Gunter argues
that the Army received but improperly failed to evaluate the
firm’s [final proposal revision] FPR. Even if not, Gunter argues
the instructions for submitting FPRs contained a latent
ambiguity regarding the first addressee’s e-mail address because
they used a font that did not distinguish between the lowercase
“L” and the numeral “1” in the address. Protest at 3. Gunter
also argues that its FPR arrived at the Army’s designated
depository (the [Army Aviation and Missile Research Development
and Engineering Center] AMRDEC [Safe Access File Exchange] SAFE
system) and notification of its availability arrived with the
second addressee, so the Army’s failure to evaluate the FPR was
due to mishandling by the Army’s systems or personnel. Protest
at 4‑5.
The Army counters that the FPR submission instructions in the
discussions letter were clear or, at worst, constituted a patent
ambiguity. Therefore, the Army maintains, it was Gunter that
failed to request clarification of (or to file a protest about)
the proper addresses to notify upon submitting its FPR through
the AMRDEC SAFE system. AR at 17-18.
The second contracting officer (who was the second addressee)
explains that although the AMRDEC SAFE system notified him that
a document had been submitted for retrieval, he did not open the
notification e-mail and did not retrieve Gunter’s FPR. AR, Tab
12, Declaration of Second Addressee, at 1-2. He states that
although he had been assigned to this RFP as the contracting
officer when discussions were being held, he had been reassigned
to other duties by the time that FPRs were due, and he was not
aware that the contracting officer had provided his e-mail
address (rather than her own) for FPR submissions. Id.
Furthermore, he did not communicate with the responsible
contracting officer or contracting specialist about his receipt
of the notice about Gunter’s FPR until after award, on September
1. Id. at 2.
Ultimately, the Army argues, even if the agency mishandled or
lost Gunter’s FPR, it is no longer possible to know with
certainty the contents of the FPR submission because the AMRDEC
SAFE system performed as designed: it destroyed the FPR
submission 14 days after it was submitted. AR at 13.
Agencies have a fundamental obligation to have procedures in
place not only to receive proposals, but also to reasonably
safeguard the proposals received, and to give them fair
consideration. S.D.M. Supply, Inc., B-271492, June 26, 1996,
96‑1 CPD ¶ 288 at 4, recon. denied, Dep’t of the Army--Recon.,
B-271492.2, Nov. 27, 1996, 96-2 CPD ¶ 203; see also Federal
Acquisition Regulation (FAR) § 15.207. However, as a practical
matter, even with appropriate procedures in place, an agency may
lose or misplace a proposal. We have held that such an
occasional loss--even if it occurs due to negligence of the
agency--generally does not entitle the bidder or vendor to
relief. Id.; Interstate Diesel Serv., Inc., B‑244842.2, Sept.
27, 1991, 91-2 CPD ¶ 304 at 2. Thus, for example, we have held
that an agency’s rejection of a quotation was reasonable where
the protester e‑mailed its quotation to the agency, but the
agency never actually received the submission before the
deadline. Turner Consulting Group, Inc., B‑400421, Oct. 29,
2008, 2008 CPD ¶ 198 at 4.
The Army does not dispute that Gunter delivered its FPR to the
agency system designated for receipt of FPRs a day before it was
due. Even though Gunter’s effort to notify one contracting
official was unsuccessful, the firm used the system to notify
one of the agency officials properly. AR Tab 12, Declaration of
Second Addressee, at 1. Since it was apparently following the
instructions in the discussions letter, Gunter did not attempt
to send a notification to one of the addressees listed in
amendment 3. Nevertheless, we need not consider whether Gunter
bears the responsibility for failing to perceive the ambiguity
in the intended e-mail address for the first addressee because
we conclude that Gunter submitted its FPR to the Army, and
properly notified the agency through the second addressee, in
compliance with the contracting officer’s direction.
The second addressee has provided no reasonable explanation for
failing to open the AMRDEC SAFE notification e-mail, which
stated that a sender from a Gunter Construction e-mail address
had submitted a “Fort Polk JOC BAFO” for him. Id. at 2 (copy of
August 4 AMRDEC SAFE notification e-mail). The Army’s
explanation for failing to retrieve Gunter’s FPR (which the Army
should have been expecting) is thus unreasonable. Likewise the
failure of the contracting officer to contact that colleague
promptly is also unreasonable--particularly because she had
instructed offerors to submit their FPRs to him, rather than to
herself, and could have asked whether the expected FPR from
Gunter had reached him. We also recognize that if Gunter had
attempted to follow the FPR submission instructions in amendment
3, instead of those in the discussions letter, it is likely that
notification of the FPR would have reached the contracting
officer. Under these circumstances, however, we conclude that
the Army received the protester’s FPR, but failed to use
reasonable procedures to preserve and evaluate it. See Dep’t of
the Army--Recon., supra (affirming sustained protest where
protester’s quotation was submitted to agency computer system
but not evaluated because contracting officer was not notified
of its receipt).
