New
Millennium contends the agency’s evaluation was improper,
and its interpretation of the solicitation was
unreasonable. Millennium argues that the RFP did not
contain any language indicating that only the listed CPAR
categories would be used for scoring purposes, or mention
that “other areas” could not be included in the ratings to
be scored. Protest at 11. Millennium notes that the RFP
expressly directed offerors to use ”the categories that
were rated in the CPARS you are claiming when calculating
the past performance score for each Project.” Id., citing
RFP § M.4.2.1(b), at 101.
The Navy argues that its evaluation was reasonable because
the solicitation language was “clear and unambiguous” that
the CPAR evaluation categories to be used in scoring
offerors’ past performance were only those set forth in
the RFP. Id. Alternatively, the Navy argues, even if
Millennium’s interpretation of the RFP was also
reasonable, any ambiguity in the solicitation was so
obvious that the protester was required to raise it prior
to the submission of proposals. Id.
Where a dispute exists as to a solicitation’s
requirements, we begin by examining the plain language of
the solicitation. Harper Constr. Co., Inc., supra; Point
Blank Enters., Inc., B-411839, B-411839.2, Nov. 4, 2015,
2015 CPD ¶ 345 at 3. We resolve questions of solicitation
interpretation by reading the solicitation as a whole and
in a manner that gives effect to all provisions; to be
reasonable, and therefore valid, an interpretation must be
consistent with such a reading. Desbuild Inc., B-413613.2,
Jan. 13, 2017, 2017 CPD ¶ 23 at 5. If the solicitation
language is unambiguous, our inquiry ceases. Id. An
ambiguity, however, exists where two or more reasonable
interpretations of the solicitation are possible. Colt
Def., LLC, B-406696, July 24, 2012, 2012 CPD ¶ 302 at 8.
If the ambiguity is an obvious, gross, or glaring error in
the solicitation (e.g., where solicitation provisions
appear inconsistent on their face), then it is a patent
ambiguity; a latent ambiguity is more subtle. A-P-T
Research, Inc., B-414825, B-414825.2, Sept. 27, 2017, 2017
CPD ¶ 337 at 12; Harper Constr. Co., Inc., supra. Here, as
detailed below, we conclude that the disputed terms of the
solicitation were latently ambiguous because the
provisions appear to be susceptible to two reasonable
interpretations.
First, we find the agency’s interpretation of the
solicitation is not unreasonable. As set forth above, the
RFP instructed offerors to “utilize the categories that
were rated in the CPARS you are claiming when calculating
the past performance score for each [reference],” and then
immediately listed CPAR categories, which did not include
“travel/ other direct costs.” RFP § M.4.2.1(b), at 101.
Moreover, while all of the RFP’s CPAR scoring examples
involved fewer than the six current CPAR categories
identified in the RFP, none of these scoring examples
exceeded the enumerated CPAR evaluation categories. We
find the agency’s interpretation essentially ties together
the parts of RFP § M.4.2.1(b)--that the CPAR categories to
be used when calculating the average score were the
enumerated ones--and is consistent with the solicitation
when read as a whole and gives effect to each of its
provisions. See Arch Sys., LLC; KEN Consulting, Inc.,
B-415262, B-415262.2, Dec. 12, 2017, 2017 CPD ¶ 379 at 6.
Millennium advances an alternate interpretation of the
solicitation. The protester points to RFP § M.4.2.1(a)
which stated that “an average point value will be assigned
based on each CPAR criteria . . . .,” without limitation.
Protest at 10. Millennium also contends that it understood
the purpose of listing the CPAR categories in RFP §
M.4.2.1(b) was not to limit the categories to be
considered, but rather, to distinguish the current CPAR
categories from older ones. Id. at 11.
We also find Millennium’s interpretation of the
solicitation to be reasonable. RFP § M.4.2.1(a) stated
that the average score “will be assigned based on each
CPAR criteri[on]” on which the offeror was rated, and did
not include a limitation. Further, RFP § M.4.2.1(b)
expressly instructed offerors to “utilize the categories
that were rated in the CPARS you are claiming when
calculating the past performance score for each Project.”
As set forth above, consistent with this language,
Millennium utilized all of the categories that were rated
in the CPAR report that it was claiming, which included
the “other areas” category. While RFP § M.4.2.1(b) also
distinguished between the current and former CPAR
evaluation categories, in neither instance did the
solicitation state that the listed categories were the
only acceptable ones. Quite simply, Millennium’s
interpretation is based on, and not contradicted by, the
express language of the solicitation.
