Phoenix protests
that the brand name restriction is unduly restrictive of
competition. In this regard, Phoenix notes that there is a list
of commercial herbicides that are approved for use on BLM land,
which contains multiple, equal items for each product the agency
is procuring.
The simplified acquisition procedures established under FAR part
13 are designed to promote efficiency and economy in
contracting, and to avoid unnecessary burdens for agencies and
contractors, where, as here, the value of the acquisition is
less than $150,000. See FAR § 13.002. When using simplified
acquisition procedures, agencies are required to obtain
competition to the maximum extent practicable and must not
solicit quotations based on personal preference or restrict the
solicitation to suppliers of well-known and widely distributed
makes or brands. Id. § 13.104; see B&S Transport, Inc.,
B-407589, Dec. 27, 2012, 2012 CPD ¶ 354 at 2. In a simplified
acquisition, an agency is permitted to limit a solicitation to a
brand name item when the contracting officer determines that the
circumstances of the contract action deem only one source is
reasonably available. FAR §§ 11.105(a)(2)(ii), 13.106-1(b)(1).
In such cases, we review the decision to limit the procurement
to a brand name for reasonableness. See Critical Process
Filtration, Inc., B-400746 et al., Jan. 22, 2009, 2009 CPD ¶ 25
at 3.
According to the agency, the brand name herbicides in the
solicitation are necessary to satisfy the agency’s needs because
they “are currently approved for use” pursuant to the agency’s
pesticide use proposal (PUP). Agency Report (AR), Exh. 6, Brand
Name Justification, July 8, 2016, at 1. With respect to the PUP,
the agency explains that there must be an approved pesticide use
proposal which lists the pesticides that the agency will be
using on a particular piece of land. COS Supplemental, Aug. 17,
2016, at 2-3. The agency reports that a PUP must be submitted
every three years for approval. COS at 6; AR, Exh. 6, Brand Name
Justification, July 8, 2016, at 1. According to the agency, it
is justified in using brand name only herbicides in this case
because if it desires to use other equal pesticides that are not
on the PUP, it will be required to amend the PUP to include
these pesticides, which will take up to six months. Id.
The agency’s position, however, is not supported by the record.
According to the 2012 PUP the agency provided to our Office,
only two of the herbicides required by the solicitation (Plateau
and Escort) were listed and their approval expired in November
2015. Pesticide Use Proposal 2012, at 1. A second PUP was
prepared in June 2016, which includes the two herbicides on the
2012 expired PUP, plus the Weedar. Pesticide Use Proposal 2016,
at 1. However, the June 2016 PUP has not yet been approved. Id.
at 4. Thus, there is no current PUP that covers three of the
herbicides that the agency is procuring under a brand name only
specification.
In response to a request for further information about the fact
that several of the brand name pesticides are not actually
listed on a current (unexpired) PUP, the agency stated that:
“[I]t is not against BLM policy for a Field Office to purchase a
chemical prior to the completion of a Pesticide Use Proposal.”
Agency e-mail, Sept. 22, 2016, at 1. Thus, the agency notes that
the 2016 PUP, which includes the Plateau, Escort, and Weedar
herbicides, and which was prepared to replace the expired PUP,
is in the process of completion. Id. at 1-2. The agency
concludes that since “the Field Office was in the process of
preparing the necessary proposal [it] did not violate BLM policy
by purchasing the products in question.” Id. at 2. This
position, however, directly contradicts its earlier
justification that it was unable to include equal items in the
solicitation because they were not currently on the PUP.
It seems that the agency’s real explanation for the brand name
only restriction is that there are over 350 formulated products
associated with 18 herbicide active ingredients for
consideration and:
[t]he pesticide use proposal identifies the proposed active
ingredients and their associated formulations. . . . the
selection of a particular formulation is at the discretion of
the individual preparing the proposal and the addition of
formulations outside the ones identified in the actual
proposal, are not necessary, as they may not take into account
the factors utilized by the proposal preparer in selecting the
identified formulations.
