The protester next argues that the EPA failed to conduct
meaningful discussions regarding several issues. The record,
however, does not support the protester’s allegations with
regard to any of the areas where it argues that the agency
failed to provide meaningful discussions. For example, IBM
argues that it was misled during discussions regarding page
limitations. Specifically, IBM claims that the agency advised
IBM that Volume 3 of its proposal exceeded the page limitation,
but orally advised that IBM could include additional pages
regarding its work breakdown structure (WBS) and integrated
master plan (IMP) in Volume 5, rather than Volume 3 of its
proposal--despite the fact that the RFP expressly required that
these matters be addressed in Volume 3. IBM contends that it
relied on the agency’s advice and placed those items in Volume
5, which, unlike Volume 3, had no page limitations. In
evaluating IBM’s proposal, the agency did not provide the WBS
and IMS documents to the evaluators because they were not
contained in Volume 3; the agency evaluators concluded that the
absence of a detailed WBS and IMP constituted a weakness in the
proposal. AR, Tab 41, SSD at 23. The protester argues that
the agency’s discussions here were misleading, and therefore not
consistent with the agency’s obligation to ensure that
discussions are meaningful. See L-3 Comm. Corp., BT Fuze Prods.
Div., B-299227, B-299227.2, Mar. 14, 2007, 2007 CPD para. __ at
18-19. The agency denies making such a statement, and notes that
such instructions would have been contrary to the RFP
instructions. Because the allegedly misleading agency statements
would have resulted in a material deviation from the
solicitation, namely the page limitation, the protester could
not reasonably rely on such oral advice--even if the record
demonstrated that the agency made such a statement, which it
does not. S3 LTD, B-287019.2 et al., Sept. 14, 2001, 2001 CPD
para. 165 at 6. Offerors cannot rely on oral modifications to an
RFP which are inconsistent with its written terms, absent a
written amendment to the RFP or written confirmation of the oral
modification. Id. This clear principle provides fairness to all
parties by ensuring that competitions are conducted under equal
terms, and protects both protesters and agencies from the kind
of credibility disputes raised here, as well as protecting the
integrity of the procurement process overall. Id. (IBM
Corporation, B-299504; B-299504.2, June 4, 2007) (pdf)
AT&T protests that the agency failed to adequately raise the
concerns it had regarding AT&T’s staffing plan during the
discussions held with the offeror. AT&T also contends that the
agency’s discussions were misleading, because SSA identified one
narrow area of the offeror’s staffing plan as lacking sufficient
detail and failed to inform AT&T of the true nature and breadth
of the evaluated weaknesses here. The protester argues that the
lack of meaningful discussions was prejudicial to it, since the
perceived weaknesses in AT&T’s staffing plan became a major
factor in the agency’s subsequent best value tradeoff
determination. Protest, Sept. 20, 2007, at 44-51.
When discussions are conducted, they must at a minimum identify
deficiencies and significant weaknesses in each
competitive-range offeror’s proposal. Federal Acquisition
Regulation (FAR) sect. 15.306(d)(3); Multimax, Inc., et al.,
B-298249.6 et al., Oct. 24, 2006, 2006 CPD para. 165 at 12; PAI
Corp., B-298349, Aug. 18, 2006, 2006 CPD para. 124 at 8.
Discussions must be “meaningful,” that is, sufficiently detailed
so as to lead an offeror into the areas of its proposal
requiring amplification or revision. Smiths Detection, Inc.,
B-298838, B-298838.2, Dec. 22, 2006, 2007 CPD para. 5 at 12;
Symplicity Corp., B-297060, Nov. 8, 2005, 2005 CPD para. 203 at
8. For example, discussions are not meaningful where the agency
fails to apprise an offeror that its staffing levels are viewed
as unreasonably low. Professional Servs. Group, Inc.,
B-274289.2, Dec. 19, 1996, 97-1 CPD para. 54 at 4. Further, an
agency may not mislead an offeror--through the framing of a
discussion question or a response to a question--into responding
in a manner that does not address the agency’s concerns, or
misinform the offeror concerning a problem with its proposal or
about the government’s requirements. Multimax, Inc., et al.,
supra; Metro Mach. Corp., B-281872 et al., Apr. 22, 1999, 99-1
CPD para. 101 at 6.
(sections deleted)
In its report to our Office,
SSA argues that its actions here were proper for the following
reasons: (1) the weaknesses found by the agency in AT&T’s
staffing plan were not significant ones, so no discussions were
in fact required here; (2) the agency nevertheless conducted
meaningful discussions with AT&T regarding its staffing plan;
and (3) the agency was not required to re-open discussions with
AT&T simply because AT&T’s staffing plan subsequently became a
discriminator for source selection purposes. AR, Oct. 1, 2007,
at 1-5, AR, Nov. 2, 2007, at 1-6. As discussed in detail
below, we conclude that the agency’s actions were improper
because: (1) the agency’s initial technical evaluation regarded
AT&T’s staffing plan as a significant weakness; (2) the agency
failed to conduct meaningful discussions with AT&T regarding
this significant weakness; and (3) the agency’s substantial
reliance on AT&T’s staffing plan in its best value tradeoff
determination clearly demonstrates that the lack of meaningful
discussions here was prejudicial to AT&T.
As set forth above, the record reflects that the TET’s initial
evaluation of proposals identified two separate concerns with
AT&T’s proposed staffing plan. First, the evaluators found that
AT&T’s staffing appeared to be at minimal levels in relation to
the RFP’s requirements. Second, the TET also believed that
AT&T’s entire staffing plan lacked sufficient detail, as
exemplified by the offeror’s staffing for the VNOC and help-desk
personnel at the Durham and NCC locations. Moreover, the agency
evaluators considered AT&T’s staffing plan to be a significant
weakness, as evidenced by the initial evaluation report.
Specifically, in addition to stating that “[t]he proposed
staffing at current levels would be considered inconsistent with
the proposal implementation schedule without a clear
understanding of the support personnel,” the TET expressly found
that “[t]he risk of implementing a minimal staffing plan as
[AT&T] presented could jeopardize the success of the project.”
AR, Tab 13, Initial Technical Evaluation Report, app. 5,
Evaluation of Proposed Project Lifecycle Staffing Plans, at 7.