Finally, we conclude that the RFP here did not contain any
inconsistency in its language that was obvious, gross, or
glaring, such that the ambiguity was patent on the face of
the solicitation. We therefore find the ambiguity in the
RFP’s scoring scheme was a latent one. The RFP expressly
stated that the average score would be “based on each CPAR
criteri[on],” and also instructed offerors to “utilize the
categories that were rated in the CPARS you are claiming
when calculating the past performance score for each
Project.” RFP § M.4.2.1(a), (b). While the Navy may have
intended the enumerated CPAR evaluation categories to be
the only acceptable ones, the express language of the RFP
contained no such limitation. Further, the RFP provisions
at issue are not facially inconsistent (and thus patently
ambiguous). To the contrary, we find nothing in the RFP
which contradicts the express language upon which
Millennium relies. The Navy essentially argues that
offerors should have known what the agency intended based
on the listed CPAR categories and scoring examples
provided. Quite simply, we do not find these factors
sufficiently obvious, gross, or glaring to create a patent
ambiguity, especially in light of the express solicitation
language to the contrary. In sum, we find that the
solicitation contained a latent ambiguity about how the
agency would treat offerors whose CPAR reports contained
ratings in other than the six enumerated CPAR evaluation
categories. See Ashe Facility Servs., Inc., B-292218.3,
B-292218.4, Mar. 31, 2004, 2004 CPD ¶ 80 at 10-12. (Millennium
Corporation, Inc. B-416485.2: Oct 1, 2018)
Harper essentially argues that the Navy’s evaluation was
unreasonable because “the agency failed to recognize that
Harper properly relied upon its own experience in airfield
pavement construction, rather than its subcontractor’s
experience, and therefore Harper was not required to
submit a letter of commitment and an explanation of the
meaningful involvement that its subcontractor will have in
performance of this contract.” Consolidated Protest at 7.
In this regard, Harper argues that the RFP did not limit
experience to work that an offeror self-performed on
reference projects. Instead, the protester read the RFP to
mean that it would receive credit for all work performed
under reference projects, even if the particular work was
performed by one of Harper’s subcontractors. Id. at 9.
In reviewing a protest challenging an agency’s evaluation,
our Office will not reevaluate proposals, nor substitute
our judgment for that of the agency, as the evaluation of
proposals is a matter within the agency’s discretion.
Analytical Innovative Solutions, LLC, B-408727, Nov. 6,
2013, 2013 CPD ¶ 263 at 2. Rather, we will review the
record only to determine whether the agency’s evaluation
was reasonable and consistent with the stated evaluation
criteria and with applicable procurement statutes and
regulations. Id.
As discussed above, the agency found Harper’s proposal to
be unacceptable because the agency concluded that Harper
was relying on the experience of a subcontractor, yet did
not submit a letter of commitment, and did not submit an
explanation of the meaningful involvement that the
subcontractor would have in performance of this contract,
which the agency asserts was required by the terms of the
solicitation. See AR, Tab 4, TET Findings, at 5; Tab 5,
PNM, at 3. Thus, the record presents a dispute as to the
requirements of the solicitation.
Where a dispute exists as to a solicitation’s actual
requirements, we begin by examining the plain language of
the solicitation. Point Blank Enters., Inc., B-411839,
B-411839.2, Nov. 4, 2015, 2015 CPD ¶ 345 at 3. We resolve
questions of solicitation interpretation by reading the
solicitation as a whole and in a manner that gives effect
to all provisions; to be reasonable, and therefore valid,
an interpretation must be consistent with such a reading.
Desbuild Inc., B-413613.2, Jan. 13, 2017, 2017 CPD ¶ 23 at
5. If the solicitation language is unambiguous, our
inquiry ceases. Id. An ambiguity, however, exists where
two or more reasonable interpretations of the solicitation
are possible. Colt Def., LLC, B-406696, July 24, 2012,
2012 CPD ¶ 302 at 8. If the ambiguity is an obvious,
gross, or glaring error in the solicitation then it is a
patent ambiguity; a latent ambiguity is more subtle. Id.
Where there is a latent ambiguity, both parties’
interpretation of the provision may be reasonable, and the
appropriate course of action is to clarify the requirement
and afford offerors an opportunity to submit proposals
based on the clarified requirement. Id. Here, we conclude
that the disputed terms of the solicitation were latently
ambiguous because the terms appear to be susceptible to
two reasonable interpretations.
The RFP instructed that offerors “may utilize experience
of a subcontractor that will perform major or critical
aspects of the requirement to demonstrate construction
experience under this evaluation factor.” RFP at 7.
