Rotech loses VA bid

Wednesday, June 3, 2015

ORLANDO, Fla. – A federal court judge has ruled against Rotech Healthcare in a bid protest for a Department of Veterans Affairs contract.

Federal claims judge Nancy Firestone ruled the VA’s decision to award the $46.3 million contract to Community Surgical Supply Medical was reasonable because CSS’s abilities and past performance were close enough to Rotech’s that the price difference of about $5.3 million was reason enough to change contractors, according to Law360.

Rotech had argued that CSS’s bid was unrealistically low, that Rotech’s technical and past performance should have been rated higher, and that CSS couldn’t complete a transition in 45 days.

Rotech’s original bid was $16.5 million higher than CSS’s. Rotech lowered its bid by $11 million, but the remaining difference was the deciding factor in CSS’s winning the contract, according to Law360

“Rotech’s argument that the VA’s decision lacked a rational basis or was contrary to the solicitation fails,” Firestone said in a decision that remained under seal until June 1. “The court finds that none of the alleged errors in the price realism analysis warrant disrupting the contract award.”

Rotech won a one-year contract from the VA, worth $68.3 million, in 2013.