We think that when an agency finds, as it did here, that the
risk associated with a given aspect of an offeror’s proposal may
jeopardize the overall success of the project, this represents a
significant weakness. See FAR sect. 15.001 (a “significant
weakness” in an offeror’s proposal is a flaw that appreciably
increases the risk of unsuccessful contract performance). Given
this finding regarding the risk associated with AT&T’s staffing
plan, the fact that SSA did not expressly characterize the
staffing plan as a significant weakness is not controlling. See
Alliant Techsystems, Inc.; Olin Corp., B-260215.4, B-260215.5,
Aug. 4, 1995, 95-2 CPD para. 79 at 7-8. Accordingly, we conclude
that the agency was required to conduct discussions with AT&T
regarding its staffing plan. Further, while the record
shows that SSA did conduct discussions with AT&T regarding its
staffing plan, we think that these discussions were not
meaningful. As set forth above, the agency provided AT&T with
one discussion item regarding its staffing plan. This item
informed AT&T only of SSA’s concern that the staffing plan
lacked sufficient detail (“the personnel staffing charts do not
provide sufficient information to determine that the staffing
levels are consistent with AT&T’s proposed programmatic
methods,” AR, Tab 15, Discussions with AT&T, at 13-14), and
completely failed to mention the agency’s equal, if not greater,
independent concern that AT&T’s staffing levels were considered
too low. An agency’s belief that an offeror’s staffing levels
are too low is materially different from a concern that a
staffing plan lacks sufficient detail; the fact that both
involve staffing is not sufficient to conclude that the agency
here provided meaningful notice to AT&T as to the total scope of
its concern. See Andrew M. Slovak, B-253275.2, Nov. 2, 1993,
93-2 CPD para. 263 at 4 (discussions limited to a food menu’s
item cycle did not put offeror on notice of the agency’s
separate concern that the menu also failed to provide for
healthy food items). Moreover, the discussion item here
specified only one particular area of AT&T’s staffing plan as
lacking sufficient detail (“[s]pecifically, staffing levels for
VNOC and Help Desk problem intake,” id. at 14), when the
agency’s real concern was that AT&T’s entire staffing plan
lacked sufficient information. See Spherix, Inc., B-294572,
B-294572.2, Dec. 1, 2004, 2005 CPD para. 3 at 14 (agency failed
to conduct meaningful discussions when it determined that
offeror’s entire quality control plan was a significant
weakness, but identified only two specific aspects of the
quality control plan in discussions). In our view, not only was
AT&T inadequately advised of other areas of its staffing plan
that lacked sufficient detail, but the agency’s failure to
identify the scope of its concern may have misled the offeror
into believing that those areas did not require further
adjustment.[18] Also, unlike other identified management
approach weaknesses, the discussions here did not characterize
AT&T’s staffing plan as a significant weakness, or inform the
offeror of the agency’s belief that the risk associated with
AT&T’s minimal staffing plan could jeopardize the success of the
project. See AR, Tab 15, Agency Discussions with AT&T, at 8,
13-14. Under the circumstances here, we cannot conclude that
AT&T, reviewing the agency’s discussions in conjunction with the
material that it had submitted with its proposal, reasonably
could have recognized the total scope of the agency’s concerns
regarding both the staffing levels and the lack of detail in
AT&T’s entire staffing plan. The record also reflects that
AT&T was prejudiced by the lack of meaningful discussions
regarding its staffing plan. In its final evaluation report, the
TET found that AT&T’s staffing levels, while higher than those
proposed originally, were still “minimal and conservative,” and
the lack of detail in AT&T’s staffing plan (in areas other than
VNOC and Help desk, which AT&T’s FPR specifically addressed)
represented potential performance risks if AT&T was unable to
staff appropriately. Id., Tab 33, Final Technical Evaluation
Report, at 9, app. II, Evaluation of Proposal Project Lifecycle
Staffing Plans, at 6. The agency’s subsequent best value
tradeoff determination then went further, and characterized
AT&T’s staffing levels as the offeror’s “principal weakness and
area of risk,” since its staffing levels were “so low as to
potentially threaten the ability of the vendor to successfully
deliver the proposed solution in accordance with the
Government’s delivery schedule and to support the TSRP user
community across the contract term in a fully satisfactory
manner.” Id., Tab 35, Best Value Tradeoff Memorandum, at 22.
Quite simply, AT&T’s staffing plan, which the agency considered
to be a significant weakness from the time of the initial
evaluation, was a material factor in the agency’s source
selection determination. (AT&T
Corp., B-299542.3; B-299542.4, November 16, 2007) (pdf)
DRS maintains that the agency engaged in unequal discussions,
specifically, that it was given more exacting questions and was
required to provide far more detail in its responses than Onan.
In effect, DRS is arguing that it was given a greater level of
detail in its discussions than was given to Onan. We fail to see
how providing more detailed discussions to DRS was improper or
prejudicial to DRS. Discussions need not be identical; rather,
discussions are to be tailored to each offeror’s proposal.
Federal Acquisition Regulation sect. 15.306(d)(1), (e)(1);
PharmChem, Inc., B-291725.3 et al., July 22, 2003, 2003 CPD para.
148 at 6. We find no impropriety here. DRS also asserts
that its discussions were misleading. As noted, the agency
relaxed the solicitation’s requirements relating to the fuel
efficiency standards for the generator sets. The agency advised
both offerors of its intention to relax the specifications, and
requested comments relating to the revisions, by e-mail dated
October 18, 2006. AR, exh. 30. DRS commented by letter dated
October 23, stating that, in its view, the changes were
unnecessary because it could meet the original, more stringent,
standards. AR, exh. 31. Notwithstanding DRS’s position, the
agency revised the specifications on November 1. AR, exh. 32.
Thereafter, by letter of November 2, DRS requested that the Army
engage in discussions relating to the deficiencies identified in
its original phase II and III proposal. In response, the agency
provided DRS with two rounds of discussion questions, first by
letter dated November 3, and subsequently by letter dated
January 16, 2007. In both letters, the agency provided DRS with
detailed questions that had been developed by the evaluators
after their review of DRS’s initial proposal, including
questions relating to DRS’s ability to meet the original, more
stringent, fuel efficiency standards. (Engineered
Electric Company d/b/a/ DRS Fermont, B-295126.5; B-295126.6,
December 7, 2007) (pdf)
Discussions, when conducted, must be meaningful, that is, they
may not be misleading and must identify proposal deficiencies
and significant weaknesses that could reasonably be addressed in
a manner to materially enhance the offeror’s potential for
receiving award. PAI Corp., B‑298349, Aug. 18, 2006, 2006 CPD
para. 124 at 8. However, agencies are not required to “spoon
feed” an offeror during discussions; they need only lead
offerors into the areas of their proposal that require
amplification. LaBarge Elecs., B‑266210, Feb. 9, 1996, 96-1 CPD
para. 58 at 6. The discussions here were unobjectionable.
As noted above, the discussion letter specifically advised Blane
that its delivery plan was difficult to read and follow. In this
regard, Blane’s initial delivery plan consisted of a chart
containing various item descriptions (down the left hand side of
the chart), amounts (throughout the chart, including various
blank spaces), and country names (down the right hand side of
the chart), formatted in such a manner that the columns
contained no headings--thus making it unclear to what the
columns referred--and the rows contained amounts that were not
clearly on the same line, making it unclear which amount
referred to which item description.[2] Since the nature of the
agency’s difficulty with the chart was, simply, that it was
difficult to read and follow, the discussion letter was
sufficient to lead Blane into the area of its proposal that
required improvement or further clarification. Blane asserts
that the agency should have reviewed its entire proposal,
including the quantities contained in a “transportation matrix,”
and then brought any discrepancies to its attention during
discussions. Protester’s Comments at 3. However, while the
protester may believe that it would have been better able to
address the deficiencies in its delivery plan if the agency had
approached discussions as it suggests, the agency was not
required to do so; again, the agency was only required to lead
the protester into the area of concern. Moreover, given the lack
of clarity in the chart, and the agency’s resultant inability to
determine precisely what Blane intended, we think the agency was
not in a position to provide more information in its discussion
letter; certainly, it was not required to provide more detailed
questions based on its speculation as to what Blane may have
intended. (Blane International
Group, Inc., B-310329, December 13, 2007) (pdf)
Cornell next argues that, because the agency had “serious
concerns about the location offered by Cornell from the time
that the site visit was performed,” Comments at 7, the agency
was required by the FAR to raise those concerns in discussions.
