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New Eisenhower filed
an agency-level protest of the proposed sole-source award to the
incumbent claiming that, since Eisenhower has an acceptable
alternative property, it was unreasonable for the agency to
conclude that only one source exists that will satisfy the
agency’s requirements. In responding to that protest, the agency
explained to the protester that it decided to award a
sole-source lease to the incumbent based on the results of the
cost-benefit analysis which was performed pursuant to the GSA
regulations (GSAR) regarding succeeding leases, 48 C.F.R.
subpart 570.4. Specifically, under GSAR sect. 570.402-5(b), “if
the cost-benefit analysis indicates that the Government cannot
expect to recover relocation costs and duplication of costs
through competition, [the agency is to] prepare a justification
for approval in accordance with FAR 6.3 and 506.3.” The agency
further explained that a justification for the proposed
sole-source award was prepared pursuant to the exception to full
and open competition requirements at Federal Acquisition
Regulation (FAR) sect. 6.302-1 (which provision references as
statutory authority, the Competition in Contracting Act (CICA),
41 U.S.C. sect. 253(c)(1)), since the cost-benefit analysis
showed that only one responsible source will meet the agency’s
needs. Agency Report in Response to Agency-Level Protest, Nov.
1, 2007, at 2, 4. The agency-level protest official dismissed
the protest as an untimely challenge to the terms of the
presolicitation notices, and, to the extent the protest
questioned the proposed sole-source award of a succeeding lease
to the incumbent, denied the protest on the basis that the
agency had complied with the requirements of GSAR sect.
570.402-1(b)(2) for a cost-benefit analysis prior to making the
sole-source determination for the lease.
(Sections Deleted)
We have reviewed each of Eisenhower’s challenges to the
cost-benefit analysis and find that none of them provides a
basis to conclude the cost-benefit analysis lacks a reasonable
basis. For instance, Eisenhower initially alleges that its
rental rate is [deleted] per RSF lower than the rate paid by GSA
under the incumbent’s current lease; the protester estimates
that this difference gives it an almost [deleted] million
advantage in terms of cost savings to the government. The agency
reports, however, that Eisenhower’s initial rental rate of
[deleted] is in fact higher than the rates paid under the
incumbent’s lease, and that the subsequent rate information
provided by the two firms showed their properties are indeed
comparable in terms of rent. The record supports the agency’s
position. The protester next argues that since its expression of
interest noted that the firm would like to discuss paying for
the [deleted] costs, it should have received credit against the
[deleted] costs amount in the cost-benefit analysis. The record
supports the reasonableness of the evaluation, however, since,
despite the firm’s failure to quantify its claimed credit for
such costs, or confirm that it would pay all such costs rather
than just a portion, the agency applied an industry standard
amount for such costs [deleted]; the protester has not shown
that the standard amount is unreasonable. Moreover, Eisenhower
has not shown in any way that, given the substantial relocation
and duplication costs assessed against it in the cost-benefit
analysis, even if the full amount of the [deleted] costs
calculated here (approximately [deleted] million) had been
credited to the firm in the analysis, it would have made any
material change to the outcome of the analysis.
Eisenhower also claims that its lease location should be viewed
as presenting additional benefits exceeding the agency’s stated
minimum requirements, thus warranting cost credits in the
comparison of the expressions of interest; examples include the
ability to provide [deleted]; providing space in a newly
refurbished building capable of supporting state-of-the-art
equipment the agency may choose to purchase for its new space;
providing a convenient location, accessible by highways and
Metrorail, with more generous setback distances; and the ability
to design the layout of the space to consolidate office space or
accommodate growth. As a preliminary matter, to the extent that
the protester asserts that the value of the additional
intangible benefits its location allegedly offers was not
quantified by the agency, the protester itself has provided no
support for the dollar value associated with the claimed
benefits. Further, to the extent Eisenhower suggests that the
alleged benefits were ignored by the agency, as the agency
reports, these elements, while not quantified, were considered
in the cost-benefit analysis. For instance, while the agency
noted that Eisenhower could provide additional [deleted], it
considered the current amount [deleted] at the incumbent
location acceptable as it met the agency’s actual needs. While
Eisenhower asserts that the incumbent’s parking presents a
greater security risk because of its below-building location,
Eisenhower is essentially disagreeing with the agency’s judgment
that there is sufficient security at the incumbent site.
