion for competition-sensitive, proprietary, confidential, or other protected information and submit to the Court any proposed redactions before the opinion is released for publication.
IT IS SO ORDERED.