When discussions are held they must at least address
deficiencies and significant weaknesses in the proposals. FAR
sect. 15.306(d)(3). However, the agency is not required to
discuss every area where a proposal could be improved, and the
scope and extent of discussions is a matter within the
contracting officer’s discretion. Id. In this regard, we review
the adequacy of discussions to ensure that agencies point out
weaknesses that, unless corrected, would prevent an offeror from
having a reasonable chance of award. Brown & Root, Inc. and
Perini Corp., a joint venture, B-270505.2, B-270505.3, Sept. 12,
1996, 96-2 CPD para. 143 at 6. As discussed above, the
record demonstrates that Cornell’s site location was never
considered to be a significant weakness or deficiency, and never
prevented Cornell from having a reasonable chance for award.
Nowhere in the SSEB working papers, the SSEB consensus papers,
the technical/management evaluation memorandum, or the SSD was
the weakness of Cornell’s site location characterized as
significant or as a deficiency. [2] Further, Cornell’s proposed
site location was found to meet the requirements of the
solicitation at every stage of the evaluation. Because there is
no evidence to suggest that Cornell’s site location ever kept
its proposal from being rated acceptable under the site location
or technical/management factor, or otherwise prevented Cornell
from having a reasonable chance of receiving award, the agency
was not required to raise the issue in discussions. See Northrop
Grumman Info. Tech. Inc., B-290080 et. al., June 10, 2002, 2002
CPD para. 136 at 6; Brown & Root, Inc. and Perini Corp., a joint
venture, supra. (Cornell
Companies, Inc., B-310548, December 3, 2007) (pdf)
We recognize, as
PADCO points out, that the TEC did in fact describe the level of
effort feature of its proposal as a “weakness.” Contrary to
PADCO’s argument, however, discussions are not inadequate simply
because a weakness, which was not addressed during discussions,
subsequently becomes a determinative factor in choosing between
two closely ranked proposals, as was the case here. See, e.g.,
Gracon Corp., B-293009 et al., Jan. 14, 2004, 2004 CPD para. 58
at 3; Hines Chicago Inv., LLC, B‑292984, Dec. 17, 2003, 2004 CPD
para. 5 at 3-4. Further, regarding PADCO’s contention that the
weakness must have been significant because its final ratings
were decreased, the agency reports, and the record confirms,
that this weakness was not viewed by the agency as significant.
At PADCO’s debriefing, USAID expressly stated that it did not
consider the above weakness to be significant. Consistent with
this statement, the evaluation documents show that none of the
evaluation comments characterize PADCO’s distribution of its
level of effort as a “significant weakness,” a term the agency
had used to describe other weaknesses it identified in its
evaluation. See, e.g., AR, Tab 55, Competitive Range
Determination, at 9 (discussing a “significant weakness” in the
initial proposal submitted by The Services Group). While the
distribution of PADCO’s level of effort presented a “risk,” as
indicated by the TEC, there is nothing to suggest that it
created an unacceptable level of risk or “appreciably” increased
the risk of PADCO’s proposal. See FAR sect. 15.001 (defining a
“weakness” as “a flaw . . . that increases the risk of
unsuccessful contract performance” and a “significant weakness”
as “a flaw that appreciably increases the risk of unsuccessful
contract performance”). Ultimately, under both the management
and staffing plan subfactor and the overall technical approach
factor, PADCO’s proposal received a rating of “acceptable,”
which, as noted above, was defined by the RFP as a proposal
which meets all solicitation requirements, is “complete” and
“comprehensive,” and exemplifies an understanding of the tasks
required. RFP at M-2. (Planning And
Development Collaborative International, B-299041, January
24, 2007) (pdf)
It is a fundamental precept of negotiated procurements that
discussions, when conducted, must be meaningful; that is,
discussions must identify deficiencies and significant
weaknesses in each offeror’s proposal that could reasonably be
addressed so as to materially enhance the offeror’s potential
for receiving award. PAI Corp., B‑298349, Aug. 18, 2006, 2006
CPD para. 124 at 8; Spherix, Inc., B-294572, B-294572.2, Dec. 1,
2004, 2005 CPD para. 3 at 13. An agency fails to conduct
meaningful discussions where it fails to apprise an offeror that
its prices were viewed as unreasonably high. Price Waterhouse,
B-220049, Jan. 16, 1986, 86-1 CPD para. 54 at 6-7. Further, an
agency may not mislead an offeror--through the framing of a
discussion question or a response to a question--into responding
in a manner that does not address the agency’s concerns;
misinform the offeror concerning a problem with its proposal; or
misinform the offeror about the government’s requirements. Metro
Mach. Corp., B‑281872 et al., Apr. 22, 1999, 99-1 CPD para. 101
at 6. In conducting exchanges with offerors, agency personnel
also may not “engage in conduct that . . . favors one offeror
over another,” FAR sect. 15.306(e)(1); in particular, agencies
may not engage in what amounts to disparate treatment of the
competing offerors. Front Line Apparel Group, B-295989, June 1,
2005, 2005 CPD para. 116 at 3-4. Here, in the discussions
questions issued to NGI and Multimax (as well as to other
offerors such as BAE) questioning the proposed rates for
particular labor categories as significantly overstated, the
agency advised as follows: “Your proposed labor rates are
significantly higher than the Independent Government Cost
Estimate (IGCE) rates for the following labor categories . . . .
