Decision
Matter of: |
Johnson Controls World
Services, Inc. |
File: |
B-289942; B-289942.2 |
Date: |
May 24, 2002 |
|
David P. Metzger, Esq., Leslie McAdoo-Brobson,
Esq., Michele Mintz Brown, Esq., and Paul E. Pompeo, Esq., Holland & Knight,
for the protester.
Carl J. Peckinpaugh, Esq., and Charles S. McNeish,
Esq., for DynCorp Technical Services, LLC, an intervenor.
Alexander Bakos, Esq., and Robert A. Tepfer,
Esq., National Aeronautics and Space Administration, for the agency.
Tania Calhoun, Esq., and Christine S. Melody,
Esq., Office of the General Counsel, GAO, participated in the preparation of the
decision.
DIGEST
Protest challenging the agency's “best value” source selection decision is
sustained where the record shows that there is insufficient information and
analysis in the record, which includes both a contemporaneous source selection
statement and a post-protest addendum to that statement, to determine that the
award selection was reasonable.
DECISION
Johnson Controls World Services, Inc. (JCWS) protests the award of a contract to
DynCorp Technical Services, LLC, under request for proposals (RFP) No.
9-BJ32-T63-0-24P, issued by the National Aeronautics and Space Administration
(NASA) to procure center operations support services (COSS) for the Lyndon B.
Johnson Space Center and associated facilities in Houston, Texas. JCWS
primarily contends that the source selection authority's (SSA) “best value”
determination was flawed.
We sustain the protest.
NASA issued this solicitation on July 25, 2001
seeking proposals to provide a wide array of support services to the Johnson
Space Center under a contract using hybrid cost-reimbursement and fixed-price
contracting methods, with an award fee provision, over a 2-year base period,
with up to three 1-year option periods. The RFP's scope of work divided
the support services into 14 separate annexes. Annexes 1-5 and 8-12
(administrative support, maintenance and repair, directed services, operations,
engineering services, information technology, environmental program, supply
services, property and equipment, and transportation services, respectively),
were categorized as routine services to be procured on a cost-reimbursable
basis; annexes 7 and 14 (grounds maintenance and custodial services,
respectively), were categorized as routine services to be procured on a
fixed-price basis; annex 13 was comprised of non-routine services to be procured
on a cost-reimbursable, indefinite-delivery, indefinite-quantity (ID/IQ) basis;
and annex 6 was comprised of non-routine services to be procured on a
fixed-price ID/IQ basis.
The RFP stated that proposals were to be evaluated against three evaluation
factors: mission suitability, past performance, and cost/price.
Mission suitability and past performance, when combined, were approximately
equal to cost/price. RFP § M.6.0.
Under the mission suitability evaluation factor, NASA planned to assess the
merit of the work proposed and the offeror's ability to actually provide what
was offered. RFP § M.3.0. Proposals were to be adjectivally rated
as “excellent,” “very good,” “good,” “fair,” or “poor,” and
assigned point scores based on four subfactors. The management approach
subfactor and the technical performance subfactor were each worth a maximum of
400 points. The safety and health plan subfactor and the plan for small
business subcontracting goals subfactor were each worth a maximum of 100 points.
Id.
Past performance, including past performance under other contracts, safety and
environmental performance, quality system experience, and historical financial
performance and condition, was to be evaluated and assigned an adjectival
rating. The evaluation was to be based on information provided by offerors
in their proposals, as well as any other information obtained independently by
the source evaluation board (SEB). RFP § M.4.0.
Section M.5.0 of the RFP divided the cost/price evaluation factor into three
paragraphs: cost, price, and ID/IQ. The cost factor was to indicate
the validity, realism and adequacy of each cost proposal and the probable cost
that would be incurred in the performance of the effort. RFP § M.5.1.
The RFP provided for a series of downward adjustments to an offeror's mission
suitability score if the difference between its proposed and probable costs
exceeded 5 percent. Id. With respect to price, the agency was
to perform a price analysis of the fixed-price portions of all proposals.
