18-000613BID
Geo Reentry Services, Llc vs.
Department Of Corrections
Status: Closed
Recommended Order on Friday, April 20, 2018.
Recommended Order on Friday, April 20, 2018.
1STATE OF FLORIDA
4DIVISION OF ADMINISTRATIVE HEARINGS
8GEO REENTRY SERVICES, LLC,
12Petitioner,
13vs. Case No. 18 - 0613BID
19DEPARTMENT OF CORRECTIONS,
22Respondent,
23and
24GATEWAY FOUNDATION, INC., AND
28THE UNLIMITED PATH, INC.,
32Intervenors.
33_______________________ ________/
35RECOMMENDED ORDER
37This case came before Administrative Law Judge Darren A.
46Schwartz of the Division of Administrative Hearings for final
55hearing on March 1, 2018, in Tallahassee, Florida.
63APPEARANCES
64For Petition er: Martha Harrell Chumbler, Esquire
71Benjamin E . Stearns, Esquire
76Carlton, Fields, Jorden, and Burt, P.A.
82Post Office Drawer 190
86Tallahassee, Florida 32302
89For Respondent: Sean W. Gellis, Esquire
95Kristen K. Clemons, Esquire
99Department of Corrections
102501 South Calhoun Street
106Tallahassee, Florida 32399 - 2500
111For Interven or Gateway Foundation, Inc. :
118Linda Loomis Shelley, Esquire
122(Gateway) Mallory L. Harrell, Esquire
127Joshua S. Smith, Esquire
131Buchanan Ingersoll & Rooney, PC
136101 North Monroe Street , Suite 1090
142Tallahassee, Florida 32301
145For Intervenor The Unlimited Path, Inc. :
152David C. Ashburn, Esquire
156Hayden Dempsey, Esquire
159Greenb erg Traurig, P.A.
163101 East College Avenue
167Post Office Drawer 1838
171Tallahassee, Florida 32301
174STATEMENT OF THE ISSUE
178Whether Respondent, Department of Corrections '
184( " D epartment " ) intended d ecision to award contracts to
195Intervenors, Gateway Foundation, Inc. ( " Gateway " ) , and The
204Unlimited Path, Inc. ( " UPI " ), for licensed in - prison substance
216abuse treatment services pursuant to Invitation to Negotiate FDC
225ITN 17 - 112 ( " the ITN " ) , is contrary to the Department ' s governing
241statutes, rules, or the ITN specifications, and contrary to
250competition, clearly erroneous, arbitrary , or capricious.
256PRELIMINARY STATEMENT
258On September 21, 2016, the Department published the ITN ,
267seeking replies from vendors to provide licensed substance abuse
276treatment services to inmates incarcerated by the Department . On
286June 15, 2017, the Department received replies from six vendors.
296Following the evaluation phase, the Department entered into
304negotiations with four vendors : Petitioner, GEO Reentry
312Services, LLC ( " GEO " ) ; Gateway ; UPI ; and Bridges of America, Inc .
325On October 25, 2017, the Department issued a request for best and
337final offers ( " RBAFO " ). On November 14, 2017, Geo, Gateway, and
349UPI submitted their best and fin al offers ( " BAFO " ). On
361January 9, 2018, the Department posted its notice of intent to
372award Regions 1 and 2 to UPI and Regions 3 and 4 to Gateway. GEO
387timely filed its notice of intent to protest the awards within
39872 hours of the pos ting of the notice of the awards .
411On January 19, 2018, GEO timely filed its formal written
421protest and petition for administrative hearing . On February 6,
4312018, the Department referred the matter to the Division of
441Administrative Hearings ( " DOAH " ) to assign an Administrative Law
451Judge to conduct the final hearing. On February 7 and 8, 2018,
463Gateway and UPI entered their appearances, respectively.
470On February 13, 2018, the undersigned entered an O rder
480setting this matte r for final hearing on March 1, 2, and 9, 2018.
494On Februa ry 16, 2018, GEO filed a motion to amend the petition.
507On February 16, 2018, the Department filed a motion for partial
518dismissal of GEO ' s initial petition for hearing. On February 21,
5302018, GEO filed a response in opposition to the motion for
541partial dis missal . On February 22, 2018, the undersigned entered
552an Order granting the motion to amend the petition and denying
563the motion for partial dismissal. On February 27, 2018, the
573Department f iled a motion for official recognition of the final
584order entered by the Second Judicial Circuit in Corcoran v.
594Delacenserie , Case No. 2017 - CA - 365, as well as the First District
608Court of Appeal docket sheet in Case No. 1D17 - 1247, involving the
621appeal of that final order . GEO opposed the motion. On
632February 27, 2018, t he parties filed their Joint Pre - hearing
644Statement.
645The final hearing commenced as scheduled and concluded on
654March 1, 2018, with all parties present . At the hearing, the
666undersigned denied the Department ' s request for official
675recognition. Joint Exhibit s 1 through 54 were received in
685evidence upon stipulation of the parties. GEO presented the
694testimony of John Thurston. GEO ' s Exhibits 1 and 2 were received
707in evidence. The Department presented the testimony of Margaret
716Agerton, Mark Tallent, and Kasey Faulk. The Department ' s
726Exhibits 1, 2, 6, and 20 were received in evidence. Gateway and
738UPI did not present any witnesses or offer any exhibits in
749evidence.
750The two - volume final hearing Transcript was filed at DOAH on
762March 9, 2018. The parties timely filed proposed recommended
771orders, which were considered in the preparation of this
780Recommended Order.
782The stipulated facts in the parties ' Joint Pre - hearing
793Statement have been incorporated herein as indicated below.
801Unless otherwise indicated, reference s to the F lorida Statutes
811are to the 2017 version .
817FINDING S OF FACT
821The IT N, Site Visits, and Addenda
8281. The Department is a state agency responsible for the
838supervisory and protective care, custody, and control of all
847inmates incarcerated by the Departme nt in each of its four
858regions .
8602. As of June 30, 2016, the Department had a total inmate
872population of 99,119 , with 62 percent (61,454) of those inmates
884in need of treatment for a substance abuse disorder.
8933. The Department wants to st rategically improv e the manner
904in which it provides lic ensed substance abuse treatment services
914to inmates by f ocusing on maximizing the levels of treatment and
926individual inmate needs without increasing costs .
9334 . The Department chose to utilize a flexible competitive
943proc urement process to achieve its goals ; specifically, an
952invitation to negotiate method of procurement rather than an
961invitation to bid or request for proposals, because it wanted
971industry leaders to craft individual and i nnovative solutions to
981address the p roblem . 1/
9875 . Against this backdrop, o n September 21, 2016, the
998Department issued the ITN, " In - Prison Substance Abuse Treatment
1008Services, " seeking replies from qualified vendors to provide
1016licensed substance abuse treatment services to inmates
1023incarcerated by the Department in each of its four regions. The
1034Department reserved the right to make sep arate awards to each of
1046its four regions, or to make a statewide award to a single
1058vendor .
10606 . The initial term of the contract(s) to be awarded under
1072the ITN is f ive years. In addition, the Department may renew the
1085contract(s) for up to one additional five - year term .
10967 . The ITN separate d substance abuse treatment services
1106into five distinct service t ypes : Prevention Services,
1115Outpatient Substance Abuse Treatmen t, Intensive Outpatient
1122Substance Abuse Treatment, Long - term Residential Therapeutic
1130Community, and Aftercare. Additional services were also
1137required, including motivation/readiness classes for program
1143participants awaiting admission to Outpatient, Intens ive
1150Outpatient, or Residential Therapeutic Community services, and an
1158alumni support group for program participants who have completed
1167treatment services. The ITN require d that the treatment services
1177be provided in programs licensed pursuant to Florida
1185Ad ministrative Code Chapter 65D - 30.
