It is true that an agency may not use FSS procedures to purchase
items that are not listed on a vendor’s GSA schedule without
conducting a competition for those non‑schedule items. Firearms
Training Sys., Inc., B-292819.2 et al., Apr. 26, 2004, 2004 CPD
para. 107 at 9; Symplicity Corp., B-291902, Apr. 29, 2003, 2003
CPD para. 89 at 4.
However, as discussed below, we find that GSA reasonably found
that the required services were included in FedSource’s or its
subcontractors’ schedule contracts and purchased under the
appropriate SINs.
As AWS properly notes, FAR sect. 2.101 defines “construction” to
mean “construction, alteration, or repair (including dredging,
excavating, and painting) of buildings, structures, or other
real property.” However, the agency reasonably determined here
that the RFQ did not contemplate construction services.[3] As
the agency correctly notes, the RFQ seeks the installation of a
free-standing mezzanine system that requires no construction,
alteration, or repair of the building structure; it requires
only that the mezzanine structure be bolted to the floor.
According to the agency, the mezzanine structure is manufactured
off site and assembled on site, and it can easily be
disassembled and reassembled in another location. GSA Legal
Memorandum at 4. The RFQ generally requires that installation
occur “in accordance with [the] manufacturer’s specified
installation procedures,” RFQ, Statement of Work, at 3, and does
not include any FAR provisions concerning construction or Davis
Bacon wage rates. Although the RFQ generally references
“[International Building Code] design” in describing the width
and rise requirements for the mezzanine stairs, id. at 2, and
generally requires that design, fabrication, and installation of
the mezzanine systems occur “in accordance with the applicable
industry codes and standards,” id. at 1, these general
provisions, in our view, do not transform this order into
construction services as AWS contends.
In addition, GSA’s market research confirmed that the services
are not construction.
In this regard, prior to issuing the solicitation, the
contracting officer consulted with a project engineer from the
Air Force, as well as representatives from AWS and FedSource.
All three indicated that fabrication and installation of the
mezzanine structure was not construction, but rather was
assembly.[4] Contracting Officer’s Statement at 3, 7.
Furthermore, we note that AWS’s website shows that it “designs,
manufactures, and installs” mezzanine systems, and makes no
reference to performing construction services. See
www.aw-systems.com/mezzanine-systems.htm.
The contracting officer also reviewed the SIN descriptions for
SIN 361-30 (“Ancillary Services Relating to
Pre-Engineered/Prefabricated Buildings and Structures”) and SIN
361-32 (“Installation and Site Preparation for
Pre-Engineered/Prefabricated Buildings and Structures”) under
Schedule 56 to determine the appropriate labor SIN to use. These
descriptions are as follows:
SIN 361-30, Ancillary Services Relating to
Pre-Engineered/ Prefabricated Buildings and Structures --
Including services relating to and ordered in conjunction with
products purchased under the supply schedule contract, such
as, field assembly, training, consultation and design
assistance. EXCLUDES Construction as defined by FAR 2.101;
Architectural Engineering Services (A&E) under the Brooks
Architect-Engineers Act as stated in [FAR] Part 36; and
services applicable to the Service Contract Act.
* * * * *
SIN 361-32, Installation and Site
Preparation for Pre-Engineered/ Prefabricated Buildings and
Structures -- Applicable to installation and site preparation
services ordered in conjunction with buildings and structures
purchased under the supply schedule contract. SPECIAL ORDERING
PROCEDURES, WHICH INCLUDE DAVIS BACON WAGE RATES AND
CONSTRUCTION CLAUSES FOR INSTALLATION AND SITE PREPARATION
APPLY TO THIS SIN. EXCLUDES Architectural Engineering Services
(A&E) under the Brooks Architect-Engineers Act as stated in
[FAR] Part 36.
Agency Report, Tab 23, SIN Descriptions;
Contracting Officer’s Statement at 2.
As noted above, the agency has provided a reasonable basis for
its determination that the installation services here are for
assembly and not construction, and, therefore, are more
appropriately procured under SIN 361-30. In this regard, the RFQ
requirements were reasonably found to not involve construction,
alteration, or repair of the building or building structures,
and the RFQ does not contain any construction clauses or Davis
Bacon Act wage rate requirements. Thus, we find that the agency
reasonably determined that SIN 361-32 was not applicable. Since
FedSource’s GSA schedule and its subcontractors’ GSA schedules
contained SIN 361-30, and since of the services purchased were
either on these schedules or purchased through competition as
“open market” items, we find that the order placed with
FedSource was unobjectionable.
