In September
2006, the Navy announced its intention to conduct a
public-private competition pursuant to OMB Circular A-76 for
performance of non-guard security support services at government
installations nationwide; these services are currently being
performed by approximately 460 civilian and 1480 military
personnel. Solicitation No. N69450-07-R-0054 was issued in
connection with this pending competition, and Mr. Myatt was
designated as the ATO responsible for developing and submitting
an agency tender pursuant to the solicitation requirements.
On February 8, 2008, prior to the solicitation’s initial closing
date, the ATO submitted a protest to this Office, challenging
certain provisions of the solicitation which mandated a
particular method for calculating the costs of performance by
the government’s most efficient organization (MEO). The ATO
maintained that the solicitation’s cost calculation provisions
were illogical and unfair. Following submission of that protest,
this Office conducted various telephone conference calls with
the ATO, the ATO’s counsel, agency counsel, and the contracting
officer. During these calls, agency counsel advised our Office
that the agency had extended the solicitation’s closing date to
March 20, and was further considering whether it would amend the
solicitation provisions regarding calculation of MEO costs.
Accordingly, we dismissed the ATO’s February 8 protest. Clark E.
Myatt, B-311234, Mar. 6, 2008. On March 19, the ATO submitted
this protest, again challenging, among other things, the
solicitation’s cost methodology for comparing the MEO’s costs
with private offerors’ costs, and noting that the agency had
neither addressed the ATO’s previously identified concerns, nor
further extended the solicitation’s March 20 closing date.
By letter to our Office dated April 3, the agency states that it
did not receive any acceptable private sector offers in response
to the solicitation. Accordingly, the agency maintains that “the
MEO cannot suffer any competitive prejudice” from the contested
terms of the solicitation under which the competition was to be
conducted. We agree. In situations where no acceptable private
sector offers are submitted, OMB Circular A-76 directs that the
agency must do one of two things: revise and reissue the
solicitation, or implement the agency tender. OMB Circular A-76,
attach. B, sect. D.4.d (May 29, 2003). Under either alternative,
there is no prejudice to the ATO resulting from the terms of the
previously issued solicitation.[3] Since competitive prejudice
is a necessary element of any viable protest, we have no basis
to further review the ATO’s allegations. See, e.g., OK Produce;
Coast Citrus Distrib., B-299058, B‑299058.2, Feb. 2, 2007, 2007
para. CPD 31 at 6; CRAssociates, Inc., B‑282075.2, B‑282075.3,
Mar. 15, 2000, 2000 CPD para. 63 at 10. (Clark
E. Myatt, Agency Tender Official, B-311234.2, April 15,
2008) (pdf)
Prejudice is an essential element of every viable protest
and, where it is not demonstrated or otherwise evident, we will not sustain a
protest allegation, even where the record shows that the agency’s actions were
arguably improper. GC Servs. Ltd.
P’ship, B-298102, B-298102.3, June 14, 2006, 2006 CPD para. 96 at 7-8; Statistica,
Inc. v. Christopher, 102 F.3d 1577, 1681 (Fed. Cir. 1996). PM was not prejudiced by the
alleged evaluation improprieties. While
PM asserts that its proposal should have received a total technical score of
94.9 points, it does not challenge Four Seasons’s proposal’s score of 98 points,
or the agency’s substantive evaluation findings supporting its conclusion that
Four Seasons’s proposal was technically superior. Under these circumstances, even
if we agreed with PM regarding the agency’s evaluation of its proposal, there
would be no basis for questioning the award, since Four Seasons’s proposal still
would be technically superior to PM’s (or, at worst, technically equivalent),
and lower cost. These assertions thus do
not provide a basis for sustaining the protest.
(Sections deleted)
In any case, as noted, PM’s evaluated cost
was $71,351,906, while the awardee’s was $68,122,022.65, for a
difference of $3,229,883.35, or approximately 4.4 percent. The
record also shows that, in preparing its proposal, PM applied a
[deleted] percent escalation rate for its SCA labor costs, AR
exh. F, at 3, while Four Seasons applied a [deleted] percent
escalation rate. Agency Supplemental Submission, Jan. 25, 2008,
at 6. Given the approximately 4.4 percent difference between the
firms’ prices, the record shows that the slight variance between
their escalation rates ([deleted] percent) could not have
affected the relative standing of their cost proposals.
Accordingly, PM was not prejudiced by the escalation provision.
GC Servs. Ltd. P’ship, supra. (PM
Services Company, B-310762, February 4, 2008) (pdf)
ACC raises a
number of objections to the evaluation of its proposal under
each evaluation factor. According to the protester, its proposal
was evaluated “in a manner that evidences a poorly structured,
subjective, and ill-designed evaluation process, which did not
offer a predefined variable measurement matrix with technically
sound measurement constructs having a uniform evaluative
process.” Protest at 1-2.The agency provided a detailed report
in response to the protest that specifically addressed each of
ACC’s numerous arguments. In its comments responding to the
report, ACC simply states that the agency’s report “further
substantiates the claim which was originally submitted by the
protester” but provides no specific rebuttal to any of the
agency’s explanation. Protester’s Comments. We have reviewed the
agency’s substantive response to the protester’s initial
allegations and, in the absence of any evidence or arguments to
the contrary from the protester, we have no basis to conclude
that the agency’s evaluation was unreasonable. Industrial Prop.
Mgmt., B-291336.2, Oct. 17, 2003, 2003 CPD para. 205 at 5.
Moreover, we think the record shows that there was no prejudice
to ACC arising from any alleged evaluation errors. In this
regard, even if we assume that ACC’s proposal should have been
assigned the highest possible rating under each non-price
factor, based on the record, we see no reasonable possibility
that the contracting officer would have concluded that ACC’s
proposal was worth paying more than twice the price of Svanaco’s
proposal, or the proposal of the second-lowest-priced,
similarly-rated offeror. Prejudice is an essential element of
every viable protest, and where none is shown or is otherwise
evident, we will not sustain a protest. Joint Mgmt. & Tech.
