Protech Solutions, Inc. v. The Delaware Department of Health & Human Services ( 2017 )


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  •   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    PROTECH SOLUTIONS, INC.,              )
    )
    Petitioner,          )
    )
    v.                         )     C.A. No. 2017-0642-TMR
    )
    THE DELAWARE DEPARTMENT               )
    OF HEALTH AND HUMAN                   )
    SERVICES, an agency of the State of   )
    Delaware,                             )
    )
    Respondent,          )
    )
    v.                         )
    )
    CONDUENT STATE & LOCAL                )
    SOLUTIONS, INC.,                      )
    )
    Nominal Respondent.        )
    MEMORANDUM OPINION
    Date Submitted: November 14, 2017
    Date Decided: November 30, 2017
    David A. Felice, BAILEY & GLASSER LLP, Wilmington, Delaware; Brian A.
    Glasser, Victor S. Woods, and James L. Kauffman, BAILEY & GLASSER LLP,
    Washington, District of Columbia; Attorneys for Petitioner.
    Lawrence W. Lewis and John H. Taylor III, STATE OF DELAWARE
    DEPARTMENT OF JUSTICE, Wilmington, Delaware; Attorneys for Respondent
    Delaware Department of Health and Social Services
    Steven L. Caponi, K & L GATES LLP, Wilmington, Delaware; Steven G.
    Schortgen and Jennifer Klein Ayers, K & L GATES LLP, Dallas, Texas;
    Attorneys for Nominal Respondent Conduent State & Local Solutions, Inc.
    MONTGOMERY-REEVES, Vice Chancellor.
    In March 2017, the State of Delaware Division of Child Support Services (the
    “Division” or the “State”) issued a Request for Proposal (“RFP”) for maintenance
    and operations (“M&O”) services for the Delaware Child Support System (the
    “System”).1 Ultimately, three vendors submitted bids in response to the RFP. Two
    of the vendors, Conduent State & Local Solutions, Inc. (“Conduent”) and Protech
    Solutions, Inc. (“Protech”), were the current contractor and subcontractor,
    respectively, for the System. Protech chose to rely on nonpublic data and stale
    information when writing its bid, all of which was in direct conflict with the
    information provided to the bidders by the Division. The Division ultimately
    rejected Protech’s bid. Protech now comes to the Court asking to be saved from its
    own miscalculation because the winning bidder allegedly received nonpublic
    information—information that was consistent with the publicly available
    information. Specifically, Protech seeks a preliminary injunction to prevent the
    Division from awarding the contract to the winning bidder, Conduent, until the Court
    can determine whether to permanently enjoin the contract and require a re-bid
    process. I deny the Motion for Preliminary Injunction because Protech fails to show
    a reasonable probability of success in proving the contract should be permanently
    enjoined and rebid.
    1
    Resp’t’s Ex. A Attach. B, at 4.
    1
    I.   BACKGROUND
    Conduent had a contract with the Division from May 1, 2010 to September
    30, 2017 for the design, development, and implementation of the System (the “Prime
    Contract”).2 Protech served as a subcontractor under the Prime Contract until the
    final year.3 In late October or early November 2016, the Division began drafting the
    RFP and issued it on March 1, 2017.4 The new contract was to begin in August
    2017.5
    Both Conduent and Protech submitted bids in response to the RFP, as did a
    third non-party, Computer Aid, Inc, (“CAI”).6 The Division selected Conduent’s
    bid.7 On July 24, 2017, Protech submitted a written bid protest to the Division.8 On
    August 4, 2017, Protech and the Division reached a standstill agreement such that
    Protech would not file or pursue litigation, and the Division would not award a
    2
    Resp’t’s Opening Br. 1-2.
    3
    
    Id. at 2.
    4
    Resp’t’s Ex. B 119: 17-20; Resp’t’s Ex. A 1.
    5
    
    Id. 6 Pet’r’s
    App. A735-828.
    