11928 . The ITN identifie d the selection criteria as follows:
1203The focus of the negotiations will be on
1211achieving the solution that provides the best
1218value to the State based upon the " Selection
1226Criteria " and satisfies the Depa rtment ' s
1234primary goals as identified in this ITN. The
1242Selection Criteria may include, but is not
1249limited to, the following.
1253Selection Criteria:
12551. Respondent ' s articulation of their
1262solution and the ability of the solution
1269to meet the requirements of this ITN and
1277provide additional innovations.
12802. Respondent ' s experience in providing the
1288services being procured and the skills of
1295proposed staff relative to the proposed
1301approach and offering.
13043. Respondent ' s Technical Reply and Cost
1312Reply, as they relate to satis fying the
1320primary goals of the services identified
1326herein.
13279 . All interested vendors, before submitting their replies,
1336were required to visit various sites within the regions covered
1346by the ir reply. GEO attended these site visits , which were held
1358in Oct ober to November 2016 . During the visits, the topic of the
1372budget was discussed . A ll vendors were informed that the
1383Department " did not have any new money, " and that it would be
1395operating within the existing budget.
14001 0 . S ection 4. 10, TAB A , o f the ITN required that each
1416vendor submit with its reply a letter from a surety company or
1428bonding agent that documents the vendor ' s present ability to
1439obtain a performance bond or irrevocable letter of credit in the
1450amount of $1,500,000, per region. In S ection 4. 8 of the ITN ,
1465Pass/Fail Mandatory Responsiveness Requirements, the Department
1471stated it would reject any and all replies that did not meet the
1484pass/fail criteria. One of these criteria , S ection 4.8e),
1493specifically required each vendor to demonstrate its a bility to
1503meet the performance bond requirement. A vendor was likewise
1512required to make this certification on Attachment IV to the ITN ,
1523Pass/Fail Requirement Certification and Non - Collusion
1530Certification. Section 4.8e) stated as follows:
1536The Vendor must be able to demonstrate its
1544ability to meet the Performance Bond
1550requirements. Prior to execution of
1555prospective contract, Respondent will deliver
1560to the Department a Performance Bond or
1567irrevocable letter of credit in the amount
1574equal to the lesser of $1. 5 million dollars,
1583per region, or the average annual price of
1591the Contract (averaged from the initial five
1598year Contract term pricing). The bond or
1605letter of credit will be used to guarantee at
1614least satisfactory performance by Respondent
1619throughout the t erm of the Contract
1626(including renewal years).
16291 1 . Section 5.36 of the ITN , Performance Guarantee, also
1640provide d :
1643The Vendor shall furnish the Department with
1650a Performance Guarantee in the amount of
1657$1,500,000, per region, on an annual basis,
1666for a time frame equal to the term of the
1676Contract.
1677The form of the guarantee shall be a bond,
1686cashier ' s check, or money order made payable
1695to the Department. The guarantee shall be
1702furnished to the Contract Manager within
1708thirty (30) days after execution of the
1715C ontract which may result from this ITN. No
1724payments shall be made to the Vendor until
1732the guarantee is in place and approved by the
1741Department in writing. Upon renewal of the
1748Contract, the Vendor shall provide proof that
1755the performance guarantee has bee n renewed
1762for the term of the Contract renewal.
1769Based upon Vendor performance after the
1775initial year of the Contract, the Department
1782may, at the Department ' s sole discretion,
1790reduce the amount of the bond for any single
1799year of the Contract or for the rem aining
1808contract period, including the renewal.
18131 2 . The purpose of a performance bond is to mitigate the
1826Department ' s risk should a vendor fail to perform on a contract.
18391 3 . In Addendum 2, the Department identifie d six current
1851contracts being replaced by the ITN, and provide d links to those
1863contracts and budgetary information on the Florida Accountability
1871Contract Tracking System ( " FACTS " ). 2 /
18791 4 . The Department also provided two rounds of formal
1890questions and answers, which are reflected in Addenda 6 and 7.
19011 5 . In Addendum 6, question 3, a vendor asked a question
1914about cost. In response, the Department answered as follows:
1923Vendors are encouraged to submit a Cost Reply
1931in such a manner as to offer the most cost
1941effective and innovative solution for qua lity
1948services and resources, as both cost
1954efficiency and quality of services will be a
1962consideration in determining best value.
19671 6 . In Addendum 6, question 77, a vendor asked a question
1980about how to submit a reply. In response, the Department
1990answered a s follows:
1994Vendor ' s shall only submit one Reply, and the
2004Reply must be clearly labeled with the
2011Region(s) included, or that the Reply is
2018Statewide.
20191 7 . In Addendum 7, question 2, the Department again
2030addressed the issue of how many replies are required o f a vendor
2043who was interested in either a statewide or a regional award,
2054through the following questions and answers:
2060Question 2: In the responses to vendor
2067questions (Addendum 006), Change to No. 6 -
" 20754.9 Submission of Replies " states that " In
2082Reply to thi s ITN, each Vendor shall: Submit
2091a separate Reply for each Region (bullet item
2099a on page 8). However, under answer #77
2107(p.21), it states that " Vendor ' s shall only
2116submit one Reply, and the Reply must be
2124clearly labeled with the Region(s) included,
2130or tha t the Reply is Statewide. "
2137Can you please confirm that a statewide
2144proposal can be one, single proposal for the
2152entire state rather than four separate
2158proposals for each of the four regions?
2165Answer: Yes. If submitting for a Reply for
2173Statewide, the Rep ly can be submitted as one
2182(1) Reply. If submitting a Reply for
2189multiple Regions such as Regions 1 and 2, a
2198Reply must be submitted for each Region. A
2206separate Technical Reply and Cost Reply must
2213be included for each submission. The Cost
2220Replies must be sealed in a separate envelope
2228from the Technical Replies, but they can all
2236be submitted in the same package.
2242Submission and Evaluation of Replies to the ITN
22501 8 . On June 15, 2017, the Department received replies to
2262the ITN from the following six vendors: GEO, Gateway, UPI, SMA
2273Behavioral Health Services, Inc., Village South, Inc., and
2281Bridges of America, Inc.
228519 . GEO submitted five separate replies, one for each
2295region and one for statewide.
23002 0 . Gateway submitted a single statewide reply, but
2310indic ated in the reply that it wanted to be considered for a
2323statewide award and one or more regional awards . Gateway also
2334included a detailed budget breakdown by region with pricing for
2344each region. The Department ' s instructions to the evaluators of
2355the repl ies included a note reminding them that Gateway submitted
2366a statewide response, but that it wanted to be considered for
2377each individual region.
23802 1 . UPI submitted three separate replies , one each for
2391Regions 1, 2, and 3.
23962 2 . UPI made the required certific ations regarding the
2407performance guarantee and submitted a letter from a surety
2416company evidencing its ability to obtain a performance bond in
2426the amounts required by the ITN.
24322 3 . All of the rep lies were deemed to satisfy the pass/fail
2446criteria and were then evaluated and scored .
2454Negotiations
24552 4 . Following the evaluation of the replies, the Department
2466entered into the negotiation phase with GEO, Gateway, UPI, and
2476B ridges of America, Inc. Negotiations commenced in August 2017
2486and continued through Octobe r 2017. The Department held a total
2497of three negotiation sessions with each of these vendors. The
2507ITN provide d that the scores from the evaluation phase w ould not
2520carry over into negotiations and that the negotiation team was
2530not bound by the scores.
25352 5 . The Department ' s negotiation team consisted of Kasey
2547Faulk, c hief of the B ureau of P rocurement ( l ead n egotiator);
2562Patrick Mahoney, c hief of the B ureau of R eadiness and C ommunity
2576T ransition ; and Maggie Agerton, the a ssistant c hief of In - Prison
2590Substance T reatment in the Bureau of Readiness and Community
2600Transition .
26022 6 . Ms. Faulk has a master ' s degree in business
2615administration from the University of Florida. She is also a
2625Florida - certified project management professional; Florida -
2633certified contract negot iator; and Florida - certified contract
2642manager. In her tenure as c hief of the Bureau of Procurement,
2654she has overseen more than 130 competitive solicitations,
2662including at least 80 invitations to bid, at least 30 requests
2673for proposals, and approximately 1 7 invitations to negotiate.
2682She has drafted procurement procedures at two different state
2691agencies, and helped draft revisions to Florida Administrative
2699Co d e Chapter 68 - 1. Without objection, Ms. Faulk was accepted at
2713hearing as an expert in the area of F lorida procurement
2724processes.
27252 7 . Ms. Agerton authored the programmatic portions of the
2736ITN and served as an evaluator . She has a bachelor ' s and
2750master ' s degree in criminology. She is also a Florida - certified
2763addiction professional and certified crimina l justice addictions
2771professional . She currently serves as contract manager for the
2781Everglades Recovery Center ( " Everglades " ) contract , of which G EO
2792is the incumbent vendor . 3/
27982 8 . During negotiations, GEO , which had only provided
2808services to the Departme nt for a short time, touted its
2819experience and devotion of resources at Everglades.
282629 . However, GEO was under a corrective action plan at
2837Everglades as of May 12, 2017, because of missing information in
2848clinical files and lack of staff supervision. Comp lete c linical
2859files are very important to substance abuse treatment . Proper
2869clinical documentati on is necessary for licensure purposes and
2878allows the Department to ensure that services are being provided
2888in accordance with the contract.
28933 0 . By the end o f October 2017, Ms. Agerton had conducted a
2908site visit to Everglades, and although GEO had made significant
2918progress in the area of leadership and staff, the clinical files
2929were still a significant problem. Ms. Agerton and Ms. Faulk had
2940concerns about GEO ' s current contract performance at Everglades .
2951During the negotiation phase, GEO was aware of the Department ' s
2963concerns regarding its performance at Everglades .
29703 1 . During negotiations, GEO was told by the Department
2981that it is trying to spend its money more efficiently and in a
2994cost - effective manner . GEO was told by the Department that its
3007price was outside the range of competitive replies , and GEO was
3018encouraged to provide alternative pricing models and " sharpen its
3027pencils . "
30293 2 . During negotiations, the Department asked every vendor
3039to identify its cost drivers. GEO did not identify the
3049performance bond as a cost driver. However, UPI identified the
3059performance bond as a cost driver.
30653 3 . UPI informed the Department that a performance bond
3076would cos t it $200,000 per year regardless of whether the amount
3089of the bond was reduced, because the cost of the bond is based on
3103the complete value of the contract.
31093 4 . UPI requested that it be allowed to submit a cashier ' s
3124check to the Department in the amount of $1,000,000 for three
3137regions in lieu of paying $200,000 per year for five years to a
3151bonding company for a performance bond.
31573 5 . At hearing, Ms. Faulk explained the process of
3168negotiating with individual vendors , the importance of having a
3177strategy, and the value of making individual concessions with
3186individual vendors during negotiations .
31913 6 . UPI had performed services for the Department for over
3203ten years, through budget cuts, and had not walked away from
3214their contracts. Accordingly, th e negotiat ion team considered
3223UPI ' s suggestion to be a low risk. That is, the Department did
3237not believe there was a significant risk that UPI would abandon
3248the contract.
32503 7 . In any event, the cashier ' s check proposed by UPI would
3265benefit the Department because th e Department could easily take
3275the money and use it to recoup losses in the event of
3287nonperformance, as opposed to a bond, which may require the
3297Department to engage in protracted litigation with a surety
3306company to obtain the value of the bond. The Depar tment also saw
3319the cashier ' s check as an opportunity to obtain lower pricing
3331from UPI.
33333 8 . The negotiation team told UPI it would accept, in lieu
3346of the performance bond, a $1,000,000 cashier ' s check if UPI was
3361awarded three regions; a $750,000 cashier ' s check if UPI was
3374awarded two regions; and a $500,000 cashier ' s check if UPI was
3388awarded one region.
339139 . Allowing UPI to post a cashier ' s check in the amount of
3406$750,000 for the two regions it was awarded did not provide UPI
3419with a competitive advantage over GEO. At hearing, GEO ' s
3430representative , John Thurston, who oversaw the development of
3438GEO ' s reply and BAFO , and participated in the negotiations,
3449acknowledged that GEO ' s cost to obtain a performance bond in the
3462amount of $1,500,000 would only have bee n $67,500 per year.
347640 . During negotiations, the Department revised the scope
3485of work. Following the negotiations, on October 25, 2017, the
3495Department emailed a n RBAFO to those vendors who participated in
3506the negotiations .
350941 . The RBAFO informed vendo rs that the term " Best and
3521Final Offers " is used to provide the vendor the opportunity to
3532clarify its response and adjust its price based on the
3542negotiations, and that this does not preclude the Department from
3552seeking clarification or additional informati on upon receipt of
3561the BAFOs. The RBAFO further stated that the BAFO " must contain
3572a written narrative of services to be provided inclusive of
3582clarifications and any alternative or modifications discussed
3589during the negotiation process. " The BAFO require d an executive
3599summary, description of service delivery, a staffing matrix, and
3608a price sheet.
361142 . GPR - 037 (General Program Requirements) in the RBAFO
3622addresse d staffing and provide d , in pertinent part:
3631The vendor shall ensure that all required
3638Vendor s taff positions are filled for the
3646entire scheduled 40 hour weekly working
3652period, and that those individuals are
3658physically present at the work site. All
3665positions are full - time, unless otherwise
3672specified, inclusive of interim positions.
36774 3 . As to the price sheet, the per diem pricing " should
3690represent the best price the Vendor is willing to offer to the
3702Department. " The RBAFO specifically addresse d and allowed for
3711vendors to provide alternative pricing models and methods.
3719Providing alternative price offerings g ive s the Department more
3729options to solve its problem and demonstrate s a vendor ' s
3741understand ing of the Department ' s needs.
37494 4 . All vendors were provided with an equal opportunity to
3761submit BAFOs reflecting revisions to the ITN made by the
3771Depa rtment during negotiations. The RBAFO reminded vendors to
3780include in their BAFOs alternatives or any modification discussed
3789during the negotiation process. GEO was aware during
3797negotiations that it could have inquired about or proposed to
3807negotiate diffe rent components of all aspects of its proposal.
3817GEO was also aware that any global c hanges for all vendors would
3830be included in the RBAFO, but that negotiation concessions,
3839innovative solutions , and negotiated points with individual
3846vendor s , would not be included. In fact, GEO negotiated items
3857that were not shared with other vendors.
3864The BAFO s and Negotiation Team Recommendation
38714 5 . The deadline for vendors to submit their BAFOs was
3883November 14, 2017. The Department received BAFOs from the four
3893vendors invited to negotiate.
38974 6 . The ITN provide d that BAFOs would not be scored and the
3912negotiation team would make a recommendation of award based on
3922which vendor ' s solution presented the best value to the state,
3934utilizing the selection criteria in the ITN.
394147 . Prior to submitting its BAFO, the Department responded
3951to Gateway ' s inquiries about differences between what was to be
3963included in the BAFO and what was discussed during negotiations,
3973specifically in the context of the ratio of Prevention Services
3983couns elors (indicated as one counselor to fifty participants in
3993the RBAFO , but discussed during negotiations as one counselor to
4003eighty participants). The Department instructed Gateway to use
4011the ratios included in the RBAFO, and " provide an alternative
4021price with the ratio your Company is proposing. "
40294 8 . As allowed by the RBAFO and further clarified by the
4042Department, Gateway ' s BAFO included both a base price offering
4053and an alternative price offering, with detailed explanations of
4062the assumptions included w ithin each offering. Gateway ' s BAFO
4073included a ratio for P revention S ervices counselors from one
4084counselor for every fifty participants (1:50) , and an alternative
4093ratio of one counselor for every eighty participants (1:80).