The offeror should consider revising the price proposal. If you
do not revise the identified rates, please provide an
explanation for the basis of the rate.” See IFN1 to
NGI no. 51, Nov. 3, 2005; IFN to NGI no. 298, Jan. 6, 2006; IFN
to BAE no. 50, Nov. 3, 2005; IFN to BAE no. 297, Jan. 6, 2006;
IFN to Multimax no. 49, Nov. 11, 2006. Thus, there was no
reference in the IFNs to the agency’s reliance on the
two-standard-deviation calculation, but instead only to the
proposed labor rate being “significantly higher than” the IGCE
as the basis for the IFN. The Army’s price discussions with NGI
and Multimax (as well as with BAE) were inadequate because, due
to the agency’s reliance on the two-standard-deviation formula
to identify “outlier” rates--and the broad range of acceptable
prices resulting from the formula--it failed to bring to the
protesters’ attention numerous rates that reasonably should have
been considered significantly overstated. In this regard, the
record shows that proposed rates that were not questioned in the
IFNs could actually exceed the IGCE rates by a greater
percentage than the rates that were identified. Thus, for
example, although NGI’s rate for [REDACTED] at the contractor
site was [REDACTED] percent higher than the IGCE rate, this rate
was not identified in an IFN because it was within the wide
range of acceptable prices established under the formula. At the
same time, although NGI’s proposed rate for [REDACTED] at the
contractor site was only [REDACTED] percent higher than the IGCE
rate, because it fell outside the range established by the
two-standard-deviation test, NGI was advised that its rate was
“significantly higher” than the IGCE. There simply is no
reasonable basis for bringing the former rate to the offeror’s
attention, but not the latter. The above example is not an
isolated one. NGI calculates that [REDACTED] of its proposed
labor rates that were not identified during price discussions
were similar to this example--they exceeded the corresponding
IGCE rate by a higher percentage than one or more of the rates
identified in its price IFNs. NGI notes further that [REDACTED]
of its unquestioned rates exceeded the IGCE rates by a greater
percentage than did some rates that were questioned in other
offerors’ IFNs. Likewise, the record indicates that Multimax was
not advised that its proposed rates for a significant number of
labor categories were higher than the corresponding IGCE rates,
despite the fact that these proposed rates deviated from the
IGCE by a greater percentage than rates that were identified in
discussions with Multimax or other offerors. Multimax calculates
that [REDACTED] of its unquestioned rates (only [REDACTED] of
its rates were identified in IFNs) exceeded the IGCE rates by a
greater percentage than the rates that were questioned in other
offerors’ IFNs (during initial price discussions). We conclude
that not only were offerors not adequately advised of all of
their significantly overstated rates, but the agency’s failure
to identify the additional rates actually misled the offerors
into believing that those rates did not require further
adjustment. In these circumstances, we conclude that the agency
failed to conduct meaningful discussions with the protesters.
(Multimax, Inc.; NCI
Information Systems, Inc.; BAE Systems, B-298249.6, B-298249.7,
B-298249.8, B-298249.9, B-298249.10,October 24, 2006) (pdf)
————————————————
1 Items for negotiation (IFN)
Where
contracting agencies conduct discussions with offerors whose
proposals are within the competitive range, the discussions must
be meaningful. Professional Servs. Group, Inc., B-274289.2, Dec.
19, 1996, 97-1 CPD para. 54 at 3. Discussions cannot be
meaningful if an offeror is not advised of the weaknesses,
deficiencies, or excesses in its proposal that must be addressed
in order for the offeror to be in line for award. Mechanical
Contractors, S.A., B-277916.2, Mar. 4, 1998, 98-1 CPD para. 68
at 4. Here, we think that the agency’s failure to raise its
concerns regarding the achievability of ALF’s proposed delivery
schedule constituted a failure to conduct meaningful discussions
because the protester might well have been determined to be in
line for award if it had been able to validate its proposed
schedule. Further, we do not think that the agency was relieved
of its obligation to conduct discussions due to the circumstance
that it did not learn of the information giving rise to its
concerns until after discussions had concluded. If, after
discussions are completed, the agency identifies concerns
pertaining to the proposal as it was prior to discussions that
would have had to be raised if they had been identified before
discussions were held, the agency is required to reopen
discussions in order to raise the concerns with the offerors.
See DevTech Sys., Inc., B-284860.2, Dec. 20, 2000, 2001 CPD para.
11 at 4. The key fact is that the concerns (while identified
after discussions have been closed) relate to the proposal as it
was prior to discussions. Id. (Al Long
Ford, B-297807, April 12, 2006) (pdf)
IAP also
complains that the Navy improperly failed to inform IAP that its
proposed price was too high. In this regard, IAP notes that its
proposed price was substantially higher than both the government
estimate (by 34 percent) and EJB’s price (by 21 percent) for the
definite-quantity elements of the RFP, and 39 percent higher
than EJB’s price for the ID/IQ elements. Where an
offeror’s price is high in comparison to competitors’ prices or
the government estimate, the agency may, but is not required to,
address the matter during discussions. Grove Resource Solutions,
Inc., B-296228, B-296228.2, July 1, 2005, 2005 CPD para. 133 at
5 n.5. Thus, if an offeror’s price is not so high as to be
unreasonable and unacceptable for contract award, the agency
reasonably may conduct discussions without advising the offeror
that its prices are not competitive. Id.; cf. Creative Info.
Tech., Inc., B-293073.10, Mar. 16, 2005, 2005 CPD para. 110 at 7
(price nearly 7 times the government estimate and 4.6 and 9
times competitors’ prices is unreasonable on its face). Here,
the agency determined that IAP’s overall price was reasonable
for the work to be performed and for what IAP proposed, SSB
Report at 19, and the price difference, even as calculated by
IAP, is not of a magnitude that suggests that IAP’s price was
unreasonable on its face. See Grove Resource Solutions, Inc.,
supra (agency not required to discuss protester’s high price
where awardee’s price was about 40 percent lower). Under these
circumstances, the Navy was not required to raise the matter of
IAP’s higher price during discussions. (IAP
World Services, Inc., B-297084, November 1, 2005) (pdf)
We find that the record does not establish a reasonable basis
for the agency’s assessment of a significant weakness with
respect to Cogent’s proposed scanner. First, as the record shows
and the Army now admits (see Agency’s Hearing Comments at
13-14), the evaluators failed to recognize that Cogent had
proposed a different scanner in its revised proposals to satisfy
the solicitation requirements--this failure itself renders
unreasonable the agency’s evaluation judgment concerning
Cogent’s proposed scanner. Despite the error, the Army’s
evaluator nevertheless asserted that the weakness was based upon
Cogent’s failure to explain how it could offer a compliant
scanner when the firm had asserted in its initial proposal and
earlier protest that no such scanner existed. TR at 122-24.
However, even assuming this latter evaluation judgment was
reasonable, the Army failed to provide Cogent with meaningful
discussions with respect to this scanner. The FAR requires at a
minimum that contracting officers discuss with each firm being
considered for award “deficiencies, significant weaknesses, and
adverse past performance information to which the offeror has
not yet had an opportunity to respond.” FAR sect. 15.306(d)(3).
Here, the Army twice provided Cogent with written discussions
after it proposed the Epson Perfection 4870 scanner as a
compliant product, but never identified its concern that Cogent
had not explained how it was now able to offer a compliant
product, even though the evaluators regarded this as a
significant weakness. In short, we find no reasonable basis in
the record for the agency’s judgment that Cogent’s proposed
scanner was a significant proposal weakness. We also find that,
in any event, the Army failed to conduct meaningful discussions
with Cogent with respect to this aspect of the agency’s
evaluation. (Cogent Systems, Inc.,
B-295990.4; B-295990.5, October 6, 2005) (pdf)
When contracting agencies conduct discussions with offerors in
the competitive range, such discussions must be meaningful.
Kaneohe Gen. Servs., Inc., B-293097.2, Feb. 2, 2004, 2004 CPD
paragraph 50 at 3. In order for discussions to be meaningful,
agencies must advise an offeror of weaknesses, excesses, or
deficiencies in its proposal, correction of which would be
necessary for the offeror to have a reasonable chance of being
selected for award. In this regard, the actual content and
extent of discussions are matters of judgment primarily for
determination by the agency involved, and we generally limit our
review of the agency's judgments to a determination of whether
they are reasonable. J.G. Van Dyke & Assocs. , B-248981,
B-248981.2, Oct. 14, 1992, 92-2 CPD paragraph 245 at 4.
