Chugach Logistics and Facility Services Jv, LLC v. United States
CourtUnited States Court of Federal Claims
Date FiledAugust 17, 2026
Docket25-2075
JudgeArmando O. Bonilla
StatusPublished
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Full Opinion
In the United States Court of Federal Claims
FOR PUBLICATION
No. 25-2075C
(Filed: August 17, 2026∗)
)
CHUGACH LOGISTICS AND )
FACILITY SERVICES JV, LLC, )
)
Plaintiff, )
)
v. )
)
UNITED STATES, )
)
Defendant, )
)
and )
)
CCS KING GEORGE 2 LLC, )
)
Defendant-Intervenor. )
)
Aron C. Beezley, Bradley Arant Boult Cummings LLP, Washington, DC, for plaintiff.
With him on the briefs were Nathaniel J. Greeson and Gabrielle A. Sprio (argued),
Bradley Arant Boult Cummings LLP, Washington, DC.
Russell J. Upton (argued), Senior Trial Counsel, Commercial Litigation Branch,
Civil Division, U.S. Department of Justice, Washington, DC, for defendant. With him
on the briefs were Brett A. Shumate, Assistant Attorney General; and Patricia M.
McCarthy, Director, and Douglas K. Mickle, Acting Deputy Director, Commercial
Litigation Branch, Civil Division, U.S. Department of Justice, Washington, DC. Erin
L. Hernandez, Senior Associate Counsel, and Andrew Campos, Associate Counsel,
Naval Facilities Engineering Systems Command Southwest, U.S. Department of the
Navy, San Diego, CA, Of Counsel.
∗
This decision was filed under seal in accordance with the protective order entered in this case on
August 10, 2026. On August 17, 2026, the parties filed a joint notice confirming no proposed
redactions.
Roger V. Abbott (argued), Miles & Stockbridge PC, Washington, DC, for defendant-
intervenor. With him on the briefs were Stephen P. Ramaley, Mitchell D. Dolman,
and Samara A. Rahman, Miles & Stockbridge PC, Washington, DC.
OPINION AND ORDER
BONILLA, Judge.
This post-award bid protest involves a nearly $100 million United States Navy
Base Operations Support Contract (BOSC). Plaintiff Chugach Logistics and Facility
Services JV, LLC (Chugach) contests the award of the BOSC to defendant-intervenor
CCS King George 2, LLC (CCS KG). Among the procurement issues raised, Chugach
argues the Navy improperly: (1) credited CCS KG with non-prime corporate
experience, (2) failed to consider the experience of CCS KG’s protégé member,
(3) ignored CCS KG’s known negative past performance on a predecessor contract,
(4) neglected to conduct a price risk analysis, and (5) made a flawed best-value
determination. Chugach seeks permanent injunctive relief canceling the contract
award to CCS KG and directing the Navy to reevaluate the proposals.
Pending before the Court are the parties’ cross-motions for judgment on the
administrative record. The Court heard oral argument on July 31, 2026. For the
reasons below, plaintiff’s dispositive motion is granted-in-part and denied-in-part,
and, conversely, defendant’s and defendant-intervenor’s dispositive cross-motions are
denied-in-part and granted-in-part.
BACKGROUND
Headquartered in San Diego, California, the Naval Facilities Engineering
Systems Command Southwest (NAVFAC-SW) is one of ten naval facilities
engineering commands. Serving nineteen military installations across six states
(Arizona, California, Colorado, Nevada, New Mexico, and Utah), NAVFAC-SW
“oversees a wide range of critical services, including public works, planning,
engineering and design, construction, real estate management, environmental
services, and the acquisition and disposal of facilities and real estate.”1 To perform
this mission, NAVFAC-SW employs over 3,500 service members and civil servants.
On August 30, 2024, NAVFAC-SW issued a solicitation seeking proposals for
a consolidated BOSC for Naval Base Coronado, California. The stated purpose for
the eight-year, firm-fixed price, indefinite delivery, indefinite quantity contract was
to “provide various customers at [Naval Base Coronado] with a single responsive,
efficient, and reliable means of obtaining integrated base operations support
1 See About Us, NAVFAC SW., available at https://perma.cc/U988-MAAN.
2
services.”2 AR 3.3 The statement of work consolidated twelve requirements from
preexisting naval service contracts and five new requirements. The aggregated list
includes: custodial services, portable toilet rentals, photovoltaic maintenance,
exhaust vent cleaning, pool and chemical maintenance, grease trap pumping services,
grounds maintenance, bulk pumping, biomedical waste, integrated solid waste
management, personal protective equipment, vertical transportation equipment,
auto lift maintenance, boat washing maintenance, pavement clearance, biomedical
cleaning, and “Hood Ansul Suppression System” certification.4 AR 4–5. Of note,
custodial services is the largest component of the procurement, accounting for nearly
half of the total annual contract value.