410249. Gateway ' s staffing models in its BAFO also included
4113part - time positions.
411750 . The members of the negotiation team reviewed the BAFOs
4128and then made a formal recommendation of award at a public
4139meeting held on November 17, 2017 , with recorded minutes . The
4150negotiation team recommende d regional awards rather than a
4159statewide award. It recommended an award of Regions 1 and 2 to
4171UPI and Regions 3 and 4 to Gateway. The team recommended these
4183vendors because it believed their solutions represented the best
4192value to the state based on the selection criteria identified in
4203the ITN.
42055 1 . Ms. Faulk recommended UPI for Regions 1 and 2 because
4218UPI was an incumbent vendor with a long history of providing
4229satisfactory services to the Department. Additionally, she felt
4237UPI had tremendous ideas on how to maximize treatment , their cost
4248was affordable , and they proposed innovative solutions.
42555 2 . Ms. Faulk ultimately recommended Gateway ' s alternate
4266price offering for Regions 3 and 4 because she found them very
4278innovative and treatment - focused. She fe lt they had extensive
4289experience in a correctional setting providing substance abuse
4297treatment, and their cost was very affordable. She recommended
4306the alternate price offering because it was an innovative
4315solution to increase service s . Gateway ' s alterna te price
4327offering increased the number of available treatment slots and
4336provided staffing which the Department found acceptable and
4344appropriate , while at the same time offering a better price .
43555 3 . Ms. Agerton recommended UPI for Regions 1 and 2 because
4368sh e felt UPI brought an innovative solution in negotiations , as
4379well as many different ideas. She felt that based on their
4390incumbent status, they had knowledge of the Department ' s systems
4401and were able to suggest improvements while remaining affordable.
44105 4 . Ms. Agerton recommended Gateway for Regions 3 and 4
4422because they also brought innovative solutions, particularly an
4430evaluator that would help with monitoring their implementation.
4438She also felt Gateway was likewise affordable and energetic.
44475 5 . Neithe r Ms. Faulk nor Ms. Agerton recommended GEO for
4460any of the regions. Ms. Faulk felt GEO ' s cost was significantly
4473higher than the other vendors . She also had concerns about some
4485of GEO ' s r esponses during the negotiation sessions , particularly
4496with regard t o the problems at Everglades . Ms. Faulk felt GEO
4509lacked innovation , it did not understand the problems at
4518Everglades , and it lacked an effective strategy for how not to
4529have the problems reoccur in the future.
45365 6 . M s. Agerton did not recommend GEO for an y of the
4551regions because she felt they were very expensive compared to the
4562other vendors ; so expensive, in fact, that their price exceeded
4572the Department ' s budget . Ms. Agerton also had concerns about
4584GEO ' s current contract performance at Everglades .
45935 7 . A formal recommendation memorandum was prepared by the
4604p rocurement o fficer and routed through various levels of the
4615Department. The memorandum include d a cost analysis , which
4624reflect ed the total awarded price for all four regions for the
4636initial five - year term to be $57,683,377.25. GEO ' s proposed
4650price for all four regions for the same period was
4660$80,558,693.75, approximately $22,000,000 higher than the
4670Department ' s intended awards for all four regions.
467958. Notably, the formal recommendation memorandum
4685m istakenly reflected 225 prevention slots in Region 3, instead of
4696the 320 prevent ion slots included in Gateway ' s alternative
4707proposal; and 200 prevention slots in Region 4, instead of the
4718320 prevention slots included in Gateway ' s alternative proposal.
472859. For Region 3, multiplying 320 slots times Gateway ' s per
4740diem rate of $3.89 (and by 365 days a year), results in an annual
4754total cost of $454,352; compared to the annual cost figure of
4766$319,466.25 for 225 slots reflected in the memorandum. For
4776Region 4 , m ultiplying 320 slots times Gateway ' s per diem rate of
4790$3.89 (and by 365 days a year), results in an annual total cost
4803of $454,352; compared to the annual cost figure of $283,970 based
4816on 200 slots. Thus, accounting for the increased prevention
4825slots for R egions 3 and 4 results in an annual increase in cost
4839of $305,267.75 above the $11,536,675.45, for a total annual cost
4852for all four regions of $11,841.943.20 , and a five - year cost of
4866$59,209 , 71 6 .
487160 . On the other hand, GEO ' s proposed price for all four
4885reg ions for the same period was $80,558,693.75 , which divided by
4898five results in an annual cost to the Department of
4908$16,111 , 738.70. GEO eliminated the cost of Aftercare s ervices
4919because the Department intends to use an Alumni Program for zero
4930cost in lieu o f Aftercare s ervice s . GEO calculated that removing
4944the cost to the Department of Aftercare s ervices would result in
4956$1,885.790.75 less, or a total annual cost of $14,225,948.70.
496861. Thus, removing the cost of Aftercare s ervices from
4978GEO ' s proposed price for all four regions would still result in a
4992five - year cost to the Department of $71,129,743.50 , which may
5005exceed the amount appropriated, budgeted, and available to the
5014Department for substance abuse treatment for Fiscal Year 2017 -
50242018, and which far exce eds the cost of $59,209 , 71 6 (the amount
5039of the proposed award to Gateway and UPI for the same time
5051period ) . 4/
50556 2 . The recommendation memorandum was approved by the
5065Department ' s s ecretary on January 9, 2018.
5074GEO ' s P rotest
50796 3 . GEO ' s protest raises numerou s i ssues, none of which
5094warrant rescission of the Department ' s intended award to Gateway
5105and UPI .
5108Gateway ' s Reply to the ITN
51156 4 . GEO contends Gateway submitted only a single
" 5125statewide " reply to the ITN, and no reply for any region s , and
5138therefore, Gatewa y is ineligible for a regional award.
51476 5 . The persuasive and credible evidence adduced at hearing
5158demonstrates that Gateway ' s reply was properly considered as a
5169reply for multiple regions because Gateway clearly indicated its
5178intent to be considered for m ultiple regions.
51866 6 . Moreover, Gateway gained no competitive advantage over
5196other vendors as a result of combining its statewide reply with a
5208regional reply. In fact, the Department would have been
5217inundated with replies if it required a vendor to reply for every
5229conceivable combination of regions.
5233UPI ' s Performance Guarantee
52386 7 . GEO contends the Department materially deviated from
5248the ITN and gave UPI a competitive advantage over it by allowing
5260UPI to p rovide, in lieu of a performance bond, a cashier ' s check
5275in the amount of $500,000 if awarded one region ; $750,000 if
5288awarded two regions ; or $1,000,000 if awarded three regions .
53006 8 . The persuasive and credible evidence adduced at hearing
5311demonstrates that the Department did not materially deviate from
5320th e ITN and give UPI a competitive advantage over GEO by allowing
5333UPI to provide, in lieu of a performance bond, a cashier ' s check
5347in the amount of $500,000 if awarded one region; $750,000 if
5360awarded two regions; or $1,000,000 if awarded three regions.
53716 9 . Notably, the ITN did not require proposers to submit a
5384performance bond or letter of credit with its reply to the ITN,
5396and none of the vendors submitted a performance bond or letter of
5408credit with the i r repl ies . Instead, in replying to the ITN, a
5423vendor w as only required to " demonstrate its ability to meet the
5435Performance Bond requirements. "
543870 . UPI satisfied the requirements of the ITN by
5448demonstrating its ability to meet the performance bond
5456requirements.
54577 1 . In any event, t he reduction in the amount o f the bond
5473agreed to by the Department ($750,000 in connection with the
5484award of contracts for two regions) did not provide UPI with a
5496competitive advantage over GEO.
55007 2 . At hearing, Mr. Thurston estimated GEO ' s annual cost of
5514providing a performance bond in connection with contracts to be
5524awarded pursuant to the ITN would be approximately $67,500 , well
5535below the $200,000 per year that UPI was quoted for its bond.