Servs., B-294229, B-294229.2, Sept. 22, 2004, 2004 CPD para. 208
at 7. (American Cybernetic
Corporation, B-310551.2, February 1, 2008) (pdf)
We find that SERAPH was not prejudiced by the alleged improper
evaluation of its two key personnel since, even if we agreed
with SERAPH, it would not be in line for award. More
specifically, the contemporaneous evaluation record shows that
SERAPH’s proposal was not selected for award due to the agency’s
evaluation conclusion that the proposal represented a moderate
risk under the understanding of work evaluation factor, and not
because the agency determined that SERAPH’s proposed personnel
had inadequate experience. In this regard, the agency
specifically stated in the competitive award memorandum that
SERAPH’s proposed staff has the experience and training
necessary to perform the contract. AR, Tab 9, at 15. While the
memorandum includes the comments (stated above) concerning the
two proposed personnel, the agency nevertheless concluded that
“the noted risks are not significant to warrant an overall
elevated risk rating.” Id. In other words, SERAPH’s green/low
risk rating under the relevant past experience/proposed
personnel factor was unaffected by the agency’s observations
regarding the two personnel. (SERAPH
Inc., B-297452, January 12, 2006) (pdf)
We will deny a protest where, notwithstanding that a
solicitation overstated an agency’s requirements, the protester
has not shown competitive prejudice; that is, unless the
protester demonstrates that, but for the agency’s actions, it
would have had a substantial chance of receiving the award (or,
in these circumstances, submitting an acceptable quotation).
McDonald‑Bradley, B‑270126, Feb. 8, 1996, 96‑1 CPD para. 54 at
3; see Statistica, Inc. v. Christopher, 102 F.3d 1577, 1581
(Fed. Cir. 1996). Here, the Navy has only supported a
requirement for a single sample report, not the multiple sample
reports specified in the RFQ. Nevertheless, and even after our
Office identified the issue, IVI has made no attempt to show
that it could have met the agency’s requirement for a single
report, regardless of the time provided. As such, IVI has not
been competitively prejudiced by the requirement for multiple
reports in the RFQ. (Information
Ventures, Inc., B-297225, December 1, 2005) (pdf)
While, as noted above, the contemporaneous documentation and
hearing record evidence that the unacceptability of Cogent’s
proposal under the design subfactor was based upon a number of
evaluated weaknesses, the record also shows that the PEB
considered some weaknesses to be more material than others. That
is, the hearing testimony evidenced that the PEB, in its
contemporaneous deliberations, considered weaknesses
assessed--in Cogent’s design--with respect to its proposed
scanner and its peak loading factor to be more significant than
other identified weaknesses, even though the PEB did not
specifically rank weaknesses.[10] See, e.g., TR at 47-50.
Moreover, the Army admitted in its report that some of the
weaknesses identified in the final consensus evaluation report
actually concerned Cogent’s earlier proposals and not the firm’s
final revised proposal. See AR at 29-34. The record shows that
removing Cogent’s proposed scanner from the list of evaluated
weaknesses under the design subfactor would require the agency
to reconsider whether Cogent’s proposal remained unacceptable in
light of the other evaluated weaknesses. Accordingly, we find
from this record that there is a reasonable possibility, under a
fair evaluation of Cogent’s final proposal under this subfactor,
that Cogent’s proposal could be found acceptable. If Cogent’s
proposal were found acceptable, the agency then would be
required to perform a price/technical tradeoff to determine
whether Cogent’s lower proposed price reflected the best value
to the government. (Cogent
Systems, Inc., B-295990.4; B-295990.5, October 6, 2005) (pdf)
Med Optical also asserts that the agency’s evaluation of
its proposal, in the areas of personnel qualifications and
demonstrated capability, was unreasonable. We need not address
these issues since the record shows that the protester was not
prejudiced by any alleged errors in these areas. Our Office will
not sustain a protest unless the protester demonstrates a
reasonable possibility that it was prejudiced by the agency’s
actions, that is, unless the protester demonstrates that, but
for the agency’s actions, it would have had a substantial chance
of receiving the award. McDonald-Bradley, B-290126, Feb. 8,
1996, 96-1 CPD 54 at 3; see Statistica, Inc. v. Christopher, 102
F.3d 1577, 1581 (Fed. Cir. 1996). Here, even if Med Optical had
received perfect scores in both areas where it challenges the
agency’s evaluation, its proposal would still be lower rated
technically and substantially higher priced than the awardee’s.
Accordingly, Med Optical would not be in line for award even if
it prevailed in its challenge to the evaluation of its proposal.
Marwais Steel Co., B‑254242.2; B-254242.3, May 3, 1994, 94-1 CPD
291 at 7. (Med Optical,
B-296231.2; B-296231.3, September 7, 2005) (pdf)
Here, we agree with DOE that the record establishes that
even if RCS were correct in its assertions, there was no
possible prejudice to the protester. We first note that RCS has
not protested the evaluation of LATA/Parallax's proposal or the
evaluation of its own proposal under the key personnel
evaluation criterion, and has abandoned its protest concerning
the evaluation under the experience and past performance
evaluation criteria. With regard to the remainder of RCS's
protest, the record reflects that the agency downgraded the
protester's proposal under the technical approach, integration
and schedule, and project and risk management criteria because
of the agency's determination that the protester's proposed
approach posed certain risks. However, even if RCS had received
the maximum score under each of these criteria, its overall
score would have increased to only 835 points, which is still
lower then the awardee's proposal's technical score of 860
points. [4] Given this, the fact that the protester's evaluated
cost was47 million higher than the awardee's, and that the
protester has made no claim that it would have been able to
reduce its proposed costs, we fail to see how the protester was
prejudiced by the alleged errors in the agency's evaluation, or
how the protester would have a reasonable possibility for award
if the solicitation had been amended and the protester given an
opportunity to submit a proposal with a different technical
approach "that would have complied" with what the protester
argues was "the specified design." See EBA Ernest Bland Assoc. ,
B-270496, Mar. 13, 1996, 96-1 CPD 148 at 6. (Restoration
and Closure Services, LLC, B-295663.6; B-295663.12, April
18, 2005) (pdf)
In essence, UVC was already competing with an understanding that
a schedule as long as the 360-day schedule that UVC proposed
would be acceptable; therefore, UVC was not competitively
prejudiced by the agency's acceptance of LS's lower-priced
proposal and a delivery schedule of 279 days, which was still
shorter than UVC's proposed schedule. Our Office will not
sustain a protest unless the protester demonstrates a reasonable
possibility that it was prejudiced by the agency's actions; that
is, unless the protester demonstrates that, but for the agency's
actions, it would have had a substantial chance of receiving the
award. McDonald Bradley , B-270126, Feb. 8, 1996, 96-1 CPD 54 at
3; see Statistica, Inc. v. Christopher , 102 F.3d 1577, 1581
(Fed. Cir. 1996). Although UVC argues that allowing LS to have a
longer schedule amounts to unequal treatment, UVC has failed to
demonstrate competitive prejudice with respect to this ground of
protest. (United Valve Company,
B-295879, April 25, 2005) (pdf)
It is not improper for an agency to accept an expired offer
without reopening negotiations where acceptance is not
prejudicial to the competitive system. Krug Life Scis., Inc. ,
B-258669.2, Feb. 22, 1995, 95-1 CPD 111 at 4; The Fletcher
Constr. Co., Ltd. , B-248977, Oct. 15, 1992, 92-2 CPD 246 at 6.
