History
  • No items yet
midpage
Allied Technology Group, Inc. v. United States
649 F.3d 1320
Fed. Cir.
2011
Check Treatment
Docket

*1 findings factual court’s the district cause and because clearly erroneous

are not proper comports

legal analysis conduct inequitable the doctrine

role of law, judgment the district court’s

in patent is unenforceable patent the '551 affirmed.

inequitable conduct should dissent. respectfully

I GROUP, TECHNOLOGY

ALLIED

INC., Plaintiff-Appellant,

v. STATES, Defendant-Appellee,

UNITED Solutions,

Monster Government

LLC, Defendant-Appellee.

No. 2010-5131. Appeals, States Court of

United

Federal Circuit. 9, 2011.

June Sept.

Rehearing En Banc Denied attorney clearly remarks findings [to satisfied the declaration and the elsewhere made requirements of the more restrictive stan- respect Sanghera, With to Dr. PTO].” inequitable set above. dard for conduct forth "consciously that he made sworn court found Pope particular, court found that Mr. deliberately that were [PTO] statements to the specific intent to deceive Examin- "acted with misleading.” respect With to the issue PTO,” Shay Pope er that Mr. and Dr. moreover, judge did "balancing,” the district Sanghera and deliberate "made conscious against necessary to balance intent find decision to withhold disclosure to the PTO of explicitly materiality, he found because EPO, prior and that these statements” strong materiality to both the evidence was materials both of them "knew that the EPO and intent. made affirmative statements inconsistent *2 States, Group, Allied Tech. Inc. v. United (2010) (“Opinion”). 94 Fed.Cl. 16 For below, the reasons set forth this court *3 affirms. Background I. Jr., Claybrook,

Frederick W. Crowell & Request Quotations A. DOJ’s for LLP, DC, Washington, argued of Moring, him plaintiff-appellant. for With on the 13, 2008, August On the DOJ issued a Gunjan Lindsay R. Talati brief were and Request Quotations (“RFQ”) draft for P. Denault. recruiting staffing sys- an automated and O’Connell, Trial Attorney, (“the Michael N. System”), performs tem Branch, Litigation Divi- Commercial Civil basic functions associated with the internet sion, Justice, Department States of United listing job of postings DOJ and the sub- DC, Washington, argued for defendant- tracking applications mission and sub- appellee The on United States. With him response mitted in to the vacancies. West, Tony the brief were Assistant Attor- RFQ The draft contained a number of General, Davidson, ney Jeanne E. Di- requirements technical that are discussed rector, Manhardt, and Kirk Assistant Di- below association with the final rector. addition, it provisions partic- contained two Moorhouse, Greenberg Richard L. Trau- ularly protest. relevant to Allied’s LLP, DC, rig, Washington, argued for required that highlight “[t]he offeror shall defendant-appellee Monster Government any provisions that conflict with the Terms Solutions, LLC. With him on the brief and Conditions B outlined Document were, Pankowski, Jacob B. David P. Good- [setting forth the substantive terms of the win and William M. Jack. Conflicting provisions contract]. will be considered as to the Terms and BRYSON, CLEVENGER, Before RFQ.” App’x Conditions of the J. 172. LINN, Judges. Circuit Second, it noted that offeror is ad- “[t]he Opinion by for the court filed Circuit any exceptions vised that taken to the Judge LINN. Dissenting opinion by filed RFQ may terms and conditions of the Judge Circuit BRYSON. adversely impact evaluation rating. right Government reserves the not to LINN, Judge. Circuit accept any exceptions RFQ.” to this Id. post-award protest This is a bid case RFQ provoked The draft comments by filed Allied Technology Group, Inc. offerors, potential including from Monster (“Allied”) against (“gov- the United States objected and Allied. provi- “DOJ”), ernment” contesting gov- conflicting sion that terms will be consid- of a ernment’s award contract for an in- exceptions, noting ered as that “[t]his job ternet listing website to intervenor language does not allow for consideration Solutions, Monster Government LLC of alternative (“Monster”). agen- terms meet the The Court of Federal cy’s suggests] needs and that an (“Claims Court”) offeror Claims granted judg- proposal being runs the risk of a found ment on the administrative record in favor (collec- nonresponsive if any terms an offeror’s government of the and Monster (Master tively, Appellees), affirming Subscription standard MSA [ the determi- (Service Accountability Agreement) nation the Government or SLA Level ] [ (“GAO”) Office that the proper. Agreement) highlighted award was as directed. ] Accessibility Technology with FAR Information Stan- be inconsistent This would (Federal 12, as Acquisition Regulation) ] dards set forth at 36 C.F.R. [ above, be clarified.” and should Moreover, noted RFQ required that a Sec- Compliance tion 508 Certification be final called for an “ef- The DOJ’s Finally, the contractor. signed user-friendly applica- web-based fective RFQ required System that the “shall use 11,000 initially handling about tion” for unique employee identifiers lieu of social expanding employees, capable 115,000 other employees security personally numbers or other iden- up cover system. converted sub-agencies tifiable information.” *4 factors, RFQ four evaluation included The Critically, RFQ the final noted to be their contribution to the listed here with eligible, “accept[ and offeror must each of ] (60 points), technical merit live total score: requirements, provisions, terms and (30 points); past system demonstration conditions, and clauses in all stated sec- (10 (dis- points); price performance RFQ.” RFQ final tions of this The also below). cussed language maintained the from the draft RFQ explicitly not- Regarding price, the RFQ objected by Allied in a section Tech- ed that Government considers “[t]he Documents,” titled “Part J —Additional Merit, System nical Demonstration and requiring that: factors, combined, Past Performance when highlight any provi- The Offeror shall important more than significantly to be sions that conflict with the Terms and Price,” final but that the award would be Conditions outlined Document B. value determi- made on the basis of best These documents will be reviewed nation, price total evaluated “[t]he wherein Any the Government. Terms and Con- determining factor for award will be the unacceptable ditions that are considered quotes are considered where two or more by the and cannot be re- Government If, substantially technically equal.” how- being solved result in the Offeror ever, Department “the determines removed from consideration. Conflict- significant technical differences there are ing provisions will be considered as ex- capabilities of two or more between ceptions to the Terms and Conditions of Offerors, expensive quote may then a more RFQ. award where the DOJ de- be selected for Further, RFQ any excep- “that warned the value of the selected termines tion taken to the terms and conditions of quote price is worth the differential.” RFQ may adversely impact its evalua- The technical merit factor included rating.” RFQ that “[t]he tion The noted “Requirements detailing List” techni- make an award on Government intends to requirements, “High,” cal each rated as quotation the basis of initial without the “Medium,” high “Low” Three priority. However, use of discussions.... the Gov- are relevant here. priority requirements right ernment reserves the to use discus- RFQ required prece- that it take if it receipt quotations sions after any agreement between dence over other considered in the Government’s best inter- Second, and the offeror. government ests to do so.” RFQ required compliance with Section Act of 508 of the Rehabilitation B. Bids Allied’s Monster’s System for guaranteed access to the bids Only Allied and Monster submitted with under the FAR. people disabilities RFQ. response Both offerors RFQ that the contractor “must noted price plans systems intended Electronic and submitted comply” with the Federal (cid:127) 115,000 5,000 users. The Allied would remove the section for between monthly propos- requiring payment evaluated the arrears. Contracting Officer (cid:127) anticipated user count of als at the initial Relatedly, Ini- Allied would have the 15,000. 10,000 proposed Allied’s five- paid up tialization Fee front to take million, year price approximately $7.0 advantage of the re- 30% discount prepayment annual assuming percent a 30 price quote, flected in conflict prepayment dis- discount. Without RFQ requirement pay- (as RFQ), called for count monthly in ments be made arrears. million price approximately totaled $11.7 exceptions, undisput- Aside from it is these Allied’s bid contained a years. over five proposal ed that Allied’s met all the re- Exceptions.” titled “Part Al- section 5— quirements lied stated: certified that of the Avue Platform re- nature [The] requirements would meet all 114 technical MSA, signed that the Avue quires five-year price approximately for a total clients, precedence all takes over all oth- In particular, million. Monster indi- $3.2 *5 agreements/terms er and conditions content, “system, training cated such, client base. across our entire As output” compatible and its with Section Precedence, Order needs Section of Act, of the Rehabilitation and also the (“Blanket BPA [ to be removed from the privacy provision requiring the use of Agreement”) Purchase Terms and ] unique employee identifiers in lieu of So- Conditions, leaving the MSA as the Moreover, Security cial numbers. Mon- overriding document. The remainder of required signed ster submitted the Section exceptions outlined below flows [sic] Certification, Compliance certifying change. from this that its service is in with the Officer, Contracting As described Technology Electronic and Information Allied, disputed and not Standards, Accessibility 36 C.F.R. following: resolve into the In a section titled “PART 5. EXCEP- (cid:127) govern TIONS,” the confi- MSA following Monster included the data,