Similarly, while the protester’s location offers newly
refurbished space, the record shows that the agency’s space and
equipment needs are met at its current upgraded location.
Regarding the claimed convenience associated with the
protester’s location, the agency points out that the incumbent’s
location is also accessible by highways and Metrorail. As to the
additional setback distance for the protester’s property, since
the incumbent’s property has been government-approved for
setbacks and apparently otherwise meets the agency’s security
requirements, we do not find persuasive the protester’s general
contention that the shorter setback distance at DEA’s current
location presents a security risk, or one that has not been
resolved through other effective security measures. In short,
there is no showing in the record that the cost-benefit analysis
challenged by the protester was unreasonable. (Eisenhower
Real Estate Holdings, LLC, B-310941, March 18, 2008) (pdf)
Brinkmann objects to the proposed sole-source award to Mettler
principally on the ground that its own autotitrator, the Metohm
809 Titrando, which it claims is less expensive than the Mettler
autotitrator, is also technically and functionally equivalent or
superior to the Mettler unit. Accordingly, Brinkmann contends
that the Navy is required to compete the autotitrator
requirement. As a general matter, CICA mandates “full and
open competition” in government procurements obtained through
the use of competitive procedures. 10 U.S.C. sect.
2304(a)(1)(A). CICA, however, provides several exceptions to
this requirement, including when an agency’s requirements can
only be satisfied by one responsible source. 10 U.S.C. sect.
2304(c)(1). When, as here, an agency invokes this exception, it
is required to execute a written J&A with sufficient facts and
rationale to support the use of the cited authority. Our review
of an agency’s decision to conduct a sole-source procurement
focuses on the adequacy of the rationale and conclusions set
forth in the J&A; where the J&A sets forth a reasonable
justification for the agency’s actions, we will not object to
the award. Chapman Law Firm, B-296847, Sept. 28, 2005, 2005 CPD
para. 175 at 3. In this regard, our Office has held that an
agency’s legitimate need to standardize the equipment it uses
may provide a reasonable basis for imposing restrictions on
competition. See, e.g., Advanced Med. Sys., Inc., B-259010, Jan.
17, 1995 (agency’s need to standardize fetal monitors in order
to maximize patient care was reasonable); Sperry Marine, Inc.,
B-245654, Jan. 27, 1992, 92-1 CPD para. 111 (sole-source
acquisition of particular radar system was reasonable where
agency needed to utilize the same radar system it had already
deployed at training school). Based on our review of the record,
we conclude that the Navy had a reasonable basis for the
sole-source award to Mettler. The record shows that the ability
of the Brinkmann autotitrator to meet the Navy’s onboard
technical requirements was not an issue. Rather, the Navy’s
justification for the sole-source award to Mettler is based
upon, among other things, a reasonable need for standardization.
