|
Eagle Creek asserts that it
misinterpreted the SFO as requiring boat dockage, and that the agency "had
actual or constructive knowledge" that Eagle Creek's offer included costs for
this feature. Eagle Creek argues that the agency was therefore required to
advise the company during negotiations that the SFO did not require offerors to
include costs for boat dockage. Protester's Comments at 7.
In support of this contention, Eagle Creek states that in November 2010 it met
with representatives of GSA and the DHS at the protester's facility. The
protester claims that "[a]t the meeting, DHS representatives expressed general
approval of the building in which DHS' offices would be located, and expressed
specific approval of, desirability and need for use of dock facilities that
would be available to DHS." Protest at 3. The protester explains that based upon
these statements, and section 1.4 of the SFO, which provides that "[t]he right
to use appurtenant areas and facilities is included" in the offered lease, SFO
at 5, it interpreted the SFO to "mean that dock usage was a requirement of the [s]olicitation
and that the price proposal should include said required usage." Protester's
Comments at 4; see Protest at 7.
The protester also points to a letter it sent to the agency after negotiations
closed as confirmation of its belief during the procurement that dock usage was
a requirement of the SFO. This letter "outline[s] some of the advantages the
Eagle Creek site has to offer over other sites," including the "[d]ocks at Eagle
Creek," "24 designated transient slips," "launch ramp, hydraulic trailer [and]
heated 40' x 80' service department building," all of which would be "available
to Homeland Security." AR, Tab 9, Eagle Creek Letter to GSA, Mar. 31, 2011, at
1-2.
We first note that, although the initial version of the SFO posted on October
10, 2010, stated that GSA was seeking "to lease office space . . . and two boat
slips," the SFO, as amended and posted on January 11, 2011, and under which this
lease was awarded, did not. Compare SFO 9NY2355 (Feb. 16, 2010) with SFO 9NY2355
(Jan. 7, 2011). That is, there was no mention in the SFO under which this lease
was awarded of any requirement that boat slips or boat dockage be provided as
part of the lease. Given the clarity of the solicitation, the protester's
asserted reliance on the views expressed by the DHS representatives in November
2010, as somehow adding a requirement for boat dockage or boat slips to the SFO,
issued in January 2011, was misplaced. We have repeatedly held that oral advice
that would have the effect of altering the written terms of a solicitation, even
from the contracting officer, does not operate to amend a solicitation or
otherwise legally bind the agency. Noble Supply and Logistics, B‑404731, Mar. 4,
2011, 2011 CPD para. 67 at 3; TRS Research, B‑274845, Jan. 7, 1997, 97-1 CPD
para. 6 at 3. This would be especially the case, where the alleged oral advice
was given 2 months prior to the solicitation being reissued as amended.
Nor do we agree with the protester that section 1.4 of the SFO, which provides
that "[t]he right to use appurtenant areas and facilities is included" in the
offered lease, SFO at 5, required that the protester make its facility's boat
slips and dockage available for use by the agency. The SFO does not include a
definition of "appurtenant," and none has been cited to by the parties. As such,
we must accord that term its plain meaning. That is, "[t]he term "appurtenant in
a lease is defined to include 'everything which is necessary and essential to
the beneficial use and enjoyment of the thing leased or granted.'" See
Hammond-Warner v. United States, 797 F.Supp. 207, 210 (E.D.N.Y. 1992), citing
Ruggiero v. Long Island Railroad, 161 A.D.2d 622, 555 N.Y.S.2d 401, 402 (2d
Dep't 1990)). This definition and understanding of "appurtenant" is consistent
with the agency's explanation that the SFO's "Access and Appurtenant Areas"
provision, as evidenced by the solicitation, is a standard clause included in
all GSA SFOs "that affords the Government the right to use building lobbies,
common hallways, plazas and other appurtenant areas and facilities." Contracting
Officer's Statement at 4.
To construe this clause, as the protester asserts it did, that is, to
essentially include in its offer of office space the entirety of its facility
and all of its facility's amenities at no cost to the government is simply
unreasonable. To illustrate, under the protester's asserted interpretation of
section 1.4 of the SFO, the protester would have had to make available to the
Government as part of its lease of certain office space on the third floor and
all of the second floor of its "Eagle Creek Facilities Bldg.," all of Eagle
Creek's boat dockage and 24 slips, as well as it launching ramp, hydraulic
trailer, and service department building, as "appurtenant areas" at no
additional cost.
We also note that Eagle Creek's March 31 letter expressly recognized that Eagle
Creek may be competing against offers providing inland facilities. In this
regard, Eagle Creek's March 31 letter recognized "that GSA is responsible for
selecting the lowest priced facility," with Eagle Creek then comparing its
facility to a facility located inland, and positing that "this is not an easy
apples to apples comparison, it is more like an apples to oranges situation."