dentiality government’s overview of compliance: its Section 508 rights produced in data con- under the The information contained within this tract, rights inspection and voluntary Accessibility Product Temp- acceptance. (“VPAT”) late is the result of an inde- (cid:127) require “Any Allied’s MSA would pendent audit ... [that] tested the

early Agreement termination of this compliance of the Monster Government shall not in a result refund or reduc- hiring Management Employ- Solutions — 5.0”) Subscription tion of the Annual Fees (“HM Employer applica- er 5.0 — and the Annual Extranet for that Fees tion with the requirements of Section portion subscription of the Period so 508 of the Rehabilitation Act of 1972 as terminated, (1998). regardless of whether Amended paid such fees are on an annual or Employer generally compli- 5.0 is HM— monthly basis.” ant with to the relevant Sec- (cid:127) If the government performs pen- requirements. Employer tion 508 HM—

etration testing pursuant compliance exceptions to technical 5.0 has minor forms, requirement accessibility require Allied would text elements, indemnity equivalents “extensive financial cover- for non-text age.” keyboard accessibility. year the five term Decision ditional dollars over Contracting Officer’s Award

C. BPA.” fur- Contracting The Officer a technical evalua- established The DOJ price ther noted because Allied’s was Panel”) (“the to evaluate panel tion taking advantage based on the DOJ of a competing proposals. of the technical merit up-front payment arrangement, 30% Panel scored each of the The members between price disparity true Allied and weak- strengths and for technical product than Monster was even more 100%. At criteria of the under the nesses analysis, the end of his the scores received Officer Panel, if asked for further com- Officer concluded “even [Allied’s] from descriptions acceptable, from the members ments and business were then not, Panel. The Panel members of the presents it is Monster still the best demonstration, systems the live attended Department.” value to the scores re- past performance and collected products. The companies’ both garding D. GAO Bid Protest the scores averaged post-award protest Allied filed a bid the Panel for by each member of awarded GAO, challenging Of- merit and the live demonstration technical finding quotation ficer’s that Allied’s was average past per- and added unacceptable, finding his that Monster’s The result was total formance scores. quotation acceptable, and the method- 85.5/100, Mon- for Allied of and for score ology of the contract award. The GAO ster of 79.49/100. (1) protest denied Allied’s because: *6 2, 2009, Contracting Offi- August On put taking on notice of the risks of awarded the contract to Monster. cer exception dispute and does not that it took opinion, the his later-issued memorandum (2) exceptions; phrase “cannot be re- explained his award Contracting Officer in reasonably solved” could not independent on two bases. decision (3) discussions; require be read to and that Allied’s he determined could, even if it this would result in a accept

were “a refusal to Allied/Avue patent ambiguity within the contract be- provisions, terms requirements, material requirement tween the discussion and the RFQ,” and clauses to the and conditions statement that the DOJ intended to make that this made Allied’s and determined discussions, that the award without and stand- “unacceptable offer from business protest patent failure to this Allied’s ambi- The Officer stated point.” prior bidding right waived its guity that “Monster took no Sec- exceptions.” required. assert that discussions were ond, despite exceptions, Allied’s and rejected argument The also Allied’s GAO compared Allied’s and Officer disqualified have on their merits be- that Monster should been proposals only noncompliance two offerors. they alleged cause were on the basis of Act Section 508 of the Rehabilitation and merits, On Security the collection of Social numbers provided the determined that Monster point, to the first through USAJOBS. As project, value for the because Allied’s best that Allied’s state- the GAO determined advantage” justi- “small technical could compliance, and the determina- ments of price: “There is no rea- fy the increased independent tion consultant Allied/Avue, way to assert sonable compliant,” did “generally Monster was higher a technical score of 5.04% receiving unaccepta- a determination of not mandate more than justifies paying than Monster much, bility. in of ad- resulting millions twice

1326 protest arbitrarily capriciously Allied’s ment acted and not rule on did

The GAO determination and best value making of the value determination. We its best of the rat- deficiencies procedural alleged and, light address the first two issues that Allied was it held ing system, because decision, the third. our need not address not raise party could not an interested issues, agency had “reason- since the those A. Standard of Review to be unac- ably quotation found Allied’s to be quotation ceptable [Monster’s] This court reviews Claims acceptable.” grant judgment Court’s of a on the admin novo, applying istrative record de the same Complaint E. the Court standard over the GAO’s decision as did of Federal Claims Bannum, Inc. v. the Claims Court. Unit protest by filing its bid Allied continued (Fed.Cir. States, 1346, 1350-51 404 ed F.3d Court, making complaint in the Claims 2005). show plaintiff-appellant must essentially arguments the same did Officer’s award granted Ap- The Claims Court the GAO. basis,” Grp., a rational “lacked Centech judgment on the ad- pellees’ motion States, Inc. v. United 554 F.3d record, holding ministrative (Fed.Cir.2009), prejudicial or “violates to disqualification non-disqual- and Monster’s applicable procurement regula effect an proper. The Claims Court ification were tion,” Servs., v. CACI Field Inc. United agreed with Allied that “there were errors States, (Fed.Cir.1988). F.2d process,” in DOJ’s technical evaluation but determined that Allied could not show The ground test under the first is “wheth prejudice large price gap because the be- contracting agency provided er the a co it impossi- tween Allied and Monster made explanation herent and reasonable of its “reasonably ble for Allied to show that it discretion, disappointed exercise would have received the award the ab- a heavy showing bidder bears burden of Relying sence of DOJ’s errors.” on Elec- the award decision had no rational Systems, tronic Data LLC v. United *7 Centech, basis.” 554 F.3d at 1037. The States, (2010) 93 Fed.Cl. 416 and Data ground test under the second is whether Johnson, 1556, Corp. v. 78 F.3d General disappointed the bidder has shown “a clear (Fed.Cir.1996), 1563 the Claims Court rea- prejudicial applicable violation of stat soned that simply “[t]he record does not regulations.” preju utes or To show Id. suggest any reasonably DOJ errors dice, protestor the must show “but for could offset to price the difference so as error, alleged the there was a substantial improper.” make DOJ’s selection chance that would receive an award— [it] timely appealed. Allied This court has that it was within the zone of active consid 1295(a)(3). jurisdiction under 28 U.S.C. Statistica, Christopher, eration.” Inc. v. (inter (Fed.Cir.1996) 102 F.3d 1581 II. Discussion omitted). nal citations appeal presents Allied’s three distinct (1) government issues: the Whether government Whether a contract is required engage to in discussions Al- ambiguous ambiguity and whether that is lied in exceptions over Allied’s offer law, patent questions or latent are re (2) it; disqualifying before Whether the viewed without deference. Stratos Mobile Contracting properly Officer considered USA, States, Networks LLC v. United despite Monster’s offer to (Fed.Cir.2000). (3) 508; 1375, 1380 govern- F.3d Section Whether is considered in the Government’s best Disqualification The B. Proposal of Allied’s interests to do so. added). (emphases Appellees further ar- interpretation gue would cre- RFQ unambigu- that the argues Allied in patent ambiguity ate a the contract— to Contracting Officer ously requires giving between Officer the in with an offeror who engage discussions discussions, engage discretion to but any to terms the con- exception