The protest is denied. (American
Warehouse Systems, B-402292, January 28, 2010) (pdf)
When a concern arises that a vendor is offering services outside
the scope of its FSS contract, the relevant inquiry is not
whether the vendor is willing to provide the services that the
agency is seeking, but whether the services or positions offered
are actually included on the vendor's FSS contract, as
reasonably interpreted. See American Sys. Consulting, Inc.,
B-294644, Dec. 13, 2004, 2004 CPD para. 247 at 5.
As the category description above shows, SIN 246-54 includes the
types of personnel necessary to staff security operations at a
facility, or to support those personnel. While the support
function category logically includes those personnel who assist
the protective service occupations in carrying out their
functions, it does not reasonably include individuals who would
create the construction site security plan for the purposes of
obtaining SCIF accreditation from DIA. Moreover, we have
previously recognized the difference in the kinds of personnel
available under SINs 246-54 and 246-52. See Tarheel Specialties,
Inc., B-298197, B-298197.2, July 17, 2006, 2006 CPD para. 140,
at 4-9.
The intervenor argues that SIN 246-54 does include a
position--contract manager--that contemplates the type of
services called for in the RFQ relating to development of the
Construction Security Plan and related services. In this regard,
CIS asserts that the Construction Security Plan "is a relatively
simple and straightforward document, typically resulting in a
checklist developed based on the particulars of each
construction project," and does not require "an array of
specialized experience apart from providing day-to-day
construction site security." CIS Comments, Dec. 30, 2009,
Attach. 1, Decl. of John S. Morris at 2.
In our view, the contract manager position description in SIN
246-54 does not include the functions contemplated under the RFQ
here as they relate to development of the Construction Security
Plan and the associated services to be provided by the
contractor. SIN 246-54 describes the contract manager in
relevant part as having "overall responsibility for
implementing, monitoring, and upgrading the Contractor's quality
control plan and . . . for ensuring that the Contractor's work
force complies at all times with the contract requirements." AR,
Tab 4, SIN 246-54, sect. 7.1C. With respect to the experience
required for the position, the SIN states as follows: "project
development and implementation from inspection to deployment;
expertise in the management and control of funds and resources
using complex reporting mechanisms; and demonstrated capability
in managing multi-task Contracts or subcontracts of various
types and complexity" Id. at sect. 7.1A. The experience and
functions listed in the position description, while clearly
managerial, are general in nature and, in our view, do not
include the site-specific, detailed, ongoing management services
called for under the RFQ here--including the development of a
Construction Security Plan. We are unpersuaded by the
intervenor's argument that development of the Construction
Security Plan (and related services to be performed by the
contractor here) should be regarded as a routine and inherent
part of management of any construction site security work of the
type called for under the RFQ, and thus that performance of
these services does not require personnel other than the
supervisory personnel included in SIN 246-54.[2] As noted above,
the RFQ calls for a site-specific Construction Security Plan
that depends on close coordination with numerous other entities,
as well as ongoing services related to ensuring compliance with
the Plan in order to obtain SCIF accreditation. RFQ sect. 2.6.1.
These services are not within scope of the supervisory positions
described in SIN 246-54.
In sum, CIS' quotation should not have been viewed as having met
the RFQ requirement that the vendor possess an FSS contract
offering all the services sought. Consequently, it was not
proper for the agency to place the order under CIS' FSS
contract.
In view of our conclusion that an order may not properly be
issued to CIS under the RFQ here, we recommend that the agency
issue the task order to the vendor next in line for selection
under the terms of the RFQ. We also recommend that ASP be
reimbursed its costs of filing and pursuing the protest. Bid
Protest Regulations, 4 C.F.R. sect. 21.8(d)(1). The protester's
certified claims for such costs, detailing the time expended and
costs incurred, must be submitted directly to the agency within
60 days after receipt of this decision. 4 C.F.R. sect.