However, if an offeror relied on a subcontractor’s
experience, the offeror “must provide a letter of
commitment and an explanation of the meaningful
involvement that the subcontractor will have in
performance of this contract.” Id. The RFP is silent on
whether submitted experience was required to be
self-performed by the offeror, as the agency argues was
the case, or the offeror could claim experience as a prime
contractor where the actual relevant work was performed by
a subcontractor, as the protester asserts. See generally
id.
Harper cites to our Office’s decision in ITT Corporation,
Systems Division, B-310102.6 et al., Dec. 4, 2009, 2010
CPD ¶ 12 at 8-9, for the proposition that an agency may
properly credit the prime contractor with experience
involving functions performed, even if the particular work
was actually performed by a subcontractor under the prime
contractor’s supervision. Consolidated Protest at 13-14.
In ITT Corporation we discussed this general rule as being
premised on the fact that a prime contractor under a
government contract is responsible for the performance of
its subcontractors. ITT Corp., supra, at 9; see also
Battelle Memorial Institute, B-278673, Feb. 27, 1998, 98-1
CPD ¶ 107 at 21-22. Absent any language constraining the
type of experience acceptable under the RFP, the protester
adopted this interpretation in submitting reference
projects where it served as the prime contractor, while
the actual relevant work was performed by a subcontractor.
Consolidated Protest at 9. Harper also asserts that it
understood that for offerors who had not performed prime
contracts involving airfield paving experience, the “may
utilize” solicitation language allowed, but did not
require, the offeror to propose the airfield paving
experience of a subcontractor. Id.
In reading the solicitation as a whole, our review of the
RFP’s language leads us to conclude that Harper’s
interpretation of the disputed terms was unobjectionable.
In this regard, absent any language limiting the type of
experience acceptable to the agency, Harper reasonably
interpreted the term “perform” to include reference
contracts where it served as the prime contractor, even
though the relevant scope of work was actually performed
by a subcontractor. Harper also reasonably interprets the
solicitation language that the offeror “may utilize the
experience of a subcontractor” as permissive, even where
that subcontractor “will perform major or critical aspects
of the requirement” in meeting the evaluation requirements
of factor 1. RFP at Amendment 0003. Thus, under the terms
of the RFP, Harper could properly rely on its own relevant
airfield paving experience to satisfy the requirements of
factor 1, even where it intended to subcontract the work
under the resulting contract.
As discussed above, the agency interpreted the terms of
the solicitation more narrowly with respect to the
performance that was acceptable to meet the requirements
of factor 1. In this regard, the award decision states,
“Harper submitted three relevant construction projects
which they were the prime contractor on, but did not
perform the airfield pavement portion of the work.” AR,
Tab 5, PNM, at 3. Thus, the agency did not credit Harper’s
work as a prime contractor, and instead found that the
relevant work was performed by the protester’s
subcontractor. In this regard, the agency explains that,
“[t]he airfield paving portion of this project is of such
importance that the Government needed to evaluate the
experience of the actual contractor who would be
performing the airfield paving on this contract. Harper
did not provide the required 2-3 projects demonstrating
its own experience in physically laying airfield paving. .
. .” Declaration Task Order Evaluation Board Member dated
Oct. 13, 2017.
While the term “perform” is susceptible to be interpreted
in the narrower fashion ascribed by the agency, Harper’s
more expansive definition is also reasonable given the
terms of the RFP. Moreover, we conclude that the RFP did
not contain any language that was obvious, gross, or
glaring, such that the ambiguity was patent on the face of
the solicitation, and that the ambiguity in the disputed
RFP language is latent. (Harper
Construction Company, Inc. B-415042, B-415042.2: Nov
7, 2017)
RELI argues that the evaluation of its proposal under the
relevant experience factor was unreasonable and
inconsistent with the terms of the RFP. Protest at 8-11.
Specifically, RELI contends that the agency’s
determination not to consider [deleted]’s experience with
DME support was based on a misinterpretation of the RFP’s
instructions. While FDA construed the instructions to
permit only one reference to show a subcontractor’s
relevant experience, and to require that two of the
references be for the prime contractor, RELI contends that
the solicitation permitted two of the three required
experience submissions to be for contracts performed by
the subcontractor(s), and required one to be for the prime
contractor. In response, FDA argues that, to the extent
the RFP requirement could be read in the manner RELI
suggests, it is based on a patent ambiguity and therefore
should be dismissed as untimely. Memorandum of Law at 5-8.