Specifically, with regard to the adequacy of discussions of
price, an agency generally does not have an obligation to tell
an offeror that its price is high, relative to other offers,
unless the government believes the price is unreasonable. State
Mgmt. Servs., Inc.; Madison Servs., Inc., B-255528.6 et al. ,
Jan. 18, 1995, 95-1 CPD paragraph 25 at 5-6; Marwais Steel Co.,
B-254242.2, B-254242.3, May 3, 1994, 94-1 CPD paragraph 291 at
6. The issue here is whether the Army's discussions with CITI
were meaningful where the Army advised CITI merely that its
total price appeared "overstated," given the unique
circumstances of this case--specifically, the extraordinary
disparity between CITI's proposed level of effort and price as
compared to the government estimate as well as the level of
effort and prices of the other offerors in the competitive
range. We conclude that they were not. In addressing this issue,
we recognize that it is within the agency's discretion to decide
whether to inform an offeror that its price is considered too
high and to reveal the results of the analysis supporting that
conclusion or to indicate to all offerors the cost or price that
the government's price analysis, market research, and other
reviews have identified as reasonable. See FAR 15.306(e). The
question is whether the agency's judgment in this instance was
reasonable. While an agency is not required to "spoon-feed" an
offeror during discussions as to each and every item that could
be revised to improve its proposal, see ITT Fed. Sys. Int'l
Corp. , B-285176.4, B-285176.5, Jan. 9, 2001, 2001 CPD paragraph
45 at 6, agencies must impart sufficient information to afford
offerors a fair and reasonable opportunity to identify and
correct deficiencies, excesses or mistakes in their proposals.
Matrix Int'l Logistics, Inc. , B-272388.2, Dec. 9, 1996, 97-2
CPD paragraph 89 at 9. In this case, we conclude that CITI could
not be reasonably expected to have understood the true nature
and magnitude of the agency's concern with its proposal based
upon the information provided by the Army during its discussions
with CITI, thus rendering those discussions essentially
meaningless. (Creative
Information Technology, Inc., B-293073.10, March 16, 2005) (pdf)
In order for discussions to be meaningful, agencies must, at a
minimum, point out to competing firms deficiencies, significant
weaknesses, and adverse past performance information to which
the firm has not previously had an opportunity to respond. FAR
15.306(d)(3). The FAR also encourages contracting officers to
discuss other aspects of a firm's proposal that could, in the
opinion of the contracting officer, be altered or explained to
enhance materially the proposal's potential for award. Id.
Discussions must be meaningful, equitable and not misleading;
discussions cannot be meaningful unless a firm is led into those
weaknesses, excesses or deficiencies that must be addressed in
order for it to have a reasonable chance for award. TDS, Inc.,
supra, at 6-7. LMC asserts that the agency identified 11
weaknesses in its proposal that were based on language from the
earlier, pre-corrective action, version of its proposal. LMC
maintains that the agency was required to discuss these 11
weaknesses with the firm pursuant to our decision in DevTech
Sys., Inc. , B-284860.2, Dec. 20, 2000, 2001 CPD 11 in which we
held that, where an agency identifies new weaknesses in a
proposal during a reevaluation of that proposal in an
acquisition where discussions have previously occurred, it is
required to discuss those new weaknesses with the offeror. The
agency responds that, with respect to 6 of the 11 alleged
weaknesses arising from proposal language that predated the
current FPRs, the agency did not assign a weakness to the LMC
proposal during its evaluation, and thus was not required to
raise the matter in discussions. Agency Legal Memorandum, Sept.
30, 2004, at 11833. While the agency is correct that the six
weaknesses to which LMC refers were not identified as weaknesses
in the technical evaluation report on LMC's proposal, all six
are specifically identified in the agency's final evaluation and
tradeoff analysis report as weaknesses and as bases for
distinguishing between the LMC and EDS proposals. AR, exh. 116,
atviix,xiv. Given that they ultimately were listed in the best
value analysis--they related to 6 of the agency's 10 identified
best value items--and that they contributed in some manner to
the proposal's receiving an overall marginal/high risk rating,
we do not think the fact that they were captured in the best
value determination, rather than the technical evaluation
report, provided a basis for concluding that these issues were
not significant weaknesses. Further, while it is not clear how
significant they were, given that they played a large part in
the best value determination--and therefore presumably were
among the most important reasons for downgrading LMC's
proposal--absent some clear showing by the agency that they were
not significant, since they were based on information in LMC's
original proposal, and the agency had not previously discussed
the issues with LMC, it was obliged to do so. DevTech Sys., Inc.
, supra , at 4-5. (Lockheed Martin
Simulation, Training & Support, B-292836.8; B-292836.9;
B-292836.10, November 24, 2004) (pdf)
We do not agree with CHS that the agency's referring to staffing
and labor hours interchangeably was misleading. Rather, we think
the agency's references to "labor hours for full time employees"
(oral discussions) and the adequacy of CHS's proposed EAP staff
(written discussions) both reasonably could be interpreted in
only one way: the agency was concerned that CHS had not proposed
enough staff to perform adequately. The agency's questions were
adequate to bring this concern to CHS's attention, and therefore
were meaningful. (Comprehensive
Health Services, Inc., B-294608, December 1, 2004) (pdf)
As described above, the SSET identified Spherix's marketing
approach, including a lack of projected growth, to be a
"significant weakness." See AR, Supplemental Documents, Source
Selection Briefing Slides, at 2985. Spherix's approach to the
marketing plan requirement was not discussed with the protester,
and therefore we conclude that the agency failed to conduct
meaningful discussions with the firm in this respect. We also
find that the agency did not conduct meaningful discussions with
Spherix with respect to its proposed quality control plan, which
was also determined to be a significant weakness. The RFP
provided for the evaluation of offerors' draft comprehensive
quality control plan "to include a Performance Work Summary (PRS)
with Standards, Acceptable Quality Level (AQL), and Incentives."
RFP M, at 333. Spherix's initial proposal described its proposed
quality control plan, see AR, Tab103, Spherix Initial Proposal,
at 2139-214, which the SSET evaluated to be a weakness, stating
that Spherix's "overall quality control plan . . . is not a
complete approach . . . Vendor must amplify a more thorough
approach to quality control ensuring that [DELETED] are
addressed." See AR, Supplemental Documents, Final SSET
Evaluation Worksheets for Spherix, at 2997. The SSET also
evaluated Spherix's proposed approach to the PRS and AQL
requirements to be weaknesses. Id. In its discussions with
Spherix, the agency addressed only the firm's proposed approach
to the PRS and AQL requirements, and Spherix's proposal
revisions sufficiently addressed those aspects of its proposal
such that the agency no longer identified them as proposal
weaknesses. Id. The agency did not otherwise address Spherix's
quality control plan during discussions. Id. In its final
evaluation, the SSET noted that Spherix had not changed its
proposal with respect to its proposed quality control plan, and
stated that discussions were not conducted on this weakness
because Spherix "had a plan[; the] plan was simply weak." Id.