The procurement employed a best-value source selection process balancing
price against five evaluative factors: Corporate Experience (Factor 1), Past
Performance (Factor 2), Key Personnel (Factor 3), Quality Management System
(Factor 4), and Safety (Factor 5). For all factors save Past Performance, proposals
were assigned a combined technical/risk adjectival rating ranging from
“unacceptable” to “outstanding.”5 For Past Performance, proposals were assigned a
performance confidence assessment adjectival rating ranging from “no confidence” to
“substantial confidence.”6 As to the relative weight afforded each factor, the
solicitation instructed that the four technical factors (Corporate Experience, Key
Personnel, Quality Management System, and Safety) “[we]re of equal importance to
each other and, when combined, [we]re equal in importance to [Past Performance].”
AR 271. The combination of the five non-price factors, in turn, was “significantly
more important than price.” Id.
Under Corporate Experience (Factor 1), the solicitation required offerors to
provide between two and four examples of “recent, relevant projects that aggregately
demonstrate[d] [the offeror’s] experience as a prime contractor.” AR 256. To be
considered recent, the project must have been ongoing (for at least one year) or
completed within five years of the August 30, 2024 solicitation release date. To
qualify as relevant, a project was required to have a total annual contract value of at
least $10 million and encompass work in at least two of three maintenance and
2 The maximum performance period was broken down into a six-month base period followed by seven
one-year option periods and one six-month option period.
3 “AR __” is a citation to a Bates-numbered page in the administrative record.
4 “Hood Ansul Suppression System” likely refers to a type of fire suppression system manufactured by
ANSUL, a company specializing in fire suppression systems and solutions across different industries.
See Why We Do What We Do, ANSUL, available at https://perma.cc/KQ3K-MM29. The Court was
unable to determine which specific system is referenced in the solicitation using publicly available
information.
5 The complete range of combined technical/risk adjectival ratings included: outstanding, good,
acceptable, marginal, and unacceptable.
6 The complete range of performance confidence assessment adjectival ratings included: substantial
confidence, satisfactory confidence, neutral confidence, limited confidence, and no confidence.
3
service areas: facility investment, custodial, and other (training pools).7 The
solicitation defined “prime contractor” experience to “include[] the prime experience
of any partnerships, joint ventures, teaming arrangements (e.g., first-tier small
business subcontractor), or corporate affiliates (subsidiary, sister subsidiary, sister
company, or parent company).” AR 256 (parentheticals cleaned up). The solicitation
also contemplated bifurcated levels of credited experience requirements:
partnerships, joint ventures, and teaming arrangements had no additional
submission requirements beyond the standard project narratives; corporate affiliates
(subsidiaries, sister subsidiaries, sister companies, and parent companies), however,
were required to submit a narrative and organizational chart explaining “the
corporate relationship of the affiliates.” AR 257.
For Past Performance (Factor 2), the solicitation instructed offerors to submit
Contractor Performance Assessment Reporting System (CPARS) evaluations and
Past Performance Questionnaires (PPQ) for all projects submitted under Corporate
Experience (Factor 1).8 The solicitation emphasized that “[w]hile the Government
may elect to consider data from other sources, the burden of providing detailed,
current, accurate, and complete past performance information rests with the Offeror.”
AR 260. Relying on the submitted information and “consider[ing] the recency and
relevance of the information, the source of the information, context of the data, and
general trends in the Offeror’s performance,” the Navy would then consider how well
the offeror performed the projects from the Corporate Experience (Factor 1) section
of the proposal. Id. The evaluation criteria for Factor 2 further provided, in a section
titled “Past Performance on All CPARS Evaluations for Services”:
The Government may review all CPARS evaluations for Offerors, for
projects other than those submitted under Factor 1, with specific focus
on quality, schedule and management. CPARS evaluations that contain
ratings for marginal to unsatisfactory for quality, schedule, and/or
management may lower the overall confidence assessment rating. For
offerors submitting as any type of teaming arrangement, when
reviewing all CPARS evaluations the Government will review all
available CPARS evaluations for the Offeror as a whole as well as any
entities within the teaming arrangement.