RFP § M.5.2. Finally, the agency was to use a model to evaluate the ID/IQ
work. This model would evaluate the impact of proposed rates, coefficient
factors, and proposed fee against an estimated future set of ID/IQ requirements.
An estimated amount would be developed using this model and that amount would be
used for selection purposes only. RFP § M.5.3.
NASA received proposals from seven firms on September 26. The SEB
conducted an initial evaluation and presented the results to the SSA, who
established a competitive range of four offerors, including JCWS and DynCorp.
Written and oral discussions were conducted with each offeror in the competitive
range, and each was given the independent government estimate (IGE). NASA
received final proposal revisions (FPR) on December 28. The SEB performed
a final evaluation of each proposal and determined that all weaknesses and
cost/price issues identified for JCWS, DynCorp, and Offeror A had been resolved;
Offeror B failed to correct one minor weakness in its FPR. As shown in the
following chart, the final evaluation results for JCWS and DynCorp[1]
showed that the JCWS proposal received significantly higher point-scores than
the DynCorp proposal, albeit at a somewhat higher probable cost/price:
Factors
/ Subfactors |
DynCorp |
JCWS |
Mission
Suitability |
684
points/Good |
950
points/Excellent |
Safety and Health Plan |
70
points/Good |
95
points/Excellent |
Subcontracting Plan |
70
points/Good |
90
points/Excellent |
Management Approach |
312
points/Very Good |
384
points/Excellent |
Technical Performance |
232
points/Good |
380
points/Excellent |
Past
Performance |
Very Good |
Very Good |
Total
Probable Cost/Price |
$175,123,644 |
$189,632,059 |
The SEB's final report, the bulk of which is devoted to a discussion of the
cost/price evaluation factor, contains no comparative analysis of offerors'
relative strengths under the mission suitability or past performance evaluation
factors. Instead, the report merely references, as attachments, the SEB's
detailed description of each offeror's significant strengths and strengths.[2]
The narrative describing these major and minor strengths shows significant
quantitative and qualitative differences between the JCWS and DynCorp proposals.
Under the mission suitability evaluation factor, JCWS's proposal was evaluated
as having 12 major strengths and 17 minor strengths, to DynCorp's 1 major
strength and 23 minor strengths. The narrative supporting the SEB's
findings shows that several of JCWS's major strengths appear to be beneficial to
the government, and that many of the strengths in each proposal arise from its
unique features. Under the past performance evaluation factor, JCWS's
proposal was evaluated as having one major strength and three minor strengths,
to DynCorp's one major strength and four minor strengths. Again, the
narrative supporting the SEB's findings shows several apparent qualitative
distinctions between the two proposals.
The SEB presented its findings to the SSA in a January 18, 2002 briefing.
The SEB's briefing charts contain no comparative analysis of the apparent
qualitative differences between the two proposals under the mission suitability
and past performance evaluation factors. The charts simply provide a
one-phrase description of each offeror's major strengths and the number of each
offeror's minor strengths. There is no additional substantive
contemporaneous record of the contents of this briefing and ensuing discussion
except the contemporaneous source selection statement.
In the contemporaneous source selection statement, the SSA acknowledged each
offeror's adjectival ratings under the past performance and mission suitability
evaluation factors and ranked the proposals in ascending order of their probable
cost/price. He stated that the proposals of JCWS, Offeror A, and Offeror B
received mission suitability ratings of excellent[3] with no major
weaknesses, but that all were higher in cost/price than DynCorp; he expressed
his confidence in the SEB's probable cost analysis and price realism analysis.
The SSA stated, without elaboration, that after hearing the SEB's presentation
and discussion, he compared the mission suitability strengths of each offeror as
reported by the SEB as well as the ranking of the offerors in cost/price in
light of the relative importance of the evaluation factors, and concluded that
Dyncorp represented the best value to the government. The SSA concluded,
again without elaboration, that there were no discernable benefits offered by
the excellent mission suitability ratings of the other proposals that offset the
significant advantage of DynCorp's lowest cost/price.