Nevertheless, we do not sustain the protest because the AMRDEC
SAFE system destroyed the only copy of Gunter’s FPR. As noted
previously, even where an agency negligently destroys an
offeror’s proposal, that fact does not entitle the bidder or
vendor to relief. Project Resources, Inc., B‑297968, Mar. 31,
2006, 2006 CPD ¶ 58 at 2 (denying protest where agency signed
for but then lost proposal). This result is justified by the
unique circumstances arising in protests concerning lost
information. Id. The only means generally available to establish
the content of lost information is for the protester to
reconstruct that information, but allowing an offeror to
establish the content of its lost proposal after the closing
date has passed would be inconsistent with maintaining a fair
competitive system. Id.
Nevertheless, when deciding whether to exercise options under
the contract, the Army may wish to consider, among the “other
factors” under FAR § 17.207, whether the integrity of the
procurement system and the potential for significantly lower
prices would justify holding a new competition for the remainder
of the JOC requirement.
The protest is denied. (Gunter
Construction, Inc. B-412039: Nov 30, 2015) (pdf)
RAM asserts that the Army was required to reopen discussions to
address the significant weakness regarding the protester’s
proposed approach to TAR 9. As discussed below, we find no merit
to this argument.
Discussions, when conducted, must identify proposal deficiencies
and significant weaknesses that reasonably could be addressed in
order to materially enhance the offeror’s potential for
receiving award. Serco Inc., B-405280, Oct. 12, 2011, 2011 CPD ¶
237 at 11. However, agencies are not required to reopen
discussions to afford an offeror an additional opportunity to
revise its proposal where a weakness or deficiency is first
introduced in the firm’s revised proposal. MetalCraft Marine,
Inc., B-410199, B-410199.2, Nov. 13, 2014, 2014 CPD ¶ 338 at 10;
Raytheon Co., B-403110.3, Apr. 26, 2011, 2011 CPD ¶ 96 at 7.
The Army’s concern regarding RAM’s proposed deviation from the
staffing matrix for TAR 9 was not based on any information in
the protester’s proposal predating discussions. Rather, the
agency’s concern was based on new information introduced by RAM
in its revised proposal responding to the amended RFP. As set
forth above, on July 18, the Army issued written discussion
questions to RAM. AR, Tab 20, EN to RAM (July 18, 2014), at 1.
The agency also simultaneously amended the RFP, including a
requirement for offerors to address any proposed deviations from
the agency’s staffing matrix for TARs 9 through 12. Id. Prior to
the July 18 RFP amendment, offerors were not required to provide
a detailed narrative explaining the basis for their staffing
approaches to TARS 9 through 12. On August 4, RAM submitted a
response addressing its deviation from the staffing matrix for
TAR 9. AR, Tab 67, RAM TAR 9 Methodology (Aug. 4, 2014). RAM
points to no information in its proposal predating its August 4
submissions that should have put the agency on notice of the
issues raised by RAM’s staffing approach that formed the basis
of the agency’s subsequent concern.
We do not find that the agency was required to reopen
discussions with RAM to address concerns raised by information
the company first submitted in response to the RFP amendment
that was issued simultaneously with the written discussion
questions. When, as here, an offeror introduces defects into its
proposal in a revised proposal, it runs the risk that the agency
will exercise its discretion not to reopen discussions. EDO
Corp., B-296861, Sept. 28, 2005, 2005 CPD ¶ 196 at 10 n.4.
Accordingly, this protest ground is denied.
(Research Analysis &
Maintenance, Inc. B-410570.6, B-410570.7: Jul 22, 2015)
(pdf)
Active Headsets raises four primary challenges to DLA’s
conducting of the reverse auction and resulting award decision.
First, the protester alleges that Acousticom failed to
participate in the reverse auction, thus rendering the awardee
ineligible for award under the terms of the RFP. See Protest at
6-7. Second, the protester alleges that the auction system
provided misleading information because it designated the
protester as the “lead” bidder with regard to certain aspects of
its bid, and, thus effectively induced the protester into not
placing additional bids. See id. In a related allegation, Active
Headsets argues that the auction website’s use of the undefined
data field “start price” was ambiguous and did not advise
offerors that the agency would pre-load offerors’ prices from
their initial proposals as the starting bids for the reverse
auction. See Protester’s Response to Request for Dismissal (Nov.
