Where an agency is using simplified acquisition procedures, it
is not required to use full and open competition to conduct the
procurement. See 41 U.S.C. §§ 3301(a), 3305. Instead, the agency
is required to promote competition to the maximum extent
practicable. 41 U.S.C. §§ 1901, 3305(d); FAR § 13.104. With
respect to publication of a solicitation, except where the
agency uses electronic posting,[7] the agency is required to
“post, for not less than 10 days, in a public place at the
contracting office . . . a notice of solicitation.” 41 U.S.C. §§
1708(a)(1), 1901(e)(1); 15 U.S.C. § 637(e)(1)(b). Beyond that,
when using simplified acquisition procedures, an agency must
conduct the procurement consistent with a concern for fair and
equitable competition. Emergency Vehicle Installations Corp.,
B-408682, Nov. 27, 2013, 2013 CPD ¶ 273 at 4; Minotaur Eng’g,
B-258367, Jan. 11, 1995, 95‑1 CPD ¶ 137 at 2 (protest sustained
where contracting officer solicited one source and failed to
post notice of solicitation properly).
The FAR implements these requirements for a procurement expected
to be valued between $15,000 and $25,000, as here, by directing
the contracting officer to “display[] in a public place, or by
any appropriate electronic means, an unclassified notice of the
solicitation or a copy of the solicitation,” which must “be
posted not later than the date the solicitation is issued, and
must remain posted for at least 10 days or until after
quotations have been opened, whichever is later.” FAR §§
5.101(a)(2); 13.105(a), (b).
Beyond displaying the solicitation, the FAR also describes how
the statutory requirement for maximum practicable competition
can be met, as follows:
[M]aximum practicable competition ordinarily can be obtained
by soliciting quotations or offers from sources within the
local trade area. Unless the contract action requires synopsis
pursuant to 5.101 and an exception under 5.202 is not
applicable, consider solicitation of at least three sources to
promote competition to the maximum extent practicable.
Whenever practicable, request quotations or offers from two
sources not included in the previous solicitation.
FAR § 13.104.
Bluehorse contends that the contracting officer failed to take
reasonable steps to obtain competition because the RFQ was
placed in a binder on a weekend when there was effectively no
public access to the building, and specified a due date for
quotations at 2 p.m. on Monday. Protester’s Comments at 2. The
BIA argues that the placement of the solicitation in the binder
was legally sufficient because the binder was available to
anyone stopping at the contracting office reception desk, and
the public could access the building by showing identification.
AR at 2. In response to an inquiry from our Office, the BIA
acknowledged that “the building is not open to the public on
weekends but could be accessible by appointment.” Email from
Counsel for BIA to GAO, Aug. 22, 2016, at 1.
Bluehorse also argues that the contracting officer failed to
contact at least three sources because one of the firms she
contacted was a propane supplier (as evident from its name) that
could not reasonably have been expected to submit a quotation to
deliver diesel fuel. Protest at 2. In response, the BIA
acknowledges that the firm’s “history may not indicate diesel
deliveries,” but the agency argues that the firm was a third
potential source because “the vendor is clearly an ISBEE fuel
vendor in the vicinity of Gallup, New Mexico” and it “could
easily seek to acquire the diesel from another source.” AR at 5.
The BIA’s actions here fell short of the minimum standards for
obtaining maximum practicable competition when using simplified
acquisition procedures with respect to both publication of the
requirement and soliciting sources. We do not regard the
Saturday placement of the solicitation in a binder, in an office
that was effectively closed to the public on a weekend, for
quotations that were due by 2 p.m. on Monday, as meeting the
requirement for public posting. Further, the contracting
officer’s decision to contact one source that was plainly
unlikely to supply diesel fuel, leaving only two sources that
could, does not meet the guideline of soliciting “at least three
sources to promote competition to the maximum extent
practicable.” FAR § 13.104; cf. Latvian Connection Gen. Trading
& Constr., LLC, B‑409442, Apr. 25, 2014, 2014 CPD ¶ 135 at 2
(stating that soliciting three sources meets the requirements
for conducting a simplified acquisition). In both respects, the
BIA’s actions fail to show appropriate concern for fair and
equitable competition.
The BIA argues that regardless of any errors in publicizing or
soliciting competition, Bluehorse was not competitively
prejudiced by the agency’s actions because it is in Reno,
Nevada, and thus could not have obtained the solicitation.