AR 260–61.
The solicitation stated that price proposals would be evaluated for fairness and
reasonableness. Definitionally, this meant the Navy would “identify any pricing that
7 “Other (training pools)” included services such as “[c]hemical replenishment, water testing, pool light
operations, seasonal startups, filtration maintenance, service calls, vacuuming, swimming pool
operator maintenance and operations of training pools.” AR 257.
8 Where an interim or final CPARS was submitted for a project, the Navy would review only the CPARS
evaluation and not the PPQ(s) for that project.
4
is unreasonably high,” cautioning that such pricing could result in disqualification.
AR 255–56. When discussing the evaluation of price and potential disqualification,
the solicitation consistently described the analysis to be performed as focused on
“unreasonably high/inconsistently priced proposal[s].”9 While the solicitation did not
explicitly mention a price risk analysis, it did incorporate by reference Defense
Federal Acquisition Regulation Supplement (DFARS) provision 252.204-7024
(Notice on the Use of the Supplier Performance Risk System), AR 232, which defines
“price risk” as “a measure of whether a proposed price for a product or service is
consistent with historical prices paid for that item or service” and instructs the
contracting officer to “consider [Supplier Performance Risk System (SPRS)] risk
assessments during the evaluation of . . . offers received in response to th[e]
solicitation . . . .” 48 C.F.R. § 252.204-7024(a), (c)(2).10
In response to the BOSC solicitation, the Navy received four proposals ahead
of the October 10, 2024 submission deadline, including from Chugach and CCS KG.
Chugach is a Small Business Administration (SBA)-certified 8(a) mentor-protégé
joint venture (MPJV) comprised of mentor Wolf Creek Federal Services, Inc.
(Wolf Creek) and protégé Chugach Solutions Enterprise, LLC (Chugach Solutions).11
Both Wolf Creek and Chugach Solutions are subsidiaries of Chugach Government
Solutions, LLC.12 Headquartered in Anchorage, Alaska, Chugach Government
Solutions is itself a subsidiary of Chugach Alaska Corporation and describes itself as
9 See, e.g., AR 255 (“As analysis is performed to determine a fair and reasonable price, the Government
will seek to identify any pricing that is unreasonably high. . . . Pricing may be considered unreasonably
high when . . . the price of one or more prices . . . is significantly overstated. An offer may be rejected
if the proposed price is unreasonably high . . . .”); AR 256 (“[I]f unique and innovative approaches are
the basis for an apparently unreasonably high/inconsistently priced proposal, the nature of these
approaches and their impact on price must be completely documented.”); id. (“A price that is found
unreasonably high in relation to the proposed work may be indicative of an inherent lack of
understanding of the solicitation requirements and may result in the overall proposal not being
considered for award.”).
10 In a bid protest before the Government Accountability Office (GAO), the Source Selection Evaluation
Board (SSEB) chairperson admitted that, although the solicitation incorporated the DFARS provision
by reference, he “did not use the SPRS tool during the evaluation of proposals . . . .” AR 6475. In the
same proceedings, the Navy presented uncontested evidence that the SPRS contained no usable
assessments for CCS KG or Chugach.
11 Under the SBA’s mentor-protégé program, an approved firm may serve as a mentor to a protégé firm
“to provide business development assistance” and “improve the protégé firms’ ability to successfully
compete for federal contracts.” 13 C.F.R. § 125.9(a). Under this program, a mentor and a protégé may
form a joint venture. Id. § 125.9(d). To be eligible for an 8(a) small business set-aside, however, the
MPJV—if it “exists as a formal separate legal entity” from its comprising members—must either be
unstaffed or consist solely of members who would individually be eligible for the contract. Id.
§ 121.103(h)(1)(i)–(ii). Additionally, the 8(a) protégé member must perform at least 40% of the work,
meaning the mentor member can perform up to 60% of the work. Id. § 124.513(d).
12 See Subsidiary Companies, CHUGACH GOV’T SOLS., available at https://perma.cc/GA7B-M949.
5
delivering solutions ranging “[f]rom logistics and facilities to IT, engineering, and
operational support.”13
CCS KG is also an SBA-certified 8(a) MPJV, comprised of mentor King &
George LLC (King & George) and protégé Cascade Contracting & Services (Cascade).