18, 2014) at 2. Finally, the protester alleges that,
notwithstanding that a reverse auction was conducted, DLA made
its award decision based on the offerors’ initial proposals, in
violation of DLAD clause 52.215-9023(a), which states that the
reverse auction will be used “to establish the final offered
prices from each Offeror.” See Protest at 6-7.
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. Management Sys.
Int’l, Inc., B-409415, B-409415.2, Apr. 2, 2014, 2014 CPD ¶ 117
at 5. 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. Here, we find that the
record supports the reasonableness of the agency’s conducting of
the reverse auction and resulting award decision.
First, contrary to the protester’s argument, the record provided
by DLA establishes that Acousticom participated in the reverse
auction. AR, Tab 11, Procurex Event Bidding Detail Report, at 2.
In fact, both the awardee and the protester completed the
registration for the reverse auction. Id. As discussed below,
neither party submitted a bid during the reverse auction, and
the protester does not cite to any requirement in the
solicitation or DLAD that required offerors to place any bids
during the auction. Thus, there is no basis to find that the
awardee should have been eliminated from the competition on the
ground that it failed to participate in the reverse auction.
Second, the record demonstrates that the reverse auction system
utilized by DLA put bidders on notice regarding the status of
their bids, as required by DLAD clause 52.215-9023(e). That
clause requires that the system designate offers either as
“lead,” meaning the current low price in the auction, or “not
lead,” meaning not the current low price in the auction. RFP at
28. Here, the system contained a link titled “View Lead/Not Lead
Bidder,” which showed a bidder’s current bid, the lowest bid,
and the bidder’s relative position, i.e., “lead” or “not lead”.
See AR, Tab 12, Screenshots from Procurex System, at 2, 3.[2]
Although the system indicated that the protester was the “lead”
bidder with regard to the escalation years, it also showed that
for the overall contract, Active Headsets’ bid was “not lead.”
Id. at 2. Thus, the system adequately put the protester on
notice that it was not the “lead” bidder for the overall price.
Also, the record shows that bidders were on notice that their
initial proposed prices would be utilized as the starting bids
for the reverse auction. The initial email that Active Headsets
received after registering with the auction system stated: “Your
Solicitation response price(s) will be pre-entered by the DLA
Buyer as part of the event set up.” AR, Tab 10, Email from
Procurex System Administrator (Sept. 11, 2014), at 1. In light
of this express notice and the fact that the system clearly
reflected that Active Headsets was not the overall “lead”
bidder, we do not think that the data field “start price” was
ambiguous. On this record, we conclude that the protester was on
notice that it was not the overall lead bidder, and that the
offerors’ initial proposals would be pre-loaded as the starting
bids for the reverse auction.[3]
Finally, Active Headsets contends that DLA improperly used the
offerors’ prices from their initial proposals, and did not
obtain bids through the reverse auction. The only price bids
received by the agency, however, were those contained in the
offerors’ initial proposals, as neither party placed any bids
during the reverse auction or otherwise revised their initial
proposals in response to the agency’s request for final proposal
revisions. See AR, Tab 11, Procurex Event Bidding Detail Report,
at 2 (reflecting that each bidder made only one bid, which were
the offerors’ pre-loaded initial proposals); AR, Tab 14, Email
from CO (Oct. 30, 2014), at 1. As no bids other than the
offerors’ initial proposals were received, the agency reasonably
used the offerors’ initial pricing as the basis for its
evaluation and award. To the extent the protester argues that
the failure to receive additional bids during the reverse action
violated the terms of DLAD clause 52.215-9023, we do not find
this argument to present a valid basis for protest. That clause
provides that an “offeror’s final auction price at the close of
the reverse auction will be considered its final proposal
revision.” DLAD clause 52.215-9023(f). We are not aware of any
requirement, and the protester cites to none, that an offeror
must submit a revised proposal in the absence of any change to
the terms of the solicitation. Here, both the awardee and
protester stood behind their originally submitted proposals.
Hughes argues
that allowing Artel to submit a revised quotation is an
“improper effort to give Artel an unfair competitive advantage
by giving Artel an opportunity to cure its proposal deficiencies
after the completion of the competition.” Protest at 2. Because
SSA did not revise the solicitation, Hughes maintains that the
“proper remedy” would be for the agency to reevaluate quotations
as originally submitted, find Artel technically unacceptable,
and issue the task order to Hughes. Id. at 3.