As explained by the Navy, the accuracy and reliability of the
chemical analyses by the autotitrators is essential for the safe
operation of a submarine’s nuclear reactor plant and having a
standard unit allows Navy personnel to operate the autotitrator
equipment without regard to the specific submarine to which they
are assigned. AR, Tab E, J&A at 2. Maintaining the operational
continuity of the autotitrators across submarines is especially
important since Navy personnel operating the units are not
professional chemists and there is “constant turnover” of
personnel between submarines. AR, Tab A, Declaration of
Director, Fleet Readiness Division, Naval Nuclear Propulsion
Program, Aug. 28, 2007, at 1. Because no other autotitrator is
“directly interchangeable in form fit and function” with the
currently fielded Mettler unit, AR, Tab E, J&A at 2, introducing
a different unit would undermine the advantage of having Navy
personnel operate a single standard unit, thereby “increas[ing]
the risk of incorrect chemical analyses,” and in turn increasing
the risk to the safety of Navy personnel and equipment. AR, Tab
A, Declaration of Director, Fleet Readiness Division, Naval
Nuclear Propulsion Program, Aug. 28, 2007, at 1. (Brinkmann
Instruments, Inc., B-309946; B-309946.2, October 15, 2007) (pdf)
As noted, this exception only allows an agency to “limit
the number of sources,” so that an agency may not simply ignore
the potential for competition. See Worldwide Language Res.,
Inc.; SOS Int’l Ltd., B‑296984 et. al., Nov. 14, 2005, 2005 CPD
para. 206 at 11. The mandate for agencies to effect some modicum
of competition is reiterated in 41 U.S.C. sect. 253(e), which
provides that when an agency utilizes other than competitive
procedures based on unusual and compelling urgency, the agency
“shall request offers from as many potential sources as is
practicable under the circumstance.” See also FAR sect.
6.302‑2(c)(2). In addition, CICA provides that under no
circumstances may noncompetitive procedures be used due to a
lack of advance planning by contracting officials or concerns
related to the amount of funds available to the agency. 41 U.S.C.
sect. 253(f)(5)(A); see also FAR sect. 6.301(c). The agency has
not demonstrated that it had a reasonable basis to make the
sole‑source orders here. While at least with respect to the VAMC
Albany facility, the agency has demonstrated that it had an
urgent need to replace the equipment due to the fact that
patients were getting eye infections as a result of the use of
the faulty medical equipment,[3] the agency has not reasonably
demonstrated why it could not have opened the requirement up to
an expedited limited competition among those firms that had
expressed interest in the acquisition. There is no evidence in
the record that the agency ever considered whether the cataract
medical equipment proposed by B&L, or any other firm, would meet
its urgent requirements. Moreover, B&L has responded in detail
to the agency’s sole-source justification by noting that its
Millennium equipment is “state of the art” cataract surgery
equipment and enjoys a significant market share, and by
providing many technical details as to why its equipment is the
best equipment available to meet VA’s requirements. While VA was
invited to respond to B&L’s comments, it has provided no
response to B&L’s detailed comments as to why its equipment
would satisfy VA’s requirements. (Bausch
& Lomb, Inc., B-298444, September 21, 2006) (pdf)
Generally, our Office will not question an agency’s
implementation of a statutory procurement requirement unless the
record shows that the implementation was unreasonable or
inconsistent with congressional intent--a matter best determined
by the words of the statute itself, or by the statute’s
legislative history. See Harris Corp. Broadcast Div., B-255302,
Feb. 10, 1994, 94-1 CPD para. 107 at 6. With respect to
statutory procurement preferences, we have held that where a
statute does not specify a particular way to give a provided
preference to a class of potential contractors, agency
acquisition officials have broad discretion in selecting the way
to effectuate the statutory mandate. American Multi Media,
Inc.--Recon., B-293782.2, Aug. 25, 2004, 2004 CPD para. 158 at 5
(preference for nonprofit institutions concerned with the blind
and other physically handicapped persons); HAP Constr., Inc.,
B‑280044.2, Sept. 21, 1998, 98-2 CPD para. 76 at 4 (preference
for firms doing business in a disaster area under the Stafford
Act); Appalachian Research Council, B-256179, May 20, 1994, 94-1
CPD para. 319 at 15-16 (preference for agencies with
demonstrated experience with the needs of youth in outreach
contracts under the Job Training Partnership Act); and U.S. Def.