55487 3 . Moreover, the amount of $67,500 is insignificant
5559compared to the significant disparity i n the annual, total prices
5570proposed by GEO and UPI in their BAFOs for Regions 1 and 2
5583(GEO: $9,299,141.50; UPI: $6,342,203 , for a difference of
5595$2,956,938.50 per year).
56007 4 . At hearing, Mr. Thurston acknowledged he could have
5611raised the issue of the perfo rmance bond during negotiations. As
5622Mr. Thurston also acknowledged at hearing, even if GEO had been
5633able to negotiate an elimination of the performance bond amount
5643requirement in its entirety, GEO would not have been able to
5654offer a price that would have remedied the disparity.
5663Gateway ' s BAFO ( Prevention Services Ratio )
56727 5 . GEO contends Gateway ' s ratio for Prevention Services
5684counselors of 1:80 , as provided in Gateway ' s BAFO a lternative
5696p rice o ffering , is a material deviation from the RBAFO
5707requirements. As detailed above, this alternative offering was
5715expressly permitted by the RBAFO and was further clarified by the
5726Department to Gateway before its BAFO was submitted.
57347 6 . Moreover, increasing the prevention capacity to 80 per
5745institution adds an additi onal 605 inmates served at any one
5756time, resulting in the Department being able to serve more
5766inmates for the same appropriation amount. This is precisely the
5776type of innovative thinking the Department sought to reach its
5786goals.
57877 7 . GEO did not submit an alternative pricing model , and it
5800never asked the Department if the ratios for Prevention
5809Counselors were negotiable. At hearing, GEO could not say how
5819much it could have lowered staff levels, if at all, if it
5831attempted to negotiate ratios. Gateway was not given a
5840substantial advantage over GEO by increasing the prevention
5848capacity.
58497 8 . In addition, although chapter 65D - 30 does include
5861required ratios for certain types of services, there is no
5871maximum caseload requirement applicable to Prevention Servic es.
5879Gateway ' s BAFO ( Part - Time Positions)
58887 9 . GEO also contends Gateway violated GPR - 037 in the RBAFO
5902because Gateway ' s staffing models included part - time positions.
5913However, the Department interprets the phrase " unless otherwise
5921specified " to mean that unless the vendor specifies a position in
5932its reply as part time, the Department will assume that any
5943positions referenced in the reply are full time (40 hours). GEO
5954never asked the Department for clarification on the meaning of the
5965phrase " unless otherwi se specified. " At hearing, Mr. Thurston
5974could not say whether its BAFO would have been adjusted had GEO
5986asked about negotiating the posit i ons, in terms of being full
5998time.
599980 . In any event, t he Department currently utilizes part -
6011time staff under the cont racts being replaced by the ITN. Part -
6024time staff may provide a more cost - effective solution than full -
6037time staff.
6039Gateway ' s BAFO (Clerical Positions)
60458 1 . GEO also contends Gateway ' s alternate price offering
6057provided for a reduction in clerical staff posi tions contrary to
6068GPR - 035 as set forth in Addendum 6 and the RBAFO . GPR - 035
6084required that each vendor provide a minimum of one clerical
6094position for up to 136 treatment slots, and one - half position for
6107each additional 68 treatment slots.
61128 2 . In support o f its position, GEO presented Exhibit 1.
6125However, GEO ' s Exhibit 1 i s based on incorrect assumptions, and it
6139is unreliable and unpersuasive. First, the ratios calculated by
6148GEO are impermissibl y " round ed - up . " Secondly, contrary to GEO ' s
6163position, the Dep artment only calculates an additional one - half
6174position once the full 68 treatment slots have been achieved.
6184GPR - 035 does not require one - half positions for " up to each
6198additional 68 slots. " A plain reading of GPR - 035, consistent with
6210the Department ' s re asonable interpretation, is that an additional
6221one - half position is required only after the full 68 slots have
6234been achieved.
62368 3 . Gateway ' s base price offering fully complied with the
6249staffing ratios when the ratios are calculated according to a
6259plain rea ding of GPR - 035, which is bolstered by the Department ' s
6274practice in calculating ratios. Gateway ' s alternative price
6283offering providing for a reduction in clerical positions to one
6293full - time employee per facility was a cost - saving measure
6305discussed with th e Department and a product of negotiations.
63158 4 . Even if Gateway ' s alternative price offering deviated
6327with regard to the clerical positions, given the discrepancy
6336between GEO ' s and Gateway ' s price offerings, the deviation is so
6350small that it is a minor ir regularity and not a material
6362deviation.
6363Gateway ' s BAFO ( Pricing )
63708 5 . GEO also contends Gateway failed to provide region -
6382specific pricing or a final, firm pricing offer of any kind for
6394the initial term or the renewal term.
64018 6 . During negotiations and in its BAFO, Gateway reiterated
6412that it would accept a regional or multi - regional award. Under
6424S ection 4.12 of the ITN, the Department reserved the right to seek
6437clarification from vendors regarding their BAFOs and to reopen
6446negotiations after receiving BAF Os. The negotiation team
6454recommended awarding Gateway ' s alternate price offering for
6463Regions 3 and 4 contingent upon clarification from Gateway that
6473its pricing would be applicable to Regions 3 and 4. Although
6484vendors were invited and could have attended the public meeting
6494and heard this for themselves, none of them chose to attend. Four
6506days later , on November 21, 2017, the Department ' s p rocurement
6518o fficer reached out to Gateway ' s representative asking it to
6530confirm that the pricing listed in the altern ate price offering
6541would remain the same if awarded individual regions as opposed to
6552the entire state.
65558 7 . Gateway ' s representative responded that the alternate
6566prices included in Gateway ' s BAFO could remain in effect with a
6579modified administrative person nel staffing plan if Gateway was
6588awarded more than one region. At the time of this exchange, the
6600Department ' s negotiation team had already recommended Gateway for
6610Regions 3 and 4 ; so , the Department knew there would be no need to
6624renegotiate pricing becau se Gateway was recommended to receive
6633more than Region 4.
66378 8 . According to Ms. Faulk, the Department understood
6647Gateway ' s response to mean that the per diem pricing provided in
6660Gateway ' s BAFO would apply to Regions 3 and 4. Gateway would
6673reduce the overs ight positions to two or three positions,
6683consistent with the smaller level of responsibilities required for
6692two regions instead of four. This exchange occurred prior to the
6703drafting of the award recommendation memorandum, which was dated
6712November 28, 201 7. It was not signed by Ms. Faulk until
6724January 3, 2018, or the Secretary until January 9, 2018.
67348 9 . Gateway ' s per diem statewide pricing applied equally to
6747Regions 3 and 4 . Although Gateway did not provide a grand total
6760price on its BAFO price sheet, t he Department calculated the grand
6772total price using the correct per diem unit prices provided. The
6783ITN stated that unit prices would control in the event of a
6795mathematical error.
679790 . As it pertains to th e price sheet instructions, the
6809RBAFO stated that the vendor ' s pricing should represent the best
6821price the vendor is willing to offer the Department. Gateway
6831provided both a base price offering and an alternate price
6841offering. The base price offering ' s price sheet contained the
6852required per diem prices for both the original contract term and
6863the renewal contract term. Under the section titled " TOTAL
6872PRICE, " Gateway appeared to sum the individual per diem prices
6882rather than provide an actual grand total contract amount.
6891Gateway did the same for its alte rnate price offering price sheet.
69039 1 . Although Gateway did not provide a grand total price on
6916the price sheet, it include d a detailed budget breakdown for both
6928its base price offering and alternate price offering. The
6937Department felt these breakdowns off ered additional transparency
6945into Gateway ' s pricing.