Contracting officers in negotiated procurements have broad
discretion to take corrective action where the agency determines
that such action is necessary to ensure a fair and impartial
competition. The Matthews Group, Inc. t/a TMG Constr. Corp.,
B-408003.2, B-408004.2, June 17, 2013, 2013 CPD ¶ 148 at 5;
Domain Name Alliance Registry, B-310803.2, Aug. 18, 2008, 2008
CPD ¶ 168 at 8. As a general matter, the details of a corrective
action are within the sound discretion and judgment of the
contracting agency. Rockwell Elec. Commerce Corp., B-286201.6,
Aug. 30, 2001, 2001 CPD ¶ 162 at 4. We generally will not object
to the specific corrective action, so long as it is appropriate
to remedy the concern that caused the agency to take corrective
action. Networks Elec. Corp., B-290666.3, Sept. 30, 2002, 2002
CPD ¶ 173 at 3. Where an agency has reasonable concerns that
there were errors in the procurement, corrective action may
appropriately include reopening discussions and requesting
revised proposals before reevaluating. Consortium HSG
Technischer Service GmbH and GeBe Gebäude-und Betriebstechnik
GmbH Südwest Co., Management KG, B-292699.4, Feb. 24, 2004, 2004
CPD ¶ 44 at 3; Main Bldg. Maint., Inc., B-279191.3, Aug. 5,
1998, 98-2 CPD ¶ 47 at 3.
Here, SSA reports that subsequent to its review of Hughes’
initial supplemental protest, the agency determined that
language in Artel’s quotation related to the vendor’s experience
was “sufficiently ambiguous to warrant further clarifications.”
Legal Memorandum at 3. According to the agency, whether Artel
met the RFQ’s experience requirements was “open to
interpretation,” which created a concern that there were errors
with the procurement. Id. at 4. Thus, to ensure a “fair and
impartial competition,” SSA explains that it allowed both
vendors to revise their quotations. Id.
In our view, the corrective action taken here is well within the
broad discretion afforded to contracting agencies.[4] Because it
was not clear to SSA whether the awardee met certain RFQ
experience requirements, the agency had a reasonable basis to
seek revised quotations from the firm. To ensure a fair
competition, Hughes was also provided an opportunity to revise
its quotation. We disagree with Hughes’ contention that the
corrective action only benefits Artel because, as Hughes
complains, the firm already met the RFQ’s experience
requirements and cannot improve its competitive position. See
Protest at 2. In this regard, the protester--having previously
been provided the agency’s original post-award debriefing--has
the opportunity to submit an improved technical quotation and
make price adjustments as it deems necessary.[5]
Moreover, the corrective action here is not contrary to the
evaluation scheme outlined in the RFQ, as Hughes argues. See
Supp. Protest at 2; Comments at 6. In this respect, the agency
maintains that its reevaluation of quotations will be in
accordance with the RFQ’s three-phase evaluation process, and
Hughes has not demonstrated otherwise. Legal Memorandum at 7.
Further, though Hughes complains that Artel is being given a
“second opportunity to pass” phase 1,[6] the protester has not
shown that the solicitation precludes the agency from seeking
clarifications or revised quotations as part of corrective
action.[7] See Supp. Protest at 3. Indeed, given that the
apparent impropriety in the evaluation of Artel’s experience
brought into question the integrity of the procurement process
as a general matter, we see nothing objectionable in the
agency’s decision, essentially, to conduct a new evaluation. See
generally MayaTech Corp., B-400491.4, Feb. 25, 2009, 2009 CPD ¶
55 at 2; Patriot Contract Servs., LLC, et al., B-278276.11 et
al., Sept. 22, 1998, 98-2 CPD ¶ 77 at 4. (Hughes
Network Systems, LLC, B-409666.3, B-409666.4: Aug 11, 2014)
(pdf)
Meaningful
Discussions
ManTech asserts that the agency failed to provide it with
meaningful discussions with respect to the agency’s concern
regarding ManTech’s high proposed labor rate discounts
(reductions from its GSA Logworld rates) in its FPR. Since the
labor rate discounts in its initial proposal were lower than its
incumbent rates under its prior Logworld order and those in the
independent government estimate, ManTech argues that the agency
was required to raise the issue in discussions before assigning
it a major risk in the evaluation of FPRs.