An ambiguity exists where two or more reasonable
interpretations of the terms or specifications of the
solicitation are possible. A party’s particular
interpretation need not be the most reasonable to support
a finding of ambiguity; rather, a party need only show
that its reading of the solicitation provisions is
reasonable and susceptible of the understanding that it
reached. See Ashe Facility Servs., B‑292218.3, B-292218.4,
Mar. 31, 2004, 2004 CPD ¶ 80 at 10.
A patent ambiguity exists where the solicitation contains
an obvious, gross, or glaring error, while a latent
ambiguity is more subtle. Id. Assuming an ambiguity
exists, then our Office must determine whether the
ambiguity is patent or latent in order to determine
whether the protest was timely filed. In this regard, a
patent ambiguity, which is considered to be apparent from
the face of the solicitation, must be protested prior to
the closing date for submission of proposals to be
considered timely. 4 C.F.R. § 21.2(a)(1).
Here, the lack of guidance in the RFP with respect to the
meaning of “prime” and “subcontractor” permitted the
solicitation to be interpreted in at least two reasonable
ways. In addition to the question set forth above--the
number of contracts that were required to show experience
by a prime and a subcontractor--there is a question as to
whether the terms “prime contractor” and “subcontractor”
refer to (1) the position for which the entity in issue
was being proposed in the submitted proposal, or (2) the
position in which it performed under the contract
identified to show relevant experience or past
performance. Below, we discuss how this ambiguity informs
the parties’ interpretation of the RFP.
The requirement for relevant experience information
described in RFP section 5.4.3 (Factor 3: Relevant
Experience) reasonably may be understood to require an
offeror to submit at least two examples of relevant
contracts performed as a prime contractor (“at least 2 out
of the 3 projects the offeror must be the prime”). RFP at
41. The requirement for past performance references, in
RFP section 5.8 (Past Performance Questionnaire), allowed
a maximum of 2 of 3 past performance references to be for
the subcontractor, with only one being required for the
prime contractor. As stated above, the solicitation
required the past performance questionnaires to be from
the sources the offeror identified to show relevant
experience. Reading the above two RFP sections together,
RELI interpreted the language to mean that two of three
examples of relevant experience submitted could be ones
that were performed (in the role of prime) by an entity
now being proposed as a subcontractor on the main
offeror’s team. AR, Tab 5, August 4, 2015, E-mail from
RELI to the agency. We think that RELI’s interpretation is
reasonable. The agency’s interpretation, which arguably is
also reasonable, was that the word “prime” in the
parenthetical quoted above referred to the main offeror,
and not to the role of the entity in performing the prior
contract.
While FDA recognizes that the RFP, as amended, included
unclear instructions in this regard, the agency argues
that the unclear instructions presented a patent
ambiguity, and that the protest is therefore untimely. We
disagree, as explained below.
Assuming that both the agency’s and the protester’s
interpretations of the experience factor instructions are
reasonable, we find the RFP ambiguous with respect to the
evaluation of the relevant experience factor and past
performance risk assessment. As noted above, despite being
advised of RELI’s interpretation of these two clauses
through a question RELI submitted, FDA only realized that
the RFP’s instructions were unclear during the course of
evaluations that took place more than a month after
proposals had been submitted. When the technical
evaluation team raised this issue, the contract specialist
expressly acknowledged in a memo to the evaluation team
that the RFP instruction was ambiguous. See AR, Tab 6,
Interpretation of Unclear Instructions in RFP. Since the
ambiguity only came to light in the context of the
agency’s evaluation of relevant experience, we conclude
that the ambiguity was not obvious or glaring--in short,
it was latent rather than patent and RELI’s protest of
this issue thus is timely.
Where there is a latent ambiguity, the appropriate course
of action for an agency is to clarify the requirement and
afford offerors an opportunity to submit proposals based
on the clarified requirement. Colt Def., LLC, B-406696.
July 24, 2012, 2012 CPD ¶ 302 at 8. When dealing with
latent ambiguities, we will sustain a protest where a
latent ambiguity prevented the offerors from competing
intelligently on a relatively equal basis. Coastal Int’l
Security, Inc., B-411756, B-411756.2, Oct. 19, 2015, 2015
CPD ¶ 340 at 8.
Here, as noted above, when the agency discovered that an
ambiguity existed, it affirmatively decided not to amend
the RFP, but instead chose to continue as if no ambiguity
existed, applying one possible interpretation of the RFP’s
terms. CO Statement at 3. In so doing, the agency refused
to consider information RELI had submitted concerning
experience performing DME support work--a critical aspect
of this requirement. The agency evaluated RELI’s proposal
as lacking this experience, and rated the proposal as
marginal under the relevant experience factor.