Sys., Inc., B-251544 et al., Mar. 20, 1993, 93-1 CPD para. 279
at 4-5 (preference for U.S. firms in the award of contracts for
guard services at overseas embassies). As we noted in our
decision in HAP Constr., and as we have seen again here, neither
the language of the statute, nor the legislative history of the
Stafford Act, defines the terms “preference,” “feasible,” or
“practicable.” HAP Constr., Inc., supra, at 5. Without specific
definitions to guide our review, we look to whether the agency’s
interpretation is contradicted by the plain meaning of the words
used in the statute. In our view, it is not. The primary meaning
of the word “preference” in Black’s Law Dictionary 1217 (8th Ed.
2004) is “[t]he act of favoring one person or thing over
another….” Our review of the bid protest decisions above, and
other materials, shows that agencies have used a continuum of
possible preferences to implement statutes that provide one
class of contractor a preference over others. For example, in
the U.S. Def. Sys., Inc. decision, cited above, the agency
provided a preference in the form of five evaluation points to
be added to an offeror’s technical evaluation. In contrast, FEMA
has opted to implement the provision of the Stafford Act under
review here by providing a 30 percent price preference. 48 C.F.R.
sect. 4452.217-70. While we have not previously seen a protest
involving an agency decision to implement a preference using a
set-aside, we think a set-aside can be viewed as, in effect, an
absolute preference, located at one end of the continuum of
possible preferences an agency might adopt. In our view, we have
no basis for questioning the broader definition of “preference”
inherent in the agency’s position in this case. Moreover, we
think AshBritt misses the point when it argues that some form of
preference short of a set-aside also implements the Stafford
Act’s preference for using local businesses to clean up
disaster-related debris. The question here is not whether some
lesser form of preference might have satisfied the Act’s intent,
but whether the preference chosen was an abuse of agency
discretion. Since the language in the statute does not
specifically restrict the application of the preference, and
since the use of a set‑aside is consistent with the statutory
goal of assisting firms in the affected area, we do not view the
Corps’s decision to implement the Stafford Act preference with a
set‑aside as an abuse of the agency’s discretion to implement
this statutory scheme. See id. at 6; Appalachian Research
Council, supra, at 16. We turn next to AshBritt’s contention
that the Stafford Act does not envision providing a preference
(in this case, a set-aside) only to firms doing business in a
particular state, to the exclusion of firms located in other
states affected by the same natural disaster. As an initial
matter, it is fair to note that AshBritt’s interpretation of the
geographic reach of 42 U.S.C. sect. 5150 appears to be supported
by the portion of the statute that requires this preference be
provided to firms “residing or doing business primarily in the
area affected by such major disaster or emergency.” To conclude,
however, that the Corps abused its discretion by limiting the
competition here to firms within a single state would require us
to ignore the overall scheme of the Stafford Act, the
legislative history of the Act explaining what Congress was
trying to accomplish with this provision, and the simultaneously
enacted title of the preference provision in the Act (which is
now reflected in the U.S. Code). While we think an agency
reasonably might elect not to adopt the kind of restriction used
in this procurement, see, e.g., HAP Constr., Inc., supra, we do
not agree that the Corps acted improperly here by limiting this
competition to Mississippi firms. The entire scheme of the
Stafford Act contemplates a process by which states interact
with, and seek assistance from, the federal government; this
interaction does not cross state lines. For example, federal
assistance under the Stafford Act is triggered by a governor’s
finding that a major disaster has overwhelmed the state’s
ability to provide aid, assistance, and emergency services, and
to reconstruct and rehabilitate devastated areas. 42 U.S.C.
sections 5121, 5170. When a governor presents such a finding to
the President, and the President agrees, the President declares
that a major disaster exists. 42 U.S.C. sect. 5170. This
declaration identifies the specific areas within the state
eligible for disaster relief, and specifies the type of relief
available. 44 C.F.R. sect. 206.40; see also AR, Tabs 5a, 6a, 7a,
and 8a. In addition, the statute, on its face, identifies the
limits of federal cost-sharing available to the state for
different types of relief activities. See, e.g., 42 U.S.C.
sections 5170b(b), 5170c(a), 5173(d). Moreover, as shown by the
record in this protest, there are separate Presidential
declarations for each state, see AR, Tabs 5a (Florida), 6a
(Louisiana), 7a (Mississippi), and 8a (Alabama); there is no
unified disaster declaration addressing all damage done by
Hurricane Katrina, which would be more along the lines of the
scheme AshBritt posits. (AshBritt Inc.,
B-297889; B-297889.2, March 20, 2006) (pdf)
The Competition in Contracting Act (CICA), 10 U.S.C. sect.