NASA awarded the contract to DynCorp on January 31. JCWS was given a copy
of the source selection statement during its debriefing, after which it filed
its initial protest. JCWS alleged, among other things, that NASA
improperly substituted a technically acceptable, lowest cost/price evaluation
scheme for the stated best value approach. The agency subsequently
determined that “contract performance is in the best interests of the United
States and that urgent and compelling circumstances exist which significantly
affect the interests of the United States” which would not permit waiting for
our decision, and executed an override of the statutory stay of performance of
the contract. See 31 U.S.C. § 3553(d)(3)(C)(i) (2000).
Along with the agency report filed in response to the initial protest, NASA
filed an “addendum” to the source selection statement. NASA conceded
that it did not “record the SSA's contemporaneous inquiries, judgments,
tradeoffs and reasons for his selection in the formal selection decision,” and
stated that, “[t]o correct this omission in the record, NASA has recorded the
oral deliberations of the SSA in an Addendum to the Source Selection
decision.” NASA's Mar. 18, 2002 Legal Memorandum at 9. As
discussed below, in his post-protest addendum, the SSA makes conclusory and
partial comparisons between some aspects of the JCWS and DynCorp proposals,
finds these two offerors essentially equivalent in past performance, and
concludes that the value of JCWS's technical benefits did not offset the
significant cost savings from DynCorp's proposal.
In its comments on the initial agency report, JCWS alleged that, even if the
SSA's reasoning could be considered a best value analysis instead of a
technically acceptable, lowest cost/price decision, the SSA's best value
determination was “completely flawed.” Protester's Mar. 29, 2002
Comments at 16. JCWS also alleged that NASA improperly failed to document
the decision-making process, and raised several cost/price-related allegations.[4]
For the reasons discussed below, we sustain the protest.
JCWS contends that the SSA's best value determination is flawed because there is
no evidence that the SSA conducted a comparative assessment and cost/technical
tradeoff of the proposals as required by the Federal Acquisition Regulation
(FAR) and applicable case law. The protester asserts that the SSA failed
to discuss in any meaningful way the documented relative strengths of the
offerors under the mission suitability evaluation factor, and failed to look
qualitatively at the past performance findings for either offeror.[5]
In a negotiated procurement, the government is not required to make award to the
firm offering the lowest price unless the RFP specifies that price will be the
determinative factor. Shirley Constr. Corp., B-240357, Nov. 8,
1990, 90-2 CPD ¶ 380 at 6. Where, as here, cost/price and non-cost/price
factors were of approximately equal weight, the source selection authority had
the discretion to determine whether the technical advantage associated with
JCWS's proposal was worth its higher price. Teltara, Inc.,
B-280922, Dec. 4, 1998, 98-2 CPD ¶ 124 at 2-3; see also FAR §
15.101-1(a), (c). In this regard, section 15.308 of the FAR requires a
source selection decision to be based on a comparative assessment of proposals
against all of the solicitation's source selection criteria and documented, and
that the documentation include the rationale for any business judgments and
tradeoffs made or relied on by the SSA. The propriety of the
cost/price-technical tradeoff decision turns not on the difference in the
technical scores or ratings per se, but on whether the selection
official's judgment concerning the significance of the difference was reasonable
and adequately justified in light of the RFP's evaluation scheme. Cygnus
Corp., B-275181, Jan. 29, 1997, 97-1 CPD ¶ 63 at 11.
In reviewing an agency's evaluation of proposals and source selection decision,
we will examine the supporting record to determine whether the decision was
reasonable, consistent with the stated evaluation criteria, and adequately
documented. AIU North America, Inc., B-283743.2, Feb. 16, 2000,
2000 CPD ¶ 39 at 7. An agency which fails to adequately document its
source selection decision bears the risk that our Office may be unable to
determine whether the decision was proper. Matrix Int'l Logistics, Inc.,
B-272388.2, Dec. 9, 1996, 97-2 CPD ¶ 89 at 5. While source selection
officials may reasonably disagree with the evaluation ratings and results of
lower-level evaluators, Verify, Inc., B-244401.2, Jan. 24, 1992, 92-1 CPD
¶ 107 at 6-8, they are nonetheless bound by the fundamental requirement that
their independent judgments be reasonable, consistent with the stated evaluation
factors, and adequately documented. AIU North America, Inc., supra.