Although RELI’s price was slightly higher than that of
DSFederal (approximately one-half of one percent), RELI
did receive a higher technical rating under factor 1--the
most important technical factor. As a result of the
ambiguity here, and the agency’s failure to clarify the
requirement, offerors were effectively precluded from
competing intelligently and on a relatively equal basis.
Under these circumstances, we find RELI was competitively
prejudiced by the agency’s actions. Colt Def., LLC, supra;
Coastal Int’l Security, Inc., supra. Accordingly, we
sustain the protest. (RELI
Group, Inc. B-412380: Jan 28, 2016) (pdf)
Miracle Systems protests the rejection of its proposal, arguing
that the agency’s interpretation of the RFP’s pricing provisions
is unreasonable and reflects, at best, a latent ambiguity in the
solicitation. Protest at 8. In the protester’s view, the RFP’s
escalation provision can reasonably be read to permit escalation
at the beginning of the option period, based, among other
things, on the provisions’ use of the plural “contract year
periods” and “ordering periods.” Id. at 5 (emphasis added).
According to Miracle Systems, the RFP’s answers to offerors’
questions regarding price escalation failed to clarify whether
the RFP provided for one 10-year performance period or two
5-year performance periods. Id. at 6.
Where a protester and agency disagree over the meaning of
solicitation language, we will resolve the matter by reading the
solicitation as a whole and in a manner that gives effect to all
of its provisions; to be reasonable, and therefore valid, an
interpretation must be consistent with the solicitation when
read as a whole and in a reasonable manner. See Raytheon Co.,
B-404998, July 25, 2011, 2011 CPD ¶ 232 at 17; Alluviam LLC,
B-297280, Dec. 15, 2005, 2005 CPD ¶ 223 at 2. An ambiguity
exists if a specification is susceptible to more than one
reasonable interpretation that is consistent with the
solicitation, when read as a whole. Poly-Pacific Techs., Inc.,
B-293925.3, May 16, 2005, 2005 CPD ¶ 100 at 3.
Reading the solicitation language as a whole, including the
RFP’s questions and answers, we agree with the SEC here that the
solicitation unambiguously restricts the proposal of escalating
labor rates, regardless of performance period. Notwithstanding
the protester’s interpretation, the RFP’s non-escalation
provision plainly states that labor rates are fixed for all
contract year periods, and are not subject to any escalation
through the course of the ordering periods. RFP attach. 7 at 1
(emphasis added). In our view, any alleged ambiguity that may
exist in that regard was resolved by the SEC’s responses to
offerors’ questions, particularly, that the agency required
“ceiling” rates for each labor category “to cover the entire
10-year performance period,” and that the agency would not
consider escalating labor rates.
The protest is denied. (Miracle
Systems, LLC, B-408947, Dec 24, 2013) (pdf)
Alleged Latent
Ambiguity
IAP asserts that the RFP, as amended, contained a latent
ambiguity regarding how offerors should prepare their price
proposals. In particular, the RFP instructed offerors as
follows:
B.11 UNIT PRICE ADJUSTMENTS IN OPTION PERIODS
This contract incorporates Davis Bacon Wage Determinations,
Service Contract Acts (SCAs), and Collective Bargaining
Agreements (CBAs) from the previous service provider. In
accordance with subparagraph (b) of the Fair Labor Standards
and Service Contract Act—Price Adjustment Clause, FAR
52.222-43 and subparagraph (b) of the Davis-Bacon Act—Price
Adjustment Clause, FAR 52.222-32 offerors shall not include
escalation of wage and fringe benefit rates for Service
Contract Act covered employees and/or Davis-Bacon Act covered
employees in the option periods of performance. Wage and
fringe benefit rates used for the base performance period will
be used in pricing labor costs for all periods of performance
in the option years. In accordance with the referenced
clauses, the contractor may be entitled to an adjustment in
contract price only when a new SCA or DBA wage determination
is modified into the contract and it affects wages and fringe
benefits of covered employees.
RFP at 19. Amendment No. 14 to the solicitation, which was
issued prior to the submission of FPRs incorporated a new
collective bargaining agreement (CBA), effective from July 2011
through June 2014, between IAP (the current incumbent
contractor) and the cognizant labor union. This new CBA included
escalated wage rates through 2014.
In preparing its FPR, IAP used the escalated wage rates to
calculate its price for the option years. The record shows,
however, that all of the remaining firms, consistent with the
terms of the original RFP, did not use escalated rates for the
option years. IAP maintains that the terms of amendment No. 14
introduced a latent ambiguity into the solicitation that led it
to price its proposal in a manner that differed from the other
offerors.