takes requiring to Officer en- tract, before gage in discussions in the case of excep- an offeror from properly disqualify such challenge tions—which Allied cannot under primarily on consideration. This based Fleet, L.P. holding Blue & Gold v. RFQ below from an phrase italicized States, (Fed. 492 F.3d United “Part Docu- section titled 4—Additional Cir.2007) (considering disappointed bid- ments argument patent der’s on the basis of that are con- Any Terms and Conditions ambiguity waived for failure to raise it by the Government unacceptable sidered prior bidding). to may result and cannot be resolved removed from consid- being the Offeror arguments Allied makes two in re- eration. First, sponse. argues Ap- Allied that the added). to interprets pellees’ interpretation Allied this fail (emphasis give not be “would mean meaning to the “cannot be resolved” unless the con- grounds disqualification Second, phrase RFQ. Allied argues signifi- thought flicts as a whole were phrase response that that was added in enough disqualification to warrant cant Allied’s comments on the draft through not be resolved (‘may’) and could arguments unpersuasive. These resolved’).” (‘cannot be Br. of discussions provision RFQ The relevant of the Draft at 22. read: provisions Appellees counter two copy any The shall include a offeror give Offi- unambiguously (MSA), Subscription Agreement Master engage cer the discretion over whether to (SLA) Agreement any Service Level general quote in discussions. that the other documentation offeror will instructions, states: sign in request the Government to order offers shall contain the Offeror’s [I]nitial to receive the offeror’s services. The price a technical and best offer from highlight any provisions offeror shall Government, however, standpoint. *8 that conflict with the Terms and Condi- to conduct discussions right reserves the in B. tions outlined Document Conflict- Contracting by if later determined the provisions will be considered as ex- ing necessary. to be to the Terms and Conditions of ceptions added). Second, in a section (emphasis RFQ. the Discussions,” RFQ stated: titled “5.0 In response, Allied stated: to make an The Government intends RFQ requires offerors to The draft quotations of initial award on the basis any provisions in an MSA or highlight Offer- without the use discussions. of Terms and SLA that conflict with the submit their most ors should therefore B, in but states Conditions Document in to the advantageous quote response conflicting provisions will be that such However, the initial solicitation. Gov- exceptions to the Terms and considered right to use dis- ernment reserves language This receipt quotations Conditions cussions after if objected for consideration of alter- The DOJ did not remove the not allow does agency’s that meet provisions; RFQ, native terms the final like the suggest that an offeror runs draft, needs and required highlight any offerors to being found nonre- of a the risk provisions in an MSA or SLA that con- any terms in an offeror’s sponsive if flicted with the terms and conditions of highlighted MSA or SLA standard RFQ, categorized conflicting such as directed. Allied, provisions exceptions. through as comments, following: already acknowledged The then added the has DOJ provisions may reasonably these be by will be reviewed These documents disqualification read to allow Any Terms where “alter- the Government. and Con- unacceptable proposed ditions that are considered native terms” are in the offer. cannot be re- by the Government and in nothing language There is the added being result the Offeror solved necessarily changes the effect of from consideration. removed provisions. those The added language discussions, does not mention nor define argues only reasonable required government what is before the reading the amendment DOJ may properly prevent being wanted to offerors from determine that terms so, nonresponsive, required Instead, dis- unacceptable. found offer are the DOJ disagrees. cussions. This court objection, warning answered Allied’s offer- proposing ors that a bid alternative terms RFQ unambiguously gives may well result in its removal from con- Contracting Officer the discretion over sideration. discussions, engage whether to as seen provisions emphasized from the above. this, In light reading a reasonable reading, Under Allied’s such discretion is phrase may “cannot be resolved” be to eliminated the offeror’s initiative to require discussions where additional terms take or propose additional are proposed, but maintain as government terms that the would find un (and disqualification) conflicting thus allow words, acceptable. other Allied would terms between the and the submitted allow the Officer discretion to interpretation additional documents. This engage only in discussions when the offer is consistent RFQ, with the rest of the exactly RFQ, conformed to the a situation requires offerors “submit their unlikely which would to be “unaccepta advantageous most quotes,” and their However, ble the Government.” [to] “best offer from a price technical and provision “cannot be resolved” is activated standpoint” and retains the only when the additional terms are consid Officer’s engage discretion over whether to unacceptable ered government. go discussions. We need not far so Thus, interpretation give fails to definitively opine meaning on the of that above, meaning provisions reserving to the phrase; enough it is to note that it does Officer the discretion to require Officer to en- discussions, engage in and is therefore an gage in disqualifying discussions before an *9 See, improper reading RFQ. e.g., of the offer from consideration. Aviation Training Burnside-Ott Ctr. v. level, a Dalton, (Fed.Cir.1997) practical On more the ex- 854, 107 F.3d 860 (“A plicitly states that offerors should submit contract interpreted must be as a “complete acceptable quote[s],” whole in a manner that and i.e. gives reasonable meaning parts “accept[ to all its those which the require- and avoids conflicts each of ] in, of, ments, conditions, or surplusage provision.”). provisions, its terms and