21.8(f)(1). (American Security
Programs, Inc., B-402069,; B-402069.2, January 15, 2010) (pdf)
Since the solicitation here limited the competition to vendors
holding a specified FSS contract, the agency was limited to
issuing the purchase order to a vendor whose FSS contract
included all of the required items. Tarheel Specialties, Inc.,
supra; CourtSmart Digital Systems, Inc., supra. Since it is
undisputed that Rapiscan’s FSS contract did not include all
required items at the time the order was issued, the order could
not properly be issued to Rapiscan. We reject the agency’s
position that it was proper to issue an order to Rapiscan
because the ordered items will be added to its FSS contract
prior to the delivery date. This position ignores our decisions,
as well as the Court of Federal Claims’s decision in ATA, and,
since there is no way to determine with certainty whether a
vendor’s FSS contract will include the ordered items in the
future, clearly would undermine, if accepted, the requirement
that non-FSS items be purchased using normal full and open
competition procedures.
The agency asserts, alternatively, that the order actually was
issued to Rapiscan on the basis of full and open
competition--and that the non-FSS item rule therefore does not
apply--since all participants in the mobile intrusive gamma
inspection unit marketplace hold FSS contracts, and all were
permitted to submit quotations. We disagree because the agency’s
argument is based on a flawed premise. Pursuant to the FAR, full
and open competition is achieved only where all responsible
sources are permitted to compete. FAR sect. 2.101. While the
agency asserts that all potential vendors of the required items
were permitted to compete because all hold FSS contracts, there
is no evidence in the record--and we question whether sufficient
evidence could be presented--showing that there are no vendors
of the items that do not hold FSS contracts. Rather, under the
circumstances here, the only way to ensure that all responsible
sources are permitted to compete would be to conduct a
competition without FSS restrictions. Moreover, the agency’s
argument ignores the possibility that some FSS vendors chose not
to submit a quotation because, like Rapiscan, they did not have
all of the required items on their FSS contracts. Notably, in
this regard, the agency reports that only 4 of the 46 FSS
vendors notified of the solicitation requested a copy of it.
Based on the foregoing, we sustain the protest. We recommend
that the agency cancel Rapiscan’s purchase order. Because there
is a dispute in the protest record as to whether SAIC’s FSS
contract includes all required items, we also recommend that the
agency determine whether SAIC had all items on its FSS contract
at the time the order was issued. If the agency determines that
this is the case, and that SAIC’s quotation is otherwise
technically acceptable and lowest-priced, the agency should
issue a purchase order to SAIC. Otherwise, the agency should
issue the purchase order to the vendor in line for award under
the terms of the RFQ, and in accordance with this decision. We
also recommend that SAIC be reimbursed the costs of filing and
pursuing the protest, including reasonable attorneys’ fees. 4
C.F.R. sect. 21.8(d)(1) (2009). SAIC should submit its certified
claim for costs, detailing the time expended and cost incurred,
directly to the contracting agency within 60 days after receipt
of this decision. 4 C.F.R. sect. 21.8(f)(1).
(Science
Applications International Corporation, B-401773, November
10, 2009) (pdf)
Based on our review and comparison of the PWS with ManTech's FSS
contract, we find that the user support manager services are
outside the scope of ManTech's FSS contract. We reach this
conclusion because the RFQ required ManTech to identify the
labor category from its FSS contract that "most nearly equat[ed]"
to each PWS-defined position, and the task manager labor
category identified by ManTech does not appear to match the user
support manager position defined in the PWS. For example, the
task manager description does not include performing the help
desk or systems support services described in the PWS. Rather,
the task manager position is focused on financial management
activities, with some general administrative management duties.
The task manager experience level also does not include at least
2 years of help desk experience, as is required for the user
support manager position. Since ManTech's "most nearly equat[ing]"
labor category (i.e. , task manager) does not perform the
services required for the user support manager, and neither the
agency nor ManTech argue that a more closely related labor
category exists on ManTech's FSS contract to fill the position,
it appears that ManTech's quoted services are outside the scope
of its FSS contract. The agency argues, however, that the
matching of FSS labor categories to the PWS requirements ignores
the actual personnel qualifications identified by ManTech in its
quotation for the various positions. We think this argument
misses the point; when concern arises that a vendor is offering
services outside the scope of its FSS contract, the relevant
inquiry is not whether the vendor is willing to provide the
services that the agency is seeking, but whether those services
are actually included in the vendor's FSS contract as reasonably
interpreted. If the quoted services are not listed on the
vendor's FSS contract, they cannot be purchased using FAR Part 8
procedures, but instead must be purchased using competitive
procedures. Symplicity Corp. , supra , at 4-5. The fact that a
vendor may state in its quotation that it is willing, and in
fact is able, to provide such services does not obviate the
agency's obligation to make certain that all of those services
are within the scope of the vendor's FSS contract. Where a
portion of the services are outside the scope of that contract,
as is the case here, then the agency must use competitive
procedures to procure them. (American
Systems Consulting, Inc., B-294644, December 13, 2004) (pdf)
However, to the extent that the protester is instead arguing
that the RFQ failed to advise vendors that only those firms that
had all of the required SINs listed on their own, as opposed to
their subcontractors', FSS contracts would be considered for
award, and thus that it would have been improper for the agency
to distinguish among quotations on that basis, we agree.