    7 Pet. 2
    .
    8
    Resp’t’s Ex. J.
    2
    contract while the parties continued discussions between their lawyers.9 On August
    11, 2017, after consideration of Protech’s bid protest, the Division issued Protech a
    written denial.10 On September 5, 2017, Protech filed its Verified Petition to
    Protest/Enjoin a State Contract Award (the “Petition”). On November 14, 2017, the
    Court heard oral arguments on the Motion for a Preliminary Injunction.
    II.   ANALYSIS
    A.     Standard of Review
    “[A] motion for preliminary injunctive relief requires [this Court] to take a
    step that, procedurally speaking, is extraordinary: to make a ‘preliminary’
    determination of the merits of a cause before there can be a final adjudication of
    [petitioner’s] claims.”11 “To obtain a preliminary injunction, the [petitioner] must
    demonstrate: (1) a reasonable probability of success on the merits; (2) that they will
    suffer irreparable injury without an injunction; and (3) that their harm without an
    injunction outweighs the harm to the defendants that will result from the
    injunction.”12   “A party showing a ‘reasonable probability’ of success must
    9
    Resp’t’s Opening Br. 4.
    10
    
    Id. 11 In
    re the New Maurice J. Moyer Acad., Inc., 
    108 A.3d 294
    , 311 (Del. Ch. 2015).
    12
    C & J Energy Servs., Inc. v. City of Miami Gen. Empls.’ & Sanitation Empls.’ Ret.
    Tr., 
    107 A.3d 1049
    , 1066 (Del. 2014).
    3
    demonstrate that it ‘will prove that it is more likely than not entitled to relief.’”13
    The preliminary injunction “burden is not a light one,” and such an “extraordinary
    remedy. . . will never be granted unless earned.”14
    Here, in order to prevail, Protech must demonstrate that it is more likely than
    not that the Division violated the express requirements of the procurement statute,
    employed a process that was arbitrary or capricious, or acted in bad faith.15
    This Court will not normally or lightly decline to defer to
    a . . . decision made by [an agency]. Given the broad
    discretion conferred upon the agency . . . and the highly
    deferential nature of the applicable judicial review
    standard, only in extraordinary cases would this Court be
    justified in setting aside such a decision.16
    “Simple disagreement with the agency’s evaluations or conclusions is . . . not enough
    to support allegations of bias.”17 “Neither [are] [b]ald allegations of bias; inferences,
    suspicion and innuendo; nor the possibility and appearance of impropriety, without
    13
    
    Id. at 1067.
    14
    Wayne Cty. Empls.’ Ret. Sys. v. Corti, 
    954 A.2d 319
    , 329 (Del. Ch. 2008).
    15
    Doctors Pathology Servs. P.A. v. State Div. of Pub. Health, Dept. of Health & Soc.
    Servs., 
    2009 WL 4043299
    , at *4-5 (Del. Ch. Nov. 20, 2009).
    16
    
    Id. at *5
    (alterations in original) (quoting Harmony Constr., Inc. v. State Dept. of
    Transp., 
    668 A.2d 746
    , 752 (Del. Ch. 1995)).
    17
    
    Id. at *8.
    4
    ‘hard facts’ implying actual misconduct, . . . sufficient to fulfill the clear and
    convincing proof required to show bias on the part of the government.”18
    B.     Protech Has Not Demonstrated a Reasonable Probability of
    Success on the Merits
    Protech advances four main arguments related to alleged deficiencies or
    biases in the procurement process, which it contends are sufficient to require a do-
    over of the entire bidding process.      First, Protech asserts the RFP was not
    “sufficiently definite to permit free, open, and competitive bidding on a common
    basis.”19 Second, Protech contends the Division provided Conduent with inside
    information about “personnel resources.”20 Third, Protech argues the Division
    utilized a “deficient and otherwise arbitrary” process by not disclosing the use of a
    technology scoring committee in the RFP.21 Fourth and finally, Protech avers that
    Conduent’s proposal “failed to meet the material requirements of the RFP and should
    have been summarily rejected.”22       Unfortunately for Protech, however, these
    arguments are based on misunderstanding of Delaware procurement law,
    18
    