1329 Contracting that the ground of this the same Offi- stated in all sections and clauses to reward disqualified It makes little sense cer Allied: because it took a RFQ.” propos- choose to submit in exception requiring prece- contractors who material the RFQ by the fail to conform to RFQ, als that dence of the MSA over the that the engage government the requiring Contracting “unaccepta- Officer considered with them. discussions Second, a standpoint.” ble from business not,

the Officer did as Allied 2. contends, finding unacceptability make a required discussions were Because only aggregate excep- on the of the six disqualification on the by RFQ prior to opinion tions. The Officer’s exceptions, only unacceptable basis states: the Con- remaining question is whether opinion It of the Offi- rationally disqual- tracting Officer acted a exceptions cer that these are refusal exceptions. Allied on the basis of its ifying accept material re- Allied/Avue exceptions argues that two of its six

Allied quirements, provisions, and terms condi- exceptions not “true” because were tions, RFQ, and clauses of the and result during clarification told the DOJ quote being unaccepta- in Allied/Avue’s for a 30 agree payment arrears standpoint. ble from a business Allied then bump price. percent Officer’s reference to Contracting Officer dis- argues that naturally exceptions” “these is most read on the cumulative basis of qualified Allied referring exception. By to each analo- that a determination exceptions, all six gy, say, were this court to affirm “we are not any of the six decision of the Claims Court for three remand, on exceptions requires “true” reasons,” that sentence alone does not nec- in S.E.C. v. the basis of restriction essarily indicate that the affirmance is 194, 1575, Chenery Corp., 332 U.S. 67 S.Ct. aggregate on the of the three rea- based (1947) appeals that an court L.Ed. 1995 stated, Finally, sons. as this court has “a by the judgment “solely make its must proposal that fails to conform to the mate- if agency[, and] invoked grounds rial terms and conditions of the solicitation improper, or grounds inadequate those unacceptable should be considered and a to affirm the admin- powerless the court is unaccept- contract award based on such an by substituting what it con- istrative action procurement able violates the proper adequate to be a more siders regulations.” statutes and E.W. Bliss Co. basis.” Id. at 67 S.Ct. (Fed. States, v. United F.3d hollow for three argument rings Cir.1996). above, As this is ex- discussed all its Allied admits that reasons. plicitly RFQ, requires out in laid from an insistence that its exceptions stem a com- Offeror shall submit “[e]aeh J. precedence take over MSA plete acceptable quote accordance (“The excep- at 900 remainder of the App’x the instructions contained herein. with from this outlined below flows [sic] tions quote accepts ... each of a re- Such excep- that all six change.”). Allied admits quirements, provisions, terms and condi- at 26. “material.” Br. of Allied tions were tions, and clauses stated in all sections of Allied that two of agreed Even if we RFQ.” There is thus no “substantial this exceptions, not “true” were doubt whether the administrative of the other four affirming on basis ultimate find- would have made same not constitute a new exceptions would findings [by the erroneous as- ing with an affirmance. It would be ground for *10 inferences removed from the sumption] on disqualification affirmance of Allied’s 1330 if Airways, Contracting Inc. v. the Officer had made

