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TMI Management Systems, Inc. of Easton,
Pennsylvania, protests request for proposals (RFP) No.
HSFEHQ-09-R-0046, issued by the Department of Homeland Security,
Federal Emergency Management Agency (FEMA), for facility support
services. TMI argues that FEMA's misclassification of the
procurement on the Federal Business Opportunities (FedBizOpps)
website prevented the firm from submitting a proposal.
(sections deleted)
The Competition in
Contracting Act of 1984 (CICA) generally requires contracting
agencies to obtain full and open competition through the use of
competitive procedures, the dual purpose of which is to ensure
that a procurement is open to all responsible sources and to
provide the government with the opportunity to receive fair and
reasonable prices. 41 U.S.C. sect. 253(a)(1)(A) (2006). In
pursuit of these goals, a contracting agency must use reasonable
methods to publicize its procurement needs and to timely
disseminate solicitation documents to those entitled to receive
them. Kendall Healthcare Prods. Co., B-289381, Feb. 19, 2002,
2002 CPD para. 42 at 6. The official public medium for providing
notice of contracting actions by federal agencies is the
FedBizOpps website, which has been designated by statute and
regulation as the government-wide point of entry. 15 U.S.C.
sect. 637(e); 41 U.S.C. sect. 416; FAR sections 2.101,
5.101(a)(1), 5.201(d). An agency's notice must provide an
"accurate description" of the property or services to be
purchased and must be sufficient to allow a prospective
contractor to make an informed business judgment as to whether
to request a copy of the solicitation. See 15 U.S.C. sect.
637(f); Jess Bruner Fire Suppression, B‑296533, Aug. 19, 2005,
2005 CPD para. 163 at 4. In this regard, the FAR requires
agencies to use one of the procurement classification codes
identified at the FedBizOpps website to identify services or
supplies in its notices on FedBizOpps, see FAR sect. 5.207(e),
and contracting officers must use the most appropriate
classification category. See Gourmet Distributors, B‑259083,
Mar. 6, 1995, 95-1 CPD para. 130 at 2. We have found that an
agency failed to effectively notify potential offerors of a
procurement and to obtain full and open and competition under
CICA, where the agency misclassified the procurement. See Frank
Thatcher Assocs., Inc., B-228744, Nov. 12, 1987, 87‑2 CPD para.
480 at 2-3 (misclassification of procurement in the Commerce
Business Daily, formerly the official public medium for
identifying proposed contract actions and now replaced by
FedBizOpps).
Here, FEMA classified this acquisition for support services
under a miscellaneous code for products, rather than services.
FEMA's contracting officer contends that none of the service
codes appeared applicable to the support services for THUs
sought here. We find, however, as explained below, that although
no service code was an exact match, a number of service codes
include services such as those solicited here, and FEMA does not
reasonably explain why one of these service codes would not have
been more appropriate than a miscellaneous product code, which
indicated that the agency was procuring goods.
The SOW listed a number of services categories, including
clerical and office support, vehicle and equipment maintenance
and repair, material handling, maintenance and placement of THUs,
and maintenance of buildings and facilities. RFP, SOW, at
C-2-C-5. A number of service codes appear to encompass similar
services, such as codes J, "Maintenance, Repair & Rebuilding of
Equipment," M, "Operation of Government-owned Facilities," and
R, "Professional, Administrative, and Management Support
Services."
FEMA's contracting officer acknowledges that facilities support
services described by NAICS code 561210 are often posted under
code M, but she states that she did not use this code because
"sites on which the services will take place" are not owned by
FEMA, but leased from commercial or public entities. See AR,
Contracting Officer's Statement, at 1. The contracting officer
also did not use codes J or R, because these codes included some
services that were not solicited by the RFP. Id. at 2. Although
we agree that none of the service codes is an exact match for
the services solicited by the RFP, it is incumbent upon the
agency to classify its procurement under the most appropriate
category to promote competition. Gourmet Distributors, B‑259083,
supra, at 2-3. The agency has provided no reasonable
explanation, and the record does not otherwise show, why code
99, a miscellaneous product code, is a better match than one of
these service codes. In this regard, we found from our own
review of the FedBizOpps website that a number of procurements
that include NAICS code 561210 were classified under either code
J, M, or R, but no procurement with this NAICS code was
classified under code 99. In short, we find no reasonable basis
for FEMA's classification of this procurement under product code
99.