The letter closes by stating that Eagle Creek "hope[s] that this outline of
amenities available at Eagle Creek will make your decision easier in selecting a
location that represents the best value for Homeland Security." AR, Tab 9, Eagle
Creek Letter to GSA, Mar. 31, 2011, at 2. Thus, Eagle Creek recognized that its
offer may be competing in what is essentially a price competition, against
offers for inland facilities (which, as recognized by Eagle Creek and by their
very nature, cannot provide boat slips or dockage). Consequently, its asserted
interpretation of the solicitation as requiring that facilities located on the
water include in their lease price the costs for boat dockage and slips, while
those offering facilities located inland or off the water would not have to
include such costs, is patently unreasonable.
We also find the protester's position that the agency knew or should have known
that Eagle Creek had allegedly included the costs for boat dockage and slips in
its offer to be without merit. As for actual knowledge, the agency states that
it was unaware during the course of this acquisition that Eagle Creek's offer
included such costs. Contracting Officer's Statement at 5. There was nothing in
Eagle Creek's offer indicating or otherwise providing for boat dockage, and the
protester does not assert that it advised agency representatives during the
competition that boat dockage was included in Eagle Creek's offer.
Further, we agree with the agency that Eagle Creek's letter of March 31, 2011,
did little or nothing to clarify specifically what was included in Eagle Creek's
offer. That is, while the letter references, among other things, the "[d]ocks at
Eagle Creek," "24 designated transient slips," and the "launch ramp, hydraulic
trailer [and] heated 40' x 80' service department building," which would be
"available to Homeland Security," it also states that "Eagle Creek is offering
up to 600 [square feet] of free secured storage." (emphasis added). AR, Tab 9,
Eagle Creek Letter to GSA, Mar. 31, 2011, at 1‑2. As pointed out by the agency,
this letter does not state whether the boat dockage, slips, trailer, and
building were going to be "made available" for a fee or at no cost (i.e.,
"free") to the agency.
Moreover, the record shows that negotiations with Eagle Creek closed on March
28. See AR, Tab 7, Agency Letter (Mar. 25, 2011). As such, Eagle Creek's March
31 letter, which the protester points to in support of its position that the
agency knew or should have known that Eagle Creek had erroneously included the
costs of boat dockage its offer, was submitted after the close of discussions.
It is well established that an agency need not reopen discussions to resolve
deficiencies first introduced by the offeror after discussions have closed.
Ogden Support Servs., B‑270354.2, Oct. 29, 1996, 97‑1 CPD para. 135 at 7; IPEC
Advanced Systems, B‑232145, Oct. 20, 1988, 88‑2 CPD para. 380 at 4.
In sum, Eagle Creek's alleged misinterpretation of the SFO to require that its
offer include costs associated with boat dockage and slips was a reasonable
interpretation of the solicitation. In addition, the protester's assertion that
the agency knew or should have known that Eagle Creek's offer erroneously
included such costs, and should have raised that issue during discussions, is
without merit. (Eagle Creek Marina,
B-405220, September 16, 2011) (pdf)
Finally, CMS asserts in a
supplemental protest that the agency’s award to LAX was improper because the
awardee (“LAX Hospitality LP, Radisson Inn”) was not the entity that submitted
the proposal upon which the award was based (“LAX Hospitality, LLC, DBA Radisson
Hotel at Los Angeles Airport”). In fact, CMS notes that the latter entity
identified as submitting the proposal was not registered with Central Contractor
Registration (CCR). It is true that a contract cannot be awarded to any entity
other than the one which submitted the proposal. However, the name of an offeror
need not be exactly the same in all of the offer documents; although, the offer
documents or other information available must show that differently-identified
offering entities are in fact the same legal entity. Al Hamra Kuwait Co., supra,
at 3. The fact that an offeror has only one taxpayer identification number (TIN)
or data universal numbering system (DUNS) number and only one address is often a
reliable indicator of the offering entity. S3 LTD, B- 288195 et al., Sept. 10,
2001, 2001 CPD para. 164 at 11-12. The agency asserts that the difference in
entity names was a mere clerical error. This discrepancy was discovered when the
contracting officer’s search of the DUNS number listed on the awardee’s
proposal, which indicated that the entity name identified for that DUNS number
was LAX Hospitality LP, Radisson Inn. Upon discovering the discrepancy, the
contracting officer contacted LAX, who confirmed that LAX Hospitality, LP was
the name of the entity, not LAX Hospitality, LLC. Supp. AR at 6. The contracting
officer also noted that the address listed in the proposal and in the DUNS
systems was that of LAX Hospitality, LP, which was registered with the CCR. Id.