Where a protester and agency disagree over the meaning of
solicitation language, we will resolve the matter by reading the
solicitation as a whole and in a manner that gives effect to all
of its provisions; to be reasonable, and therefore valid, an
interpretation must be consistent with the solicitation when
read as a whole and in a reasonable manner. Alluviam LLC,
B-297280, Dec. 15, 2005, 2005 CPD ¶ 223 at 2; Fox Dev. Corp.,
B-287118.2, Aug. 3, 2001, 2001 CPD ¶ 140 at 2.
We find the protester’s reading of the solicitation
unreasonable. As quoted above, the RFP instructions to offerors
were unequivocal, expressly instructing the offerors not to
escalate their proposed wage rates for SCA wage rate employees
for the option years of the contract (all of the employees
covered by the CBA issued with amendment No. 14 are SCA wage
rate covered employees). Furthermore, the RFP also incorporated
the terms of Federal Acquisition Regulation (FAR) § 52.222-43
which specifically requires the contractor to warrant that it
has not included any amount in its price to cover contingencies
for which increased costs would be allowable pursuant to an
equitable adjustment under that provision: “b) The Contractor
warrants that the prices in this contract do not include any
allowance for any contingency to cover increased costs for which
adjustment is provided under this clause.” FAR §52.222-43(b).
Amendment No. 14 did nothing to alter or modify the express
instructions to the offerors (or the applicable FAR provision);
it simply provided an updated CBA, without further elaboration.
It follows that the instructions in the RFP remained in full
force and continued to direct offerors to use only base year
rates in calculating their prices.
To the extent that it appeared to IAP that the terms of
amendment 14 somehow altered or modified the earlier proposal
preparation instructions, this would have been a patent
ambiguity inasmuch as the two provisions would directly be in
conflict. The earlier instructions directed offerors not to
escalate prices to account for increases in wages during the
option years, but, according to IAP, the CBA required offerors
to increase prices to account for escalation of wages in the
option years. Since the RFP presented what appeared to IAP to be
a direct conflict between its provisions, this amounted to a
patent ambiguity rather than a latent ambiguity. LS3, Inc.,
B-401948.11, July 21, 2010, 2010 CPD ¶ 168 at 3. As such, any
objection to the terms of the RFP, to be timely, had to be filed
prior to the closing date for FPRs. Id. (IAP-Hill,
LLC, B-406289, B-406289.2, B-406289.3, Apr 4, 2012) (pdf)
Singleton argues that the agency “did not properly evaluate
Singleton’s past performance by failing to take into account
past performance information regarding Singleton’s subcontractor
who would perform major or critical aspects of the
solicitation’s requirements.” Protest at 4. In this regard, the
protester points out that Federal Acquisition Regulation (FAR)
sect. 15.305(a)(2)(iii) states that a past performance
“evaluation should take into account past performance
information regarding predecessor companies, key personnel who
have relevant experience, or subcontractors that will perform
major or critical aspects of the requirement when such
information is relevant to the instant acquisition.” The
protester also points out that the RFP did not state that the
agency would not consider the past performance of proposed
subcontractors in evaluating past performance, and that our
Office has previously found that the past performance of a
proposed subcontractor may be considered in determining whether
an offeror meets experience or past performance requirements in
a solicitation where the solicitation does not expressly
prohibit its consideration. Protester’s Comments at 1, 3; see
The Paintworks, Inc., B‑292982; B‑292982.2, Dec. 23, 2003, 2003
CPD para. 234 at 3. The agency responds by pointing out
that it “never stated in the RFP that the past performance of
other than the offeror would be considered,” and that the RFP
did not specifically “request that the offerors submit past
performance information for proposed major subcontractors.”
Contracting Officer’s Statement at 7; see AR at 4. The agency
notes that our Office has recognized that FAR sect.
