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FAR 11:  Describing agency needs - Latent ambiguity

Comptroller General

Singleton argues that the agency “did not properly evaluate Singleton’s past performance by failing to take into account past performance information regarding Singleton’s subcontractor who would perform major or critical aspects of the solicitation’s requirements.” Protest at 4. In this regard, the protester points out that Federal Acquisition Regulation (FAR) sect. 15.305(a)(2)(iii) states that a past performance “evaluation should take into account past performance information regarding predecessor companies, key personnel who have relevant experience, or subcontractors that will perform major or critical aspects of the requirement when such information is relevant to the instant acquisition.” The protester also points out that the RFP did not state that the agency would not consider the past performance of proposed subcontractors in evaluating past performance, and that our Office has previously found that the past performance of a proposed subcontractor may be considered in determining whether an offeror meets experience or past performance requirements in a solicitation where the solicitation does not expressly prohibit its consideration. Protester’s Comments at 1, 3; see The Paintworks, Inc., B‑292982; B‑292982.2, Dec. 23, 2003, 2003 CPD para. 234 at 3.  The agency responds by pointing out that it “never stated in the RFP that the past performance of other than the offeror would be considered,” and that the RFP did not specifically “request that the offerors submit past performance information for proposed major subcontractors.” Contracting Officer’s Statement at 7; see AR at 4. The agency notes that our Office has recognized that FAR sect. 15.305(a)(2)(iii), cited by the protester, does not mandate that agencies consider the past performance of subcontractors, but only states that agencies “should” consider such information. AR at 6, citing MW-All Star Joint Venture, B-291170.4, Aug. 4, 2003, 2004 CPD para. 98 at 4 and TyeCom, Inc., B‑287321.3, B-287321.4, Apr. 29, 2002, 2002 CPD para. 101 at 6. The agency thus concludes that “the only reasonable construction of the [RFP’s] past performance evaluation clause is that only prime contractor past performance information would be considered by GSA in evaluating offers,” and that Singleton’s protest is an untimely challenge of an alleged impropriety apparent from the solicitation. AR at 5; see Bid Protest Regulations, 4 C.F.R. sect. 21.2(a)(1) (2006). We agree with the protester that FAR sect. 15.305(a)(2)(iii) suggests, as evidenced by the word “should,” that agencies consider in their evaluations the past performance of proposed “subcontractors that will perform major or critical aspects of the requirement.” In addition, as correctly noted by the protester, our Office has found an agency’s consideration of a proposed subcontractor’s past performance when evaluating an offeror’s proposal under a past performance factor permissible in the same circumstances as here, that is, where the solicitation neither prohibited nor mentioned the evaluation of such information. AC Techs., Inc., B‑293013, B‑293013.2, Jan. 14, 2004, 2004 CPD para. 26 at 3; The Paintworks, Inc., supra. To put it another way, our Office, based upon applicable caselaw, statute, and regulation, would have found it unobjectionable had the agency chosen to consider the past performance of Singleton’s subcontractor when evaluating Singleton’s proposal.

The fact remains, however, that the solicitation referred to the agency’s evaluation of the “offeror’s” past performance and did not specifically request information on the past performance of subcontractors. Additionally, the agency is correct in pointing out that the consideration of subcontractor past performance, as set forth in FAR sect. 15.305(a)(2)(iii), is not mandatory. MW-All Star Joint Venture, supra; TyeCom, Inc., supra; see Olympus Bldg. Servs., Inc., B-282887, Aug. 31, 1999, 99-2 CPD para. 49 at 3-4 (RFP’s past performance evaluation factor providing that key personnel past performance would not be considered was found to be reasonably based and not prohibited by regulation).  Although in the agency’s view the solicitation provided that the agency would consider only the corporate past performance information of the “offeror,” and the agency report makes it clear that the agency intended such a reading, we also, for the reasons stated above, find the protester’s interpretation of the solicitation that it would also permit the evaluation of subcontractor past performance to be reasonable. Because we believe that both the agency’s and protester’s interpretations of the RFP are reasonable, this indicates an ambiguity in the RFP with respect to information that the agency would consider in performing its past performance evaluation. An ambiguity exists where two or more reasonable interpretations of the terms or specifications are possible. A party’s particular interpretation need not be the most reasonable to support a finding of ambiguity; rather, a party need only show that its reading of the solicitation provisions is reasonable and susceptible of the understanding it reached. DynCorp Int’l LLC, B‑289863; B-289863.2, May 13, 2002, 2002 CPD para. 83 at 8; Aerospace Design & Fabrication, Inc., B-278896.2 et al., May 4, 1998, 98-1 CPD para. 139 at 13.  (Singleton Enterprises, B-298576, October 30, 2006) (pdf)