picture.” See Braniff (D.C.Cir.1967). CAB, 453, offeror, 466 non-complaint F.2d an award to a 379 subject decision would be to reversal. holding RFQ that the did of our Because prior disqualify- require discussions However, improperly Allied frames the Allied, whether ing we need not determine explicitly issue. Monster that it certified the failure to conduct such discussions was 508, compliant with Section both prejudicial to Allied. For each of the rea- listing requirements, by submitting of and above, this court affirms sons discussed signed Compliance a “Section 508 Certifi- decision to dis- Contracting Officer’s cation,” stated, quote which for “[t]he qualify Allied. products or services in response to this Request Quotation IS NOT in [x] [ ] IS Acceptability C. compliance with the Electronic and Infor- Proposal Monster’s mation Technology Accessibility Standards argues that Allied next the award to (36 1194), below, specified CFR as a mini- a Monster lacked rational basis because mum.” The certification also included the alleged exceptions RFQ to the following signature note after the block: necessarily required disqualification by Exceptions previ- “See [Monster’s] Officer. ous section.” argues Allied that the an Where offeror has certified that not award the contract an requirements meets the technical of a require- offeror who fails to meet all the proposal, Officer is enti RFQ, ments of and Monster did rely tled to on such certification deter requirements not meet the of Section 508 bid, mining accept whether to and the Act, of the Rehabilitation providing for potential offeror’s comply failure to with accessibility system to the for disabled in- proposal requirements ordinarily is “a Next, argues dividuals. Allied also administration,” matter of contract RFQ Monster failed to meet technical re- go does not to the propriety accepting quirement 107 that the offeror must use Centech, the bid. See 554 F.3d at 1039 “unique employee identifiers in lieu of so- (citing approval with In re Orincon Corp., security cial personally numbers or other (G.A.O. B-276704, 1997 18, July 402081 WL identifiable information.” 1997)) (“[A]s matter, a general agency’s an judgment as to whether a small business comply offeror will with subcontracting attempts to frame the Section 508 limitation is a responsibility, matter of issue as whether the Contracting Officer compliance contractor’s actual could requirement have waived the provision is a matter of contract adminis § compliance, 508 and cites numerous stat- tration.”). “However, a proposal, where utes, regulations, itself for face, on its should lead an proposition § that an conclusion offeror could not and mandatory. 794d(a)(l)(A); § See 29 U.S.C. would not comply [applicable re 253b(a); 39.201; § § 41 U.S.C. 48 C.F.R. quirement], we have considered this to be 1194.2(a); App’x C.F.R. J. at 396 (technical proposal’s accept matter of the technical requirement number 72 requires 508). ability,” which propriety does affect the compliance with Section This court added); accepting the agrees (emphasis with Allied that offer. Id. compliance with Inc., B- mandatory, may Spectrum Sys., Section 508 is not be see also re (G.A.O. Officer, waived at *2 WL *11 2009) (“[A]n 13, may implementing regulations. fleeted in the agency accept May representation § indicates quotation’s (requiring “compa- 36 C.F.R. 1194.1 See require- (allow- the solicitation compliance access); with § rable” 36 C.F.R. 1194.5 ments, significant there is no coun- where ing technologies that “result in alternative reasonably known to tervailing evidence substantially or equivalent greater access that should create agency evaluators a product people to and use of with the offeror will or can com- doubt whether disabilities”). requirement.”).1 with the ply reading “generally A reasonable of the framing acceptability of the proper compliant exceptions” language with minor therefore, is, proposal of Monster’s in the context of the offer as a whole is compliant with ex- “generally whether that Monster certifies that whatever “mi- language proposal in Monster’s ceptions” takes, nor” it it nevertheless “significant countervailing evi- constitutes considers its offer to meet the flexible reasonably agency known to the dence requirements reading of Section 508. This should create doubt evaluators supported by the note at the end of comply will or can whether the offeror Compliance Monster’s Section 508 Certifi- requirement.” Spectrum, 2009 with the cation, because, in spite of the referenced 1325352,at *2. WL exceptions in Part Monster nevertheless court, This consistent certified its with Section 508. Court, determines that the Con Claims It was not irrational for the did not lack a rational tracting Officer representation Officer to credit Monster’s because the accept basis to to determine Monster met all the language does not constitute RFQ. Indeed, requirements of the as dis- three rea countervailing evidence for such above, cussed the contractor credit must sons. “sig- Monster’s certification unless there is exception is con- the statement countervailing nificant evidence.” Because two certifications sistent with Monster’s statutes, nothing regulations, or the comply with Section its offer RFQ requires that an offer must be con- with 508 is not Compliance 508. Section “non-compliant” simply because it sidered all-or-nothing product, attribute of a an compliant,” phrase is not “perfectly perfect compliance disqualifi- or requiring minor “generally compliant excep- with cation, by the flexible statuto- as evidenced significant coun- tions” does not constitute ... ry requirement that “the shall tervailing that should make the evidence that the electronic and information ensure compliance. agency doubt the offeror’s technology allows ... individuals with dis- agrees, the dissent argues, and employees are Federal abilities who 1194.2(a) § requires pro- that 36 C.F.R. have access to and use of information posal perfectly unequivocally to be to the access to comparable data that is accept- to be compliant with Section 508 the information and data and use of requires “products able because who are not individuals employees Federal part comply covered this shall with all U.S.C. disabilities.” 794d(a)(l)(A). flexibility applicable provisions part.” (empha- of this § This is re- well, States, opinions binding 870 F.2d Though are not on Inc. v. United GAO court, 3554(b)(1)), Congress "empowered (Fed.Cir. 1989) [the has (citing this 31 U.S.C. Comptroller whether General] determine opinions and this court draw on GAO's solicitation, award, proposed award application expertise. for its of this - Honey regulation,” complies with statute and

1332 added). easily that This argument presumes distinguishable. This case is sis that exceptions” “minor indicate unambiguously Monster’s Monster twice certified satisfy fail to service would 508, Monster’s only with compliance Section 508, but, of Section as provisions some contrary allegedly compli- evidence to its above, immediately Monster discussed ance, a that it excep- statement had “minor if 508 even it considers may satisfy Section tions,” was within the context of a state- minor because of itself to have “generally compliant.” ment it was in the statute. flexibility inherent This is not the kind of evidence that shows Centech, Second, is not the noncompliance Monster’s statement “on its face.” See countervailing evi- “significant kind of 554 F.3d at 1039. and the GAO have dence” that this court Third, independent audit results re- in require disqualification light of found to in “Exceptions” flected Monster’s section compliance. satisfactory certifications evaluated Monster’s service at the time of Centech, 1039, For in 554 F.3d at example, Monster’s bid. The required that this court determined GAO’s recom- “High” priority components, compli- like accept mendation to the Air Force not to 508, ance with upon Section be “available rational, offer was where a stat- Centech’s completion period, of the transition which perform required per- ute that Centech (60) (90) sixty may ninety be be itself, pro- cent of the work and Centech days if the Government chooses to allow (and posed only perform percent 43.2 Thus, 30-day assuming extension.” even rest). in subcontract the Likewise In re sufficiently that Monster’s service was not Marketing Corp.,