2304(c)(2), permits an agency to use other than competitive
procedures in acquiring goods or services where the agency’s
requirement is of such an unusual and compelling urgency that
the government would be seriously injured unless the agency is
permitted to limit the number of sources from which it solicits
proposals. Moreover, while CICA requires that agencies solicit
offers from as many potential sources as is practicable when
using the unusual and compelling urgency exception to limit
competition, 10 U.S.C. sect. 2304(e), an agency nonetheless may
limit a procurement to the only firm it reasonably believes can
properly perform the work in the time available. McGregor Mfg.
Corp., B-285341, Aug. 18, 2000, 2000 CPD para. 151 at 6. In this
regard, a military agency’s assertion that there is a critical
need that is related to human safety and affects military
operations carries considerable weight. Id. at 7. The
reasonableness of the contracting activity’s judgments must be
considered in the context of the time when they were made and
the information that was available at that time. Equa Indus.,
Inc., B-257197, Sept. 6, 1994, 94-2 CPD para. 96 at 3 n.1.
Meggitt asserts that the agency improperly failed to engage in
adequate advance planning. In this regard, Meggitt asserts that,
after obtaining the responses to the RFI, the agency essentially
did nothing for a period of approximately 6 months before
eventually making its sole-source award to KDS. Meggitt
maintains that, among other things, the agency declined its
offer, included in its response to the RFI, to perform testing
of its product at the firm’s own expense, AR, exh. 8, at 5, and
also unreasonably declined its offer, in an April 28 e-mail, to
update its RFI response in April. AR, exh. 35, at 1. Although
the record shows that the agency did not respond to Meggitt’s
April 28 e‑mail, the agency’s Chief of the Marine Corps Program
Division testified that this was because, due to the lack of
funding at that time, the agency did not think it was
appropriate to cause any of the respondents to expend further
effort in preparing materials or information. Tr. at 63. In a
similar vein, he testified that he never specifically declined
Meggitt’s offer to perform testing at its own expense, but that,
again, the agency was reluctant to encourage additional
expenditures by Meggitt or other concerns in the absence of
program funding. Tr. at 109-11. We find nothing unreasonable in
the agency’s actions. Simply stated, the agency acted in a
manner that was prudent under the circumstances, since there
were no funds available and no firm basis for the agency to
conclude that it would be able to perform the upgrade. As noted,
the question for our Office is whether the contracting
activity’s judgments, considered in the context of the time when
they were made and the information that was available at that
time, appear reasonable. Equa Indus., Inc., supra. Further,
regarding Meggitt’s offer to perform testing at its own expense,
in the absence of agency direction not to perform such testing,
there is no basis to find that the agency somehow unreasonably
precluded Meggitt from conducting such testing. Meggitt has not
shown why it could not have performed such testing at its own
expense (and provided the agency with its results), and thereby
possibly positioned itself differently with respect to the
agency’s urgent requirement. In effect, Meggitt’s decision to
refrain from such testing was a matter of its own business
judgment, not improper agency action. We note that the agency’s
witness testified that he would have at least considered the
results of such testing. Tr. at 116‑17. (Meggitt
Safety Systems, Inc., B-297378; B-297378.2, January 12,
2006) (pdf)
Based on the factual context presented with regard to the
December 2004 award to OSS, it is evident that the agency’s
efforts--as described and explained by the agency itself--were
so fundamentally flawed as to indicate an unreasonable level of
advance planning, which directly resulted in the sole-source
award to OSS. In responding to the protesters’ challenges to the
December sole-source award, the Air Force suggests that its
actions and the justification underpinning the sole-source
determination should be evaluated based on the circumstances
faced by the contracting activity in November 2004 when it
received the requirement and took steps to expeditiously procure
the required BBE-SME services. For example, the Air Force
highlights the fact that when the J&A was prepared in support of
the award to OSS, the government was faced with the dilemma of
needing BBA-SME services in place to support the January 2005
elections in Iraq--then only 2 months away--and it did not have
a contractor to provide the services. AR, Tab 13, Supplemental
Legal Memorandum at 15; AR, Tab 1.b.2, J&A para. 3. We recognize
the abbreviated contracting schedule faced by the contracting
activity in its efforts to obtain a contract vehicle for the
BBA-SME requirement--a schedule driven by expectations and
mandates from higher echelons within the Department of Defense.