Discussions, when conducted, must identify proposal deficiencies
and significant weaknesses that reasonably could be addressed in
order to materially enhance the offeror’s potential for
receiving award. Serco Inc., B-405280, Oct. 12, 2011, 2011 CPD ¶
237 at 11. However, agencies are not required to reopen
discussions to afford an offeror an additional opportunity to
revise its proposal where a weakness or deficiency is first
introduced in the firm’s revised proposal. Raytheon Co.,
B-403110.3, Apr. 26, 2011, 2011 CPD ¶ 96 at 7.
Vendors were required to propose a comprehensive matrix of their
GSA Logworld labor categories showing the negotiated GSA price
for government and contractor sites and discounted prices
offered to DOS to be used in the calculation of optional CLINs.
RFQ at 22; ManTech SAR COS at 2. In addition, vendors were
required to propose volume discounts from their GSA labor rates
for fixed-price CLINs. ManTech SAR COS at 3.
In its initial proposal, ManTech’s optional CLIN rates included
discounts ranging from [deleted]% to [deleted]% below its GSA
Logworld rates, and fixed-price volume discounts (covering 65
individual base and option year rates) ranging from [deleted]%
to [deleted]% in the base year. ManTech SAR COS at 2, 5-6.
Although, the evaluators found ManTech’s proposed rates lower
than its incumbent Logworld order rates and its discounts higher
than its incumbent discounts, they did not identify any concerns
because the rates and discounts were consistent with those of
other vendors. Id. at 3. (They were concerned that ManTech’s
staffing plan was inadequately supported and raised that matter
with the firm in discussions. Id. at 4.)
In its FPR, ManTech increased its labor hours by approximately
40% without increasing its overall price. Instead, while keeping
its optional CLIN rates the same, it significantly increased its
discount rates. In this regard, of the 65 different rates, 20
reflected a 14% to 30% increase in discount rates over the
initial proposal; 24 reflected an increase of 5% to 9%; and the
remaining 21 remained unchanged. ManTech SAR COS at 5-7. For
example, the base year discount rate for CLIN X002 increased
from [deleted]% in its initial proposal to [deleted]% of its GSA
rates in its FPR, and the option years 1 and 2 discount rates
for CLIN X006 increased from [deleted]% to [deleted]% and from
[deleted]% to [deleted]%, respectively. Id. at 5. In addition to
being significantly higher than the discount rates in ManTech’s
initial proposal, the TET found the discounts to be
significantly higher than those proposed by other vendors, and
thus assigned the firm a risk in the evaluation. Id. at 7.
Thus, the record indicates that the agency’s concern with
respect to ManTech’s proposed discount rates first arose when,
in its FPR, ManTech substantially increased the discounts.
Because ManTech’s increased discount rates did not appear until
the firm introduced them in its FPR, the agency was under no
obligation to reopen negotiations in order to address them with
the firm. See Raytheon Co., supra. Thus, there is no basis to
conclude that discussions with ManTech were not meaningful.
(URS Federal Services, Inc.; ManTech
Telecommunications and Information Systems Corporation,
B-408678.5, B-408678.6, B-408678.7: Jun 20, 2014.) (pdf)
The RFP, as
amended, set the closing date for receipt of proposals as July
28, 2010. On July 27, 2010, a third offeror filed a protest with
our Office objecting to various terms of the solicitation. Both
ISS and MLS proceeded with submission of their proposals, but
the agency did not evaluate them due to the pending protest.
After considering the protest, the agency issued an amendment to
the RFP that reopened the solicitation and set a new closing
date. The new closing date was subsequently extended to October
29, 2010, and all three offerors submitted timely proposals.
(Sections deleted) On April 1, 2011, the Navy made award
to MLS.
(Sections deleted)
First, ISS argues that given the amount of time that elapsed
between offerors’ submission of their proposals and the award,
the agency should have permitted offerors to update their
proposals. In this connection, the protester argues that agency
contracting officials knew that some of its proposed key
personnel had left its employ and that the portion of its
proposal addressing its organizational structure/key personnel
therefore required revision. ISS also argues that given the
passage of time, the agency should have required offerors to
update their past performance information.
The protester’s argument has no merit. Agencies are not required
to provide for the submission of revised proposals merely
because of the passage of time. Highmark Medicare Servs., Inc.;
Cahaba Gov’t Benefit Adm’rs, LLC; Nat’l Gov’t Servs., Inc.,
B-401062.5 et al., Oct. 29, 2010, 2010 CPD ¶ 285 at 11 n.10;
System Planning Corp., B-244697.4, June 15, 1992, 92-1 CPD ¶ 516
at 5. Moreover, it is clear from the record that allowing the
protester to update the portions of its proposal addressing key
personnel and past performance would have had no material impact
on the rating of the proposal as technically unacceptable given
that the unacceptable rating was based on findings unrelated to
these areas. Contrast DRS ICAS, LLC, B-401852.4, B-401852.5,
Sept. 8, 2010, 2010 CPD ¶ 261; Panacea Consulting, Inc.,
B-299307.4, B-299308.4, July 27, 2007, 2007 CPD ¶ 141; and G.