69509 2 . Section 4.10, Tab F, of the ITN provided that all
6963calculations would be verified for accuracy by the Department ' s
6974Bureau of Support Services staff, and that unit prices submitted
6984by a vendor would p revail in the event a mathematical error is
6997identified. M s. Faulk testified the Department could calculate a
7007grand total price by using the per diem pricing provided on the
7019price page. She explained the Department could multiply the per
7029diem price for ea ch service type by the number of slots for that
7043service, and then multiply that number by 365 days to arrive at
7055the yearly price for a particular service. The Department could
7065then add those prices together to obtain an annual total. She
7076also explained t hese same calculations could be done for the
7087renewal pricing.
7089UPI ' s BAFO (Clerical Positions)
70959 3 . GEO contends UPI deviated from the staffing requirements
7106by providing fewer clerical support positions than required by the
7116RBAFO. Specifically, GEO conten ds UPI had a deficit of six
7127clerical support positions, and that if GEO knew it could reduce
7138the staffing complement by six, it would have been worth
7148approximately $270,000. UPI ' s clerical staffing ratios deviate d
7159from GPR - 035, because its ratios were cal culated based on the
7172belief that prevention slots were not " treatment " slots. The ITN
7182and RBAFO refer to prevention slots as treatment slots .
71929 4 . Nevertheless, given the discrepancy between the prices
7202submitted by GEO and UPI, UPI ' s deviations from the c lerical
7215staffing requirements are so small that they are minor
7224irregularities and not material deviations.
7229UPI ' s BAFO ( Pricing )
72369 5 . GEO also contends UPI ' s BAFO failed to include the
7250Revised Price Sheet. Specifically, in paragraph 24 of its a mended
7261p etit ion, GEO alleged: " UPI appears to have created its own form
7274that emulated the format of the required form but provides many
7285more spaces for additional information. Other Vendors that used
7294the ITN required form did not have the opportunity to include this
7306additional information. "
73089 6 . Although UPI did not use the specific Revised Price
7320Sheet form, it provided per diem prices for each level of
7331treatment as required by the form and additional information for
7341the Department ' s consideration. GEO failed to inc lude per diem
7353pricing for Residential Therapeutic slots in Regions 2 and 4 . GEO
7365also modified its price sheets and submitted additional
7373information in the form of annotations denoted by asterisk.
73829 7 . In sum, the persuasive and credible evidence adduced a t
7395hearing demonstrates that the Department appropriately determined
7402that the proposed award s to Gateway and UPI will provide the best
7415value to the Department based on the selection criteria. Any
7425irregularities in Gateway's and UPI's replies and BAFOs as a lleged
7436by GEO were minor and not material deviations . The Department ' s
7449intended award s to Gateway and UPI are not contrary to the
7461Department ' s statutes, rules, the ITN specifications, clearly
7470erroneous, contrary to competition, arbitrary, or capricious.
7477C ONCLUSIONS OF LAW
74819 8 . DOAH has personal and subject matter jurisdiction in
7492this proceeding pursuant to sections 120.569 , 120.57(1), and
7500120.57(3), Florida Statutes.
750399. GEO has standing to bring this procurement protest and
7513both Gateway and UPI have stan ding to participate as intervenors.
7524100 . Pursuant to section 120.57(3)(f), the burden of proof
7534rests with GEO as the party opposing the proposed agency action.
7545State Contracting & Eng ' g Corp. v. Dep ' t of Transp. , 709 So. 2d
7561607, 609 (Fla. 1st DCA 1998). GEO must sustain its burden of
7573proof by a preponderance of the evidence. See Dep ' t of Transp.
7586v. J.W.C. Co., Inc. , 396 So. 2d 778, 787 (Fla. 1st DCA 1981).
7599101 . Section 120.57(3)(f) provides in part as follows:
7608Unless otherwise provided by statute, the
7614burden of proof shall rest with the party
7622protesting the proposed agency action. In a
7629competitive - procurement protest, other than a
7636rejection of all bids, proposals, or replies,
7643the administrative law judge shall conduct a
7650de novo proceeding to determine whether the
7657agency ' s proposed action is contrary to the
7666agency ' s governing statutes, the agency ' s
7675rules or policies, or the solicitation
7681specifications. The standard of proof for
7687such proceedings shall be whether the
7693proposed agency action was clearly er roneous,
7700contrary to competition, arbitrary, or
7705capricious.
7706102 . The phrase " de novo proceeding, " as used in
7716section 120.57(3)(f), describes a form of intra - agency review.
" 7726The judge may receive evidence, as with any formal hearing under
7737section 120.57( 1), but the object of the proceeding is to
7748evaluate the action taken by the agency. " State Contracting , 709
7758So. 2d at 609.
7762103 . A bid protest proceeding is not simply a record review
7774of the information that was before the agency. Rather, a new
7785evidentia ry record based upon the facts established at DOAH is
7796developed. J.D. v. Fla. Dep ' t of Child. & Fams. , 114 So. 3d
78101127, 1132 - 33 (Fla. 1st DCA 2013).
7818104 . After determining the relevant facts based on the
7828evidence presented at hearing, the agency ' s inte nded action will
7840be upheld unless it is contrary to the governing statutes, the
7851agency ' s rules, or the bid specifications. The agency ' s intended
7864action must also remain undisturbed unless it is clearly
7873erroneous, contrary to competition, arbitrary, or cap ricious.
788110 5 . The Florida Supreme Court explained the clearly
7891erroneous standard as follows:
7895A finding of fact is clearly erroneous when,
7903although there is evidence to support such
7910finding, the reviewing court upon reviewing
7916the entire evidence is lef t with the definite
7925and firm conviction that a mistake has been
7933committed. This standard plainly does not
7939entitle a reviewing court to reverse the
7946finding of the trier of fact simply because
7954it is convinced that it would have decided
7962the case differently. Such a mistake will be
7970found to have occurred where findings are not
7978supported by substantial evidence, are
7983contrary to the clear weight of the evidence,
7991or are based on an erroneous view of the law.
8001Similarly, it has been held that a finding is
8010clearly erroneous where it bears no rational
8017relationship to the supporting evidentiary
8022data, where it is based on a mistake as to
8032the effect of the evidence, or where,
8039although there is evidence which if credible
8046would be substantial, the force and effect of
8054the testimony considered as a whole convinces
8061the court that the finding is so against the
8070great preponderance of the credible testimony
8076that it does not reflect or represent the
8084truth and right of the case.
8090Dorsey v. State , 868 So. 2d 1192, 1209 n.16 (Fla . 2003).
810210 6 . The contrary to competition standard precludes actions
8112which, at a minimum: (a) create the appearance of and
8122opportunity for favoritism; (b) erode public confidence that
8130contracts are awarded equitably and economically; (c) cause the
8139procu rement process to be genuinely unfair or unreasonably
8148exclusive; or (d) are unethical, dishonest, illegal, or
8156fraudulent. Care Access PSN, LLC v. Ag. for Health Care Admin. ,
8167Case No. 13 - 4113BID, 2014 Fla. Div. Admin. Hear. LEXIS 3, at *54
8181(Fla. DOAH Jan. 2, 2014) ; Phil ' s Expert Tree Serv., Inc. v.
8194Broward Cnty. Sch. Bd. , Case No. 06 - 4499BID, 2007 Fla. Div.
8206Admin. Hear. LEXIS 161, at *23 (Fla. DOAH Mar. 19, 2007).
821710 7 . An action is " arbitrary if it is not supported by
8230logic or the necessary facts, " and " ca pricious if it is adopted
8242without thought or reason or is irrational. " Hadi v. Lib.
8252Behavioral Health Corp. , 927 So. 2d 34, 38 - 39 (Fla. 1st DCA
82652006). If agency action is justifiable under any analysis that a
8276reasonable person would use to reach a decisi on of similar
8287importance, the decision is neither arbitrary nor capricious.