Agency e-mail, Sept. 22, 2016, at 3. The agency also contends
that the brand name is justified because the program office
“would not use generics ([office] traded the generics []
received last year).” CO Supplemental at 5, quoting AR, Tab 7,
Program Office E-mail, at 1. It appears from this that the
agency is advocating that it has the discretion and control,
with certain restrictions relating to environmental assessments,
as to which herbicide ingredients and formulations are placed on
the PUP, and therefore could choose not to place generic brands
on the PUP. We do not disagree with the agency that it has some
discretion to determine what products to include on the PUP.
However, in exercising that discretion, the agency must have a
reasonable basis to exclude equal products from the PUP. It
cannot simply rely on the PUP to limit competition, where is has
not provided a reasonable basis for excluding items from the
PUP.
Accordingly, we find that the agency has failed to reasonably
justify its determination to limit the competition to brand name
items. See FAR § 13.106-1(b)(1). While there may be justifiable
reasons for restricting this procurement to brand name only
herbicides, the agency has not provided that justification here.
(Phoenix Environmental Design, Inc.
B-413373: Oct 14, 2016)
Latvian next
asserts that the agency failed to conduct the procurement using
full and open competition as required by the Competition in
Contracting Act of 1984. However, since the agency was using
simplified acquisition procedures, it was not required to use
full and open competition to conduct the procurement. See 10
U.S.C. § 2304(g)(1) (2012). Instead, the agency was required to
promote competition to the maximum extent practicable. 10 U.S.C.
§ 2304(g)(3); FAR § 13.104. Further, since the agency was using
simplified acquisition procedures, and pursuant to FAR §
5.202(a)(12) was not required to publish notice on the
FedBizOpps website, soliciting three sources meets the FAR’s
requirements for conducting a simplified acquisition. FAR §
13.104(b).
Finally, Latvian protests that the agency did not provide
sufficient time to respond to the solicitation. As noted above,
the solicitation was issued on January 23, and called for
vendors to submit their quotations by January 26. FAR §
13.003(h)(2) requires that for acquisitions conducted under
simplified acquisition procedures the agency establish
submission deadlines that afford vendors a reasonable
opportunity to respond. Here, the record indicates that the
agency issued a solicitation that was not complex to meet a
requirement for commercial items that were, in the contracting
officer’s experience, commonly available. Contracting Officer’s
Statement at 2. Given these circumstances, and the fact that
four vendors, including the protester, were able to respond by
the due date, we have no basis to find that the agency did not
allow a reasonable amount of time for vendors to respond. See
Military Agency Services Pty., Ltd., supra, at 7. (Latvian
Connection General Trading and Construction, LLC, B-409442:
Apr 25, 2014) (pdf)
In using
simplified acquisition procedures, agencies are required to
“promote competition to the maximum extent practicable.” 10
U.S.C. sect. 2304(g)(3) (2006); FAR sect. 13.104. While this
standard generally may be met through the solicitation of at
least three sources, see FAR sect. 13.104(b); Omni Elevator Co.,
B-246393, Mar. 6, 1992, 92-1 CPD para. 264 at 2, an agency may
not deliberately fail to solicit a responsible source that has
expressed interest in competing without a reasonable basis for
questioning the source’s ability to meet the agency’s needs. See
Military Agency Servs. Pty., Ltd., B-290414 et al., Aug. 1,
2002, 2002 CPD para. 130 at 7-8; Bosco Contracting, Inc.,
B‑270366, Mar. 4, 1996, 96-1 CPD para. 140 at 3-4.