Headquartered in Fort Worth, Texas, with satellite offices in four other states and
Washington, DC,
King & George provides general contracting [and] construction
management, facilities [operations and maintenance], vehicles [and]
equipment maintenance, call centers, and environmental
services . . . [supporting a] wide array of commercial and government
clients, including federal agencies such as the [U.S. Army Corps of
Engineers], U.S. Air Force, [U.S.] Navy, the [Federal Aviation
Administration], and the National Oceanic Atmospheric Administration
(NOAA).
About Us, King & George, available at https://perma.cc/57HZ-U6TK. Cascade
describes itself “as an SBA-certified 8(a) firm . . . wholly owned by a non-profit
Native Hawaiian Organization,” headquartered in Aiea, Hawaii, with offices in
Washington, Nevada, and Texas.14
After an initial evaluation in November 2024, “the SSEB determined that
discussions [we]re desirable and recommend[ed] entering discussions with all four (4)
Offerors . . . .” AR 3533. Following discussions in early 2025 and submissions of
final proposal revisions, the SSEB presented its final evaluation results to the Source
Selection Authority (SSA) in a May 6, 2025 report. Relevant here, the SSEB assigned
CCS KG and Chugach the following adjectival technical ratings:
Offeror Factor 1: Factor 3: Factor 4: Quality Factor 5: Overall
Corporate Key Personnel Management Safety Technical
Experience System Rating
CCS KG Outstanding Good Outstanding Outstanding Outstanding
Chugach Outstanding Outstanding Outstanding Outstanding Outstanding
AR 3532–33.15 For Past Performance (Factor 2), the SSEB assigned CCS KG an
adjectival rating of substantial confidence, whereas Chugach received a rating of
satisfactory confidence. And Chugach’s evaluated price of $107,240,818.63, while
relatively close to the prices proposed by the two offerors not discussed herein and
13 See Newsroom, CHUGACH GOV’T SOLS., available at https://perma.cc/7TT6-JFUY.
14 See About Us, CASCADE CONTRACTING & SERVS., available at https://perma.cc/ZN99-TV2B.
15 The SSEB awarded a third proposal significantly lower technical adjectival ratings. The fourth
proposal was eliminated from further consideration.
6
in line with the Independent Government Cost Estimate (IGCE), was the highest
proposed price. Indeed, Chugach’s proposed price was approximately thirty percent
higher than CCS KG’s proposed price of $82,444,251.27.
The SSEB found that “CCS KG had the strongest overall technical proposal
with both the highest possible overall technical rating and the highest possible
performance confidence assessment rating.” AR 3533. Noting that both CCS KG and
Chugach received the highest overall technical rating of outstanding,16 the SSEB
highlighted the delta in the weighted past performance confidence assessment
ratings between CCS KG (substantial confidence) and Chugach (satisfactory
confidence). The SSEB further stressed that CCS KG’s proposal offered the lowest
price. Weighing these considerations, the SSEB concluded that “CCS KG provide[d]
the greatest value to the Government for technical, past performance, and price.
As such, an award to CCS KG [wa]s in the best interest of the Government from a
price and technical (non-price) standpoint.” AR 3534. Based on these findings, in a
final report dated May 6, 2025, the SSEB recommended awarding the contract to
CCS KG. Three days later, the Source Selection Advisory Council concurred. In a
Source Selection Decision Document dated May 20, 2025, the SSA formally selected
CCS KG for the BOSC award.
In its winning proposal, CCS KG submitted four projects under Corporate
Experience (Factor 1): two awarded to KJS MP Joint Venture, LLC (an MPJV
consisting of King & George as protégé and J&J Worldwide Services as mentor); one
awarded to KGJJ Engineering Solutions, LLC (another MPJV consisting of King &
George as protégé and J&J Worldwide Services as mentor); and one awarded to
AKG Services, LLC (a joint venture consisting of King & George as managing
member and Ameritac, Inc.). For each of these projects, CCS KG listed the above
joint ventures and members thereof next to “Name of Firm that Performed the Work”
on the pre-printed form and checked the box marked “Prime Contractor.” AR 2882,
2890, 2898, 2906. CCS KG then checked the boxes marked “Subsidiary” and “Parent
Company” under the following subheading: “If the firm who performed this project
differs from the Offeror submitting a proposal under this solicitation, identify the
relationship to the Offeror below . . . .”17 Id. CCS KG then detailed King & George’s
membership in each of the named entities and specified its prominent role in project
work under the amended subheading: “If this project was performed by Offeror
key personnel, identify the name of the individual, name of firm they worked for, and
describe their involvement on this project . . . .” Id.