Ultimately, this aspect of Spherix's proposal was identified by
the SSET identified to be a "significant weakness." See AR,
Supplemental Documents, Source Selection Briefing Slides,
at2985. We therefore find that the agency failed to conduct
meaningful discussions with Spherix with respect to its proposed
quality control plan. We also find that Spherix did not receive
meaningful discussions with respect to its proposed transition
period staffing, which was evaluated as a part of the proposed
project implementation plan under the management approach
factor. See RFP M, at 333. Spherix's response to this
requirement was evaluated as a weakness, because the SSET found
that Spherix did not provide detailed information; SSET did not
conduct discussions on the matter with Spherix because it
concluded that Spherix's proposal "spoke to staffing but weak in
identification." See AR, Supplemental Documents, Final SSET
Consensus Evaluation Worksheets for Spherix, at 2999. This
aspect of Spherix's proposal, which was identified by the SSET
as a "significant weakness," see AR, Supplemental Documents,
Source Selection Briefing Slides, at2985, also should have been
raised with Spherix during discussions, but was not. (Spherix,
Inc., B-294572; B-294572.2, December 1, 2004) (pdf)
PDMG asserts that the agency improperly failed to conduct
adequate discussions for the Area 5 and 6 awards and, as a
result, treated offerors unequally. Specifically, PDMG maintains
that, after the initial rounds of discussions--during which the
agency asked PDMG about its experience as it related to
performing the RFP's mortgagee compliance requirements--the
agency continued to have a concern in the area, but did not
again raise it with PDMG. The protester contrasts this with the
agency's actions in conducting discussions with SAAM; in both
the first and second rounds of discussions, the agency pointed
out to SAAM that its prices for certain line items appeared low.
PDMG asserts that the agency's repeated discussions with SAAM in
the area of price, compared to the single round of technical
discussions with PDMG covering the agency's experience concern,
evidence disparate treatment. This argument is without merit.
PDMG's proposals received good ratings in the area of experience
following the agency's discussions in the area. AR, exhs. 9 at
80, 10 at 57. Agencies are not required to discuss every element
of a technically acceptable proposal that receives less than the
maximum possible score, nor are they required to afford an
offeror multiple opportunities to cure a weakness remaining in a
proposal that previously was the subject of discussions. Bioqual,
Inc. , B-259732.2., B259732.3, May 15, 1995, 95-1 CPD 243 at 45.
In any case, the record shows that the two firms were given the
same opportunity to revise their proposals as to both technical
matters and price during the first round of discussions, AR,
exhs. 5, 6, 7, 8, and that revisions for both firms were limited
to the pricing proposals during the second round. Id. Thus,
contrary to PDMG's assertion, both firms received virtually
identical discussions, albeit in different proposal areas
depending on the particulars of their offers. (Portfolio
Disposition Management Group, LLC, B-293105.7, November 12,
2004) (pdf)
Chapman also argues that HUD misled it into believing that its
responses to the discussion questions had satisfied HUD's
concerns. Specifically, Chapman asserts that, during each round
of discussions, HUD required Chapman to address only those
issues currently raised and informed it that all prior issues
had been resolved. Chapman's assertions are belied by the
record. While HUD's discussion letters included the statement
Your written responses to the written negotiations/ discussions
should address only the areas set forth above. . . . (emphasis
in original), the letters nowhere stated that prior issues had
been resolved, and (other than the initial letter, which did not
request FPRs) specifically advised that offerors may address any
area in their FPR. Discussion Letters dated Apr. 27, 2004, May
21, 2004, and June 8, 2004. (Chapman
Law Firm, LPA, B-293105.6, B-293105.10, B-293105.12,
November 15, 2004) (pdf)
NIH's discussions with Cygnus did not comply with the
requirement that discussions be meaningful. As noted above, in
explaining why THG's proposal was superior to Cygnus's proposal
such that, notwithstanding the significantly lower cost of
Cygnus's proposal, THG's proposal represented the best value to
the government, the source selection authority cited a number of
weaknesses in Cygnus's proposal (as well as strengths in THG's
proposal). NIH, however, failed to raise several of these
weaknesses during the discussions with Cygnus. Thus, the agency
failed to advise Cygnus that the agency viewed as a major
weakness (under the single most important technical evaluation
subcriterion) the evaluated limited [DELETED]; had assigned a
weakness to Cygnus's proposal on the basis that [DELETED]; and
had concluded that Cygnus, although displaying an understanding
of the scope of work, had not presented a [DELETED]. At the
least, in conducting discussions with Cygnus, the agency was
required to discuss the first of these concerns, since the
agency indisputably viewed it as major weakness. Moreover, while
NIH did raise other matters of concern during discussions, the
record indicates that the agency misled the protester as to the
results of those discussions, advising Cygnus that it had
successfully addressed the agency's concerns when this in fact
does not appear to have been the case. In this regard, NIH
advised Cygnus during discussions of its concern that the
proposed leader of Cygnus's team of meeting planners would
[DELETED]. Further, NIH viewed Cygnus's failure to furnish
samples of its graphics designers' work to be a major weakness,
and the agency therefore requested that Cygnus submit such
samples. NIH Discussions Letter to Cygnus, Oct.9, 2002. In
response, Cygnus sought to explain its rationale for the
specified level of effort for [DELETED]. In addition, Cygnus
furnished [DELETED]. Cygnus Discussions Response, Oct. 24, 2002.
NIH also requested and received from Cygnus additional
information regarding, and verification of, several elements of
Cygnus's proposed costs, and the agency specifically negotiated
[DELETED]. See , e.g. , NIH Discussion Letters to Cygnus, Oct.9,
2002, Dec. 2, 2002, and Jan. 28, 2003. NIH did not find Cygnus's
response with respect to the team [DELETED] to be satisfactory,
and, according to the agency, it [DELETED]. Further, as noted
above, the agency considered the costs negotiated with Cygnus to
be [DELETED]. Nevertheless, notwithstanding its continuing
concerns with Cygnus's proposal, the agency advised Cygnus in
the March 26 request for an FPR that as a result of the oral
discussions with it, "in which we negotiated cost issues
concerning your proposal," including the [DELETED], a "total
estimated cost of[DELETED] . . . is considered to be fair and
reasonable." NIH Request to Cygnus for FPR, Mar. 26, 2003. NIH
further advised Cygnus on March 27 that "[d]iscussions
concerning Cygnus Corporation's proposal have concluded... . It
is understood that these discussions have resulted in agreement
of all technical and cost issues raised during negotiations."
NIH Request to Cygnus for FPR, Mar. 27, 2003. Likewise, when the
agency afforded Cygnus and the other offerors on April30 an
opportunity to submit a second FPR, it advised Cygnus in its
letter that "discussions held on March 26, 2003, resulted in
agreement of all technical and cost issues raised during
negotiations." NIH Request to Cygnus for FPR, Apr. 30, 2003. (Cygnus
Corporation, Inc., B-292649.3; B-292649.4, December 30,
2003) (pdf)
Here, ASUS admits that, “[d]uring discussions . . . the Navy
expressed concerns about [the subcontractor’s] size and its
capability to perform the subcontracted work if it were to
experience rapid growth as a result of this project.” ASUS
Comments at 7. However, ASUS notes that, in response to these
expressed concerns, it provided financial records regarding the
subcontractor’s viability, a corporate guarantee from ASUS’s
parent company, and an explanation of the subcontractor’s plans
to hire the workers from the existing government workforce
necessary to operate the wastewater systems. ASUS argues that
the agency’s apparent “acceptance” of the information and
“failure to point out any continuing perceived weaknesses” was
misleading and denied ASUS the opportunity to revise it
proposal. Id. at 8. We disagree. Nothing in the record
suggests that the agency misled ASUS regarding its concerns.