Even where, as here, the acceptance period has expired on all
offers, an agency may allow the successful offeror to waive the
expiration of its proposal acceptance period without reopening
negotiations and make award on the basis of the offer as
submitted. The Fletcher Constr. Co., Ltd. , supra . Here,
although the acceptance of Gentex's expired offer permitted
Gentex to waive the expiration of the offer, because no changes
were made to Gentex's proposal, this waiver did not prejudice
the competitive system or provide Gentex with an unfair
competitive advantage. Although Scot asserts that it can now
provide a lower price to the agency, the agency was not required
to reopen the competition when proposals expired to allow the
offerors to revise their proposals. See BioGenesis Pac., Inc. ,
B-283738, Dec. 14, 1999, 99-2 CPD 109 at 6 (agency not required
to consider protester's revised proposal submitted after
proposals expired but could make award based on unchanged
expired proposals). (Scot, Inc.,
B-295569; B-295569.2, March 10, 2005) (pdf)
In short, we agree with SBA that it erred in considering UEA for
a Certificate of Competency (COC) because the COC process is not
applicable to noncompetitive 8(a) acquisitions. SBA Report at 2;
SBA Supplemental Report at 1-2. Although SBA failed to follow
applicable regulations once CNCS determined that UEA was not
responsible and referred the matter to SBA, we fail to see, and
UEA has not explained, how it was prejudiced by this error. That
is, the matter of UEA's responsibility was considered by SBA as
part of its COC process, with SBA determining not to issue a COC
to UEA. As such, it is clear from the record that SBA ultimately
agreed with CNCS's determination regarding UEA's responsibility,
with the end result remaining the same--CNCS does not contract
with SBA for performance of the services by UEA. In short,
whether the matter of UEA's responsibility was considered by SBA
through the process provided for by the regulations that
contemplates a determination as to whether SBA agrees with the
procuring agency's nonresponsibility determination, or whether
the matter of UEA's responsibility was considered by SBA through
the COC process, nothing in the record indicates that the
process or result would have differed in a manner that would
have favored UEA--SBA considered the matter, and concluded that
it did not disagree with CNCS's nonresponsibility determination.
Thus, it is apparent that SBA would not have appealed the CNCS
determination not to contract with UEA under the 8(a) program,
which was the only appropriate action under applicable
regulations that could be taken to contest the procuring
agency's determination here. (United
Enterprise & Associates, B-295742, April 4, 2005) (pdf)
In addressing organizational conflicts of interest, our Office
has held that, where the record establishes that a conflict
exists, we will presume that the protester was prejudiced,
unless the record establishes the absence of prejudice. See The
Jones/Hill Joint Venture , B-286194.4 et al. , Dec. 5, 2001,
2001 CPD 194; TDF Corp. , B-288392, B288392.2, Oct. 23, 2001,
2001 CPD 178. Similarly, where, as here, the record establishes
that a procurement official was biased in favor of one offeror,
and was a significant participant in agency activities that
culminated in the decisions forming the basis for protest, we
believe that the need to maintain the integrity of the
procurement process requires that we sustain the protest unless
there is compelling evidence that the protester was not
prejudiced. See Department of the Air Force--Request for Recon.