We do not think that the agency has demonstrated that the
acquisition specialist had a reasonable basis for failing to
solicit the protester, a vendor she clearly knew to be
interested in competing for orders for the item. The agency
cites the protester’s lack of prior performance in furnishing
the item as a basis for the acquisition specialist’s decision
not to solicit the firm here, yet it appears from the record
that the successful vendor likewise had not previously furnished
the item; thus, we do not think that this provided a reasonable
basis for distinguishing between the two vendors. The agency
also cites the fact that the protester’s single purchase order
for the item was cancelled after it was determined that,
contrary to the representation in its quotation, the protester
did not intend to furnish a domestic end item. We fail to see
how the protester’s noncompliance with its obligation to furnish
a domestic end item under its prior order furnishes a basis for
questioning its ability to perform under this solicitation,
however. The agency has not suggested that the firm is
nonresponsible or otherwise ineligible to receive a contract.
Further, the RFQ here is not set aside for small business; thus,
FAR sect. 52.219-6(c), requiring small business offerors to
furnish only domestic end items, is inapplicable, and the agency
has not indicated any other basis for rejecting all non-domestic
end items.
The fact that SLG was not listed as a manufacturing source of
supply similarly fails to provide a reasonable basis for the
agency’s failure to solicit the protester. The RFQ did not
require vendors to furnish items that they themselves had
manufactured; moreover, neither the successful vendor under this
RFQ nor the awardee under the multi-year RFP was listed as a
manufacturing source in the solicitations that resulted in
purchases from those firms. Also, the protester’s failure to
submit an offer in response to the multi-year RFP does not
constitute a reasonable basis not to solicit it under the RFQ
here. The RFP’s closing date was approximately a month after the
order under protest was issued, and thus the acquisition
specialist could not have been certain at the time she solicited
quotations under this RFQ that the protester would not submit an
offer in response to the RFP. Moreover, the RFP was for an
estimated annual quantity approximately four times as large as
the quantity solicited here, and thus provided a far less
accurate gauge for measuring the protester’s interest in
competing for the quantity here than the prior RFQs.
In conclusion, we fail to see a reasonable basis in the record
for the acquisition specialist’s decision not to solicit a
quotation from the protester, which she knew to be interested in
competing to supply the fluorescent lamp starters and whose
ability to furnish the items she did not have a reasonable basis
to doubt. Accordingly, we sustain the protest. (Solutions
Lucid Group, LLC, B-400967, April 2, 2009) (pdf)
SMI alleges that the time allowed for the submission of
quotations was unreasonable. Contracting agencies are required
to provide a reasonable time for all offerors to respond to
solicitations, 41 U.S.C. sect. 416(a)(5) (2000); Federal
Acquisition Regulation (FAR) sect. 13.003(h)(2). The decision as
to the appropriate response time lies within the discretion of
the contracting officer. See Crowley Am. Transp., Inc.,
B-259599.2, June 19, 1995, 95-1 CPD para. 277 at 6. There is
nothing in the record which would indicate that the contracting
officer abused his discretion here. The agency concluded on July
21 that the solution to the rust problem required flushing the
system. The agency issued the solicitation 8 days later on July
29, with quotations due August 3, giving the solicited firms 5
days to prepare and submit quotations. As discussed above, the
agency states that the Navy’s supply of oilers is critically
low, and that military readiness mandates that this ship
promptly be made seaworthy. In addition, there were concerns
that the quality of the renovation work be ascertained, which
could not be done absent a sea trial. Given the speed with which
the Navy moved to repair this problem with the ship, and the
importance of the ship’s functioning to the Navy’s preparedness,
we conclude that the record supports the reasonableness of the
contracting officer’s exercise of discretion in requiring that
quotations be submitted 5 days from the date of the
solicitation. See id. SMI argues not that the 5 days was
unreasonable, but that the time that SMI had between when it
received the solicitation (the afternoon of August 1) and the
time set for submission of quotations (the morning of August 3)
was unreasonable. This argument is unpersuasive. The agency was
under no obligation to solicit SMI. In using simplified
acquisition procedures, agencies are required to promote
competition to the maximum extent practicable. FAR sect. 13.104.
Where, as here, a simplified acquisition is not expected to
exceed $25,000, the contracting officer is required to consider
solicitation of at least three sources to promote competition to
the maximum extent practicable. FAR sect. 13.104(b); Aleman &
Assocs., Inc., B‑287275, May 17, 2001, 2001 CPD para. 93 at 4.
