PROTECTED INFORMATION IS REDACTED In the United States Court of Federal Claims Bid Protest ) HYPERION, INC. ) 11480 Commerce Park Drive, Suite 120 ) Reston, Virginia 20191-1544 ) ) Plaintiff, ) ) v. ) No. 14- C ) Judge THE UNITED STATES, ) ) Defendant. ) ) CLAIM FOR BID PREPARATION AND PROPOSAL COSTS Plaintiff, Hyperion, Inc., 11480 Commerce Park Drive, Suite 120, Reston, Virginia 20191-1544 (Hyperion), a Virginia for-profit Corporation and a qualifying Small Business (http://www.hyperioninc.com/, last visited September 15 th , 2014), files in ac- cordance with RCFC 7(a)(1) this Claim for Bid Preparation and Proposal Costs Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 1 of 25
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In the United States Court of Federal Claims Bid Protest INFORMATION IS REDACTED In the United States Court of Federal Claims Bid Protest ) HYPERION, INC. ) 11480 Commerce Park Drive,
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PROTECTED INFORMATION IS REDACTED
In the United States Court of Federal Claims Bid Protest
) HYPERION, INC. ) 11480 Commerce Park Drive, Suite 120 ) Reston, Virginia 20191-1544 ) ) Plaintiff, ) ) v. ) No. 14- C ) Judge THE UNITED STATES, ) ) Defendant. )
)
CLAIM FOR BID PREPARATION AND PROPOSAL COSTS
Plaintiff, Hyperion, Inc., 11480 Commerce Park Drive, Suite 120, Reston, Virginia
20191-1544 (Hyperion), a Virginia for-profit Corporation and a qualifying Small
Business (http://www.hyperioninc.com/, last visited September 15th, 2014), files in ac-
cordance with RCFC 7(a)(1) this Claim for Bid Preparation and Proposal Costs
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 1 of 25
PROTECTED INFORMATION IS REDACTED - 2 -
against the Defendant, the United States and its Agency, United States Army Con-
tracting Command—Aberdeen Proving Ground (Army); Hyperion alleges as follows:
INTRODUCTION
1. This is a Money Claim for Bid Preparation and Proposal Costs incurred in
connection with a Federal Agency Procurement, the Army’s Solicitation Number
W15P7T-13-R-D002 which was awarded on Monday, December 16th, 2013 to Tech-
the Court to grant Judgment for Plaintiff Hyperion in this Civil Action, and to Or-
der the following relief:
1. a Declaration that the Army’s Solicitation Number W15P7T-13-R-D002 was
conducted as a sham Competition which could only result in the Award of this Re-
quirement to TCSC and its proposed Subcontractor; and
2. a Money Judgment for $402,583.96; and
3. such further and other relief as the Court may deem just and proper.
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 15 of 25
Cyru~-.a.>n
Virginia State Bar Number 03135
September 18th, 2014
ALBO & 0BLON, L.L.P.
Courthouse Plaza
2200 Clarendon Boulevard, Suite 1201
Arlington, Virginia 22201-3331
Telephone:
Facsimile:
Mobile:
(804) 776-0660
(703) 312-0415
(703) 819-5944
Electronic Mail: lawyer@procurement -lawyer.com
Attorney of record for Plaintiff, Hyperion, Inc.
PROTECTED INFORMATION IS REDACTED - 16-
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 16 of 25
ATTACHMENT 1
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 17 of 25
HYPERION 11480 Commerce Park Drive TEL (703) 848-8850
Suite 120 FAX (703) 848-1722
Reston, Virginia 20191
July 29, 2014
Memorandum for the Record:
On July 29, 2014, I called the Army Government Contracting Officer (Ms. Gloria Atkins)
related to Jordan Armed Forces Strategic Communications Fiber Optic Last Mile Project that had
previously been advertised under solicitation # W15P7T-13-R-D002. The purpose of my call
was to try and determine what action the Government was taking to fulfill this requirement
since the court had ruled in favor of Hyperion’s protest of the award. When Ms. Atkins
answered the phone, I told her that I was the Contracts Manager for Hyperion and that
Hyperion was one of the companies that had submitted a proposal against the subject
solicitation and asked if she could provide me the current status on the requirement. She
immediately became defensive and she would not provide me any information on the current
status of the requirement. I told her that Hyperion was aware that the court had struck down
the original award and that I was just trying to determine the current status. I told her that I
thought that the Government had decided to reopen dialog with all the companies that had
submitted bids. She said that I should contact my legal counsel because that was not what
the courts directed. She said I should contact my legal counsel for the actual ruling. I also
said that I had heard a rumor that the Government was in the process of processing a sole
source award for the effort and I asked if she would comment on that. She said she would
not comment on rumors. I asked her again, if she was the Contracting Officer for the work
and she acknowledged that she was but she said she would not provide me any information
concerning it. As I said previously, Ms. Atkins was very defensive and non-
cooperative. Because of her non-cooperativeness, it was a very short telephone conversation.