, B-234060, B234060.2, Sept. 12, 1989, 89-2 CPD 228. As
discussed below, the agency has failed to provide compelling
evidence that Druyun's bias in favor of Boeing did not influence
the various decisions leading to the award of the SDD contract
to Boeing. (Lockheed Martin
Corporation, B-295402, February 18, 2005) (pdf)
We will not sustain a protest absent a showing of competitive
prejudice, that is, unless the protester demonstrates that, but
for the agency's actions, it would have a substantial chance of
receiving award. McDonald-Bradley , B-270126, Feb. 8, 1996, 96-1
CPD 54 at 3; see Statistica, Inc. v. Christopher , 102 F.3d
1577, 1581 (Fed. Cir. 1996). Here, CourtSmart has not stated or
shown that it could or would have modified its quotation had it
known of the agency's interpretation of the "fieldtested"
requirement. Although CourtSmart argues that it was prejudiced
because it was not given an opportunity to submit a revised
quotation, [7] it does not state that the revisions it sought to
make addressed the "field-tested" requirement. To establish
prejudice in circumstances such as here, the protester must show
that it would have submitted a different quotation that would
have had a reasonable possibility for award had it known of the
agency's interpretation of this provision. See Geo-Seis
Helicopters, Inc. , B-294543, Nov. 22, 2004, 2004 CPD ___ at
3-4; Brown & Root, Inc. and Perini Corp., a joint venture ,
B270505.2, B270505.3, Sept. 12, 1996, 962 CPD 143 at 10-11. (CourtSmart
Digital Systems, Inc., B-292995.8, December 9, 2004) (pdf)
With
regard to AVCARDs protest of the evaluation and source selection
decision, our Office will not sustain a protest unless the
protester demonstrates a reasonable possibility of prejudice,
that is, unless the protester demonstrates that, but for the
agencys actions, it would have had a substantial chance of
receiving the award. McDonald-Bradley , B-270126, Feb. 8, 1996,
96-1 CPD 54 at 3. Here, the agency rated AVCARDs proposal lower
than MSCs under all of the non-price evaluation factors. Given
that AVCARDs proposal was significantly higher priced than MSCs,
in order to prevail in its protest, AVCARD would have to
demonstrate that the agency should have rated AVCARDs proposal
higher than MSCs proposal in at least one of the non-price
evaluation areas. Based on our review of the record, AVCARD
cannot demonstrate this, and therefore cannot establish the
requisite prejudice. (AVCARD,
B-293775.2, December 30, 2004) (pdf)
SWR asserts that the agency improperly failed to take into
account the relative weights of the evaluation factors in
scoring the proposals. The agency concedes that it arrived at
total evaluation scores for the proposals by averaging the
factor and subfactor scores without taking into account the
weights of the factors and subfactors. However, there is no
basis for finding that correctly weighted scoring would have had
any significant impact on the award decision. For example, the
agency demonstrates in its report that under one reasonable
weighting scheme the protester's total score would have
increased from 77 to 78.2 points, while the awardee's total
score would have increased from 94 to 94.6. AR, Tab 23, at 1-2.
SWR questions the weighting scheme the agency uses, but does not
identify any other scheme that would significantly change the
scoring to SWR's advantage. Indeed, since Demosthenes's proposal
was scored significantly higher than SWR's under every
individual evaluation factor and subfactor, it is reasonable to
conclude that its rating would remain significantly higher than
the protester's under any rational scheme. We conclude that SWR
has failed to show that it was competitively prejudiced by the
agency's error; our Office will not sustain a protest absent a
showing of such prejudice. See McDonald-Bradley , B270126, Feb.
8, 1996, 96-1 CPD 54 at 3; see Statistica, Inc. v. Christopher ,
102 F.3d 1577, 1581 (Fed. Cir. 1996). (SWR,
Inc., B-294835; B-294835.2, December 20, 2004) (pdf)
Although we recognize that it is the agency's obligation to
ensure that prospective contractors are registered in the CCR
database before award, see FAR 4.1102(a), Kloppenburg has failed
to establish that it was prejudiced by the award to Alutiiq
before the firm's Chesapeake office was registered. Competitive
prejudice is necessary before we will sustain a protest; where
the record does not demonstrate that the protester would have
had a reasonable chance of receiving award but for the agency's
actions, we will not sustain a protest, even if deficiencies in
the procurement process are found. McDonald-Bradley , B-270126,
Feb. 8, 1996, 96-1 CPD 54 at 3; see Statistica, Inc. v.
Christopher , 102 F.3d 1577, 1581 (Fed. Cir. 1996). Here, DoDEA
made award to Alutiiq only after confirming that Alutiiq's
Chesapeake office would promptly register in the CCR database,
and Alutiiq did so. Although the agency should have awaited the
registration of Alutiiq's Chesapeake office in the CCR database
before making award, Kloppenburg has failed to establish that it
was prejudiced by this error. See Graves Constr., Inc. ,
B-294032, June 29, 2004, 2004 CPD 135 at 3. (Kloppenburg
Enterprises, Inc., B-294709, December 10, 2004) (pdf)
Cross Match asserts that incorporating the noncompeted items at
the quoted prices into Identix's BPA was inconsistent with the
RFQ requirement that the prices for these items be equal to or
lower than the prices for the evaluated items. We agree. DHS
concedes that Identix's quoted pricing for some of the
noncompeted items from Identix's GSA schedule exceeded the
pricing for the evaluated items, but asserts that this was not a
violation because the noncompeted item pricing did not need to
meet the "equal or less" requirement until after the negotiation
of pricing, which had not yet occurred, and because no orders
had been issued. DHS Comments, June 8, 2004, at1819; DHS
Comments, June 15, 2004, at 2. However, Identix's quotation was
noncompliant with that pricing restriction when the BPA was
awarded to Identix on September 30. While DHS may have intended
subsequently to modify the BPA to remove the improper pricing,
this does not alter the fact that the BPA as awarded included
noncompliant pricing. As a result, the issuance of the BPA was
inconsistent with the basis upon which quotations were issued
and thus improper. It is generally improper for an agency to
solicit quotations on one basis and then make award on a
materially different basis. See Cellular One , B-250854, Feb.
23, 1993, 93-1 CPD 169 at 4; Ann Riley & Assocs., Ltd. ,
B241309.2, Feb. 8, 1991, 91-1 CPD 142 at4. This is the general
rule, and it is a fundamental one in our federal procurement
system, but it may be waived if competitors are not prejudiced
thereby. See Cellular One , supra ; Ann Riley & Assocs., Ltd. ,
supra . Similarly, our Office will not sustain a protest unless
there is a reasonable possibility of prejudice, that is, unless
the protester demonstrates that, but for the agency's improper
actions, it would have had a substantial chance of receiving
award. McDonald-Bradley , B-270126, Feb. 8, 1996, 96-1 CPD 54 at
3; see Statistica, Inc. v. Christopher , 102 F. 3d 1577, 1581
(Fed. Cir. 1996). Cross Match argues that it was prejudiced
because, by quoting pricing for the noncompeted items from
Identix's GSA schedule that was higher than permitted by
section2.1, Identix was in a position to gain an improper
advantage by shifting its costs to the unevaluated pricing and
reducing its evaluated pricing. (Cross
Match Technologies, Inc., B-293024.3; B-293024.4, June 25,
2004) (pdf)
The parties agree that, during discussions, the protester
suggested the possibility of savings through the use of smaller
concrete blocks. The agency considered this suggestion and
determined that it could be acceptable. It then held subsequent
discussions in which the agency concedes that the "CO
[contracting officer] apparently raised the block size issue
with the other offerors as part of the discussions seeking cost
savings in the precast concrete portion of the Project."