The record, however, clearly reflects the fact that this narrow
procurement window was the direct result of unreasonable actions
and acquisition planning by the Air Force and the Department of
Defense, to the extent these entities engaged in any acquisition
planning at all. Specifically, 2-3 months were lost as a result
of the initial plan to place the BBA-SME requirement under the
GEITA contract--even though the requirement was clearly outside
the scope of the GEITA contract. As noted above, the GEITA
contract was for advisory and assistance services in support of
AFCEE’s “continued excellence in the world environmental
stewardship market,” including support for AFCEE’s programs
involving environmental restoration, compliance, pollution
prevention, conservation and planning, fuel facility
engineering, base realignment and closure activities, and
military family housing initiatives, to include privatization
and outsourcing activities. AR, Tab 17, GEITA Contract,
Statement of Work, at 3, 4-5. The BBA-SME requirement, however,
was for Western-oriented individuals of Iraqi background, who
were committed to a democratic Iraq, and who would provide
services in Iraq such as advising government ministers, planning
for and implementing elections, drafting constitutional
documents, advising neighborhood, municipal, and national
councils, and training security forces and details. The plan to
use the GEITA contract was unreasonable on its face, given how
widely it diverged from the BBA-SME requirement. In fact, as
indicated above, a senior member within the Air Force,
responsible for acquisition, characterized the plan as requiring
a “sanity check” and indicated that it was the result of
individuals “leaning way forward in the saddle” in an effort to
support a customer because they were “not in the habit of saying
no to anyone.” AR, Tab 16.ss., E-mail, Subject: RE: GEITA
Services for Bilingual-Bicultural Support to Iraq, Nov. 10,
2004. It was this gross error that directly resulted in the Air
Force’s determination to pursue a sole-source award for the
BBA-SME requirement. After the Air Force cancelled the GEITA
plan, it initiated discussions with OSD regarding the option of
making a sole-source award based on urgency. See AR, Tab 16.kk.,
E-mail, Subject: Iraqi Contracting Debacle, Nov. 12, 2004
(stating “[the Air Force] has assured me that [it] should have a
contracting solution by COB today or Monday . . . specifically
mentioned ‘sole-sourcing’ and ‘urgent and compelling’ as options
on any new contract”). (WorldWide
Language Resources, Inc.; SOS International Ltd., B-296984;
B-296984.2; B-296984.3; B-296984.4; B-296993; B-296993.2;
November 14, 2005) (pdf)
Although the overriding mandate of the Competition in
Contracting Act of 1984 (CICA) is for full and open competition
in government procurements obtained through the use of
competitive procedures, 10 U.S.C. sect. 2304(a)(1)(A) (2000),
CICA permits noncompetitive acquisitions in certain
circumstances, such as when the services needed are available
from only one responsible source or when the agency’s need for
the services is of such an unusual and compelling urgency that
the agency would be seriously injured unless permitted to limit
the number of sources solicited. 41 U.S.C. sections 253(c)(1),
(c)(2) (2000). When an agency uses noncompetitive procedures
under sect. 253(c)(1) or (c)(2), it is required to execute a
written J & A with sufficient facts and rationale to support the
use of the cited authority. See 41 U.S.C. sect. 253(f)(1)(A),
(B); Federal Acquisition Regulation (FAR) sections
6.302-1(d)(1), 6.302‑2(c)(2), 6.303, 6.304. Our review of an
agency’s decision to conduct a sole‑source procurement focuses
on the adequacy of the rationale and conclusions set forth in
the J & A; where the J & A sets forth a reasonable justification
for the agency’s actions, we will not object to the award.