Marine Diesel, B-232619.3, Aug. 3, 1989, 89-2 CPD ¶ 101. Thus,
the protester suffered no prejudice as a result of the agency’s
failure to permit it to update the key personnel and past
performance information in its proposal. (Inchcape
Shipping Services Holding, Ltd., B-403399.3,B-403399.4, Feb
6, 2012) (pdf)
On March 22,
Power Connector filed a protest with our Office challenging the
award to Newberger. On April 14, the agency advised our Office
that it would take corrective action by canceling the award to
Newberger, issuing a revised solicitation, and seeking revised
proposals; based on this notice, we dismissed the protest.
On April 26, UNICOR issued amendment No. 0006. As relevant here,
the amendment revised the criteria for the evaluation of past
performance, and provided additional information concerning the
evaluation of offerors' bid samples in connection with the
ability to meet specifications factor. With regard to past
performance, amendment No. 0006 stated that relevant past
performance was defined as "providing leather items," and recent
performance was defined as "completed in the last 5 years." RFP
amend. 6 at 1; see also id. at 5, revised form FPI 999.999-9.
The amendment advised offerors that "[a]ll pricing proposals
have already been submitted, and will be utilized to conduct the
evaluation of offers for award" and that "[n]o new pricing
proposals are requested." Id.
DISCUSSION
Power Connector argues that RFP amendment No. 6 materially
changed the past performance evaluation criteria, but also
improperly precludes offerors from revising other aspects of
their proposals, such as price. The protester states that in
light of the changed past performance criteria, it would revise
its price.
In negotiated procurements, CO's have broad discretion to take
corrective action where the agency determines that such action
is necessary to ensure a fair and impartial competition.
Intermarkets Global, B-400660.10, B-400660.11, Feb. 2, 2011,
2011 CPD para. 30 at 3. An agency's discretion in the area of
corrective action extends to deciding the scope of proposal
revisions, and there are circumstances where an agency may
reasonably decide to limit revisions offerors make to their
proposals. See, e.g., Computer Assocs. Int'l, Inc., B-292077.2,
Sept. 4, 2003, 2003 CPD para. 157 at 5. However, where an agency
amends a solicitation and permits offerors to revise their
proposals, our Office has held that offerors should be permitted
to revise any aspect of their proposals--including those that
were not the subject of the amendment--unless the agency
demonstrates that the amendment could not reasonably have an
effect on other aspects of the proposals, or that allowing such
revisions would have a detrimental impact on the competitive
process. Cooperative Muratori Riuniti, B-294980.5, July 27,
2005, 2005 CPD para. 144 at 7; Lockheed Martin Sys.
Integration-Owego; Sikorsky Aircraft Co., B-299145.5,
B-299145.6, Aug. 30, 2007, 2007 CPD para. 155 at 5.
UNICOR cites three bases for limiting the extent to which
proposals may be revised. As discussed below, we conclude that
none of these arguments provide a reasonable basis for limiting
offerors' proposal revisions to the area of past performance.
First, UNICOR contends that amendment No. 0006 did not make a
material change to the RFP's evaluation criteria, but instead
merely clarified the requirement for recent and relevant past
performance information. In our view, however, the amendment did
more than clarify the past performance factor. As noted above,
the amendment changed the evaluation factor by defining relevant
and recent contracts as those for leather items that were
completed by the offeror in the last 5 years. This revised
evaluation scheme is clearly different from the scheme set forth
in the original RFP, which did not limit relevant performance to
providing leather items, and which did not contain a specific
time frame for evaluation. We conclude that the amendment made a
material change to the evaluation scheme, because the depth and
quality of past performance contract experience that would be
rated favorably was changed. Cf. Mantech Advanced Sys., Int'l,
Inc., B-240136, Oct. 26, 1990, 90-2 CPD para. 336 at 5
(relaxation of level of experience for one offeror resulted in
the waiver of a material solicitation requirement).