Memorandum of Law at 302. The protester contends that the use of
the smaller sized block was one of unique innovation that should
not have been disclosed to other offerors during discussions.
The agency contends that use of the small block size involved a
change in the specifications that the agency was required to
communicate to the other competitors in order to uphold fair
competition. It is not necessary to resolve this dispute,
however; if the protester is correct, it has nonetheless failed
to demonstrate competitive prejudice. Even assuming that the
disclosure were improper, the agency argues that the protester
suffered no prejudice because both the protester's initial and
final proposals are based on using the concrete block sizes
described in the RFP, not the smaller block sizes that the
protester mentioned during discussions. Memorandum of Law at
305-06. The agency also submits that the awardee, similarly, did
not propose the use of smaller concrete blocks in either its
original or revised proposals. Id. at 305. Thus the agency's
actions in disclosing to other competitors the possibility of
cost savings through the use of smaller concrete blocks had no
effect on the protester's chance of receiving the award; had no
disclosure occurred, the protester still would not have received
the award. (DuRette Construction
Company, Inc., B-294379, September 15, 2004) (pdf)
Cross Match asserts that incorporating the noncompeted items at
the quoted prices into Identix's BPA was inconsistent with the
RFQ requirement that the prices for these items be equal to or
lower than the prices for the evaluated items. We agree. DHS
concedes that Identix's quoted pricing for some of the
noncompeted items from Identix's GSA schedule exceeded the
pricing for the evaluated items, but asserts that this was not a
violation because the noncompeted item pricing did not need to
meet the "equal or less" requirement until after the negotiation
of pricing, which had not yet occurred, and because no orders
had been issued. DHS Comments, June 8, 2004, at1819; DHS
Comments, June 15, 2004, at 2. However, Identix's quotation was
noncompliant with that pricing restriction when the BPA was
awarded to Identix on September 30. While DHS may have intended
subsequently to modify the BPA to remove the improper pricing,
this does not alter the fact that the BPA as awarded included
noncompliant pricing. As a result, the issuance of the BPA was
inconsistent with the basis upon which quotations were issued
and thus improper. It is generally improper for an agency to
solicit quotations on one basis and then make award on a
materially different basis. See Cellular One , B-250854, Feb.
23, 1993, 93-1 CPD 169 at 4; Ann Riley & Assocs., Ltd. ,
B241309.2, Feb. 8, 1991, 91-1 CPD 142 at4. This is the general
rule, and it is a fundamental one in our federal procurement
system, but it may be waived if competitors are not prejudiced
thereby. See Cellular One , supra ; Ann Riley & Assocs., Ltd. ,
supra . Similarly, our Office will not sustain a protest unless
there is a reasonable possibility of prejudice, that is, unless
the protester demonstrates that, but for the agency's improper
actions, it would have had a substantial chance of receiving
award. McDonald-Bradley , B-270126, Feb. 8, 1996, 96-1 CPD 54 at
3; see Statistica, Inc. v. Christopher , 102 F. 3d 1577, 1581
(Fed. Cir. 1996). Cross Match argues that it was prejudiced
because, by quoting pricing for the noncompeted items from
Identix's GSA schedule that was higher than permitted by
section2.1, Identix was in a position to gain an improper
advantage by shifting its costs to the unevaluated pricing and
reducing its evaluated pricing. We find no reasonable
possibility of prejudice to Cross Match. (Cross
Match Technologies, Inc., B-293024.3; B-293024.4, June 25,
2004) (pdf)
Where a proposal deviates from a specification by a negligible
amount, the agency may waive the requirement, so long as it did
not prejudice other vendors. Gulf Copper Ship Repair, Inc.,
B-292431, Aug. 27, 2003, 2003 CPD ¶ 155 at 4 (deviation of 1
inch water depth specification properly waived by agency);
Magnaflux Corp., B-211914, Dec. 20, 1983, 84-1 CPD ¶ 4 at 3-4
(agency permitted to waive deviation from specification which
was minor and did not result in prejudice); Champion Road Mach.
Int’l Corp., B-200678, July 13, 1981, 81-2 CPD ¶ 27 at 4
(deviation of two horsepower is minor and should have been
waived by agency where price, quantity, quality, and delivery
were not affected). In our view, since the approximately
one-half mile deviation from the 25-mile requirement appears
minor on its face and, according to SSA, did not diminish the
purpose of the restriction, it could reasonably be viewed by SSA
as negligible. The deviation therefore was waivable, so long as
First Federal, the only other vendor in the competition, was not
prejudiced. There is no evidence of competitive prejudice. In
this regard, while First Federal asserts that the waiver gave
ISC an “unfair competitive advantage,” (Protest at 9), it does
not show how it would have altered its proposal to improve its
competitive standing had it been given an opportunity to respond
to the relaxed requirement. See Copper Ship Repair, Inc., supra.
For example, it does not assert that knowledge of the relaxation
would have affected its price or the location of its proposed
facility. Given the absence of any evidence of prejudice to
First Federal, we conclude that the agency had a defensible
legal position and, thus, that the protest was not clearly
meritorious. It follows that there is no basis to recommend
reimbursement of protest costs in this case. (First
Federal Corporation--Costs, B-293373.2, April 21, 2004) (pdf)
Contracting agencies have broad discretion to take corrective
action where they determine that such action is necessary to
ensure fair and impartial competition. RS Info. Sys., Inc.,
B-287185.2, B-287185.3, May 16, 2001, 2001 CPD ¶ 98 at 4. Where
the corrective action taken by an agency is otherwise
unobjectionable, a request for revised price proposals is not
improper merely because the awardee’s price has been exposed.