    Id. 19 Pet’r’s
    Opening Br. 31.
    20
    
    Id. 21 Id.
    at 31-32.
    22
    
    Id. at 32.
    5
    misconstruction of the facts, and rather ironic allegations of use of nonpublic
    information.
    1.   Protech fails to show a reasonable probability that the
    Division used unlawful procurement procedures
    Protech’s initial argument fails for two reasons. First, Protech’s arguments
    about the statutory requirements of the RFP apply the standard for large public work
    contracts rather than the correct standard for professional services contracts.
    Second, even applying the correct standard, Protech has failed to demonstrate a
    reasonable probability that the Division violated an express requirement of the
    procurement statute.
    Procurement law in Delaware is largely statutory and found in Title 29,
    Chapter 69 of the Delaware Code. Under the current statutory configuration,
    Chapter 69 has six subchapters: general provisions, central contracting, materiel and
    nonprofessional services, public works contracting, the energy performance
    contracting act, and professional services.23 “‘Professional services’ means services
    which generally require specialized education, training or knowledge and involve
    intellectual skills. Examples of professional services include, but are not limited to,
    . . . computer information management . . . .”24 The professional services subchapter
    23
    
    29 Del. C
    . §§ 6901-6988.
    24
    
    29 Del. C
    . § 6902(19).
    6
    governs the contract at issue in this litigation.25 The contract at issue in this litigation
    is a “large professional service procurement process” under Sections 6981 and
    6982.26
    Protech relies on a standard from Delaware Technical and Community
    College v. C & D Contractors, Inc., where the Supreme Court of Delaware examined
    a prior version of the public works subchapter.27 “‘Public works contract’ means
    construction, reconstruction, demolition, alteration and repair work and maintenance
    work paid for, in whole or in part, with public funds.”28 Current Section 6962
    governs large public works contract procedures. Subsection (d) is titled “Bid
    specifications and plans requirements,” and states in part:
    Preparation of plans and specifications and approvals. --
    The contracting agency shall cause suitable plans and
    specifications to be prepared for all contracts pursuant to
    this section. All plans and specifications shall be prepared
    by registered and licensed architects and/or engineers who
    25
    Resp’t’s Ex. A 1 (“This request for proposals (“RFP”) is issued pursuant to 
    29 Del. C
    . §§ 6981 and 6982.”).
    26
    
    Id. 27 Del.
    Tech. & Cmty. Coll. v. C & D Contractors, Inc., 
    338 A.2d 568
    , 569 (Del. 1975)
    (“It follows that ‘suitable’ plans and specifications, within the meaning of § 6905(b),
    are only those which are sufficiently complete, definite, and explicit as to permit
    free, open, and competitive bidding on a common basis.”).
    28
    
    29 Del. C
    . § 6902(22).
    7
    shall sign the plans and specifications and affix their seals
    thereto.29
    Case law has developed around this Section and its prior incarnations, specifically
    about what suitable plans and specifications entail.30 Protech relies on this case law
    for its argument that the RFP, issued pursuant to Sections 6981 and 6982 and not
    Section 6962, was not “sufficiently complete, definite, and explicit as to permit free,
    open, and competitive bidding on a common basis,”31 because it did not provide
    bidders with exact staffing numbers and a budget expectation, which Protech alleges
    were necessary for it to prepare its bid competitively.32 None of the case law Protech
    relies on applies to professional services procurement or the current case.33
    29
    
    29 Del. C
    . § 6962(d)(1) (emphasis added).
    30
    See, e.g., Del. Tech. & Cmty. Coll., 
    338 A.2d 568
    ; Harmony Const., Inc. v. State
    Dep’t of Transp., 
    668 A.2d 746
    (Del. Ch. 1995); Wohlsen Constr. Co. v. Dep’t of
    Admin. Servs., 
    1998 WL 157365
    (Del. Ch. Mar. 31, 1998).
    31
    Pet’r’s Opening Br. 32.
    32
    