Rating these projects, Navy evaluators documented which legal entity
performed the work on each project and identified the relationship between the
16 Although Chugach received a higher adjectival rating for Key Personnel (Factor 3) and three more
technical factor strengths than CCS KG, both proposals netted the same overall technical rating.
17 The BOSC Corporate Experience (Factor 1) pre-printed form did not include a box for any type of
joint venture.
7
performing entity and CCS KG. Evaluating the first submitted project, for example,
Navy evaluators noted: “Project was performed by: KJS MP Joint Venture, LLC
(a Mentor-Protégé JV between Member King [&] George, Protégé and J&J Worldwide
Services, Mentor),” further finding that King & George “performed the work as the
prime contractor.” AR 3476. Navy evaluators made similar findings regarding the
other three submitted projects. See AR 3477–79; accord AR 3480 (“The Offeror is a
MPJV. Of the four (4) relevant projects, all were performed by the JV Mentor: King
[&] George LLC.”).18 In assigning CCS KG an outstanding rating for Corporate
Experience (Factor 1), the SSEB credited the MPJV with demonstrating corporate
“experience without relying on corporate affiliates (e.g., subsidiaries, sister
subsidiaries, sister companies, and parent companies).” AR 3481.
For Past Performance (Factor 2), the SSEB considered the same four projects
identified by CCS KG under Corporate Experience (Factor 1) and, based on “[t]he
submitted past performance evaluations,” assigned a rating of substantial confidence.
AR 3494. Notably absent from the SSEB’s assessment, however, is any mention of
King & George’s performance of a recent predecessor janitorial services contract at
Naval Base Coronado for which King & George received a marginal rating for quality.
The history of that contract and the details of King & George’s performance
thereunder are murky. It is unclear, for instance, when and why King & George’s
performance under the contract ended. The Court was unable to verify Chugach’s
claim that King & George’s poor performance prompted the government to
prematurely terminate the contract and re-award essentially the same contract to
Chugach. That said, a public database indicates both that the King & George contract
ended without the government exercising all available options and that Chugach
began performing a similar contract at the same location the next day.19 At oral
argument, counsel for CCS KG declined to endorse Chugach’s characterization of
events and pointed out that the same public database indicates that the government
made some payments to King & George under the contract as recently as April 2026,
long after the contract’s apparent end date and alleged re-award to Chugach.20
Government counsel declined to weigh in on the matter. Despite this confusion,
one thing is clear: King & George received a marginal rating for quality on the
predecessor Naval Base Coronado janitorial services contract.
18 For clarity, the referenced “Offeror” denotes the MPJV comprised of mentor King & George and
protégé Cascade.
19 Compare Contract Summary for Contract No. N6247321F5388, USASPENDING.GOV, available at
https://perma.cc/C2JV-PLGC (listing end date of March 31, 2024, for King & George’s janitorial
services contract), with Contract Summary for Contract No. N6247324C1613, USASPENDING.GOV,
available at https://perma.cc/72GQ-GAFK (listing start date of Apr. 1, 2024, for Chugach’s janitorial
services contract).
20 See Contract Summary for Contract No. N6247321F5388, supra note 19 (showing a
“funding . . . action” of $19,078 for King & George’s contract on April 9, 2026; indicating funding was
for “O[ption] Y[ear] 1”).
8
CCS KG did not submit the janitorial services contract as one of its Corporate
Experience (Factor 1) projects and did not submit the corresponding CPARS under
Past Performance (Factor 2). The four-year janitorial services contract valued at
nearly $22.3 million yielded an annual value of roughly $5.6 million. Because (1) the
annual value did not meet the solicitation’s $10 million threshold and (2) the scope of
work was limited to just one applicable service area (custodial services) rather than
the BOSC solicitation’s minimum of two, this contract did not meet the definition of
“relevant project” included in Corporate Experience (Factor 1). AR 256–57.21
Of note, the assessing official who signed the CPARS for Kiing & George’s
janitorial services contract on October 17, 2023, was one of three SSEB members for
the BOSC procurement at issue. Compare AR 6473 (CPARS), with AR 3470 (SSEB
Report). Justifying the marginal rating, the assessing official explained:
Clients continue to . . . identify[] the lack in custodial services. Services
are not performed within the contract[] . . . Schedule (daily services,
weekly service, monthly and annual services). Custodians are not
completing the services per the contract[’]s Performance standards. The
Contractor management team has identified the custodians who have
not provided services to the contract and have been working with the
union to replace the custodians or implement corrective actions to
ensure the custodians improve performance. The Government has
recognized the Contractor[’]s willingness to ensure performance is met
by their management approach and scheduling controls[,] which have
been implemented, however, performance has improved since the base
year of the contract[,] and less negative evaluations . . . have been
submitted. The Contractor[] is provided a rating of Marginal in this field
as there is still room for improvement.