Here, we find that Deco's interpretation of the RFP was not reasonable. The Taft and Hamilton buildings that Deco believed were to be served by the "desk" have different addresses and, more tellingly, have different postal zip codes. Although, as Deco suggests, it is possible that two buildings might share a common access point, such a possibility is unlikely where the buildings are on different streets, and less likely still where the buildings have different zip codes. Moreover, both of the buildings were on public streets within the city of Cincinnati, Ohio, and it would have been a simple matter for Deco to ascertain whether the two buildings were proximately located to confirm whether its interpretation was correct. Indeed, an on-site inspection, consultation of a map, or a simple inquiry through a public website would have informed Deco that the two buildings are more than 6 miles apart. Because Deco's interpretation of the SOW as requiring only a single security desk for two buildings located six miles apart was not reasonable, that interpretation provides no support for its contention that the solicitation contained a latent ambiguity. See Input Solutions, Inc. , B-294123, Aug. 31, 2004, 2004 CPD 185 at 3. Even if we were to find that Deco's interpretation was reasonable, it would at best indicate a patent ambiguity, i.e. , one that is obvious from the face of the solicitation. In this regard, there is an apparent conflict in the RFP between the singular term "desk" and the requirement that the desk serve two buildings that are at different addresses in different zip codes. Where a solicitation contains a patent ambiguity, an offeror is obligated to seek clarification prior to the time for submission of proposals. Dix Corp. , B-293964, July 13, 2004, 2004 CPD 143 at 3. Where, as here, a patent ambiguity is not challenged prior to submission of proposals, we will dismiss as untimely any subsequent protest assertion that is based on an alternative interpretation. Bid Protest Regulations, 4 C.F.R. 21.2(a)(1) (2004); U.S. Facilities, Inc. , B-293029, B-293029.2, Jan. 16, 2004, 2004 CPD 17 at 10. Any protest based on an alleged ambiguity arising from the term "desk" therefore should have been filed prior to the time for receipt of proposals. (Deco Security Services, B-294516, November 1, 2004) (pdf)


With respect to ISIs argument that the COs e-mail message provided explicit direction to incorporate the terms of ISIs earlier contract here, our reading of the email communication, as a whole, is that it indicates only that the CO thinks ISI should be familiar with the nature of the work and, as the incumbent, should have sufficient information to understand the type of work and submit a competitive quotation. While, as quoted above, the COs message stated that the image deliverables should be based on how you previously provided clear, readable images for the Library, there is nothing in this general language that imports requirements from ISIs predecessor contract into this solicitation. Since ISIs interpretation of the COs e-mail is unreasonable, it provides no support for ISIs contention that the message created a latent ambiguity about the work required under the RFQ. See Ruska Instrument Corp. , B-235247, Aug 7, 1989, 89-2 CPD 111 at 3. (Input Solutions, Inc., B-294123, August 31, 2004) (pdf)


Assuming then that both the agency’s and the protester’s interpretations of the provision are reasonable, this indicates an ambiguity in the RFP with respect to the price evaluation of the indefinite-quantity items. Accordingly, we must determine whether the ambiguity is latent or patent since, if patent, it would have had to be protested prior to proposal submission date. The Arora Group, Inc., B-288127, Sept. 14, 2001, 2001 CPD ¶ 154 at 7 n.5. A patent ambiguity exists where the solicitation contains an obvious, gross, or glaring error, (e.g., where the solicitation provisions appear inconsistent on their face), while a latent ambiguity is more subtle. See Brickwood Contractors, Inc., B-292171, June 3, 2003, 2003 CPD ¶ 120 at 6 (explaining a patent ambiguity as one which is obvious on its face); Bank of Am, B-287608, B-287608.2, July 26, 2001, 2001 CPD ¶ 137 at 10 (finding patent ambiguity where solicitation terms were in direct conflict). Since Ashe’s interpretation of the solicitation provision did not directly conflict with any of the other solicitation provisions and the ambiguity only came to light in the context of the agency’s price evaluation, we conclude that the ambiguity was latent rather than patent and Ashe’s protest of this issue thus is timely.  (Ashe Facility Services, Inc., B-292218.3; B-292218.4, March 31, 2004) (pdf)