Notwithstanding the requirement to classify procurements
accurately, FEMA argues that the availability of electronic
search engines has "changed the issue of who is responsible for
finding notice of an acquisition when it is misclassified." AR
at 3. Specifically, FEMA argues, citing our decision in Jess
Bruner Fire Suppression, B‑296533, supra., that "a prudent
offeror would have found the announcement regardless of the
product or service classification code because of the key words
used in the FedBizOpps announcement." AR at 2. Our decision in
Jess Bruner did not involve a solicitation posted on FedBizOpps
under an improper classification code. Product and service codes
are provided to make manageable searches of large numbers of
procurements; that is, the classification codes allow potential
offerors to narrow their searches in a meaningful way to find
procurement opportunities. Misclassifying a procurement makes
difficult, if not impossible, the task of locating procurement
opportunities under other search terms. Here, because TMI
reasonably relied in its search on the codes that most closely
represented the types of services it could provide--M and R--as
a means to narrow the search results, it could not have found
this listing no matter what additional search terms it entered
or selected. FEMA's argument that a prudent vendor could have
used various available search terms, such as the NAICS code, to
locate the listing assumes the vendor would anticipate that the
procuring agency might have misclassified the requirement and
would therefore omit any product or service code from its
search. We find this assumption unreasonable.
In conclusion, we find that FEMA's misclassification of this
procurement deprived TMI of an opportunity to respond to the RFP
and that FEMA therefore did not use reasonable methods to obtain
full and open competition as required by CICA. Frank Thatcher
Assocs., Inc., supra, at 2-3. (TMI
Management Systems, Inc., B-401530, September 28, 2009) (pdf)
A synopsis must provide an "accurate description" of the
property or services to be purchased and must be sufficient to
allow a prospective contractor to make an informed business
judgment as to whether to request a copy of the solicitation. 41
U.S.C. sect. 416(b); 15 U.S.C. sect. 637(f); see also Pacific
Sky Supply, Inc., B-225420, Feb. 24, 1987, 87-1 CPD para. 206 at
4-5 (protest sustained where a sole-source synopsis identified
only 2 of 15 items included in the solicitation, thereby failing
to provide an "accurate description" of the procurement, as
required by the Small Business Act). In addition, the FAR
requires that the description of the supplies or services be
"clear and concise." FAR sect. 5.207(c), (d). Moreover, as
directly relevant here, a synopsis must provide prospective
alternative sources a meaningful opportunity to demonstrate
their ability to provide what the agency seeks to purchase. See
Sabreliner Corp., B-288030, B‑288030.2, Sept. 13, 2001, 2001 CPD
para. 170 at 6-7 (protest challenging sole-source award
sustained where both the justification and the published
synopsis inaccurately described the requirements to overhaul
helicopter engines). In short, the fundamental purpose of these
notices, including in the circumstance where an agency
contemplates a sole-source award, is to enhance the possibility
of competition. Information Ventures, Inc., B-293541, Apr. 9,
2004, 2004 CPD para. 81 at 4. Here, the notice, as issued, did
not meaningfully describe DOE’s requirements. As quoted above,
the notice merely identifies the contract number that is being
extended and indicates that the work involves "critical, highly
specialized technical and administrative support," yet provides
essentially no information about the experience and abilities
that DOE believes potential sources need to have. Even though
the agency’s evaluation of the two capability statements
identifies numerous specific topics as being essential to
successful performance, or even "of utmost importance," none of
these capabilities is mentioned in the synopsis. In our view,
DOE’s requirements were not adequately described in the notice,
and the notice did not provide enough information to allow
prospective sources a meaningful opportunity to demonstrate the
ability to meet the agency’s requirements. In this regard,
Thompson advises that it has extensive experience in managing
classified information in the subject areas relevant to the
procurement; that it has the ability to identify and retain
additional staff with the required backgrounds and security
clearances; and that it would have competed for the contract had
the agency accurately described its needs. PMTech makes similar
assertions. By providing an inadequate description of its
sole-source procurement in the synopsis, DOE restricted
competition in violation of statute and regulation. Moreover,
DOE compounded the shortcomings of this particular notice by
providing no information on the availability of a statement of
work and by stating in the synopsis that the notice “is for
informational purposes only and is not a request for proposals
or other information.” Cf. 41 U.S.C. sect. 416(b)(4); 15 U.S.C.
sect. 637(f); FAR sect. 5.207(c)(15). The protesters and the
Small Business Administration (SBA) argue, and we agree, that
the language of the synopsis discouraged, and may have been
intended to discourage, responses. (M.D.
Thompson Consulting, LLC; PMTech, Inc., B-297616;
B-297616.2, February 14, 2006) (pdf) |