Contrary to the agency's argument, an FSS contractor acting as a
prime contractor may use a subcontractor to provide services not
included within the prime contractor's FSS contract so long as
the services in question are included within the subcontractor's
FSS contract. [5] See OMNIPLEX World Servs. Corp. , supra , at
5. This is so because the items on the subcontractor's FSS
contract, like the items on the prime contractor's FSS contract,
were the object of competitive procedures prior to their
inclusion on the vendor's schedule contract. What is not
permitted is for a schedule contractor acting as a prime
contractor to use a subcontractor to offer services not included
in either its own or the subcontractor's FSS contract since this
would mean that it was improperly including non-FSS goods or
services in an FSS acquisition. Id. We nonetheless deny Altos's
protest because, as pointed out by the agency, there is no
mention in the protester's quotation that Altos will be
subcontracting for performance of the SINs not listed on its own
FSS contract or that any of its subcontractors has an FSS
contract for the missing item(s). To the extent that the
protester intended to use a subcontractor to provide services
not included in its own FSS contract, it was incumbent upon it
to identify the subcontractor in its quotation so that the
agency could confirm that items missing from the protester's FSS
contract were included on the subcontractor's schedule contract.
The agency cannot be faulted for failing to consider in its
evaluation information that was not included in Altos's
quotation. In this regard, it is well-established that a firm
runs the risk of not being selected for award if it fails to
submit an adequately written quotation. Northwest Mgmt., Inc. ,
B-277503, Oct. 20, 1997, 97-2 CPD 108 at 5. (Altos
Federal Group, Inc., B-294120, July 28, 2004) (pdf)
In our view, this procurement cannot properly be termed an “FSS
buy,” and thus the FSS procedures regarding the purchase of open
market items have no application here. As described above, this
procurement was conducted using full and open competition. Using
a task order against the awardee’s FSS contract to implement the
selection decision at the end of the competition is a matter of
administrative convenience; it does not convert this procurement
to an FSS buy, or raise the kinds of concerns normally
associated with including open market items in an FSS purchase.
See, e.g., Pyxis Corp., B-282469, B-282469.2, July 15, 1999,
99-2 CPD ¶ 18 at 3. The remaining requirements of FAR § 8.401(d)
are administrative matters of little concern in this
environment. (Firearms Training
Systems, Inc., B-292819.2; B-292819.3; B-292819.4, April 26,
2004) (pdf)
1. Here, it is undisputed that at least one item in York’s
proposed system--the audio mixer--was not on York’s FSS
schedule. York’s quotation identified the mixer as an item on an
FSS contract of another vendor, Biamp Systems, with which York
stated it had a “contractor team arrangement.”[2] However, the
Biamp FSS contract identified in York’s quotation expired
several years ago, and the Biamp mixer was, therefore, not an
FSS item. Not only is the mixer a necessary component of the
digital recording system being procured under this RFQ, but it
is the most significant hardware item, with the highest total
line item price that York quoted (the total extended price for
the mixer is [DELETED] dollars and comprises almost [DELETED]
percent of York’s total final price). Since the agency’s
placement of the order with York was based on a digital
recording system using a non-FSS mixer, the selection of York
was improper. Symplicity Corp., supra, at 4-5; T-L-C Sys.,
supra. (CourtSmart
Digital Systems, Inc., B-292995.2; B-292995.3, February 13,
2004) (pdf)
The record establishes, and neither OPM, GSA, nor TMP argues
otherwise, that TMP’s quotation here included two labor
categories that are not on its Schedule 738I contract, and that
OPM recognized but failed to realize the importance of this
during its evaluation of TMP’s quotation. AR, Tab 4B, TMP’s
Final Quotation, at 1; OPM’s Post-Hearing Comments at 8-11;
GSA’s Post-Hearing Comments at 7; TMP’s Post-Hearing Comments at