Ashland essentially alleges that, either the purchase description did not require that the bartacks be sewn through all plies after the material was turned, or the requirement is latently ambiguous with Ashland's interpretation representing one of two reasonable interpretations. We disagree. The requirement unambiguously stated that the bartacks had to go through all plies without qualification. Since Ashland's PDM is constructed with two plies of outer shell fabric at the location of the bartacks and the bartacks go through only one of them, Ashland's PDM does not comply with the requirement.  In any event, the defect in Ashland's PDM is minor. It did not raise any material concern with the agency because it is easily corrected during production.  In fact, all of the PDM defects for all offerors considered for award were similarly minor in nature. The SSA recognized this and considered these PDMs to be very close; although Ashland maintained a slight evaluated advantage, it was not significant and did not translate into value to the government for purposes of awarding at a higher price. Tr. at 11-13, 16 (SSA); Agency Report, Tab 15, Source Selection Decision, at 5. We find reasonable the SSA's assessment of the evaluated PDM differences between these proposals.  (Ashland Sales and Service Company, B-291206, December 5, 2002, (sustained on another issue) (pdf) 


We have reviewed the entire solicitation, including the website containing the Guide Plates, and conclude that the RFP contained a latent ambiguity that materially affected how offerors prepared their proposals, and resulted in an unequal competition. An ambiguity exists where two or more reasonable interpretations of the terms or specifications of the solicitation are possible. Moreover, a party's particular interpretation need not be the most reasonable to support a finding of ambiguity; rather, a party need only show that its reading of the solicitation provisions is reasonable and susceptible of the understanding that it reached.  There are two levels of ambiguity at issue here: first, whether the Guide Plates are mandatory or merely discretionary; and second, what the Guide Plates require, if they are mandatory.  (The Arora Group, Inc., B-288127, September 14, 2001) (pdf)

Comptroller General - Listing of Decisions

For the Government For the Protester
Deco Security Services, B-294516, November 1, 2004 (pdf) Singleton Enterprises, B-298576, October 30, 2006 (pdf)
Input Solutions, Inc., B-294123, August 31, 2004 (pdf) Ashe Facility Services, Inc., B-292218.3; B-292218.4, March 31, 2004 (pdf)
  Ashland Sales and Service Company, B-291206, December 5, 2002 (pdf) (sustained on another issue)
  The Arora Group, Inc., B-288127, September 14, 2001 (pdf)

U. S. Court of Federal Claims

The fact that neither Stratos nor the Navy raised the issue -- although it clearly would have been in their respective interests to do so -- convinces the court that what we are dealing with here is a latent ambiguity in the language of the solicitation. Plainly put, Stratos never read the solicitation's words as expansively as the Navy intended them to be read; the Navy, in turn, never saw its words to be as limiting as Stratos took them to be. In short, the solicitation harbored a defect in language that resulted in the submission of two offers each premised on a different view of how the Navy intended to proceed with the matter of price evaluation, and that prevented the Navy, as a consequence, from conducting a fair and effective competition.  (Stratos Mobile Networks USA, LLC, v. U.S. and Comsat Corporation, No. 99-402C, September 29, 1999 (See reversal Stratos Mobile Networks v. U.S., Docket No. 00-5023)
U. S. Court of Federal Claims - Listing of Decisions
For the Government For the Protester
  Stratos Mobile Networks USA, LLC, v. U.S. and Comsat Corporation, No. 99-402C, September 29, 1999 (See reversal  Stratos Mobile Networks v. U.S., Docket No. 00-5023)

 

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