    Id. at 22-24.
    33
    Protech also cites a case from 1954 interpreting the requirements under then Title
    22, Chapter 5, which governed the establishment of municipal parking authorities.
    Wilm. Parking Auth. v. Ranken, 
    105 A.2d 614
    (Del. 1954). This case also is not on
    point as to the statutory requirements of the RFP. Furthermore, Protech fails to
    show a reasonable probability that the Division failed “so far as possible” to put the
    bidders “on terms of perfect equality, so that they may bid on substantially the same
    proposition, and on the same terms.” 
    Id. The Division
    provided all bidders with the
    same information, but Protech drew different conclusions based on their own
    nonpublic information. See infra Section II.B.2.a.
    8
    Instead, the requirements for a large professional service RFP are more
    flexible and set out in Section 6981:
    (f) Each agency shall establish written administrative
    procedures for the evaluation of applicants. These
    administrative procedures shall be adopted and made
    available to the public by each agency before publicly
    announcing an occasion when professional services are
    required. One or more of the following criteria may be
    utilized in ranking the applicants under consideration:
    (1) Experience and reputation;
    (2) Expertise (for the particular project under
    consideration);
    (3) Capacity to meet requirements (size, financial
    condition, etc.);
    (4) Location (geographical);
    (5) Demonstrated ability;
    (6) Familiarity with public work and its
    requirements; or
    (7) Distribution of work to individuals and firms or
    economic considerations.
    (g) In addition to the above, other criteria necessary for a
    quality, cost-effective project may be utilized.
    (h) Each project shall be given individual attention, and a
    weighted average may be applied to criteria according to
    its importance to each project.
    (i) For the selection process described in § 6982(b) of this
    title, price may be a criteria used to rank applicants under
    consideration.34
    34
    
    29 Del. C
    . § 6981 (emphasis added).
    9
    This Court analyzed the standards for professional services RFPs in Doctors
    Pathology Services P.A. v. State Division of Public Health, Department of Social
    Services.35 There, this Court considered a request for injunctive and declaratory
    relief when “a frustrated provider of laboratory services, assert[ed] that the agency
    failed to comply with the statutes governing its procurement of professional
    services.”36 “Agency procurement procedures are deemed ‘lawful unless they
    deviate materially from the relevant statute.’” 37 Section 6981 establishes only two
    requirements for the professional services procurement process: there must be (1) a
    public announcement including several enumerated items of information, and (2)
    “written administrative procedures for the evaluation of applicants.”38 This Court
    has recognized that the remainder of “the professional services negotiation
    subchapter establishes only general guidelines for the procurement process: agencies
    are granted great discretion to shape the process to meet their needs.”39
    35
    
    2009 WL 4043299
    (Del. Ch. Nov. 20, 2009).
    36
    
    Id. at *1.
    37
    
    Id. at *4
    (quoting Danvir Corp. v. City of Wilm., 
    2008 WL 4560903
    , at *5 (Del. Ch.
    Oct. 6, 2008)).
    38
    