MMI-Federal Service compliant with Section 508 at the time of (GAO B-297537, 2006 WL 391289 Feb. bid, Monster’s Officer had 2006), Allied, a case cited the GAO question no basis on which to Monster’s agency determined that the could not ac- comply certification that it would with Sec- cept winning without verification the bid- tion at period. the end of the transition compliance der’s self-certification of “Berry requiring Finally, the identification of the Amendment” — “minor products purchased certain and treated exceptions” through occurred domestically winning bidder’s —where voluntary decision to obtain an indepen- plant initial bid called for treatment at a compliance dent audit to ensure with Sec- only place as the China the world where was, fact, tion 508. Even if Monster performed, such treatment was comply unable to with Section part self-certification was made as of a question would have had no basis to Mon- manufacturing plan. modified Id. at *7. ster’s without the benefit of the (“[T]he agency’s evaluation of Iguana’s report, auditor’s compli- the issue of quotation was unreasonable. Because clearly ance would be one of contract ad- Iguana’s quotation originally submitted Instead, ministration. Monster chose to manufacturing process disclosed China engage the auditor to receive an above- Berry that violated the Amendment re- and-beyond determination of precise quirements, Iguana and because advised compliance, level of in a resulted capable domestic facilities general compliance conclusion of with “mi- performing the EXPEL impregnation exceptions.” nor Monster should not be available, process were not then agen- penalized attempt for its admirable at award, cy required verify, prior greater precision. Iguana’s manufacturing pro- intended arguments, Allied makes two further comply Berry cess would Amend- ment.”). briefly which we address here. ac- support information.” Allied’s Allied, tifiable because the cording to excep- find that Monster’s did not this is that Monster’s service uses USA- “minor,” nor this court (which neither tions were Security uses num- JOBS Social *13 find without could so Court bers) the Claims application processing.” “for Chenery, in of the rule running afoul again argument is meritless. Allied’s 196, 1575 that “[w]e at 67 S.Ct. 332 U.S. compliance its with Monster has certified the supply a reasoned basis may not 107, for the reasons dis- requirement itself has action that the agency’s with Section cussed above connection Second, that the argues given.” not Contracting Officer is compliance, 508 the signifi- a overlooked Contracting Officer rely entitled to on this certification. Sec- failing recognize to Monster’s cant issue ond, fundamentally, and more as stated that “Monster took by stating Court, the and the Claims this re- agreed GAO and that “Monster exceptions,” no laid out in the the quirement prohibit and conditions does service to the terms making not here numbers, collecting Security solicitation.” We Social from did Contracting Officer finding that the Security the only prohibits use Social Indeed, spe- the Officer not. “unique employee the identifi- numbers as agreed to the cifically said that “Monster system prohibit to the ers.” Were in the solici- conditions laid out terms and Security of Social numbers or collection record, This is consistent with tation.” information, personally other identifiable above, Monster’s which shows as discussed system effectively be useless compliance of its with Section certification government could not then because above, Monster’s also discussed 508. As application vacancy connect an to fill a exceptions were “minor” statement that its any the user. Allied has not asserted oth- re- only statement the record was the requirement except er violation of 107 or extent of the garding significance Security collection of Social numbers. The nature of self-serving exceptions, thus Contracting Officer had rational than Mon- is no different statement accept Monster’s certification of basis compli- Allied’s certifications ster’s or requirement with 107. compliance requirements ance the 114 technical basis of being Far from prop- we hold that Allied was Because decision, that Monster indicated that our erly disqualified, properly and Monster merely sup- exceptions were minor is considered, need not we address determi- port for the Officer’s contentions that the evaluation was funda- not, fact, take that Monster did nation mentally flawed and biased towards Mon- agree that the exception. We seriously con- ster because it cannot be have discussed Monster’s Officer should accept that it irrational to tended mi- compliance with general statement of only acceptable bid. However, exceptions. nor considering had a rational basis for Conclusion proposal. reasons, foregoing this court For the on judgment affirms the Claims Court’s that Monster argues Allied also record, affirming the the administrative 107, requirement failed to meet technical award of the contract government’s system shall use required that “[t]he Monster. identifiers in lieu of social unique employee AFFIRMED iden- security personally or other numbers BRYSON, we Judge, dissenting. Circuit owe deference under Chevron U.S.A. Inc. v. Natural Resources Coun- Defense my respectfully I dissent based on dis- cil, Inc., 467 U.S. 104 S.Ct. portion of the court’s agreement with (1984), require specific L.Ed.2d 694 modes opinion compli- that addresses Monster’s compliance, which were not met Mon- ance with section 508 of the Rehabilitation ster’s or in contracting offi- Act, 794d. U.S.C. response proposal. cer’s to that The ma- agencies, pro- when requires Section 508 jority prescribed is correct that the modes electronic and information technolo- curing employed need not if an the needs of individuals gy, to consider *14 alternative technology in sub- “result[s] Specifically, agencies with disabilities. stantially equivalent greater or access to provide must disabled individuals “access product people and use of a for with dis- of and data that and use information is However, § abilities.” 36 C.F.R. 1194.5. comparable” provid- to the access and use nothing in the record indicates that Mon- ed to individuals without disabilities. 29 5.0, product, Employer ster’s results 794d(a)(l)(A). § U.S.C. Such access must “substantially equivalent greater or ac- provided doing impose be unless so would product fully cess” than a that compliant an If agency. “undue burden” on the an with section such product. as Allied’s agency providing compa- determines that The main source of flexibility the rable access would create an undue bur- regulatory scheme is found the “undue den, it provide can an alternative means of 1194.2(b) exception. burden” Section of access to information for individuals with 794d(a)(l)(B). regulations the that prod- mandates § “[i]f disabilities. Id. ucts commercially that available meet Congress delegated rulemaking authori- standards, some but not all of the the ty under section 508 to the Architectural agency procure must product that best Transportation Compliance Barriers meets standards.” 36 C.F.R. Board, 794d(a)(2), § pro- 29 U.S.C. 1194.2(b). § Despite requirement, an mulgated comprehensive regulations agency procure can less-compliant prod- a known as the Electronic and Information uct if procuring most-compliant prod- Technology Accessibility Standards, 36 burden,” uct impose would an “undue id. Part pre- C.F.R. 1194. Those standards 1194.2(a)(2), i.e., § impose “signifi- specific design scribe criteria for software difficulty cant expense,” § or In id. 1194.4. websites, requiring keyboard accessi- order advantage to take of the “undue 1194.21(a), § bility, id. equivalents text exception, burden” must “ex- elements, 1194.22(a), § non-text id. and ac- plain extent,” why, and to what forms, 1194.21(i), cessibility §§ id. would create an 1194.22(n). undue burden. Id. addition, In section 1194.31 of 1194.2(a)(2). § regulations provides per- functional criteria, formance including that least “[a]t case, In this contracting officer one operation mode of and information attempt explain why made no compli- retrieval that require does not user vision ance with section 508 would create an un- shall provided, support be or for assistive fact, due burden. the contracting offi- technology used people who are blind recognize cer did not even that Monster visually or impaired shall provided.” be exceptions requirement took of com- §Id. 1194.31. pliance with section 508. Before discuss-