15.305(a)(2)(iii), cited by the protester, does not mandate that
agencies consider the past performance of subcontractors, but
only states that agencies “should” consider such information. AR
at 6, citing MW-All Star Joint Venture, B-291170.4, Aug. 4,
2003, 2004 CPD para. 98 at 4 and TyeCom, Inc., B‑287321.3,
B-287321.4, Apr. 29, 2002, 2002 CPD para. 101 at 6. The agency
thus concludes that “the only reasonable construction of the
[RFP’s] past performance evaluation clause is that only prime
contractor past performance information would be considered by
GSA in evaluating offers,” and that Singleton’s protest is an
untimely challenge of an alleged impropriety apparent from the
solicitation. AR at 5; see Bid Protest Regulations, 4 C.F.R.
sect. 21.2(a)(1) (2006). We agree with the protester that FAR
sect. 15.305(a)(2)(iii) suggests, as evidenced by the word
“should,” that agencies consider in their evaluations the past
performance of proposed “subcontractors that will perform major
or critical aspects of the requirement.” In addition, as
correctly noted by the protester, our Office has found an
agency’s consideration of a proposed subcontractor’s past
performance when evaluating an offeror’s proposal under a past
performance factor permissible in the same circumstances as
here, that is, where the solicitation neither prohibited nor
mentioned the evaluation of such information. AC Techs., Inc.,
B‑293013, B‑293013.2, Jan. 14, 2004, 2004 CPD para. 26 at 3; The
Paintworks, Inc., supra. To put it another way, our Office,
based upon applicable caselaw, statute, and regulation, would
have found it unobjectionable had the agency chosen to consider
the past performance of Singleton’s subcontractor when
evaluating Singleton’s proposal.
The fact remains, however, that the solicitation referred to the
agency’s evaluation of the “offeror’s” past performance and did
not specifically request information on the past performance of
subcontractors. Additionally, the agency is correct in pointing
out that the consideration of subcontractor past performance, as
set forth in FAR sect. 15.305(a)(2)(iii), is not mandatory.
MW-All Star Joint Venture, supra; TyeCom, Inc., supra; see
Olympus Bldg. Servs., Inc., B-282887, Aug. 31, 1999, 99-2 CPD
para. 49 at 3-4 (RFP’s past performance evaluation factor
providing that key personnel past performance would not be
considered was found to be reasonably based and not prohibited
by regulation). Although in the agency’s view the
solicitation provided that the agency would consider only the
corporate past performance information of the “offeror,” and the
agency report makes it clear that the agency intended such a
reading, we also, for the reasons stated above, find the
protester’s interpretation of the solicitation that it would
also permit the evaluation of subcontractor past performance to
be reasonable. Because we believe that both the agency’s and
protester’s interpretations of the RFP are reasonable, this
indicates an ambiguity in the RFP with respect to information
that the agency would consider in performing its past
performance evaluation. An ambiguity exists where two or more
reasonable interpretations of the terms or specifications are
possible. A party’s particular interpretation need not be the
most reasonable to support a finding of ambiguity; rather, a
party need only show that its reading of the solicitation
provisions is reasonable and susceptible of the understanding it
reached. DynCorp Int’l LLC, B‑289863; B-289863.2, May 13, 2002,
2002 CPD para. 83 at 8; Aerospace Design & Fabrication, Inc.,
B-278896.2 et al., May 4, 1998, 98-1 CPD para. 139 at 13.
(Singleton Enterprises, B-298576,
October 30, 2006) (pdf)
Here, we find that Deco's interpretation of the RFP was not
reasonable. The Taft and Hamilton buildings that Deco believed
were to be served by the "desk" have different addresses and,
more tellingly, have different postal zip codes. Although, as
Deco suggests, it is possible that two buildings might share a
common access point, such a possibility is unlikely where the
buildings are on different streets, and less likely still where
the buildings have different zip codes. Moreover, both of the
buildings were on public streets within the city of Cincinnati,
Ohio, and it would have been a simple matter for Deco to
ascertain whether the two buildings were proximately located to
confirm whether its interpretation was correct. Indeed, an
on-site inspection, consultation of a map, or a simple inquiry
through a public website would have informed Deco that the two
buildings are more than 6 miles apart. Because Deco's
interpretation of the SOW as requiring only a single security
desk for two buildings located six miles apart was not
reasonable, that interpretation provides no support for its
contention that the solicitation contained a latent ambiguity.
See Input Solutions, Inc. , B-294123, Aug. 31, 2004, 2004 CPD
185 at 3. Even if we were to find that Deco's interpretation was
reasonable, it would at best indicate a patent ambiguity, i.e. ,
one that is obvious from the face of the solicitation. In this
regard, there is an apparent conflict in the RFP between the
singular term "desk" and the requirement that the desk serve two
buildings that are at different addresses in different zip
codes. Where a solicitation contains a patent ambiguity, an
offeror is obligated to seek clarification prior to the time for
submission of proposals. Dix Corp. , B-293964, July 13, 2004,
2004 CPD 143 at 3. Where, as here, a patent ambiguity is not
challenged prior to submission of proposals, we will dismiss as
untimely any subsequent protest assertion that is based on an
alternative interpretation. Bid Protest Regulations, 4 C.F.R.