Therefore, we find that, notwithstanding the variations in the identification of
the awardee between the proposal and award, the agency reasonably determined
that LAX Hospitality, LP was the proper entity and was eligible to receive
award. (Command Management Services, Inc.,
B-310261; B-310261.2, December 14, 2007) (pdf)
Battelle argues that the agency improperly rejected its initial proposal based
on Battelle’s omission of the option year pricing. Battelle contends that the
agency should have suspected that Battelle had made a “mistake or clerical
error” in its proposal and had a “duty to verify” Battelle’s proposal and
conduct “clarifications” to allow Battelle to correct the omission. Protest at
3-4, 6-8. In support of its argument, Battelle cites FAR sect. 15.306(a)(2),
which permits clarifications to “resolve minor or clerical errors,” and FAR
sect. 15.306(b)(3)(i), which permits communications before the establishment of
the competitive range to address proposal ambiguities such as “errors,
omissions, or mistakes.” An offeror bears the burden of submitting and
adequately written proposal that contains all of the information required under
a solicitation, Sam Facility Mgmt, Inc., B-292237, July 22, 2003, 2003 CPD para.
147 at 5, and an agency may reject a proposal that omits required pricing. Joint
Venture Penauillie Italia S.p.A; Cofathec S.p.A; SEB.CO S.a.s; CO.PEL.S.a.s.,
B‑298865, B-298865.2, Jan. 3, 2007, 2007 CPD para. 7 at 6. Although, in an
appropriate case, an agency may allow an offeror to correct a mistake or
clerical error in a cost or price proposal through clarifications (as opposed to
discussions), when it does so, both the existence of the mistake or error and
the amount intended by the offeror must be apparent from the face of the
proposal. Id. at 8. Here, although the existence of Battelle’s error was clear
from the face of its proposal, it was not obvious what pricing Battelle intended
to propose for the missing option years. Although, as Battelle points out, the
initial proposal referred to “inflation adjustment[s]” in the narrative portion
of the proposal, these vague references do not explain Battelle’s intended
pricing for the option years. That is, Battelle’s option year pricing, as
reflected in the 24 pages of pricing spreadsheets and additional narrative that
Battelle provided to the agency in its agency protest, could not be gleaned from
Battelle’s references to inflation adjustments in the initial proposal
submission, and did not constitute “minor or clerical errors” as contemplated by
the FAR. Thus, we find that the omission of Battelle’s option year pricing could
not be corrected through clarification or verification. See University of Dayton
Research Inst., B‑296946.6, June 15, 2006 , 2006 CPD para. 102 at 8. Regarding
Battelle’s argument that “errors, omissions, or mistakes” can be corrected by
communications before the establishment of the competitive range, FAR sect.
15.306(b)(2) specifically provides that communications under this section “shall
not be used to cure proposal deficiencies or material omissions, materially
alter the technical or cost elements of the proposal, and/or otherwise revise
the proposal.” See also FAR sect. 15.306(b)(3) (“communications shall not
provide an opportunity for the offeror to revise its proposal”). Again, we agree
with the agency that Battelle’s omission of the option year pricing is material,
given the RFP’s requirements to provide detailed option year pricing for
evaluation, and any attempt to cure this omission would necessitate submission
of a revised proposal and would constitute discussions. See Joint Venture
Penauillie, supra, at 8. Finally, Battelle contends that the agency’s decision
to eliminate its proposal from further competition was inconsistent with the
RFP. According to Battelle, since the RFP provides that the competitive range
will be established based only on the evaluation of technical proposals, see RFP
at 73, the elimination of Battelle’s proposal based on a cost issue was
premature and its pricing omissions should have been addressed after
establishment of the competitive range and through discussions. However, unless
the agency decides to establish a competitive range, the RFP provision
referenced by Battelle does not apply, and it does not require the agency to
conduct discussions. As noted, the agency has not yet decided to establish a
competitive range and to conduct discussions. Rather, the agency rejected
Battelle’s proposal (along with two others), after inspecting proposals for
completeness, for not containing all of the information required by the RFP, a
decision which, as discussed above, was reasonable. Consistent with the RFP, if
the agency makes award based on initial proposals, then Battelle’s proposal
cannot be considered for award. If, on the other hand, the agency decides to
conduct discussions, we expect that the agency then will have to decide whether
or not to include Battelle’s proposal in the competitive range. See FAR sect.
15.306(c)(1). (Battelle Memorial Institute,
B-299533, May 14, 2007) (pdf)
Where, as here, a mistake in an offer other than the awardee's offer is first alleged after award, the general rule is that the unsuccessful offeror must bear the consequences of its mistake unless the contracting officer was on actual or constructive notice of an error before award. PAE GmbH Planning and
Constr., B-233823, Mar. 31, 1989, 89-1 CPD ¶ 336 at 3. Omega asserts that the magnitude of the difference in the two
offerors' discount fees should have provided constructive notice of the mistake, and that the contracting officer should have sought clarification from Omega. In this connection, the agency report acknowledges that
"[a]fter comparison, the evaluators did note the apparent spread of the proposed discount fees." Contracting Officer's Statement at 4. However, Omega's alleged improper pricing of its proposal does not present the type of mistake which could be corrected through clarifications, nor was the agency required to conduct discussions in order to correct the mistake.
(Omega
World Travel, Inc., B-283218, October 22, 1999) |