The agency fulfilled this requirement by issuing the flushing
solicitation to three firms. Since all firms, regardless of when
they received the solicitation, were required to submit
quotations by the solicitation’s specified due date, SMI did not
have as much time as the other, solicited firms in which to
prepare its quotation. However, the time period being judged for
its reasonableness is that afforded to the firms that were
solicited. As explained above, we find the time set by the
agency for the submission of quotations reasonable under the
particular facts of this case. (Specialty
Marine, Inc., B-296988, October 11, 2005) (pdf)
With respect to the protester’s contention that it was not
provided sufficient time to submit a response to this RFQ, we
agree. Other than the New Year’s Day holiday and the weekend
following it, the agency allowed a total response time here of 1
½ business days. The agency states that this brief response time
was necessary in order to meet the March 31 date mandated under
the BPCA (AR at 1); however, there is no such mandate in the
BPCA. Simply put, the BPCA does not set a March 31 deadline for
any task to be performed by HHS. Rather, the BPCA requires that
HHS issue a list of drugs each year, beginning no later than 1
year after the BPCA was enacted (on January 4, 2002). 42 U.S.C.A.
§ 284m(a)(1). More importantly, the present procurement is
associated with preparation of the 2005 list, not the list for
the current year 2004. Although we agree that reasonable time
limits must be set for the completion of preliminary services
leading to the publication of the 2005 list, there is nothing in
the record to support the agency’s contention that these
services had to be completed by March 31, 2004. Moreover, we
note that the need to prepare this list is a recurring
requirement, and the agency had prepared a statement of work
(SOW) for this associated research effort by October 1, 2003. In
addition, the record shows that Metaworks had prepared a draft
proposal by October 24. AR, Tab 2, at 8-9 (the SOW), 12 (Metaworks’
Draft Proposal). Under these circumstances, a response time of 1
½ business days was not a reasonable amount of time to require
IVI to prepare a submission to demonstrate its capabilities.
Accordingly, we sustain the protest on this basis. See Jack
Faucett Assocs., Inc., B-279347, June 3, 1998, 98-1 CPD ¶ 155 at
3‑4 (1 day response time without reasonable justification is
unreasonable). (Information Ventures,
Inc., B-293541, April 9, 2004) (pdf)
Alternatively, the agency may have
viewed Payne's quotation as late and rejected it on that basis.
That basis, as well, is, in our view, legally unsupported. We
have long held that the requirement to obtain competition to the
maximum extent practicable, whether in the context of simplified
acquisition procedures or the predecessor small purchase
procedures, means that language requesting quotations by a
certain date cannot be construed as establishing a firm closing
date for the receipt of quotations absent a provision--which was
not present here--expressly providing that quotations must be
received by that date to be considered. Instruments & Controls
Serv. Co., B-222122, June 30, 1986, 86-2 CPD ¶ 16 at 3. Instead,
agencies should consider any quotations received prior to source
selection if no substantial activity has transpired in
evaluating quotations and other vendors would not be prejudiced.
Id. See also KPMG Consulting LLP, B-290716, B-290716.2, Sept.
23, 2002, 2002 CPD ¶ 196 at 11; G.E.G. Sugar Blues & Noe's
Colors, B-284117, Feb. 22, 2000, 2000 CPD ¶ 29 at 3. (Payne
Construction, B-291629, February 4, 2003) (txt
version)
The RFQ here provided that "[o]ffers
are requested by COB Friday, September 24, 1999." Language
requesting quotations by a certain date cannot be construed as
establishing a firm closing date for the receipt of quotations
absent a provision expressly providing that quotations must be
received by that date to be considered. John Blood, B-274624,
Dec. 19, 1996, 96-2 CPD para. 233 at 2; Instruments &
Controls Serv. Co., B-222122, June 30, 1986, 86-2 CPD para. 16
at 3. Here, the language in the RFQ requesting quotations by
September 24 does not meet that standard. The agency therefore
should have considered any quotations received prior to source
selection if no substantial activity had transpired in
evaluating quotations and other vendors would not be prejudiced.