10-11; Tr. at 72, 101, 105, 136. The acceptance of TMP’s
quotation and award of a task order to that firm by OPM was thus
improper because, as noted above, an agency cannot lawfully use
the FSS ordering procedures to order services that are not
contained on the vendor’s schedule contract. OMNIPLEX World
Servs. Corp., supra, at 5-6; The CDM Group, Inc.; B-291304.2,
Dec. 23, 2002, 2002 CPD ¶ 221 at 3-4. That is, as confirmed by
GSA, labor categories included in a vendor’s quotation must be
listed on the vendor’s schedule contract before a task order is
issued. GSA’s Post-Hearing Comments at 2, 7; Tr. at 31-32, 80;
The CDM Group, Inc., supra. We sustain the protest on this
basis. Symplicity also protests that OPM’s evaluation of
its quotation was unreasonable and inconsistent with the RFQ’s
evaluation factors. Under the FSS program, agencies are not
required to conduct a competition before selecting a vendor that
represents the best value and meets the agency’s needs at the
lowest overall cost. FAR § 8.404(a); Computer Prods., Inc.,
B-284702, May 24, 2000, 2000 CPD ¶ 95 at 4. However, where, as
here, an agency handles the selection of a vendor for an FSS
order like a competition in a negotiated procurement, and a
protest is filed challenging the outcome of the competition, we
will review the agency’s actions to ensure that the evaluation
was reasonable and consistent with the terms of the
solicitation. Computer Prods., supra, at 4-5. (Simplicity
Corporation, B-291902, April 29, 2003 (pdf)
Notwithstanding
the apparent disconnect between the services offered in
B&W's proposal and the services covered by its FSS contract,
there is no evidence that the INS ever considered whether the
services B&W and its subcontractors offered to provide were
covered by B&W's FSS contract. The INS appears to
erroneously believe that it was not required to make this
inquiry as long as B&W held a current FSS contract under
schedule 738 X, SIN 595 21, see Agency Oct. 29, 2002 Response to
GAO Questions at 4, and it has failed to address this question
despite several requests from our Office to do so. In view of
the fact that the BPA awarded to B&W appears to have
exceeded the scope of that firm's FSS contract, we sustain the
protest on this basis. See T-L-C Sys., supra; American Mgmt.
Sys., Inc., B-216998, July 1, 1985, 85-2 CPD P: 3 at 7. (OMNIPLEX
World Services Corporation, B-291105, November 6,
2002) (pdf)
After receiving quotes in response
to a request for quotes for a fire alarm system, agency
improperly placed an order under a Federal Supply Schedule
contract including items integral to the system but not listed
in the contract; agency's proposed corrective action of simply
deleting the items from the order and otherwise procuring them,
presumably on a noncompetitive basis from the awardee, does not
render the protest academic, because the remaining FSS order
does not meet the agency's need for a complete system, and the
agency received and evaluated a significantly lower-priced,
acceptable quote from a non-FSS vendor (the protester) to supply
such a system. (T-L-C
Systems, B-285687.2, September 29, 2000)
As both OTS and the General
Services Administration (GSA) recognize, non- FSS products and
services may not be purchased using FSS procedures; instead,
their purchase requires compliance with the applicable
procurement laws and regulations, including those requiring the
use of competitive procedures. See Pyxis Corp., B- 282469, B-
282469.2, July 15, 1999, 99- 2 CPD para. 18 at 4; see also ATA
Defense Indus., Inc. v. United States, 38 Fed. Cl. 489, 503
(1997). Our Office has rejected the notion that items not on a
FSS contract may be purchased under that contract if they were
"incidental" to the services or items being procured
under that contract. 2 Pyxis Corp., supra, at 3- 4. (SMS
Systems Maintenance Services, Inc., B- 284550.2, August 4,
2000)
An agency may no longer rely on
the "incidentals" test to justify the purchase of non-FSS
items in connection with an FSS buy; where an agency buys non-FSS
items, it must follow applicable acquisition regulations.
(Pyxis
Corporation, B-282469; B-282469.2, July 15, 1999)
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