Strand Hunt Constr., Inc., B-292415, Sept. 9, 2003, 2003 CPD ¶
167 at 6. We have recognized a limited exception to that rule
where the record establishes that there was no impropriety in
the original evaluation and award, or that an actual impropriety
did not result in any prejudice to offerors, reopening the
competition after prices have been disclosed does not provide
any benefit to the procurement
system that would justify compromising the offerors’ competitive
positions. Hawaii Int’l Movers, Inc., B‑248131, Aug. 3, 1992,
92-2 CPD ¶ 67 at 6, recon. denied, Gunn Van Lines; Dept. of the
Navy--Recon., B‑248131.2, B‑248131.4, Nov. 10, 1992, 92-2 CPD ¶
336. Here, while the agency correctly determined that there was
a deficiency in the RFP, there is nothing in the record to
establish, and the agency has not shown, a reasonable
possibility that any offeror was prejudiced by the deficiency.
In short, the record does not establish that the defective
solicitation resulted in the reasonable possibility of prejudice
to any of the offerors. Thus, given that SCG’s competitive
position has been compromised by disclosure of its price, there
is no benefit to the procurement system that would justify
reopening the competition. Hawaii Int’l Movers, Inc., supra.
Accordingly, we sustain the protest. By letter of today to the
Secretary of Homeland Security, we are recommending that SCG’s
award be reinstated. We also recommend that the agency reimburse
SCG its costs of filing and pursuing the protest, including
reasonable attorneys’ fees. 4 C.F.R. § 21.8(d)(1) (2003). SCG’s
certified claim for costs, detailing the time spent and the
costs incurred, must be submitted to the agency within 60 days
of receiving of our decision. 4 C.F.R. § 21.8(f)(1). (Security
Consultants Group, Inc., B-293344.2, March 19, 2004) (pdf)
Nowhere in its protest submissions does Frasca allege that the
“bundled” requirements precluded it from having a reasonable
chance for award. To the contrary, it identified in its response
to the “sources sought” notice and in its past performance
proposal two firms that it affirmatively stated it would be
teaming with to provide the training portion of the work, and
provided past performance information concerning one of these
firms, never suggesting to the Navy that the teaming
arrangements had not been finalized or that bundling was
impeding its ability to compete. Although Frasca now asserts
that the teaming arrangements with these firms “did not come to
final fruition,” Frasca does not contend that the discussions
failed due to the bundling restrictions. Protester's Comments at
6. Rather, it complains only that it did not have sufficient
time to submit a proposal when it was provided another
opportunity to compete under the amended RFP, because Frasca had
discontinued discussions with its potential teaming partners
when its past performance proposal was rejected in October as
untimely, and the Navy had established a short deadline for
proposal submissions. Thus, the record shows that to the extent
Frasca was unable to compete, it was due to the breakdown of
teaming discussions caused by Frasca's untimely proposal
submission, not by bundling. (Frasca
International, Inc., B-293299, February 6, 2004) (pdf)
In this instance, while the protester argues that the
bundling would adversely affect small business firms, many of
whom are currently performing work included in the bundled
procurement, the protester has failed to demonstrate that the
consolidation significantly inhibits or precludes its ability to
compete. In fact, FSI claimed that it can perform the entirety
of the bundled requirements. In this regard, FSI stated that it
responded to the “sources sought” notice “with full confidence
that we could perform all aspects of the contract and more” and
that “FSI is very qualified for this BPA,” and the record shows
that FSI, through SBA, attempted to noncompetitively obtain this
work under the 8(a) program. Protest at 8; Protester's Comments
at 8. We conclude, therefore, that the protester has not made a
showing of competitive prejudice as a result of the bundling of
the agency's office supply requirements. (Future
Solutions, Inc., B-293194, February 11, 2004) (pdf)
D.N. also complains that the evaluation of contractor
expertise was unequal. Here, D.N. argues that neither offeror
had all of the required certifications, which were necessary for
a blue rating, and thus Daston should only have received a
purple rating like D.N.[8] Although we agree with D.N. in this
regard, we see no prejudice to D.N. from this error. Daston was
still rated superior to D.N. in the two more important technical
factors, and was lower in price, so even if the contractor
expertise ratings were made equal, there is no reasonable basis
to conclude that D.N.’s proposal would have had a reasonable
probability of being selected for award. See J.A. Jones/Bell, A
Joint Venture, B-286458, B-286458.2, Dec. 27, 2000, 2001 CPD ¶
17 at 4 n.1.
D.N. also contends that the Army failed to raise during
discussions that the size of past projects was a concern in the
evaluation of past performance, or that its subcontractor’s past
performance under military contracts was limited to hardware
support. Although these issues were not specifically raised
during discussions, D.N. has not shown that it was prejudiced.
It does not argue that it would have, or could have, identified
contracts of a larger size, or that its subcontractor’s
references would have included other than contracts for hardware
support had these issues been raised, or that as a result of
discussions its proposal would have been found sufficiently
superior to Daston’s lower priced proposal to be selected for
award. Continental Serv. Co., B‑271754, B‑271754.2, July 30,
1996, 96-2 CPD ¶ 65 at 6. (D.N.
American, Inc., B-292557, September 25, 2003) (pdf)
Nevertheless, even if SPAWAR should not have accepted
Dell’s quotation as submitted and later permitted the firm to
“correct” it via modification of the BPA, there is no basis for
concluding that the agency’s actions prejudiced GTSI. In this
regard, our Office will not sustain a protest unless the
protester demonstrates a reasonable possibility of prejudice,
that is, unless the protester demonstrates that, but for the
agency’s actions, it would have had a substantial chance of
receiving the award. Parmatic Filter Corp., B-285288.3,
B-285288.4, Mar. 30, 2001, 2001 CPD ¶ 71 at 11; see Statistica,
Inc. v. Christopher, 102 F.3d 1577, 1581 (Fed. Cir. 1996). GTSI
has not shown, nor does the record otherwise indicate, that it
was prejudiced with respect to the monitor issue. The evaluated
price of GTSI’s quotation ($[DELETED]) already included the
price for the compliant monitors. Adjusting Dell’s price upward
(to $[DELETED]) to reflect the higher price (an additional
$[DELETED]) for the compliant Dell M992 19-inch and the Sony
GDM-FW900 24-inch monitors as indicated in Dell’s February 17
response, still leaves the award price lowest by a substantial
margin ($[DELETED]). Agency Memorandum to File, May 6, 2003, at
3. Further, even if SPAWAR had noted the ambiguity in Dell’s
quotation before award and had reopened discussions to resolve
it--which necessarily would have given GTSI the opportunity to
revise its price--there is no basis for concluding that it would
have lowered its price sufficiently to displace Dell as the
low-priced vendor. Given Dell’s advantage under the non-price
factors, we are unable to find that GTSI was prejudiced. (GTSI
Corp., B-292298; B-292298.2; B-292298.3, August 14, 2003) (pdf)
That said, where an agency determines that an item other
than the one specified in an RFQ will meet its needs, it
generally should amend the RFQ and reopen the competition.