Global Solutions Network, Inc., B‑290107, June 11, 2002, 2002
CPD para. 98 at 6. However, noncompetitive procedures are not
justifiable where the agency created the need for the
sole-source award through a lack of advance planning. 41 U.S.C.
sect. 253(f)(5)(A). The justification for the sole-source award
here is reasonable, and there is no basis for finding a lack of
advance planning. As described in the facts above, and as
referenced in the J & A, Chapman’s protest of the award led to
the stay of contract performance. This stay prevented Greenleaf
from transitioning into contract performance as MCB’s contract
approached the end of its transition period, as had been
reasonably contemplated under the procurement scheme.
Consequently, the agency would shortly have no contractor
performing the M & M services. These circumstances together with
the agency’s determination that Chapman lacked the readiness to
perform the services, and not a lack of advance planning, led to
the agency’s decision to award the sole-source bridge contract.
(Chapman Law Firm Company, LPA,
B-296847, September 28, 2005) (pdf)
Total protests that the agency's award of the four contracts on
a noncompetitive basis for sandbags was improper. The
Competition in Contracting Act of 1984 (CICA) provides for the
use of noncompetitive procedures where an agency's need for the
property or services is of such an unusual and compelling
urgency that the United States would be seriously injured unless
the agency is permitted to limit the number of sources from
which it solicits proposals. 10 U.S.C. 2304(c)(2) (2000).
Although CICA requires that the agency request offers from as
many potential sources as is practicable under the
circumstances, 10U.S.C. 2304(e); see Federal Acquisition
Regulation (FAR) 6.302(c)(2), an agency may still limit the
procurement to the only firm it reasonably believes can properly
perform the work in the available time. McGregor Mfg. Corp. ,
B-285341, Aug. 18, 2000, 2000 CPD 151 at 6; Hercules Aerospace
Co. , B-254677, Jan. 10, 1994, 94-1 CPD 7 at 3. We will object
to the agency's determination only where the decision lacks a
reasonable basis. Signals & Sys., Inc. , B-288107, Sept. 21,
2001, 2001 CPD 168 at 12. In this regard, a military agencys
assertion that there is a critical need related to human safety
and which affects military operations carries considerable
weight. McGregor Mfg. Corp. , supra , at 7. The reasonableness
of the contracting officers judgments must be considered in the
context of the time when they were made and the information that
was available at that time. Equa Indus., Inc. , B-257197, Sept.