ASUS has pointed to no affirmative statements by the Navy
indicating that the agency viewed the concerns it had raised
regarding the proposed subcontractor as having been resolved.
Further, since the agency was not required to reiterate concerns
that were not alleviated after reviewing the protester’s
response to the initial discussions, OMV Med., Inc. , supra ,
the mere fact that the Navy remained silent after the
protester’s response could not reasonably be understood here as
an indication that the agency found ASUS’s response to be
satisfactory. (American States
Utilities Services, Inc., B-291307.3, June 30, 2004) (pdf)
Here, as discussed above, despite Lockheed’s inclusion in its
initial proposal of “contractor-specific” savings, including the
savings associated with the [deleted], the agency declined
during discussions to indicate in any way that such savings
would be excluded from the agency’s calculation of AUPC.[13] The
agency asserts that Lockheed should have known that
“contractor-specific” savings would be excluded from the
agency’s AUPC calculation due to the RFP’s statements that an
“independent Government estimate” of AUPC would be conducted and
that various estimating tools would be used to “either validate
contractors’ cost estimates or to develop Government cost
estimates.” RFP § M.3.1.1.1. We disagree. Neither the language
of the solicitation, nor the information provided by the agency
during discussions, reasonably placed the offerors on notice
that “contractor-specific” savings would have no effect on the
agency’s calculation of AUPC. Although we agree that, if the
agency actually intends to compete the follow-on production
contract, there is nothing inherently unreasonable in evaluating
only “design-specific” costs,[14] the offerors were not clearly
advised of this. As noted above, the RFP stated that the agency
would evaluate the AUPC of “the offeror’s proposed munition” and
that such evaluation would be based on an assessment of “the
bidders’ production cost estimates.” RFP § M.3.1.1.1. Further,
the agency clearly knew, or should have known, that Lockheed’s
initially proposed AUPC was based on “contractor-specific”
costs, including the costs associated with the proposed
[deleted]; yet the agency failed to advise Lockheed during
discussions that such costs would be replaced with “industry
rates” in calculating the evaluated AUPC. Consistent with the
terms of the solicitation, and the information provided during
discussions, Lockheed reasonably believed that it could reduce
its evaluated AUPC by increasing its proposed
“contractor-specific” savings. On this record, the agency failed
to conduct meaningful discussions because it failed to advise
Lockheed that “contractor-specific” savings would not be
reflected in the agency’s calculation of AUPC. (Lockheed
Martin Corporation, B-293679; B-293679.2; B-293679.3, May
27, 2004) (pdf)
USF does not protest the evaluation of its proposed price.
Rather, USF maintains that the agency failed to engage in
meaningful discussions with it by failing to provide adequate
notice that its price exceeded the government estimate, and by
failing to adequately discuss the implications of its “all or
none” proposal. With respect to the former point, the record
shows that the agency did apprise USF in the second negotiation
message that its proposed price exceeded the government
estimate. USF maintains, however, that when it thereafter
submitted pricing that continued to exceed the government
estimate, the agency was required to again raise the matter with
the firm. With respect to the latter point, the record shows
that, in its request for FPRs, the agency asked USF to clarify
whether its offer was still “all or none.” AR, exh. 12, at 1.
USF maintains that the agency was required to apprise it of the
fact that unbundling the proposal could have made it eligible
for award of the wastewater system. We have no basis to object
to the adequacy of discussions here. Discussions are legally
adequate where offerors are advised of the weaknesses, excesses
and deficiencies in their proposals. Professional Performance
Dev. Group, Inc., B‑279561.2 et al., July 6, 1998, 99-2 CPD ¶ 29
at 5. While discussions should be as specific as practicable,
there is no requirement that they be all-encompassing or
extremely specific in describing the agency's concerns; rather,
the legal requirement is that they generally lead offerors into
the areas of their proposals that require amplification or
correction, without being misleading. Id. Where an agency has
advised an offeror of an area of concern, there is no legal
requirement that it raise the issue again in a subsequent round
of discussions, even where the issue continues to be of concern
to the agency. Id. at 5 n.3. (USFilter
Operating Services, Inc., B-293215, February 10, 2004) (pdf)
An agency is not required to afford offerors all encompassing
discussions, or to discuss every aspect of a proposal that
receives lower than the maximum score, and is not required to
advise an offeror of a minor weakness that is not considered
significant, even where the weakness subsequently becomes a
determinative factor in choosing between two closely ranked
proposals. Northrop Grumman Info. Tech., Inc., B‑290080 et al.,
June 10, 2002, 2002 CPD ¶ 136 at 6. Here, none of the identified
weaknesses prevented AO’s proposal from being considered fully
acceptable or otherwise from having a reasonable chance of
receiving the award. Rather, the weaknesses merely resulted in
AO’s proposal being rated good rather than excellent under the
factors in question, and the award ultimately was made to AMTEC,
not because AO’s proposal was deficient, but because AMTEC’s was
superior. Development Alternatives, Inc., B-279920, Aug. 6,
1998, 98-2 CPD ¶ 54 at 7. Under these circumstances, the agency
was not required to discuss these weaknesses with AO. (American
Ordnance, LLC, B-292847; B-292847.2; B-292847.3, December 5,
2003) (pdf)
Although discussions must address at least deficiencies and
significant weaknesses identified in proposals, the scope and
extent of discussions are largely a matter of the contracting
officer’s judgment. In this regard, we review the adequacy of
discussions to ensure that agencies point out weaknesses that,
unless corrected, would prevent an offeror from having a
reasonable chance for award. For discussions to be meaningful,
they must lead offerors into the areas of their proposals
requiring amplification or revision. The Communities Group,
B‑283147, Oct. 12, 1999, 99-2 CPD ¶ 101 at 4. The agency
provided MacB with meaningful discussions. Specifically, it
issued several evaluation notices (EN), two of which requested
clarification of MacB’s plans to use incumbent personnel. The
first sought clarification of the “commitment of individuals
listed as key technical personnel . . . and . . . who they
propose to fill key . . . positions if incumbents are not
interested.” AR 14 at 1. A second EN sought clarification of an
apparent contradiction in MacB’s proposal relating to its plan
to offer the right of first refusal to incumbent personnel while
at the same time proposing to have 30 percent of the effort
staffed by subcontractor personnel. Id. While these ENs did not
specifically refer to “risk,” they clearly were sufficient to
communicate the agency’s concerns about MacB’s ability to
successfully acquire the incumbent workforce, upon which the
moderate risk rating ultimately was based. This satisfied the
requirement for meaningful discussions in this area. (MacAulay-Brown,
Inc., B-292515; B-292515.2, September 30, 2003) (pdf)
The agency's initial evaluation under this sub-criterion
downgraded M&S Farms' proposal for not identifying what each
individual would do, and downgraded Carr's proposal to the same
degree because its resumes did not list references. Agency
Report, Tab 7, Initial Rating Sheets for M&S Farms'
Proposal, at 51, 109; Tab 8, Initial Rating Sheets for Carr's
Proposal, at 22, 51. Discussions with M&S Farms did not
include a question regarding this sub-criterion, or otherwise
identify the concern for which M&S Farms' proposal was
downgraded, Agency Report, Tab 11, Discussions with M&S
Farms, but discussions with Carr did include a question that
disclosed the agency's concern under this sub-criterion. Agency
Report, Tab 12, Discussions with Carr (Feb. 14, 2002), at 2.