8295J.D. , 114 So. 3d at 1130. Thus, under the arbitrary or
8306capricious standard, " an agency is to be subjected only to the
8317most rudimentary command of rationality. The reviewing cour t is
8327not authorized to examine whether the agency ' s empirical
8337conclusions have support in substantial evidence. " Adam Smith
8345Enters., Inc. v. Dep ' t of Envtl. Reg. , 553 So. 2d 1260, 1273
8359(Fla. 1st DCA 1989). Nevertheless,
8364the reviewing court must consider whether the
8371agency: (1) has considered all relevant
8377factors; (2) has given actual, good faith
8384consideration to those factors; and (3) has
8391used reason rather than whim to progress from
8399consideration of each of these factors to its
8407final decision.
8409Id.
841010 8 . Under section 287.057 , Florida Statutes , an agency
8420seeking to procure contractual services may elect to use either
8430an invitation to bid ( " ITB " ) ; a request for proposal ( " RFP " ) ; or,
8445as here, an invitation to negotiate ( " ITN " ). § 287.057(1), Fla.
8457Stat.; A T&T Corp. v. State, Dep ' t of Mgmt. Servs. , 201 So. 3d
8472852, 855 (Fla. 1st DCA 2016). The ITN process is the most
8484flexible procurement process and contemplates that not all
8492vendors will necessarily provide the same solution to the same
8502problem. As recogniz ed by the First District in AT&T :
8513The ITN process was created as a distinctly
8521more flexible process than the RFP or ITB
8529process and gives an agency the means " to
8537determine the best method for achieving a
8544specific goal or solving a particular
8550problem " and t o identify " one or more
8558responsive vendors with which the agency may
8565negotiate in order to achieve the best
8572value ."
8574AT&T Corp. , 201 So. 3d at 855 ( quoting § 287.057(1)(c), Fla.
8586Stat . (2014) ) . 5/
859210 9 . Relevant to ITNs, section 287.057(1)(c) provides, in
8602pe rtinent part:
86052. The invitation to negotiate must describe
8612the questions being explored, the facts being
8619sought, and the specific goals or problems
8626that are the subject of the solicitation.
86333. The criteria that will be used for
8641determining the acceptab ility of the reply
8648and guiding the selection of the vendors with
8656which the agency will negotiate must be
8663specified. The evaluation criteria must
8668include consideration of prior relevant
8673experience of the vendor.
86774. The agency shall evaluate replies again st
8685all evaluation criteria set forth in the
8692invitation to negotiate in order to establish
8699a competitive range of replies reasonably
8705susceptible of award. The agency may select
8712one or more vendors within the competitive
8719range with which to commence negotia tions.
8726After negotiations are conducted, the agency
8732shall award the contract to the responsible
8739and responsive vendor that the agency
8745determines will provide the best value to the
8753state, based on the selection criteria.
87591 10 . " Best Value " means " the high est overall value to the
8772state based on factors that include, but are not limited to,
8783price, quality, design, and workmanship. " § 287.012(4), Fla.
8791Stat.
87921 11 . Negotiations are an inherent component of the flexible
8803ITN process. However, the Department can not make " material
8812changes " to the ITN during negotiations. AT&T Corp. , 201 So. 3d
8823at 85 8 . It has long been recognized that " [a]lthough a bid
8836containing a material variance is unacceptable, not every
8844deviation from the invitation to bid is material. It is
8854only material if it gives the bidder a substantial advantage
8864over the other bidders and thereby restricts or stifles
8873competition. " Tropabest Foods, Inc. v. State Dep ' t of Gen.
8884Servs. , 493 So. 2d 50, 52 (Fla. 1st DCA 1986); AT&T Corp. ,
8896201 So. 3d at 858 (concluding that revisions to statement of
8907work that evolved during negotiation phase did not restrict
8916competition -- and recognizing that AT&T elected not to modify its
8927initial reply) .
89301 12 . Turning to the merits of the instant case, as detailed
8943above, the Department ' s proposed action in awarding the contracts
8954to Gateway and UPI, and not to GEO, is not contrary to the ITN
8968specifications, clearly erroneous, contrary to competition,
8974arbitrary or capricious. A ny irregularities in Gateway ' s and
8985UPI ' s replies a nd BAFOs as alleged by GEO were minor and not
9000material deviations .
9003RECOMMENDATION
9004Based on the foregoing Findings of Fact and Conclusions of
9014Law, it is RECOMMENDED that the Department of Corrections enter a
9025final order dismissing the protest of GEO Reentry Services, LLC .
9036DONE AND ENTERED this 20th day of April , 2018 , in
9046Tallahassee, Leon County, Florida.
9050S
9051DARREN A. SCHWARTZ
9054Administrative Law Judge
9057Division of Administrative Hearings
9061The DeSoto Building
90641230 Apalachee Parkway
9067Tallahassee, Florida 32399 - 3060
9072(850) 488 - 9675
9076Fax Filing (850) 921 - 6847
9082www.doah.state.fl.us
9083Filed with the Clerk of the
9089Division of Administrative Hearings
9093this 20th day of April , 2018 .
9100ENDNOTE S
91021/ Section 2.4 of the ITN provide d that the overall goals of the
9116Department inclu de:
9119Û Providing the appropriate targeted level
9125of substance abuse services to each inmate
9132with an identified need.
9136Û A reduction in the substance abuse within
9144the inmate population.
9147Û An increase in treatment engagement among
9154clients enrolled in service s.
9159Û A reduction in anti - social thinking among
9168the participants enrolled in services.
9173Û A reduction in anti - social behavior among
9182the participant enrolled in services.
9187Section 2.4.1 of the ITN provide d the following specific
9197goals of the ITN:
9201 Establ ish a Contract, with transparency of
9209service costs and better alignment of
9215costs with services.
9218 Establish a Contract that allows the
9225Vendor to bring market expertise, and an
9232ability to shape strategy, to lower the
9239cost of substance abuse treatment
9244servic es.
9246 Ensure a smooth transition/continuation of
9252services from the current Contract(s) to a
9259new Contract without disruption.
9263 Contract with a Vendor that applies
9270clinical and operational expertise to
9275ensure a smooth continuation of services
9281with minimal risk.
9284 Ensure cost effective pricing throughout
9290the entire term of the Contract.
9296 Establish a collaborative relationship
9301with the prospective Vendor, which will
9307maximize the extent to which the
9313Department can achieve the objectives of
9319this ITN.
93212 / FA CTS was created in 2011 or 2012 for the purpose of
9335increasing transparency to taxpayers and vendors.
93413/ Pursuant to contract, GEO currently provides substance abuse
9350treatment services for the Department at some facilities,
9358including Everglades . Other en tities also provide substance
9367abuse treatment services for the Department at certain facilities
9376pursuant to contract. Some of th e contracts are encompassed by
9387the ITN. Everglades is within the scope of the ITN.
93974 / Notably, the memorandum includes a tot al annual cost amount of
9410$1,134,693.75, for Aftercare services for all four regions, which
9421the undersigned has not subtracted from the total annual amount
9431of the cost of the proposed award s to Gateway and UPI.
94435/ There is no substantive differences betw een the 2014 and 2017
9455versions of section 287.057.
9459COPIES FURNISHED:
9461Martha Harrell Chumbler, Esquire
9465Benjamin E . Stearns, Esquire
9470Carlton, Fields, Jorden, and Burt, P.A.
9476Post Office Drawer 190
9480Tallahassee, Florida 32302
9483(eServed)
9484Sean W. Gellis, Es quire
9489Kristen K. Clemons, Esquire
9493Department of Corrections
9496501 South Calhoun Street
9500Tallahassee, Florida 32399 - 2500
9505(eServed)
9506Linda Loomis Shelley, Esquire
9510Mallory L. Harrell, Esquire
9514Joshua S. Smith, Esquire
9518Buchanan Ingersoll & Rooney, PC
9523101 North Mo nroe Street , Suite 1090
9530Tallahassee, Florida 32301
9533(eServed)
9534David C. Ashburn, Esquire
9538Hayden Dempsey, Esquire
9541Greenberg Traurig, P.A.