Agency Reply to Dismissal Request at 1. We disagree. If the BIA
had conducted the procurement with reasonable concern for
obtaining competition, it could have elected either to publicize
the requirement for a time and in a manner that would have
allowed Bluehorse to respond, or might have contacted Bluehorse
directly, particularly given its status as a past source of
diesel fuel to the agency. We need not determine with certainty
that Bluehorse would have been awarded the contract in order to
conclude that the protester was prejudiced here. We resolve any
doubts regarding prejudice in favor of the protester; a
reasonable possibility of prejudice is sufficient. Celta Servs.,
Inc., B-411835, B-411835.2, Nov. 2, 2015, 2015 CPD ¶ 362 at 12.
We conclude that the BIA did not conduct the procurement
consistent with a concern for fair and equitable competition,
and thus did not achieve maximum practicable competition.
Accordingly, we sustain the protest. (Bluehorse
Corporation B-413533: Oct 28, 2016)
SMI also asserts that the agency did not publicly display the
solicitation as required by FAR sect. 5.101(a)(2). For
procurements between $10,000 and $25,000, such as the one here,
the requirements for public notice of the solicitation appear in
FAR sect. 5.101(a)(2); that provision requires public display of
the solicitation unless one of the enumerated exceptions in FAR
sect. 5.202 applies. While FAR sect. 5.101(a)(2) is generally
applicable to all procurements between $10,000 and $25,000,
where, as here, the agency has chosen to use simplified
acquisition procedures for a procurement in that price range,
the notice requirements are established not by FAR sect. 5.101,
but by FAR sect. 13.105. That provision states that the notice
requirements of FAR sect. 5.101 (including the public display
requirement in FAR sect. 5.101(a)(2)) apply unless “an exception
in [FAR sect.] 5.202 applies.” FAR sect. 13.105(a)(2). The
language does not limit the available exceptions to those
enumerated in FAR sect. 5.101(a)(2). Accordingly, all the
exceptions in FAR sect. 5.202 are available to an agency using
simplified acquisition procedures to conduct a procurement with
an anticipated value between $10,000 and $25,000. See Military
Agency Servs. Pty., Ltd., B-290414 et al., Aug. 1, 2002, 2002
CPD para. 6-7. Here, the agency relies on the unusual and
compelling urgency exception in FAR sect. 5.202(a)(2). We will
object to an agency’s determination that it has a need for
property or services of an unusual and compelling urgency only
where the determination lacks a reasonable basis. See Abbott
Prods., Inc., B-231131, Aug. 8, 1988, 88-2 CPD para. 119 at 6.
In this regard, an agency’s assertion that there is a critical
need which affects military operations carries considerable
weight, and the protester’s burden to show unreasonableness is
particularly heavy. Id. As explained above (in the analysis of
the whether the response time to the solicitation was
reasonable), there is ample support in the record for the
agency’s position that there was an urgent need to procure the
work called for under both solicitations here. Given that
conclusion, the agency was not obligated to publicly display the
solicitation. (Specialty Marine, Inc.,
B-296988, October 11, 2005) (pdf)
We first note that the agency has not stated or otherwise
explained in any manner why the "process of coordinating with
other provinces" was so "cumbersome," or why that would relieve
it of any of its statutory and regulatory obligations regarding
the proper posting of procurement actions. In this regard, we
note that during a telephone hearing, the basic process of
coordinating with the IBET and Northern Province contracting
offices was described as nothing more than sending them the
pre-solicitation notice and RFQ, and requesting that they be
posted on the provinces’ respective websites. Additionally,
although the agency is correct that the pre-solicitation notice
and RFQ could have been accessed by searching the FedBizOpps
site using the correct NAICS code, we note that this code
includes many divergent services and postings nationwide;
indeed, during the course of a telephone hearing with the
parties, such a search was conducted and it yielded well over
900 different postings. Given the circumstances here, it would
be quite burdensome for a contractor to have to regularly search
such a large database in order for the contractor to be assured
that it remained aware of potential contracting opportunities.
Nevertheless, under the circumstances here, we do not agree with
the protester that the agency’s posting of its requirements on
only the Sierra Cascade Province’s FedBizOpps website failed to
meet the statutory requirement that the notice be
"electronically accessible in a form that allows convenient and
universal user access." See 41 U.S.C. sect. 416 (a)(7) (2000).
