18-000613BID Geo Reentry Services, Llc vs. Department Of Corrections
 Status: Closed
Recommended Order on Friday, April 20, 2018.


View Dockets  
Summary: DOC's decision to award contracts to intervenors for in-prison substance abuse treatment pursuant to ITN is not contrary to statutes, rules, ITN specifications, contrary to competition, clearly erroneous, arbitrary, or capricious.

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.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 05/16/2018
Proceedings: Agency Final Order
PDF:
Date: 05/16/2018
Proceedings: Agency Final Order filed.
PDF:
Date: 04/20/2018
Proceedings: Recommended Order
PDF:
Date: 04/20/2018
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 04/20/2018
Proceedings: Recommended Order (hearing held March 1, 2018). CASE CLOSED.
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: Notice of Filing Petitioner'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: Joint Pre-Hearing Stipulation filed.
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: Order of Pre-hearing Instructions.
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.
PDF:
Date: 02/09/2018
Proceedings: Notice of Appearance (Hayden Dempsey) filed.
PDF:
Date: 02/08/2018
Proceedings: Notice of Appearance (David Ashburn) filed.
PDF:
Date: 02/07/2018
Proceedings: Notice of Appearance (Joshua Smith) filed.
PDF:
Date: 02/07/2018
Proceedings: Notice of Appearance (Kristen Clemons) filed.
PDF:
Date: 02/07/2018
Proceedings: Notice of Appearance (Mallory Harrell) filed.
PDF:
Date: 02/07/2018
Proceedings: Notice of Appearance (Linda Shelley) filed.
PDF:
Date: 02/06/2018
Proceedings: Request for Best and Final Offer (BAFO) filed.
PDF:
Date: 02/06/2018
Proceedings: Addendum filed.
PDF:
Date: 02/06/2018
Proceedings: Invitation to Negotiate filed.
PDF:
Date: 02/06/2018
Proceedings: Formal Written Protest and Petition for Formal Administrative Hearing filed.
PDF:
Date: 02/06/2018
Proceedings: Agency referral filed.

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

Related DOAH Cases(s) (1):

Related Florida Statute(s) (6):