The contemporaneous source selection statement did not meet these requirements.
Notwithstanding the fact that the JCWS proposal was scored significantly higher
than the DynCorp proposal, as documented by the SEB,[6] the source
selection statement is devoid of any substantive consideration as to whether
JCSW's proposal was a better value to the government than DynCorp's lower-rated,
lower-priced one. While the SSA states that he compared the various
mission suitability strengths of each offeror and found “no discernible
benefits” in the other proposals that offset the “significant advantage”
of the lowest cost/price offered by the DynCorp proposal, Source Selection
Statement at 3, such general statements fall far short of the requirement to
justify cost/technical tradeoff decisions. TRW, Inc., B-234558,
June 21, 1989, 89-1 CPD ¶ 584 at 5.
In response to JCWS's protest, which specifically alleged that “there are no
technical cost/price tradeoffs or other analyses of the proposals evident in the
[source selection statement],” and recited features of its proposal that were
not considered, JCWS Feb. 15, 2002 Protest at 9, 11-14, NASA submitted an
addendum to the source selection statement, as noted above, to “correct this
omission in the record.” NASA's Mar. 18, 2002 Legal Memorandum at 9.
Although our Office considers the entire record in determining the
reasonableness of an agency's award decision, including statements made in
response to a protest, we accord greater weight to contemporaneous materials
rather than judgments made in response to protest contentions, such as the
agency's assertions here. Beacon Auto Parts, B-287483, June 13,
2001, 2001 CPD ¶ 116 at 6. In any event, our review of the record here,
even giving full consideration to the post-protest addendum to the source
selection statement, shows that there is insufficient information and analysis
in the record for us to determine that the award selection was reasonable.
AIU North America, Inc., supra, at 7-11; see also Beacon
Auto Parts, supra, at 7-8; Satellite Servs., Inc., B-286508,
B-286508.2, Jan. 18, 2001, 2001 CPD ¶ 30 at 9-11.
We turn first to the addendum's discussion of the mission suitability evaluation
factor, and the SSA's focus on the more heavily-weighted management approach and
technical performance subfactors.
Under the management approach subfactor, the SEB evaluated JCWS's proposal as
having 6 major strengths and 8 minor strengths, to DynCorp's 1 major strength
and 14 minor strengths. JCWS's major strengths were associated with its
quality control process, phase-in plan, ability to respond to emergency and
high-priority unplanned work, use of personal computers in maintenance shops,
real-time engineering support for maintenance, and “very good” management
team. SEB Final Report, Attach. 11, at 5-17. DynCorp's major
strength was associated with its highly effective integrated team management
philosophy, including various employee incentives. The detailed narrative
underlying the description of each major and minor strength shows that the SEB
found qualitative differences between the proposals which apparently indicate
that the JCWS proposal was viewed as superior. For example, the SEB's
commentary about JCWS's major strength for its “very good” management team
includes very positive comments about seven specific members of that team and
concludes that the overall quality of the team was “highly satisfactory to
outstanding.” Id. at 14-16. In contrast, the SEB's
commentary about DynCorp's minor strength for its “strong” key personnel
includes very positive comments about just one specific member of the team and
states that, other than a “notable omission” of information regarding a
qualified individual for one position, the DynCorp management team had a high
probability of success to consistently perform at or above the “good” range.
SEB Final Report, Attach. 13, at 13.
Under the technical performance subfactor, the SEB evaluated JCWS's proposal as
having two major strengths and six minor strengths, while DynCorp's proposal was
evaluated as having no major strengths and five minor strengths. JCWS's
major strengths were associated with its use of hand-held field unit data
recorders and the versatility of its web-based work management system.