    29 Del. C
    . § 6981; see also Doctors Pathology, 
    2009 WL 4043299
    at *4.
    39
    Doctors Pathology, 
    2009 WL 4043299
    at *4.
    10
    Thus, to show a material deviation from Section 6981 sufficient to obtain a
    preliminary injunction, Protech must show a reasonable probability of success on
    claims that the Division failed to make the necessary public announcement or had
    no written procedures for the evaluation of applicants. At oral argument, Protech
    withdrew its argument that the Division did not make the necessary public
    announcement,40 and Protech has not alleged that there were no written procedures
    for the evaluation of applicants. Therefore, the Division’s procedures did not deviate
    materially from Section 6981.
    2.     Protech fails to show a reasonable probability that the
    Division’s process was arbitrary, capricious, or in bad faith
    Protech’s remaining three arguments relate to whether the Division’s decision
    process was arbitrary, capricious, or in bad faith.
    a.    Protech fails to show a reasonable probability that
    Conduent’s alleged “inside information” was
    inconsistent with information provided to all bidders
    Ultimately, Protech objects to three forms of alleged inside information that
    Conduent received: the September 9, 2016 email from Midge Holland41 to John
    40
    Oral Arg. Tr. 28.
    41
    Midge Holland was the Chief of Administration of the Division until March 2016.
    Pet. ¶ 34. After March 2016, Holland became the Director of Information Resources
    Management (“IRM”). IRM is responsible for the Delaware Department of Health
    and Social Services’ information technology, including the System. 
    Id. ¶ 35.
    11
    Polk42 and Maggie Claypool,43 the June and July 2016 meetings about staffing under
    the Prime Contract, and the “dreaming sessions” Conduent conducted under the
    Prime Contract.
    Conduent had a contractual relationship with, and contractual obligations to,
    the Division until September 30, 2017. The June and July 2016 meetings were to
    discuss the operations of the Division and Conduent’s staff, and available office
    space, through the final year of the prime contract—October 2016 to September
    2017.44 The allegedly “secret meetings” on June 16 and July 25 were about business
    under the Prime Contract. Protech’s objection to these meetings suggests that either
    Conduent should have stopped communicating with the Division about anything
    three months before the new RFP was even conceived of, regardless of any ongoing
    contractual obligations Conduent had under the Prime Contract, or that the Division
    had a duty to disclose any and all information about current operations in the RFP.
    Neither of these outcomes is tenable.
    Conduent conducted the “dreaming session” Protech objects to in January
    2017, and it was a service provided to many customers in many jurisdictions, not
    42
    John Polk is Senior Vice President and Managing Director of Child Support
    Services for Conduent. 
    Id. ¶ 29.
    43
    Maggie Claypool is Conduent’s Project Manager for the System. 
    Id. ¶ 26.
    44
    Resp’t’s Ex. B 33-37.
    12
    some elaborate scheme to illicit nonpublic information as Protech suggests.45
    Moreover, by the time Conduent submitted its bid, it had already “provided a set of
    a dozen or more recommendations that will have positive program impact” from the
    “dreaming session.”46 The dreaming sessions were about providing a service under
    the Prime Contract. For the Court to penalize Conduent in this bidding process for
    providing services under a prior contract would result in an absurd rule.
    Furthermore, as a matter of public policy, the Court would be unwise to
    disincentivize state contractors from striving to improve their performance under
    their contracts by precluding them from, or crippling them in, forthcoming bids for
    other contracts.
    The September 9, 2016 email exchange is more relevant to the current
    litigation. On September 9, 2016 at 4:18 pm, John Polk, Managing Director at
    Conduent, wrote to Midge Holland and Maggie Claypool:
    Midge, I think he’s playing this.
    We’ve had many conversations about this and the quality
    of their work has never been part of the discussion.
    Simply stated, we told him we wanted to be able to bid on
    the work in Oct. 2017 and we would not be able to if we
    didn't have some experience in the technical aspects of the
    work.
    45
    Pet’r’s App. A745.
    46
    
    Id. 13 And,
    we have not closed the door on teaming with them
    on the rebid but did tell them based on our understanding
    the contract would be about half what it is today.
    We’ll make it work Midge.
    Nagaraj is just running the plays in his playbook.47
    Midge Holland replied at 4:30 pm the same day:
    Not sure where half came from - I have not heard that from
    IRM although I know that child support is really interested
    in cutting costs. [W]hile a 50% reduction would great for
    the business’s expenses, from the technical side I have not
    see[n] anything that indicates that the state would be able
    to competently pick up that much of the work. That being
    said, I would ask that if they will agree to team for the bid,
    in writing of course, we consider the impact on the current
    team with that in mind.48
    The Division’s corporate representative Midge Holland has admitted she presumed
    John Polk was referencing the upcoming bid for the 2017-2018 contract in his
    email.49 Ultimately, however, this conversation does not show that Protech has a
    reasonable probability of success in showing bad faith or an arbitrary or capricious
    process because Ms. Holland only conveyed information that was consistent with
    publicly available information during the bid process.
    The publicly available information is as follows. First, Amendment Six of the
    Prime Contract, the 2016 amendment which is a public document, clearly identifies
    47
    