21 In post-award litigation before the GAO, the Navy insisted that it did not rely solely on information
submitted by the offerors and had, in fact, conducted a search for additional CPARS evaluations. More
specifically, the SSA declared:
I went to the CPARS database to pull CPARS history for all offerors and their mentor
partners, as applicable, using the criteria of: assessments dating back 5 years before
the solicitation issuance date, Business Sector: Facilities Services, and NAICS:
561210; the results of this search yielded no history of derogatory (less than
satisfactory) past performance. I went to the Government’s own ieFacman contracts
database[] and pulled a list of NAVFAC Base Operations Support Contract by Purpose:
BOS – Base Operating Support. I reviewed the list of Base Operations Support
Contracts for all offerors, affiliates, mentor partners, and mentor partners performing
in other joint ventures.
AR 6488–89. The due diligence performed, according to the Navy, did not unearth the CPARS for the
predecessor janitorial services contract; nor could it have since the search was limited to CPARS under
NAICS code 561210 and contracts with a listed purpose of “BOS – Base Operating Support.” AR 6489.
The janitorial services contract, by contrast, lists an NAICS code of 561720. AR 6469.
9
AR 6471.22 Yet the assessing official included the following recommendation at the
end of the CPARS: “Given what I know today about the contractor’s ability to perform
in accordance with this contract or order’s most significant requirements, I would
recommend them for similar requirements in the future.” AR 6473 (bold reflecting
the fill-in-the-blank entry on the preprinted form).
Chugach, in turn, submitted three projects for the Corporate Experience
(Factor 1) component of its proposal: two performed by Wolf Creek (Chugach’s mentor
partner) and a third performed by Defense Base Services, Inc. (a sister company of
Chugach). As noted by the Navy evaluators, “[Chugach] provided the one-page
narrative and organization chart required when affiliate companies are used to
demonstrate experience.” AR 3484. Finding all projects submitted by Chugach
recent and relevant, the Navy assigned Chugach an outstanding rating for Corporate
Experience (Factor 1). AR 3482.
Addressing Past Performance (Factor 2), the SSEB considered only two of the
three projects Chugach submitted under Corporate Experience (Factor 1). The Navy
excluded the project performed by Defense Base Services, Inc., citing Chugach’s
“fail[ure] to submit a correct CPARS report for the project.” AR 3495 (“This CPARS
is not associated with the project admitted in Factor 1.” (alteration to capitalization)).
Based on the CPARS for the other two projects, the SSEB assigned Chugach a Past
Performance (Factor 2) rating of satisfactory confidence, meaning “the Government
ha[d] a reasonable expectation that the Offeror w[ould] successfully perform the
required effort.” AR 3494–95.
After awarding the BOSC to CCS KG on May 20, 2025, the Navy notified
Chugach and the other offerors of their non-selection. Following a requested
post-award debrief, Chugach filed a bid protest with the GAO, challenging the Navy’s
evaluation of proposals under Corporate Experience (Factor 1) and Past Performance
(Factor 2) as well as the Navy’s price evaluation and resulting best-value
determination. On November 20, 2025, the GAO denied the protest on all grounds.
Chugach filed this action on December 8, 2025.
DISCUSSION
I. Standard of Review
When reviewing a federal agency’s procurement decision, this Court employs
the Administrative Procedure Act (APA) standard to determine whether the
challenged action was arbitrary, capricious, an abuse of discretion, or otherwise
contrary to law. 28 U.S.C. § 1491(b)(4) (citing 5 U.S.C. § 706). “The arbitrary and
capricious standard is highly deferential and requires this Court to sustain an agency
action evincing rational reasoning and consideration of relevant factors.” Clean Team
22 King & George received satisfactory ratings for schedule, management, and regulatory compliance.
10
Janitorial Serv., Inc. v. United States, 171 Fed. Cl. 1, 8 (2024) (first citing Advanced
Data Concepts, Inc. v. United States, 216 F.3d 1054, 1058 (Fed. Cir. 2000); and then
citing CHE Consulting, Inc. v. United States, 552 F.3d 1351, 1354 (Fed. Cir. 2008)).