Tom Bryan
Hyperion Inc.
Senior Contracts Manager
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 18 of 25
ATTACHMENT 4
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 19 of 25
In the United States Court of Federal Claims
Bid Protest
HYPERION, INC. 11480 Commerce Park Drive, Suite 120
Reston, Virginia 20191-1544
)
)
)
) )
)
)
Plaintiff,
v.
THE UNITED STATES,
Defendant.
) No. 14+ ) Judge )
)
)
)
DECLARATION OF PAUL MILO. JR.
Pursuant to 28 U.S.C. § 1746, I, Paul Milo, Jr., make the following Declaration under penalty of perjury:
I am the President of Hyperion, Inc. (Hyperion), a Virginia domestic for-profit Corporation and I make this Declaration to explain the Rates used in our Claim for Proposal Preparation Costs.
OVERVIEW
Our Claim for recovery of Proposal Preparation costs has been done in compliance with the Federal Acquisition Regulation (FAR). In developing the Claim submitted to the Court, Hyper-
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 20 of 25
ion has captured all of the direct rates incurred in preparing its Proposal. To these direct costs we
applied indirect cost rates that have likewise been calculated in full compliance with the FAR.
DIRECT COSTS
In developing our direct costs we identified three categories of direct cost elements:
• Labor
• Costs incurred by our principle subcontractor Ardico
• Other Direct Costs (ODCs) (which include travel and other related costs)
For labor costs, we used the actual hourly pay rate for each of the personnel assigned to this project. As each of the people assigned to this Proposal preparation were salaried, their respective
hourly rate was calculated by dividing their annual salaries by 2,080 hours, the accepted standard work year.
Subcontractor Cost
Hyperion instructed Ardico to calculate its cost associated with the support they provided in
the site survey, the effort used to calculate, compile and document the quantitative data coUected
during the site survey and any effort they expended in supporting Hyperion's sourcing of mater· ial to be supplied within Jordan.
Other Direct Costs (00Cs)
Hyperion has restricted our inclusion of ODCs to just the travel and transportation costs di· rectly incurred in the development of this Proposal, including the site survey and meetings related to negotiating a sub-contract plan and recruiting the Project Manager for this effort.
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 21 of 25
INDIRECT COSTS
In accordance with the FAR regulations concerning cost recovery from Bid Protests, Hyper
ion has escalated our direct costs with allowable indirect costs as follows:
Direct Cost Element
Labor
Sub-Contractor
ODCs
Indirect Cost Rate Applied
Fringe Benefits Overhead
G&A
G&A
G&A
In accordance with the FAR, Hyperion applied no Fee to any of our Claim for recovery of Proposal development costs.
As attested to by our outside auditors, our accounting system is in full compliance with the instructions contained in the FAR and in accordance with the Defense Contract Audit Agency (DCAA). Our indirect cost rates have been specified as allowable expenses by DCAA. In the sec
tions below we detail the components of the indirect rates we used.
INDIRECT RATES
These costs are accumulated in our Sxxx series of accounts and represent the benefits contri
buted to the employee by the company and include vacation, insurance and our 401k plan. Those accounts and an account description appear in our schedule - see rows 130 through 149 of our
Excel schedule.
· 3 ·
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 22 of 25
Our fringe indirect rate is calculated by dividing the fringe pool of costs by all labor costs. Per our schedule, we have applied a fringe rate of in pricing the labor costs for this Proposal
preparation.
Overhead
These costs represent the management burden incurred for the benefit of two or more cost objectives (Contracts). Inclusive is the program management labor, allocated rent and office ex·
penditures that are specifically incurred in managing the company's contract base. Our overhead costs are represented in our schedule by the 6xxx series of cost elements.
Our overhead indirect rate is calculated by dividing the overhead pool of costs by direct labor and applied fringe costs. Per our schedule, we have applied a fringe rate of in pricing the labor costs for this Proposal.
These costs represent the management burden incurred for the benefit of the overall Corporation. Inclusive is the executive management labor, allocated rent, office expenditures and con· suiting costs that are specifically incurred in managing the personnel, bidding on new business
and supporting the workforce with a communication system, to name of few of the cost elements in this pool. Our G & A costs are represented in our schedule by the 7xxx series of cost elements. Refer to rows 150 through 183 for a list of those elements.