U.S. Technology Corp., B-224372, Oct. 2, 1986, 86-2 CPD ¶
383 at 3. We will sustain a protest objecting to an
agency’s failure to amend an RFQ to clarify that products
other than a specified one will be considered only if the
protester establishes a reasonable possibility that it was
prejudiced by the agency’s failure to amend, however; that
is, where the protester offers some evidence that had it
known of the potential for competition, it would have
altered its quotation to its competitive advantage. See
Datastream Sys., Inc., B-291653, Jan. 24, 2003, 2003 CPD ¶
30 at 6. We have recognized the possibility of prejudice
where a protester that was the only vendor offering the
product specified in an RFQ alleges that it would have
lowered its price had it been aware of the potential for
competition, and where the vendor offering the specified
product alleges that it could have offered a different,
lower-priced, acceptable product had it been on notice
that the agency would consider equivalent items. U.S.
Technology Corp., supra, at 3. (Zarc
International, Inc., B-292708, October 3, 2003)
(pdf)
The protester has made a prima facie showing of
similarity between the work performed under the combat
arms range project and the project to be performed here,
which the Air Force has neither taken issue with nor
attempted to rebut. Even assuming that the agency
should have regarded the combat arms range project as
relevant and considered it in evaluating the protester's
past performance, however, we see no basis to conclude
that consideration of this contract would have resulted in
an increase in Wadsworth's past performance rating. In
this regard, prejudice is an essential element of a viable
protest, and we will sustain a protest only where a
reasonable possibility of prejudice is evident from the
record. Lithos Restoration, Ltd., B-247003.2, Apr. 22,
1992, 92-1 CPD ¶ 379 at 5-6. Here, Wadsworth's performance
on the missile alert facility project, which was over six
times greater in dollar value than the combat arms range
project, was rated as “at best” satisfactory. In addition,
only about a quarter of the value of the combat arms
contract was for work similar to the work to be
accomplished here, meaning that while the contract was
relevant, its relevance was limited. In light of these
factors, we see no reasonable possibility that the
contracting officer would have raised the protester's
overall past performance rating to very good based on its
performance on the latter project. (Wadsworth
Builders, Inc., B-291633, January 24, 2003) (txt
version)
The record here, which consists of, among other things,
the individual evaluator score sheets for the oral
presentations, does not contain any evidence that the
agency's evaluation of Innovative Management's oral
presentation was affected by Innovative Management's use
of copied transparencies rather than originals. For
example, while the record provides numerous statements
regarding the strengths and weaknesses of Innovative
Management's proposal and oral presentation, there is no
mention or any other indication that any of these
statements resulted from, or were somehow affected by,
Innovative Management's use of copied transparencies.
Accordingly, we fail to see how Innovative Management was
prejudiced by the agency's alleged error in not having
Innovative Management's original transparencies available
for use during its oral presentation. (Innovative
Management, Inc., B-291375, November 20, 2002) (txt
version)
We recognize that it could be argued that the failure to
exclude a firm with an alleged conflict of interest from
a competition is a defect in a solicitation that should
be challenged prior to the submission of proposals or
quotations. See 4 C.F.R. § 21.2(a)(1)
(2002). Solicitation provisions, however, are not
generally the vehicle for excluding firms with a
conflict of interest from competing for award; rather,
conflicts are generally handled on a case-by-case basis
without public notice through the solicitation.
Moreover, treating protests such as this one as
premature may avoid unnecessary litigation, since the
allegedly conflicted firm may not be the eventual
awardee, either because it loses the competition or
because the agency ultimately concludes that the firm
has an impermissible conflict of interest. See
Saturn Indus.--Recon., B-261954.4, July 19,
1996, 96-2 CPD ¶ 25 at 5. Unless the firm with
the alleged conflict of interest is actually selected
for award, the protester has not suffered any
competitive prejudice; we will not sustain a protest
absent a showing of such prejudice. McDonald-Bradley,
B-270126, Feb. 8, 1996, 96-1 CPD ¶ 54 at 3; see Statistica,
Inc. v. Christopher, 102 F.3 d 1577, 1581 (Fed. Cir.