Next, UNICOR argues that even if the solicitation revision
materially revised the past performance evaluation criteria,
that revision would not effect other areas of the offerors'
proposals. With regard to Power Connector, the agency contends
that the protester was aware that the agency did not view the
contracts it submitted as relevant or recent as a result of
discussions, and thus its revised proposal, submitted in
response to discussions, should have already accounted for this
understanding in its revised past performance proposal. For this
reason, the agency argues that the protester could not have been
prejudiced by the lack of an opportunity to revise its price in
response to RFP amendment No. 6. We are not persuaded by this
argument.
The record shows that although the agency requested that the
protester provide more recent contracts for provision of
leather, the agency did not advise the protester that its
contract for providing electronics to UNICOR would be
discounted, entirely. See AR, Tab 5, Emails from Agency to
Protester Regarding Discussions. Additionally, the record does
not show that the agency provided the protester with an
opportunity to revise its price in response to the agency's
request for revised past performance information during
discussions. Power Connector asserts that, had it known that its
successful past and current performance on UNICOR contracts
would not count toward its past performance rating, it would
have lowered its price in order to enhance the competitiveness
of its proposal. Protest at 14. The protester further states
that it will lower its price in response to the amended
solicitation if the restriction is removed. Id. On this record,
we think the protester demonstrates that the revision to the
evaluation criteria would have an effect on its proposed price.
Finally, UNICOR argues that it limited offerors' ability to
submit revised prices in response to RFP amendment No. 6 in
order to prevent harm to the competitive process. In this
regard, the CO states that the debriefing provided to Power
Connector after the award erroneously provided Power Connector
with the prices of the other offerors. CO Statement at 2. The CO
states that this disclosure was in error because "I provided
more information tha[n] the FAR authorized me to release,
including the prices submitted in response to the solicitation
by all the offerors, not just the awardee's price." Id.
UNICOR argues that by limiting offerors' proposal revisions to
past performance, the agency neutralized the competitive
advantage that Power Connector gained from learning the other
offerors' prices. We are not persuaded by this argument. As the
protester notes, the FAR instructs that when an agency issues a
new solicitation in response to a protest, the agency should
provide to offerors in the competitive range from whom revised
proposals are sought any "[i]nformation provided to unsuccessful
offerors in any debriefings conducted on the original award
regarding the successful offeror's proposal." FAR sect.
15.507(b)(2), (c)(1). In light of the FAR requirement to
equalize the disclosure of information, we think that the
agency's decision to limit the scope of revisions to address its
concern regarding the information disclosed to Power Connector
was unreasonable. Instead, consistent with FAR sect. 15.507, we
think that the agency should remedy the concern regarding
unequal disclosures of information by advising all offerors of
the pricing information. See Norvar Health Servs.--Protest and
Reconsideration, B-286253.2 et al., Dec. 8, 2000, 2000 CPD para.
204 at 5 (FAR sect. 15.507 requires agencies to provide
information provided to unsuccesful offerors during debriefing
to all competitive range offerors upon recompetition arising
from corrective action).
CONCLUSION AND RECOMMENDATION
We find that the agency's amendment made a material change to
the solicitation's evaluation criteria. UNICOR does not address
whether the revision to the past performance factor would affect
the ability to meet specifications evaluation factor. The
protester states that, if given the opportunity, it would revise
its proposed price to reflect changes in its past performance
references; the protester does not, however, address any changes
to the ability to meet specifications factor. As discussed
above, the general rule is that offerors should be permitted to
revise all aspects of their proposal, absent a reasonable basis
proffered by the agency for limiting revisions. In light of the
agency's lack of a reasonable basis to limit proposal revisions,
and in light of the protester's clear statement that it would
revise its price proposal, we think that offerors should be
allowed to revise any aspect of their proposals in response to
the revised solicitation.
We recommend that UNICOR amend the solicitation to permit
offerors to revise all aspects of their proposals, including
price. We also recommend that Power Connector be reimbursed the
costs of filing and pursuing its protest, including reasonable
attorneys' fees. 4 C.F.R. sect. 21.8(d) (1) (2011). (Power
Connector, Inc., B-404916.2, August 15, 2011) (pdf)
Sunrise argues that the agency should have accepted its late
proposal submission in January 2007, which lowered the
protester’s proposed price for both of its proposed wheelchair
models. In particular, Sunrise contends that its modified price
for the LXE model would have been lower than Invacare’s proposed
wheelchair, and thus eliminates the VA’s rationale for award,
i.e., that Invacare’s proposal was lower-priced and more highly
rated technically than either of Sunrise’s proposals. As
discussed above, the solicitation included the FAR clause,
Instructions to Offerors--Commercial Items, which addresses the
submission of late proposals as follows:
(2)(i) Any offer, modification, revision, or withdrawal of an
offer received at the Government office designated in the
solicitation after the exact time specified for receipt of
offers is “late” and will not be considered . . .