9544101 East College Avenue
9548Post Office Drawer 1838
9552Tallahassee, Florida 32301
9555(eServed)
9556Kenneth S. Steely, General Coun sel
9562Department of Corrections
9565501 South Calhoun Street
9569Tallahassee, Florida 32399 - 2500
9574(eServed)
9575Julie L. Jones, Secretary
9579Department of Corrections
9582501 South Calhoun Street
9586Tallahassee, Florida 32399 - 2500
9591(eServed)
9592NOTICE OF RIGHT TO SUBMIT EXCEPTION S
9599All parties have the right to submit written exceptions within
96091 0 days from the date of this Recommended Order. Any exceptions
9621to this Recommended Order should be filed with the agency that
9632will issue the Final Order in this case.
- Date
- Proceedings
- PDF:
- Date: 04/20/2018
- Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
- PDF:
- Date: 03/20/2018
- Proceedings: Letter to Judge Schwartz replacing Page 12 of The Unlimited Path Inc.s Proposed Recommended Order filed.
- PDF:
- Date: 03/19/2018
- Proceedings: Intervenor, The Unlimited Path, Inc.'s, Notice of Filing Proposed Recommended Order filed.
- PDF:
- Date: 03/19/2018
- Proceedings: Florida Department of Corrections' Notice of Filing Proposed Recommended Order filed.
- PDF:
- Date: 03/19/2018
- Proceedings: Intervenor Gateway Foundation, Inc.'s Notice of Filing Proposed Recommended Order filed.
- Date: 03/09/2018
- Proceedings: Transcript of Proceedings Volumes 1-2 (not available for viewing) filed.
- Date: 03/01/2018
- Proceedings: CASE STATUS: Hearing Held.
- PDF:
- Date: 02/27/2018
- Proceedings: Florida Department of Corrections' Motion to Take Judicial Notice/Motion for Official Recognition filed.
- PDF:
- Date: 02/22/2018
- Proceedings: Order Denying DOC'S Motion for Partial Dismissal of GEO's Formal Written Protest.
- PDF:
- Date: 02/22/2018
- Proceedings: Order Granting GEO's Motion for Leave to Amend Petition for Administrative Hearing.
- PDF:
- Date: 02/21/2018
- Proceedings: GEO's Notice of Service of Answers to Gateway Foundation, Inc.'s First Set of Interrogatories to GEO filed.
- PDF:
- Date: 02/21/2018
- Proceedings: GEO's Response to the Department's Motion for Partial Dismissal filed.
- PDF:
- Date: 02/20/2018
- Proceedings: Notice of Service of Responses to Geo Reentry Services, LLC's First Set of Interrogatories to The Unlimited Path, Inc. filed.
- PDF:
- Date: 02/20/2018
- Proceedings: Florida Department of Corrections' Notice of Serving Answers to Petitioner's First Set of Interrogatories filed.
- PDF:
- Date: 02/20/2018
- Proceedings: GEO's Notice of Service of Verified Answers to The Unlimited Path, Inc.'s First Set of Interrogatories to GEO filed.
- PDF:
- Date: 02/20/2018
- Proceedings: GEO's Notice of Service of Verified Answers to Respondent Florida Department of Corrections' First Set of Interrogatories to GEO filed.
- PDF:
- Date: 02/20/2018
- Proceedings: Intervenor's, Gateway Foundation, Notice of Serving Answers to GEO Reentry Services, LLC's First Set of Interrogatories filed.
- PDF:
- Date: 02/20/2018
- Proceedings: The Unlimited Path's Notice of Cross-Deposition of Petitioner's Corporate Representative filed.
- PDF:
- Date: 02/19/2018
- Proceedings: GEO's Notice of Service of Unverified Answers to Respondent Florida Department of Corrections' First Set of Interrogatories to GEO filed.
- PDF:
- Date: 02/19/2018
- Proceedings: Petitioner's Response to Respondent's First Request for Production filed.
- PDF:
- Date: 02/19/2018
- Proceedings: Petitoner's Response to the Department's First Request for Admissions filed.
- PDF:
- Date: 02/19/2018
- Proceedings: Petitioner's Response to UPI's First Request for Production filed.
- PDF:
- Date: 02/19/2018
- Proceedings: GEO's Notice of Service of Unverified Answers to Intervenor the Unlimited Path, Inc.'s First Set of Interrogatories to GEO filed.
- PDF:
- Date: 02/19/2018
- Proceedings: GEO's Notice of Taking Deposition Duces Tecum of Gateway's Corporate Representative filed.
- PDF:
- Date: 02/19/2018
- Proceedings: Florida Department of Corrections' Notice of Deposition of Petitioner's Corporate Representative filed.
- PDF:
- Date: 02/16/2018
- Proceedings: Motion for Leave to Amend Petition for Administrative Hearing filed.
- PDF:
- Date: 02/16/2018
- Proceedings: GEO Reentry Services, LLC's Notice of Taking Depositions Duces Tecum filed.
- PDF:
- Date: 02/16/2018
- Proceedings: Florida Department of Corrections' Motion for Partial Dismissal and Memorandum of Law in Support filed.
- PDF:
- Date: 02/16/2018
- Proceedings: Intervenor's, Gateway Foundation, Notice of Service of First Set of Interrogatories to Geo Reentry Services, LLC filed.
- PDF:
- Date: 02/15/2018
- Proceedings: GEO Reentry Services, LLC's Notice of Service of First Interrogatories to Intervenor, Gateway Foundation, Inc. filed.
- PDF:
- Date: 02/15/2018
- Proceedings: GEO Reentry Services, LLC's Notice of Service of First Interrogatories to Intervenor, The Unlimited Path, Inc. filed.
- PDF:
- Date: 02/15/2018
- Proceedings: GEO Reentry Services, LLC's Notice of Service of First Interrogatories to Respondent Florida Department of Corrections filed.
- PDF:
- Date: 02/14/2018
- Proceedings: Florida Department of Corrections' Notice of Serving First Set of Interrogatories to Petitioner filed.
- PDF:
- Date: 02/14/2018
- Proceedings: Florida Department of Corrections' First Request for Admissions to Petitioner filed.
- PDF:
- Date: 02/14/2018
- Proceedings: Florida Department of Corrections' First Request for Production to Petitioner filed.
- PDF:
- Date: 02/14/2018
- Proceedings: The Unlimited Path, Inc.'s Notice of Service of First Set of Interrogatories to Geo Reentry Services, LLC filed.
- PDF:
- Date: 02/14/2018
- Proceedings: Intervenor, The Unlimited Path, Inc.'s, First Request for Production to Petitioner, Geo Reentry Services, LLC filed.
- PDF:
- Date: 02/13/2018
- Proceedings: Florida Department of Corrections' Notice of Compliance with Court Order filed.
- PDF:
- Date: 02/13/2018
- Proceedings: Notice of Hearing (hearing set for March 1, 2 and 9, 2018; 9:00 a.m.; Tallahassee, FL).
- Date: 02/13/2018
- Proceedings: CASE STATUS: Status Conference Held.
Case Information
- Judge:
- DARREN A. SCHWARTZ
- Date Filed:
- 02/06/2018
- Date Assignment:
- 02/08/2018
- Last Docket Entry:
- 05/16/2018
- Location:
- Tallahassee, Florida
- District:
- Northern
- Agency:
- Other
- Suffix:
- BID
Counsels
-
David C. Ashburn, Esquire
Address of Record -
Martha Harrell Chumbler, Esquire
Address of Record -
Kristen Krueger Clemons, Assistant General Counsel
Address of Record -
Hayden Dempsey, Esquire
Address of Record -
Sean W. Gellis, Esquire
Address of Record -
Mallory L. Harrell, Esquire
Address of Record -
Linda Loomis Shelley, Esquire
Address of Record -
Joshua S. Smith, Esquire
Address of Record -
Benjamin Edward Stearns, Esquire
Address of Record -
David C Ashburn, Esquire
Address of Record -
Sean W Gellis, Esquire
Address of Record