Instruments & Controls Serv. Co., supra. Failure to do so
would be inconsistent with the statutory provision authorizing
simplified procedures for small purchases, 10 U.S.C. sect.
2304(g)(1)(A) (Supp. IV 1998), which requires that agencies
obtain competition to the maximum extent practicable. 10 U.S.C.
sect. 2304(g)(3) (1994); Instruments & Controls Serv. Co.,
supra. Since the RFQ here contained no late quotations clause;
absolutely no activity with regard to the evaluation of
quotations had transpired prior to the receipt of Sugar Blues'
quotation; and there is no indication that any other vendor
would be prejudiced, the quotation should have been considered.
(G.E.G.
Sugar Blues & Noe's Colors, B-284117, February 22, 2000)
FASA requires only that agencies
obtain competition to the maximum extent practicable when they
utilize simplified acquisition procedures. 10 U.S.C. sect.
2304(g)(3); see FAR sect. 13.104; Aleman & Assocs., Inc.,
B-287275, May 17, 2001, 2001 CPD para. 93 at 3. This standard is
usually met if an agency solicits at least three sources.
However, the competition may be limited to fewer than three,
including limiting the competition to only one source reasonably
capable of performing the work, and the solicitation conducted
orally without public notice, if the agency's needs must be
satisfied on an urgent basis. See FAR sect.sect. 5.202(a)(2),
13.104(b), 13.106-1(a)(1)(iii), 13.106-1(b), 13.106-1(c).
(GMA
Cover Corporation, B-288018, August 17, 2001)
Since it had already accepted
the late submission of technical information by the protester,
we find unobjectionable, in the context of the use of simplified
acquisition procedures, the agency's attempt to enhance
competition through the acceptance of additional technical
information and revisions to permit the other vendors to
establish compliance with the specifications. Simplified
acquisition procedures emphasize efficiency rather than formal
procedure and, when using them, agencies have considerable
discretion in their approach, as long as it promotes competition
to the maximum extent practicable. FAR sect. 13.106-2(b)(2);
Cromartie and Breakfield, B-279859, July 27, 1998, 98-2 CPD para.
32 at 2. Here, the vendors benefited similarly from the agency's
willingness to accept late submissions, hence the protester was
not prejudiced by the agency's acceptance of late technical
submissions. (Williams-Trane
Company, Inc., B-283522, November 22, 1999)
The simplified acquisition
procedures emphasize efficiency rather than formal procedures
and, where using these procedures, an agency has considerable
discretion in its approach, so long as it promotes competition
to the maximum extent practicable. West Coast Research Corp.,
B-281359, B-281359.2, Feb. 1, 1999, 99-1 CPD para. ___ at 4. In
circumstances such as here, where the solicitation does not
contain a specific late quotations provision requiring receipt
of quotations by a specified date in order to be considered but
instead merely calls out a due date, the agency should normally
consider any quotations received prior to the selection decision
if no substantial activity has transpired in evaluating
quotations. Adrian Supply Co., B-235352, Aug. 2, 1989, 89-2 CPD
para. 99 at 2.
However, here the agency was
not, even in the alleged absence of a contract between the Corps
and Dixie, required to consider RMG's quotation. The contracting
officer had already begun the purchase order issuance process by
the time he actually received RMG's quotation. He had examined
the quotations received, prepared an abstract, determined to
issue a purchase order to Dixie, issued confirmation of a verbal
agreement with Dixie, and dispatched notice to the EDI system.
Thus, substantial activity in evaluating quotations and
processing the purchase order had already occurred before the
contracting officer was aware that a revised quotation had been
submitted by RMG. As a result, the Corps was not required to
consider RMG's late quotation. Id. at 3. (RMG
Industrial Sales, B-281632, March 15, 1999) |