1996). (REEP,
Inc., B-290688, September 20, 2002)
Competitive prejudice is a prerequisite to
sustaining a protest. Where the record does not demonstrate that, but for
the agency's actions, the protester would have had a reasonable chance of
receiving the award, our Office will not sustain a protest, even if a deficiency
in the procurement is found. McDonald-Bradley, B-270126, Feb. 8,
1996, 96-1 CPD ¶ 54 at 3; see Statistica, Inc. v. Christopher,
102 F.3d 1577, 1581 (Fed. Cir. 1996). Based on our review of the record,
we find that the denial of the Blue Team's request to use a decommissioned DD
963 destroyer as an at-sea test platform did not result in competitive prejudice
to the protester so as to warrant sustaining its protest in this regard. (Bath Iron Works Corporation, B-290470; B-290470.2, August 19, 2002)
The record shows, as discussed below, that the agency’s actual needs were for three separate contractors to perform the three solicited sales. If the RFP did not sufficiently indicate that three awards to three separate contractors was contemplated, it would be defective, in that multiple awards to the same contractor under the RFP would not satisfy the agency’s actual need to limit each awardee to a single task order. However, under an amended RFP with this defect eliminated, METEC could not receive any additional task orders beyond the one that it already has. Accordingly, the protested awards under this RFP did not prejudice METEC. See Plum Run, B-256869, July 21, 1994, 94-2 CPD ¶ 38 at 6-7 (protester was not prejudiced by an award under a defective solicitation where the award would remain the same if the agency amended the solicitation and the protester revised its proposal); see also Recon Optical, Inc.; Lockheed-Martin Corp., Fairchild Sys., B-272239, B-272239.2, July 17, 1996, 96-2 CPD ¶ 21 at 3-4
(protesters do not have the direct economic interest necessary to protest awards to each other where the
solicitation provides for multiple awards, the protesters received the fullest awards
possible, and it would not be able to obtain an additional stake in the procurement,
even if their protests were sustained). (The
METEC Group, B-290073; B-290073.2, May 20, 2002 (pdf))
SOS is
correct that, where the relative weights of subfactors
are not disclosed in the RFP, the subfactors are
understood to be of equal importance to each other. North-East
Imaging, Inc., B-256281, June 1, 1994, 94-1 CPD
¶ 332 at 2. However, competitive prejudice is an
essential element of every viable protest. Geonex
Corp., B-274390.2, June 13, 1997, 97-1 CPD ¶ 225 at
4. Our Office will not sustain a protest unless the
protester demonstrates a reasonable possibility that it
was prejudiced by the agency's actions, that is, unless
the protester demonstrates that, but for the agency's
actions, it would have had a substantial chance of
receiving the award. McDonald-Bradley, B-270126,
Feb. 8, 1996, 96-1 CPD ¶ 54 at 3; see Statistica,
Inc. v. Christopher, 102 F.3d. 1577, 1581 (Fed. Cir.
1996). (SOS
Interpreting, Ltd., B-287477.2, May 16, 2001)
Protester, a small
disadvantaged business (SDB), was not prejudiced by
agency's failure to apply 10-percent SDB evaluation
preference provided for in solicitation, where (1)
awardee was SDB, against which the preference would not
apply in any case, and (2) there is no basis to conclude
that protester inflated its bid price in reliance on
application of preference. (Si-Nor,
Inc., B-286910, January 5, 2001)
We dismiss the protest
as to this allegation because there is no showing that
MCS was prejudiced by the consolidation of the
requirements. Competitive prejudice is an essential
element of every viable protest. Lithos Restoration
Ltd., B-247003.2, 92-1 CPD para. 379 at 5. Where the
record does not demonstrate that, but for the agency's
actions, the protester would have had a reasonable
chance of receiving the award, our Office will not
sustain a protest, even if a deficiency in the
procurement is found. McDonald-Bradley, B-270126, Feb.
8, 1996, 96-1 CPD para. 54 at 3; see Statistica, Inc. v.
Christopher, 102 F.3d 1577, 1581 (Fed. Cir. 1996). Here,
although MCS strenuously argues that the claimed
benefits of the agency's consolidated procurement
approach are illusory and/or do not warrant
consolidation, the protester has failed to demonstrate
that the consolidation significantly inhibits or
precludes its ability to compete. On the contrary, MCS
vigorously argues that the requirements do not differ
significantly in character from its current food service
contracts, and it maintains that it can perform the
consolidated requirement. (MCS
Management, Inc., B-285813; B-285882, October 11, 2000)
Turning to the
protester's specific argument, while solicitation
amendments generally must be issued in writing in order
to afford firms an opportunity to respond to changed
requirements, we will sustain a protest based on an
agency's failure to issue a written amendment only where
the failure prejudiced the protester. First St. Invs.
Ltd. Partnership, B-270894.2, B-270894.3, Aug. 15, 1996,
96-2 CPD para. 69 at 7-8. There was no prejudice here.
(Aqua-Flo,
Inc., B-283944, December 30, 1999)
Although contracting
agency may have improperly performed a price/technical
tradeoff between proposals in violation of the
solicitation's evaluation scheme, the protester was not
prejudiced by the improper tradeoff decision where the
record shows that agency reasonably concluded that
protester's proposal was technically unacceptable.
(SBC
Federal Systems, B-283693; B-283693.2, December 27,
1999)
Here, we need not
determine whether the exchanges with MTI constituted
discussions--and thus whether the agency should have
established a competitive range and conducted
discussions with other offerors in it--because it is
clear from the record that CMCI was not prejudiced by
the agency's failure to hold discussions with it. In
this regard, competitive prejudice is an essential
element of every viable protest, Lithos Restoration,
Ltd., B-247003.2, Apr. 22, 1992, 92-1 CPD para. 379 at
5, and we will not sustain a protest for failure to hold
discussions where it is apparent from the record that
the protester could not have improved its proposal
enough through discussions to be in contention for
award. Schleicher Community Corrections Center, Inc.,
B-270499.3 et al., Apr. 18, 1996, 96-1 CPD para. 192 at
6, recon. denied, B-270499.6, Aug. 15, 1996, 96-2 CPD
para. 68; Strategic Analysis, Inc., supra, at 5;
Northrop Worldwide Aircraft Servs., Inc., B-262181, Oct.
27, 1995, 95-2 CPD para. 196 at 8-9, recon. denied,
B-262181.3, June 4, 1996, 96-1 CPD para. 263. Such is
the case here. (Charleston
Marine Containers, Inc., B-283393, November 8, 1999)
The determination that
the scoring of prices here was not rational does not end
our inquiry. Our Office will not sustain a protest
unless there is a reasonable possibility of prejudice,
that is, unless the protester demonstrates that, but for
the agency's actions, it would have had a substantial
chance of receiving the award. McDonald-Bradley,
B-270126, Feb. 8, 1996, 96-1 CPD para. 54 at 3; see
Statistica, Inc. v. Christopher, 102 F.3d 1577, 1581
(Fed. Cir. 1996). Because our decision here turns on
prejudice, we set forth below a lengthy analysis of how
prices should have been scored to accurately reflect the
relative cost of these proposals to the government, as
called for in the RFP. Based on our review, we conclude
that MDI was not prejudiced by the agency's improper
scoring of the price proposals. (Medical
Development International, B-281484.2, March 29,
1999)
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