Our G & A indirect rate is calculated by dividing the G & A pool of costs by direct labor and applied fringe costs. Per our schedule, we have applied a fringe rate of in pricing the labor costs for this Proposal.
Attachment 1 is the chart of accounts that we use to accumulate the cost pools for Fringe Benefits, Overhead and G&A.
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 23 of 25
I declare, under penalty of perjury, that the foregoing is true and correct. Executed on Monday, September 8'h, 2014.
~ --:==-. -- =- < c::-Z:z.*d -c. •• I t- ......
Paul Milo, Tr. President Hyperion, Inc.
11480 Commerce Park Drive, Suite 120
Reston, Virginia 20191-1554
(703) 848-8850 x3025
· 5 ·
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 24 of 25
AITACHMENTl Hyperion Chart of Accounts fo r Indirect Cost Pools
DlnctCosls Direct Costs:40DD • Direct Labor Direct Costs:4D2D • Subcontractors Direct Costs:403D • Active Network Hardware Direct Costst405D · Passive Network Hardware Direct Costst4D&D • Installation Supplies Direct Costs:4D7D • Telephones Direct Costs:4D9D • Postage, Delivery & Ship Direct Costs:412D • Travel Out of Town Direct Costs:413D • Other Direct Costs DlrectCosts:4135 • Dlscount:Merchant Discount Fees Fringe Benefit&:5085 • LlC Insurance Fringe Benents:sooo • VacaUon Fringe Benents:5010 ·Holiday Fringe Benents:5030 •Admlnl11ratlve Fringe Beneftts:504D • Personal Fringe Beneftt&:5050 • Flea Expense Fringe Benents:5060 · Futa Expense Fringe Benents:5070 • Suta Expense Fringe Beneftts:Soao • Group Insurance Fringe Benents:5090 · Medical Insurance Fringe Benents:5095 ·Dental Insurance Fringe Baneftts:5100 ·Life Insurance Fringe Baneftts:5110 ·Disability Fringe Benefitst5120 ·Workers Comp Fringe Baneftts:5130 • Retirement Plan Fringe Baneftts!5130 ·Retirement Plan:5131 ·Retirement Plan Exp Fringe Benents:5130 ·Retirement Plan:5132 · ProfttShare contrlb1 Fringe Beneftts!5140 • Employee MonJe & Welfare Fringe Beneflts:BS&O • Payroll Expenses Fringe Benents:6561 • •Payroll Expenses General & Administrative General & Administrattw:7405-State Gross Receipts 'ntx General & AdmlnlstraUve:7000 • G&A Labor Applied Fringe General &Admlnlstra!lve:7010 ·Consultants General & AdmlnlstraUve:704D • Bonus General & Admlnlstratlve:7060 • Tr.ivel Expenses General &AdmlnlstraUve:70BO • omce Rsnt General & Admlnlstratlve:7090 • omce Expense General &Admlnlstratlve:7100 •Incentive Payments General & AdmlnlstraUve:7120 • Business License & 'lllxes General & AdmlnlstraUw:7140 • Trilnlng & Seminars General & Admlnlstratlve:71BO • Insurance Gsneral & Adminlstratlw:71SO · Dues & Subsclptlons General & Admlnlstratlve:7200 • Recruitment Expenses General & Admlnlstratlw:7220 • 'ntlephone Service General & Admlnlstratlw:7221 • Data Communications General & Admlnlstratlw:7240 • 'ntlephone Long Distance General & Admlnlstrative:725~ • Minor §clulpment General & Admlnlstratlw:7255 • Automobll Lease General & Admlnlstratlw:7256 ·Automobile exp. General & Admlnlstrattw:72BO .. Equipment Lease General & Admlnlstratlw:7270 • Computer HW & SW General & AdmlnlstraUve:7280 • omce SUpplies General & AdmlnlstraUve:730D • Postage, Delivery & Shipment General & AdmlnlstraUw:7310 ·Maintenance General & AdmlnlstraUve:7320 • Printing & Publications General & AdmlnlstraUw:7340 • Depredation Expense General & AdmlnlstraUw:7360 • Accounting & Auditing General & Admlnlstriltlw:738o • Legi.l Expense General & Admlnlstratlw:7400 ·State Income 'nix Expense General & AdmlnlstraUw:7415 • Personal Property lllxes General & AdmlnlstraUve:744D ·Miscellaneous EJCpensa General & AdmlnlstraUw:7450 ·Sales "nix Expanse owr haad:&ooo-:-owrhea d Labor~ - - ·-Applied Fringe Overhead:6060 • ~alnlng Labor
Case 1:14-cv-00870-CFL Document 2 Filed 09/18/14 Page 25 of 25