Carr then provided the requested references and the agency
increased Carr's score to the maximum points available under the
sub-criterion, which accounts for the majority of the difference
in technical scores between these proposals. Agency Report, Tab
14, Carr's Response to Discussions, at 34; Tab 17, Revised
Rating Sheets for Carr's Proposal, at 3. The agency thus treated
the offerors unequally on this point, with the awardee receiving
a prejudicial competitive advantage as a result. (M&S
Farms, Inc., B-290599, September 5, 2002) (pdf)
However,
as the agency points out, this was just one of several noted
weaknesses in Northrop's approach to performing the contract,
with no indication that it was considered significant. COR at
23-24. This being the case, and since there is no evidence that
the weakness prevented the proposal from being rated acceptable
under the systems management/program management subfactor, or
otherwise prevented Northrop from having a reasonable chance of
receiving the award, the agency was not required to discuss this
issue with Northrop. See Brown & Root, Inc. and Perini
Corp., a joint venture, supra. (Northrop
Grumman Information Technology, Inc., B-290080; B-290080.2;
B-290080.3, June 10, 2002) (pdf)
While agencies generally are
required to conduct meaningful discussions by leading offerors
into the areas of their proposals requiring amplification, this
does not mean that an agency must "spoon-feed" an
offeror as to each and every item that could be revised or
otherwise addressed to improve its proposal. LaBarge Elecs.,
B-266210, Feb. 9, 1996, 96-1 CPD para. 58 at 6. (DeLeon
Technical Services, Inc.; TekStar, Inc., B-288811;
B-288811.2; B-288811.3, December 12, 2001)
Where agency knew or should have
known that the protester interpreted the solicitation as
limiting technical proposals to 100 pages, discussions with the
protester were not meaningful when the agency did not advise
protester that the solicitation permitted 200 page proposals,
declined to advise the protester of the agency's repeatedly
expressed concerns that the protester's proposal lacked detail,
and advised the protester there were no technical weaknesses in
its proposal. (Bank
of America, B-287608; B-287608.2, July 26, 2001)
Under Federal Acquisition
Regulation (FAR) § 15.306(e)(3), "the [CO] may inform an
offeror that its price is considered by the Government to be too
high, or too low, and reveal the results of the analysis
supporting that conclusion." This language clearly gives
the CO discretion to inform the offeror that its price is too
high, but does not require that the CO do so, especially where,
as here, the agency does not consider the price a significant
weakness or deficiency that the offeror could alter or explain
to enhance the proposal's potential for award. National
Projects, Inc., B-283887, Jan. 19, 2000, 2000 CPD
¶ 16 at 5; see also KBM Group, Inc.,
B-281919, B-281919.2, May 3, 1999, 99-1 CPD ¶ 118 at 8-9
(agency did not mislead protester during discussions, even
though award was ultimately made based on price and agency did
not inform protester that its price was higher than awardee's
price, where agency did not believe that protester's price was
too high for the approach taken). (SOS Interpreting,
Ltd., B-287477.2, May 16, 2001)
The agency's discussions with
IRRI specifically identified the individual CLINs for which the
agency considered IRRI's proposed prices too low, which
constituted half of the CLINs, as well as that IRRI's overall
price was too low. It then afforded IRRI an unrestricted
opportunity to submit final proposal revisions. The record thus
shows that the Air Force conducted meaningful discussions on the
issue. (International Resources Recovery,
Inc., B-287160, March 30, 2001)
We will not find that an agency
improperly failed to advise an offeror of a weakness reasonably
viewed during the evaluation as minor merely because, as the
competition played out, the weakness could have been a
determinative factor in choosing between two closely ranked
proposals. Brown & Root, Inc. and Perini Corp., a joint
venture, B-270505.2, B-270505.3, Sept. 12, 1996, 96-2 CPD para.
143 at 6. (Millar Elevator Service
Company, B-284870.4, December 27, 2000)
This case highlights the
challenge that an agency may face when, for whatever reason, it
reevaluates initial proposals after discussions are complete. If
during the reevaluation of proposals the agency identifies
concerns that would have had to be raised had they been
identified before discussions were held, the agency is required
to reopen discussions in order to raise the concerns with the
offerors. Mechanical Contractors, S.A., supra, at 5-6; CitiWest
Properties, Inc., supra, at 5. The key fact is that the concerns
(while identified relatively late) relate to the proposals as
they were prior to discussions. (DevTech
Systems, Inc., B-284860.2, December 20, 2000)
Contracting agencies are not
obligated to afford all-encompassing discussions that
"spoon-feed" an offeror each item that must be
addressed to improve a proposal; agencies are only required to
lead offerors into the areas of their proposals considered
deficient and requiring amplification. (SDS International,
B-285821, September 21, 2000)
Contracting agencies are not
obligated to afford all-encompassing discussions that
"spoon-feed" an offeror each item that must be
addressed to improve a proposal; agency reasonably led protester
into the areas of its proposal with shortcomings that warranted
amplification or clarification. (Arctic Slope World Services,
Inc., B-284481; B-284481.2, April 27, 2000)
Allegation that discussions with
protester were not meaningful is sustained where the record
shows that the evaluators were concerned over the protester's
pricing methodology and the source selection official shared
that concern, but the protester was not afforded an opportunity
during discussions to explain its pricing strategy. (ACS
Government Solutions Group, Inc., B-282098; B-282098.2;
B-282098.3, June 2, 1999)
For discussions to be
meaningful, they must lead offerors into the areas of their
proposals requiring amplification or revision; the agency is not
required to "spoon-feed" an offeror as to each and
every item that could be revised so as to improve its proposal,
however. Du and Assocs., Inc., supra, at 7-8; Applied Cos.,
B-279811, July 24, 1998, 98-2 CPD para. 52 at 8. (LB&B Associates,
Inc., B-281706, March 24, 1999)
Protest that discussions were
not meaningful because agency failed to point out excesses in
protester's technical proposal is denied where claimed
beneficial features in fact were not excesses, but rather (1)
were considered by the agency to be desirable, (2) were simply
protester's approach to complying with the solicitation
requirements, or (3) did not render the proposal unacceptable,
result in a significant reduction in score, or result in an
unreasonable, grossly excessive price. (Consolidated Engineering Services,
Inc, B-279565.5, March 19, 1999)
Written discussion questions
generated by a contracting agency should reasonably apprise
offerors of the areas that the agency considers deficient such
that the offerors will understand the agency's concerns. (Stratus Systems,
Inc., B-281645, February 24, 1999)
|