Although majority ing terms, characterizes the to contract comparable requirement access the contracting flatly section officer stated “Mon- “flexible,” 508 as regulations, to which ster took exceptions.” no He made that yet can fill out the entire form be person though portion a of Mon- even statement unable to submit it because a screen-read- “Part 5. clearly labeled proposal ster’s ing program pronounce cannot the “Sub- though portion even Exceptions” and meaningful lack mit” button due to the that Mon- clearly indicated proposal Similarly, key- without 5.0, fully equivalent. text was not Employer system, ster’s accessibility, a will person board blind with section 508. compliant unable to use software websites importance minimizes the majority require a mouse. by not- proposal of Monster’s part of that majority accepts Although certified separately that Monster ing “minor,” that its were section assertion compliant with proposal was effect, legal that characterization has no with a Although Monster indicated product “generally that is com- complied because entry that its checkbox Standards, pliant exceptions” non-compli- is still Accessibility the com- regulations. See 36 C.F.R. ant under contains a note certification pliance 1194.2(a) (requiring products “comply exceptions in the [Monster’s] reads “See *15 the Ac- applicable provisions” That with all section,” referring to Part 5. previous Standards). states, cessibility Regardless of how turn, following repre- “The part, the degree Monster chose to describe of its to the Section exceptions sents [Monster’s] Standards, Accessibility from the excep- Two deviation requirement.” compliance states, Employer fully it is clear that 5.0 does not “Employer The first tions follow. comply with those Standards. compliant with generally 5.0 is requirements.” relevant Section 508 to the fully was not product Because Monster’s with a citation exception is delineated That applicable with the section 508 compliant requirements section design requirements fully compli- and because a performance functional 1194.22 (such product product) as Allied’s was ant The second criteria in section 1194.31. marketplace,” “available in the commercial the deficiencies exception recognizes 1194.2(b), applica- straightforward id. a submission, that “Em- noting require that regulations tion of the would compliance exceptions 5.0 has minor ployer contracting officer not award the con- forms, accessibility equiva- text further making tract to Monster without elements, keyboard non-text lents for an award to Mon- findings. particular, accessibility.” justified contracting if the ster could be an “undue burden” determi- officer made involve features Those explana- provided required nation and making to software important by explaining tion for that determination to individuals with dis- accessible websites compliant product a more selecting visual disabili- Individuals with abilities. or “significant difficulty ex- impose or would with screen readers ties access websites 1194.2(a)(2), §§ Yet Id. 1194.4. pense.” visual devices that convert displays, Braille clear statement despite Monster’s auditory or tactile information. text taking exceptions to the section 508 was for non-text ele- equivalents text Without contracting requirement, ments, compliance person a be unable blind acknowledge that Monster’s did not website, contains officer a even if the website use fully compliant not “minor characterizes as only what Monster 508. For that rea- requirements of section if an otherwise example, For exceptions.” son, not conduct contracting officer did job applica- provides a compliant website “significant requisite analysis of an the form, button is but the “Submit” tion im- be difficulty expense” would a blind equivalent, a text image lacking file fully compliant by selecting prod- posed

uct, contracting provide officer nor did the explanation why and to requisite insisting fully compliant on a

what extent impose an undue burden on

product would agency. violation, I remedy regulatory

To give agency this case to

would remand to conduct an “undue bur- opportunity

an and, analysis if it found the “undue

den” satisfied, explain why,

burden” standard extent, im-

and to what

pose an undue burden on the Accessibility term is defined would,

Standards. That determination See,

course, subject to further review.

e.g., Space Lockheed Missiles & Co. v. (Fed.Cir.1993)

Bentsen, 4 F.3d 959-60

(evaluating price/technical tradeoff anal-

ysis developed on remand from a decision

granting protests). bid Because that man-

datory process was followed this

case, I uphold would not the award to present

Monster on the record.

SPECTRALYTICS, INC.,

Plaintiff-Appellant,

v. CORPORATION,

CORDIS Defendant- Appellant,

Cross Noble, Inc.,

Norman Defendant- Appellant.

Cross 2009-1564,

Nos. 2010-1004.

United States of Appeals, Court

Federal Circuit.

June 2011.

Rehearing Rehearing En Banc

Denied Aug.

Case Details

Case Name: Allied Technology Group, Inc. v. United States
Court Name: Court of Appeals for the Federal Circuit
Date Published: Jun 9, 2011
Citation: 649 F.3d 1320
Docket Number: 16-1820
Court Abbreviation: Fed. Cir.
Read the detailed case summary
AI-generated responses must be verified and are not legal advice.
Log In