An agency’s procurement decision is arbitrary and capricious “if either: (1) the
procurement official’s decision lacked a rational basis; or (2) the procurement
procedure involved a violation of regulation or procedure.” Impresa Construzioni
Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1332 (Fed. Cir. 2001)
(citations omitted); accord Centech Grp., Inc. v. United States, 554 F.3d 1029, 1037
(Fed. Cir. 2009).
With respect to challenges brought under the first ground, the Court must
“determine whether the contracting agency provided a coherent and reasonable
explanation of its exercise of discretion, and the disappointed bidder bears a heavy
burden of showing that the award decision had no rational basis.” Centech, 554 F.3d
at 1037 (quoting Impresa, 238 F.3d at 1332–33). A decision lacks a rational basis,
and is therefore arbitrary and capricious, where the agency “entirely failed to
consider an important aspect of the problem . . . .” Motor Vehicle Mfrs. Ass’n of the
United States, Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983); see Ala.
Aircraft Indus., Inc.-Birmingham v. United States, 586 F.3d 1372, 1375 (Fed. Cir.
2009) (applying this standard in the bid-protest context). As for the second ground,
“the disappointed bidder must show a clear and prejudicial violation of applicable
statutes or regulations.” Centech, 554 F.3d at 1037 (quoting Impresa, 238 F.3d at
1333). Procurement officials “are given broad discretion” in their procurement duties;
when a procurement officer makes a reasonable decision within the scope of that
discretion, “a court may not substitute its judgment for that of the agency.” DynCorp
Int’l, LLC v. United States, 10 F.4th 1300, 1311 (Fed. Cir. 2021) (quoting R & W
Flammann GmbH v. United States, 339 F.3d 1320, 1322 (Fed. Cir. 2003)). While the
scope of review under this standard is narrow and a court is not to substitute its
judgment for that of the agency, the agency must nonetheless “examine the relevant
data and articulate a satisfactory explanation for its action including a ‘rational
connection between the facts found and the choice made.’” State Farm, 463 U.S. at
43 (quoting Burlington Truck Lines v. United States, 371 U.S. 156, 168 (1962)).
The “evaluation of past performance is a matter within the discretion of the
contracting agency[,] and . . . the ‘agency’s reasonable interpretation of the facts is
entitled to considerable deference.’” Taahut v. United States, 849 F. App’x 260, 266
(Fed. Cir. 2021) (quoting Glenn Def. Marine (ASIA), PTE Ltd. v. United States,
720 F.3d 901, 910 (Fed. Cir. 2013)); accord CW Gov’t Travel, Inc. v. United States,
154 Fed. Cl. 721, 748 (2021) (collecting cases). Similarly, “technical
ratings . . . involve discretionary determinations of procurement officials that a court
will not second guess.” Allicent Tech., LLC v. United States, 166 Fed. Cl. 77, 118
(2023) (quoting E.W. Bliss Co. v. United States, 77 F.3d 445, 449 (Fed. Cir. 1996)).
Therefore, a protester “bears a heavy burden” to overcome the presumption of
regularity that courts afford to an agency decision. Impresa, 238 F.3d at 1338. In a
best-value tradeoff analysis, an agency’s exercise of discretion is entitled to additional
11
deference, and “the agency’s consideration” of the relative merits of competing
proposals will not be disturbed absent a showing that the tradeoff analysis was
irrational or arbitrary. AM Gen., LLC v. United States, 115 Fed. Cl. 653, 700 (2014).
The “focal point” for judicial review of a procurement decision is “the
administrative record already in existence” at the time the agency acted. Axiom Res.
Mgmt., Inc. v. United States, 564 F.3d 1374, 1379 (Fed. Cir. 2009) (quoting Camp v.
Pitts, 411 U.S. 138, 142 (1973) (per curiam)). This principle places a direct
documentation obligation on procuring agencies: “Where an agency fails to document
or retain evaluation materials, it bears the risk that there may not be adequate
supporting rationale in the record for [the Court] to conclude that the agency had a
reasonable basis for its evaluation conclusions.” Mgmt. & Training Corp. v. United
States, 161 Fed. Cl. 578, 597 (2022) (additional citations omitted) (quoting Trident
Vantage Sys., LLC, B-415944 et al., 2018 CPD ¶ 166 (Comp. Gen. May 1, 2018)).