(ii) However, a late modification of an otherwise successful
offer, that makes its terms more favorable to the Government,
will be considered at any time it is received and may be
accepted.
FAR sect. 52.212-1(f).
The protester contends that because its late proposal submission
lowered its price below that proposed by Invacare, Sunrise
should be considered an “otherwise successful offeror” from whom
the agency should have accepted a late proposal. We disagree.
Under negotiated procurements, the FAR provides generally that a
proposal received after the time set for receipt shall not be
considered. FAR sect. 15.208(b)(1). Our Office has long held
that the late proposal rule alleviates confusion, ensures equal
treatment of offerors, and prevents one offeror from obtaining a
competitive advantage as a result of being permitted to submit a
proposal later than the deadline set for all competitors.
Tishman Constr. Corp., B-292097, May 29, 2003, 2003 CPD para. 94
at 3. The FAR provides a limited exception for receipt of late
proposals that are submitted by the “otherwise successful
offeror” and which provide more favorable terms. This exception
to the general “late is late” rule is intended to allow the
government to receive the benefit of a more advantageous
proposal from the offeror who has been selected for award,
without offending the general rule that offerors must be treated
equally. With regard to the protester’s arguments, an offeror
cannot make itself the “otherwise successful offeror” by
submitting a late proposal modification; instead the offeror
must already be the offeror in line for award prior to the time
the late proposal modification is submitted. Phyllis M. Chestang,
B-298394.3, Nov. 20, 2006, 2006 CPD para. 176 at 5 n.3. In this
regard, an offeror cannot avail itself of the late proposal
submission provision where the agency has not already identified
an “otherwise successful offeror.” Global Analytic Info. Tech.
Servs., Inc., B-298840.2, Feb. 6, 2007, 2007 CPD para. 57 at
5-6. Here, the agency evaluated the timely-submitted proposals
and selected Invacare, and not Sunrise, for award; therefore,
the limited exception to the FAR’s general rule for timely
submission and consideration of proposals does not apply. On
this record, we conclude that the agency’s determination not to
accept Sunrise’s late proposal modification was reasonable.
(Sunrise Medical HHG, Inc.,
B-310230, December 12, 2007) (pdf)
As noted above, along with its March 10 letter requesting FPRs,
NSF issued amendment No. 6 to the RFP that postponed the period
of performance by 4-1/2 months. Period of performance is a
material solicitation requirement. Development Assocs., Inc.,
B-188416, Aug. 1, 1977, 77-2 CPD ¶ 64 at 3; see Logitek, Inc.,
B-238773, July 6, 1990, 90-2 CPD ¶ 16 at 4, recon. denied,
B-238773.2, Nov. 19, 1990, 90-2 CPD ¶ 401 (delivery terms are a
material requirement in a solicitation). Because IBS did not
confirm its initial proposal or otherwise acknowledge amendment
No. 6, IBS was not bound to a material requirement of the
solicitation and its initial proposal thus was unacceptable.
S.C. Myers & Assocs., Inc., B-286297, Dec. 20, 2000, 2001 CPD ¶
16 at 4. (Integrated Business
Solutions, Inc., B-292239, July 9, 2003)
Notwithstanding a provision in a request for proposals that price revisions could
only be made during a reverse auction, the agency reasonably determined to request
revised price proposals after the end of the auction, in response to an
agency-level protest, where the solicitation was ambiguous concerning when the auction would
end and the agency reasonably believed that offerors may have been misled. Royal
Hawaiian Movers, Inc., B-288653, October 31, 2001 (pdf)
(Reverse auction)
Where an offeror's final proposal
submission contains terms or provisions that vary from
statements or representations made during prior discussions, a
procuring agency properly relies on the final proposal
submission as the controlling statement regarding how the
offeror intends to perform. See, e.g., Marylou's Transp. Serv.,
B-261695, Sept. 28, 1995, 95-2 CPD para. 154 at 3 (best and
final offer supersedes prior proposal). (WinStar
Federal Services, B-284617; B-284617.2; B-284617.3, May 17,
2000)
Here, the request for a final
proposal revision specified that discussions were concluded and
reasonably provided notice that the agency was requesting final
prices. The protester should have and appears to have understood
this to be the case, and has no reasonable basis to complain
that it was misled because it did not receive adequate notice.
(Spectrum
Sciences & Software, Inc., B-282373, June 22, 1999)
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