21.2(a)(1) (2004); U.S. Facilities, Inc. , B-293029, B-293029.2,
Jan. 16, 2004, 2004 CPD 17 at 10. Any protest based on an
alleged ambiguity arising from the term "desk" therefore should
have been filed prior to the time for receipt of proposals. (Deco
Security Services, B-294516, November 1, 2004) (pdf)
With respect to ISIs argument that the COs e-mail message
provided explicit direction to incorporate the terms of ISIs
earlier contract here, our reading of the email communication,
as a whole, is that it indicates only that the CO thinks ISI
should be familiar with the nature of the work and, as the
incumbent, should have sufficient information to understand the
type of work and submit a competitive quotation. While, as
quoted above, the COs message stated that the image deliverables
should be based on how you previously provided clear, readable
images for the Library, there is nothing in this general
language that imports requirements from ISIs predecessor
contract into this solicitation. Since ISIs interpretation of
the COs e-mail is unreasonable, it provides no support for ISIs
contention that the message created a latent ambiguity about the
work required under the RFQ. See Ruska Instrument Corp. ,
B-235247, Aug 7, 1989, 89-2 CPD 111 at 3. (Input
Solutions, Inc., B-294123, August 31, 2004) (pdf)
Assuming
then that both the agency’s and the protester’s interpretations
of the provision are reasonable, this indicates an ambiguity in
the RFP with respect to the price evaluation of the
indefinite-quantity items. Accordingly, we must determine
whether the ambiguity is latent or patent since, if patent, it
would have had to be protested prior to proposal submission
date. The Arora Group, Inc., B-288127, Sept. 14, 2001, 2001 CPD
¶ 154 at 7 n.5. A patent ambiguity exists where the solicitation
contains an obvious, gross, or glaring error, (e.g., where the
solicitation provisions appear inconsistent on their face),
while a latent ambiguity is more subtle. See Brickwood
Contractors, Inc., B-292171, June 3, 2003, 2003 CPD ¶ 120 at 6
(explaining a patent ambiguity as one which is obvious on its
face); Bank of Am, B-287608, B-287608.2, July 26, 2001, 2001 CPD
¶ 137 at 10 (finding patent ambiguity where solicitation terms
were in direct conflict). Since Ashe’s interpretation of the
solicitation provision did not directly conflict with any of the
other solicitation provisions and the ambiguity only came to
light in the context of the agency’s price evaluation, we
conclude that the ambiguity was latent rather than patent and
Ashe’s protest of this issue thus is timely. (Ashe
Facility Services, Inc., B-292218.3; B-292218.4, March 31,
2004) (pdf)
Ashland essentially alleges that,
either the purchase description did not require that the
bartacks be sewn through all plies after the material was
turned, or the requirement is latently ambiguous with Ashland's
interpretation representing one of two reasonable
interpretations. We disagree. The requirement unambiguously
stated that the bartacks had to go through all plies without
qualification. Since Ashland's PDM is constructed with two plies
of outer shell fabric at the location of the bartacks and the
bartacks go through only one of them, Ashland's PDM does not
comply with the requirement. In any event, the defect in
Ashland's PDM is minor. It did not raise any material concern
with the agency because it is easily corrected during
production. In fact, all of the PDM defects for all
offerors considered for award were similarly minor in nature. The
SSA recognized this and considered these PDMs to be very close;
although Ashland maintained a slight evaluated advantage, it was
not significant and did not translate into value to the
government for purposes of awarding at a higher price. Tr. at
11-13, 16 (SSA); Agency Report, Tab 15, Source Selection
Decision, at 5. We find reasonable the SSA's assessment of the
evaluated PDM differences between these proposals. (Ashland Sales and Service Company,
B-291206, December 5, 2002, (sustained on another issue) (pdf)
We have reviewed the entire
solicitation, including the website containing the Guide Plates,
and conclude that the RFP contained a latent ambiguity that
materially affected how offerors prepared their proposals, and
resulted in an unequal competition. An ambiguity exists where
two or more reasonable interpretations of the terms or
specifications of the solicitation are possible. Moreover, a
party's particular interpretation need not be the most
reasonable to support a finding of ambiguity; rather, a party
need only show that its reading of the solicitation provisions
is reasonable and susceptible of the understanding that it
reached. There are two levels of ambiguity at issue here:
first, whether the Guide Plates are mandatory or merely
discretionary; and second, what the Guide Plates require, if
they are mandatory. (The
Arora Group, Inc., B-288127, September 14, 2001) (pdf) |