Post hoc rationalizations advanced by an agency—whether in litigation briefs,
declarations, or debriefing materials—cannot provide the reasoned explanation the
agency was required to provide at the time of the challenged decision. See DynCorp
Int’l, 10 F.4th at 1316 (“[A]n agency cannot rely on a new rationale for an old
decision.”); IAP Worldwide Servs., Inc. v. United States, 159 Fed. Cl. 265, 286 (2022)
(“[T]he Court will not put words in an agency’s mouth or invent supporting rationales
the agency has not itself articulated in the administrative record; post hoc
explanations for agency decisions ordinarily will be rejected.”); e.g., Sys. Stud. &
Simulation, Inc. v. United States, 152 Fed. Cl. 20, 32 (2020) (declining to credit SSA
declaration submitted during litigation as a “post hoc rationalization created in the
heat of litigation” (cleaned up)), aff’d, 22 F.4th 994 (Fed. Cir. 2021). A post hoc
rationale is “any rationale that departs from the rationale provided at the time the
procuring agency made its decision.” Sys. Stud., 152 Fed. Cl. at 32 (quoting Raytheon
Co. v. United States, 121 Fed. Cl. 135, 158 (2015), aff’d, 809 F.3d 590 (Fed. Cir. 2015)).
That said, where the agency’s “path may reasonably be discerned” from the
contemporaneous record—even if the documented reasoning is not of “ideal clarity”—
the Court will sustain the decision. Bowman Transp., Inc. v. Ark.-Best Freight Sys.,
Inc., 419 U.S. 281, 285–86 (1974) (first citing SEC v. Chenery Corp., 332 U.S. 194, 196
(1947); and then citing Colo. Interstate Gas Co. v. Fed. Power Comm’n, 324 U.S. 581,
595 (1945)).
Lastly, to prevail in a bid protest, a protester must do more than identify some
error in the procurement process. The identified error must be significant and
prejudicial. WellPoint Mil. Care Corp. v. United States, 953 F.3d 1373, 1377 (Fed. Cir.
2020) (quoting Alfa Laval Separation, Inc. v. United States, 175 F.3d 1365, 1367
(Fed. Cir. 1999)); see also 5 U.S.C. § 706 (“[D]ue account shall be taken of the rule of
prejudicial error.”). To establish prejudice, the protester must demonstrate that
“there was a ‘substantial chance’ it would have received the contract award but for
the [agency’s] errors.” Bannum, Inc. v. United States, 404 F.3d 1346, 1353 (Fed. Cir.
2005). This test is more lenient than showing actual causation, but the protestor
must do more than show a “mere possibility” that, but for the agency errors, it “would
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have received the contract.” Data Gen. Corp. v. Johnson, 78 F.3d 1556, 1562
(Fed. Cir. 1996); accord AM Gen., LLC, 115 Fed. Cl. at 702.
II. Corporate Experience
A. Prime Contractor Experience
Chugach challenges the Navy’s evaluation of CCS KG’s Corporate Experience
(Factor 1). The solicitation required offerors to submit between two and four
reference projects demonstrating their “experience as a prime contractor.” AR 256.
The parties agree that, for an entity competing as a joint venture, the prime
contractor experience of one member of the joint venture (e.g., King & George) can be
credited as prime contractor experience of the joint venture (e.g., CCS KG). Chugach
charges, however, that CCS KG failed to submit any qualifying reference projects.
In support, Chugach relies on the fact that the four reference contracts submitted by
CCS KG were awarded to neither King & George nor Cascade; the first two were
awarded to KJS MP Joint Venture, LLC, the third to KGJJ Engineering Solutions,
LLC, and the fourth to AKG Services, LLC. Acknowledging that King & George was
a member of each awardee,23 Chugach maintains that the sole “prime contractor” on
each contract was the joint venture that held the contract—not the joint venture’s
members. On this premise, Chugach argues it was impermissible for the Navy to
credit King & George and, in turn, CCS KG, with “prime contractor” experience for
the reference contracts. This argument, if correct, would disqualify CCS KG for
failure to submit any qualifying reference projects. But it relies on a narrow, literal
interpretation of “prime contractor” that is unsupported by the solicitation.
When interpretating terms in a solicitation, the Court “must consider the
[s]olicitation as a whole and interpret ‘it in a manner that harmonizes and gives
reasonable meaning to all of its provisions.’” Safeguard Base Operations, LLC v.
United States, 989 F.3d 1326, 1344 (Fed. Cir. 2021) (quoting Banknote Corp. of Am. v.
Unite