6, 1994, 94-2 CPD 96 at 3 n.1. We find the contracting officer
had a reasonable basis for the noncompetitive awards. The basic
undisputed facts known to the contracting officer at the time he
decided that it would be necessary to make noncompetitive
awards, providing for delivery of the sandbags in March 2005,
were: (1) the demand for sandbags had increased over the past
year in support of Operations Enduring Freedom and Iraqi
Freedom, (2) sandbags that were being used in Iraq were
deteriorating at an unexpectedly fast rate, (3) the contractor
that had received the largest share of the award under the
previous contract for sandbags--that is, Total--was delinquent
in its deliveries and its performance had been suspended because
of concerns about the compliance with the contracts HUBZone and
domestic manufacturing requirements, and (4) prior awards for
this item were set aside 100 percent for HUBZone firms by the
SBA. In view of the fact that the sandbags were reasonably found
critical to successful military operations, the contracting
officer reasonably determined that the requirement was urgent
and that the procurement process must be expedited through the
multiple noncompetitive awards. Total claims that the
urgency-based noncompetitive contracts were caused by a lack of
advance procurement planning and by the agency's decision to
obtain these sandbags only from HUBZone manufacturers. The
record does not establish that a lack of advance procurement
planning was the cause of this urgent requirement; instead, the
record shows that the urgency of the requirement was caused by
the unexpected rapid deterioration of sandbags, increased demand
for sandbags in Iraq, and the performance problems on Totals
current contract. The record also does not show that the urgency
here was caused by the agency's determination that the sandbag
requirement should be set aside for certified HUBZone firms,
given that four HUBZone firms have been found that are able to
satisfy the agencys urgent delivery requirements. In any case,
FAR 19.1306 provides express authority to make noncompetitive
awards to HUBZone concerns. (Total
Industrial & Packaging Corporation, B-295434, February 22,
2005) (pdf)
Our review of the agency's decision
to conduct a sole-source procurement focuses on the adequacy of
the rationale and conclusions set forth in the J&A. When the J&A
sets forth a reasonable justification for the agency's actions,
we will not object to the award. Global Solutions Network, Inc.,
supra, at 6; Diversified Tech. and Servs. of Virginia, Inc.,
B-282497, July 19, 1999, 99-2 CPD P: 16 at 3. Our review of the
record shows that several of the agency's reasons for concluding
that only IA's system can meet its needs constitute a reasonable
justification for the agency's decision to procure this system
on a sole-source basis. (McKesson
Automation Systems, Inc., B-290969.2; B-290969.3, January
14, 2003) (txt
version)
The agency’s actions here were reasonable. First, there is no evidence of a general
lack of advance planning. As noted, the agency initiated this procurement 18 months
ago, and anticipated acquiring the halfway-house services before the end of 2001.
This planning was thwarted by delays in the evaluation, the filing of two protests,
and the termination of the awarded contract due to irregularities in the procurement.
Thus, while the agency’s planning ultimately was unsuccessful, this was due to
unanticipated events, not a lack of planning. (Bannum,
Inc., B-289707, March 14, 2002; (pdf); (Exception 2))
Protest that agency improperly
awarded requirement on a sole-source basis because it determined
that only one firm could meet its requirements is sustained
where record shows that another potential vendor was given an
incorrect understanding of the agency's requirements; agencies
are required to provide potential sources an opportunity to
demonstrate their ability to meet the agency's requirements
based on an accurate portrayal of the agency's needs. (Lockheed
Martin Systems Integration--Owego, B-287190.2; B-287190.3,
May 25, 2001)
In this regard, a military agency's
assertion that there is a critical need related to human safety
and which impacts military operations carries considerable
weight. Id. at 3; see also BlueStar Battery Sys. Corp.,
B-270111.2, B-270111.3, Feb. 12, 1996, 96-1 CPD para. 67 at 3.
Here, the Army reasonably determined that it had an urgent need
for 273 deswirl ducts and reasonably limited the procurement to
GE, the only firm the Army believed could fulfill the
requirement within the available time. (McGregor
Manufacturing Corporation, B-285341, August 18, 2000)
Protest that agency purchase
order was, in effect, an improper sole-source award is sustained
where the record shows that the Federal Supply Schedule contract
against which the agency attempted to place its order had
expired, and no replacement contract was in place at the time of
the order. (DRS
Precision Echo, Inc., B-284080; B-284080.2, February 14,
2000)
In our view, the J&A
provides an adequate rationale and conclusions to support the
3-month contract extension with six 1-month options at issue.
Although Diversified argues that the agency has been moving too
slowly and that its current situation was caused by a lack of
advance planning, the record demonstrates that the delays have,
in fact, been caused in part by the agency's efforts to plan for
the long term rather than to opt for a short-term
"fix." (Diversified
Technology & Services of Virginia, Inc., B-282497, July
19, 1999) |