We have long held that prospective vendors have an affirmative
duty to make every reasonable effort to obtain solicitation
materials. USA Info. Sys., Inc., B-291488, Dec. 2, 2002, 2002
CPD para. 205 at 3; American Material Handling, Inc., B-281261,
Jan. 19, 1999, 99-1 CPD para. 13 at 2; see Upside Down Prods.,
B-243308, July 17, 1991, 91-2 CPD para. 66 at 3. As noted above,
each particular contracting opportunity set forth in the RFQ
could have been readily located on the FedBizOpps website by
searching by geographic location. That is, the contracting
opportunity that the protester is interested in, the provision
of wildland fire engine services for the Tahoe National Forest
in the IBET Province, could have been readily located by
searching the FedBizOpps website for contracting opportunities
in that forest--that is, by searching the FedBizOpps website
using the term “Tahoe.” See Protest at 2. Had the protester done
this, the protester would have found both the pre-solicitation
notice and RFQ. Given this, we conclude that the agency’s
actions satisfied the legal requirements. (Jess
Bruner Fire Suppression, B-296533, August 19, 2005) (pdf)
The record here also discloses that the agency’s
sole-source determination may not be reasonable. We first
note in this regard that the agency has never synopsized
its intent to make a sole-source award to Metaworks.
Although the agency points out that it received no
responses (other than the protester’s) to the December 15
pre‑solicitation notice, the agency also acknowledges that
the pre-solicitation notice was misclassified as “medical
services,” rather than as “other scientific and technical
consulting services.” AR, Tab 1, Statement of Facts, at 4.
The document that the agency terms a “revised notice” was,
in actuality, an RFQ apparently issued only to IVI. Given
these flaws, the agency’s actions may have denied
potential sources (other than the protester) the
opportunity to respond to a proper synopsis of the
agency’s intended sole-source. In addition, in its
justification of its sole source determination, the agency
describes Metaworks’ skills and experience, and states
that Metaworks is “the leading provider” of these
services. AR, Tab 2, at 10 (Sole Source Justification).
This description, on its face, suggests that there are
other providers of these services, and that the agency is
aware of them. Finally, we note that the protester claims
that it, too, can provide these services. Protester’s
Comments at 5. In short, there is little here to support
the determination that only Metaworks could provide these
services. See Ultraviolet Purification Sys., Inc., supra,
at 4; Jack Faucett Assocs., Inc., supra, at 4. (Information
Ventures, Inc., B-293541, April 9, 2004) (pdf)
Our review of the record leads us to conclude that this
synopsis did not accurately describe the agency’s
requirements. As set forth above, the notice, while not
entirely clear, indicates a need for a contractor to “plan
and convene a conference” (described later in the notice
as involving over 4,000 participants), and to provide
training for conference participants on the Get Connected
Toolkit.[2] However, the requisition, including the
scope of work, dated November 20, 2003, which presumably
served as the basis for the notice, provides a markedly
different description of the work here. Specifically, the
requisition shows that the agency actually wanted a
contractor to provide a geriatrics specialist and a
conference coordinator to prepare a one-day training
course in using the Get Connected Toolkit. This training
course was to be offered during the course of the American
Society of Aging (ASA)/NCOA conference on April 14, 2004,
and the agency anticipated providing training to up to 60
individuals. See AR, Tab D, Statement of Work at 2-10.
In our view, the agency’s actual requirements are
significantly different than “planning and convening a
conference” for 4,000 people, as the notice advised. In
light of the misleading notice used here, Information
Ventures, as well as other potential contractors, was
denied any realistic opportunity to compete for the
agency’s requirements. In this regard, Information
Ventures advises that it has extensive experience in
planning conferences for HHS in the subject areas relevant
to the procurement, including graphics and design
expertise; that it, too, has the ability to identify
experts and consultants; and that it would have competed
for the contract had the agency accurately described its
needs. Without providing an accurate notice of its
sole-source procurement, HHS failed to ensure that its
actions provided competition to the maximum extent
practicable, as required by FAR § 13.104 for simplified
acquisitions. See id. at 6. (Information
Ventures, Inc., B-293518; B-293518.2, March 29, 2004)
(pdf)
Generally,
agencies are required to provide public notice of
proposed contract actions for amounts above $25,000 in
the Commerce Business Daily (CBD) and to give potential
sources a reasonable opportunity to respond. 41 U.S.C.A.
sec. 416(a) (West Supp. 1998); FAR sec. 5.101, 5.203(b).
This requirement extends to proposed sole-source awards
using simplified acquisition procedures (i.e., for
amounts between $25,000 and $100,000). FAR sec.
13.003(i)(2), 13.105(a). Although certain contract
actions using FACNET are exempt from the CBD notice and
response time requirements, see 41 U.S.C.A. sec.
416(c)(1)(A) and (B); FAR sec. 5.202(a)(13) and (14),
13.105(a)(1), this does not mean that public notice and
an opportunity to respond are not required where FACNET
is used; instead, it means that when an acquisition is
conducted via FACNET, public notice may be furnished via
FACNET rather than via the CBD. (Jack
Faucett Associates, Inc., B-279347, June 3, 1998) |