    Id. at A532-33.
    48
    
    Id. at A532.
    49
    Resp’t’s Ex. B 78: 20-23.
    14
    47,040 as the total number of hours Conduent was contractually obligated to provide
    in 2016-2017.50 Second, at the mandatory pre-bid meeting a non-party asked, “[c]an
    you provide the current team size/expected staffload throughout the engagement?”51
    The Division replied that the “[c]urrent team size is 22, excluding batch operations,
    technical and non-technical. We are looking for efficiencies.”52 Third, in the written
    public response to pre-bid questions the Division confirms “[t]here are 23 full-time
    positions and 1 part-time position vendor staff supporting the M&O section of the
    current contract.”53
    Instead of relying on this publicly available information, Protech accessed a
    nonpublic database to make its own projections of staffing needs in the future based
    on trends in tickets.54 Protech combined its nonpublic information with the vague
    statement that the Division was “looking for efficiencies” and statements of hope
    about the Division taking over more of the M&O work from contracts that were
    50
    Resp’t’s Ex. D.
    51
    Resp’t’s Ex. W.
    52
    
    Id. 53 Resp’t’s
    Ex. N.
    54
    Resp’t’s Ex. M 61-62. The doctrine of unclean hands may bar Protech’s claims
    should this litigation advance. Nakahara v. NS 1991 American Tr., 
    718 A.2d 518
          (Del. Ch. 1998). Under the doctrine of unclean hands, this “Court refuses to
    consider requests for equitable relief in circumstances where the litigant’s own acts
    offend the very sense of equity to which he appeals.” 
    Id. at 522.
    15
    years old.55 Protech then came up with a staffing suggestion significantly lower than
    the current staffing needs, from which the Division gave no indication it was
    considering deviating, and lower than both other bidders. Protech gambled based
    on its inside information and now asks the Court to grant a re-do based on a
    convoluted and manufactured suggestion that Conduent had inside information that
    gave it an unfair advantage. Thus, Protech fails to show a reasonable probability of
    success on the merits of this argument.
    b.     Protech fails to show a reasonable probability that it
    was prejudiced by the Division’s failure to uphold its
    implied obligation to adhere to the terms of the RFP
    The Division had an implied obligation to the bidders to adhere to the terms
    of the RFP.56    The bidders’ alleged reliance on the RFP, however, must be
    reasonable, and the bidder must show it was misled and prejudiced by the supposed
    non-adherence by the State.57 Protech argues the Division failed to adhere to its own
    RFP. Protech’s two main objections are that (1) the technology scoring committee
    was not disclosed in the RFP and (2) the Department of Health and Social Services’
    Division of Management Services, Office of Contracts Management and
    55
    Resp’t’s Ex. W; Pet’r’s App. A543.
    56
    See Autotote Lottery Corp. v. Del. State Lottery, 
    1994 WL 163633
    , at *8 (Del. Ch.
    Apr. 22, 1994).
    57
    
    Id. 16 Procurement
    approved the RFP instead of the Delaware State Procurement Office.
    Protech has not shown a reasonable probability of success on the merits of either of
    these arguments.
    First, the RFP disclosed that the business and technology portions of the bid
    would be considered separately by a two-tier scoring system. Protech was not
    “misled” because the Division did not explicitly explain that slightly different group
    of people would score the two tiers.58 Second, Protech has not alleged any prejudice
    from either of these supposed procedural deficiencies and, therefore, fails to show a
    reasonable probability that the Division acted in bad faith or employed an arbitrary
    or capricious process.
    c.     Protech fails to show a reasonable probability that
    Conduent’s proposal was materially deficient
    Finally, Protech argues Conduent’s bid was materially deficient in that it
    failed to adhere to the two percent inflation rate cap between the first and second
    years or to include a separate line item for the Affordable Care Act (“ACA”) safe
    harbor fee. Both of these arguments are without merit.
    On its face, Conduent’s proposal appears to violate the two percent inflation
    rate cap.   The first-year quote is $3,750,000 and the second-year quote is
    58
    Resp’t’s Ex. A Attach. B, at 30.
    17
    $4,314,600.59 Assuming each yearly quote is for 47,000 hours, the first year comes
    out to $79 per hour, and the second year is $91.80 per hour. This reflects an increase
    of greater than two percent per year. This is a miscalculation, however, since
    Conduent explains in its “Assumptions” section of the Project Cost Information that
    the Operational costs are based on 41,667 hours in year one and 47,000 hours in the
    following years.60 This decrease in hours prevents Conduent from double billing the
    Division for the roughly two months of overlap between the Prime Contract and new
    2017-2018 contract overlap.61 The two-month overlap was a built-in “transition
    period” in case the Division selected a new vendor.62 If the Division selected
    Conduent for the new contract, then the Division would owe Conduent
    compensation under both the Prime Contract and the new contract. The decrease in
    hours and price for the first year essentially was a discount offered by the incumbent
    bidder so as to not double-bill the Division for the same services. Taking into
    account this assumption of lower hours, the hourly rate for year one is actually
    $89.97 per hour. The increase to $91.80 per hour in year two is two percent and,
    thus, in line with the two percent cap.
    59
    Pet’r’s App. A749.
    60
    Resp’t’s Ex. H A-3.
    61
    Oral Arg. Tr. 88-89.
    62
    
    Id. 18 Protech
    argues that Conduent unfairly provided this discount that no other
    bidder could provide.      In order for the Division’s process to be arbitrary or
    capricious, however, the Division must do something to treat the bidders differently.
    That is not the case here. Instead, Conduent was in a position, through no fault of
    the Division, to offer a discounted rate of services in the first year. As with the
    services provided under the Prime Contract, it would be unwise for the Court to state
    a rule that would incentivize current state contractors to double-bill the State for the
    same work. Likewise, the Division is not acting in bad faith by preventing double-
    billing for the same work.
    Protech also alleges that the RFP required Conduent to include a separate line
    item denoting the additional fee required by the State in case the State is deemed a
    Common-Law Employer under the Affordable Care Act (the “Additional Fee”). The
    RFP says, “[t]he State requires that all Vendors shall identify the Additional Fee to
    obtain health coverage from the Vendor and delineate the Additional Fee from all
    other charges and fees.”63 Appendix E to Attachment B of the RFP, however, says
    “Operational Costs may be categorized separately . . . or bidder may choose to bid a
    single all-inclusive total operational cost per year.”64 Moreover, the schedule
    63
    Resp’t’s Ex. A 16.
    64
    Resp’t’s Ex. A Attach. B, at 53.
    19
    supplied in Exhibit E to be used by the bidders does not include a separate line item
    for the Additional Fee,65 and the scoring criteria supplied in the RFP has a single
    item that says “Cost (including ACA Safe Harbor Additional Fees).”66                  It is
    reasonable to submit a total operation cost for the year on the Schedule supplied in
    Appendix E that does not have a separate line item for the Additional Fee as long as
    it is for the total operation cost. In fact, the other bidder in this process, CAI, also
    opted to submit a single, all-inclusive total operational cost without a separate line
    item for the ACA fee.67 Finally, Protech admits that failure to separate the ACA fee
    is not material enough alone to warrant setting aside the entire bidding process.68
    For all these reasons, Protech has not met its burden of showing a reasonable
    probability of success on the merits. Because Protech fails “to demonstrate a
    reasonable probability of success on the merits of any of the claims . . . [Protech has]
    65
    
    Id. 66 Resp’t’s
    Ex. A 12.
    67
    Pet’r’s App. A818.
    68
    Even if the allegations are true, the RFP gives the Division “the right to waive minor
    irregularities and minor instances of non-compliance,” Resp’t’s Ex. A Attach. B, at
    30, and thus, Protech has not shown a reasonable probability of success on the merits
    by this argument either.
    20
    not satisfied the standard to earn a preliminary injunction. I thus need not address
    the elements of irreparable injury or the balance of the equities.”69
    III.   CONCLUSION
    For the foregoing reasons, the Motion for a Preliminary Injunction is denied.
    IT IS SO ORDERED.
    69
    In re New Maurice J. Moyer Acad., Inc., 
    108 A.3d 294
    , 325-26 (Del. Ch. 2015).
    21