Again, the detailed narrative underlying the description of each major and minor
strength appears to show that the SEB viewed JCWS's proposal as superior to
DynCorp's proposal. For example, the SEB evaluated JCWS's proposal as
having a major strength for the versatility of its web-based work management
system but evaluated DynCorp's proposal as having a minor strength for its
web-based work management system, indicating some measure of superior quality in
the JCWS proposal.
Despite the existence of the SEB's detailed evaluation findings showing
apparently superior features in the JCWS proposal, the SSA's discussion of these
two subfactors is collapsed and conclusory.
The SSA first states that the proposals of JCWS and Offerors A and B contained
similar major strengths for customer-friendly, on-line work management systems
with capabilities that greatly exceeded the work management requirements in the
RFP. He states that he questioned whether the comparable DynCorp work
management system would get the job done and was told that the SEB found
DynCorp's work management system to be more than adequate, “allowing web-based
capabilities far beyond the simple RFP requirements.” Addendum at 6.
The SSA added, “In fact, Dyncorp was assigned a minor strength in this area by
the SEB.” Id. The SSA next states that JCWS received a
major strength for the use of hand-held data recorders to electronically
transfer work status information, a major strength for its use of personal
computers in maintenance shops, and a major strength for its approach to
providing real-time engineering support for maintenance. He said that the
SEB found these features could improve the overall efficiencies of work crews
and quality of work, but that he found the potential for increased efficiency
was not supported by JCWS's cost/price proposal. Finally, the SSA stated
that all offerors received major strengths for “across-the-board” aspects of
their management approach, such as very good personnel and an excellent quality
control approach for JCWS, and employee motivation incentives for DynCorp.
Id.
First, with respect to the offerors' on-line work management systems, the SSA's
summary conclusion that DynCorp's work management system was “more than
adequate” does not constitute a comparative analysis of proposals. While
the SSA correctly notes that DynCorp's proposal was assigned a minor strength in
this area and allowed “web-based capabilities far beyond the simple RFP
requirements,” SEB Final Report, Attach. 13, at 23, he ignores the fact
that JCWS's proposal also allowed “web-based capabilities far beyond the
simple RFP requirement,” SEB Final Report, Attach. 11, at 22, but was assigned
a major strength in this same area. The SEB clearly found qualitative
differences between the two systems which are unaddressed by the SSA.
Moreover, the question before the SSA was not whether DynCorp's work management
system was “more than adequate,” but whether JCWS's higher-rated system was
worth its higher price. Second, the SSA's aggregation of several JCWS
strengths and his cryptic statement that the efficiencies found by the SEB are
not supported by the JCWS cost/price proposal cannot serve as a substitute for
an analysis of any underlying qualitative differences between the two offers,
and fails to address several other major strengths identified in the JCWS
proposal. In this regard, the SSA's statement that all offerors received
major strengths for “across-the-board aspects of their management approach”
such as very good personnel and an excellent quality control approach for JCWS,
and employee motivation incentives for DynCorp, lumps all of these major
strengths together as if they were equivalent when they are not apparently so,
and discards any underlying qualitative value that they might represent with no
supporting justification. In the presence of significant qualitative
differences between the two proposals, the SSA's conclusory statements fall
short of the requirement to justify his cost/technical tradeoff decision. TRW,
Inc., supra.
The SSA takes this same conclusory approach in discussing the remaining mission
suitability subfactors. Under the plan for small business subcontracting
goals subfactor, JCWS's proposal was evaluated as having a major strength for
exceeding the subcontract goals, as compared to DynCorp's minor strength because
its proposal “somewhat exceeded” the subcontract goals and clearly defined
certain responsibilities. SEB Final Report, Attach. 13, at 3. The
SSA's mere statement that all offerors proposed to exceed the goals fails to
address the SEB's finding of a qualitative difference between the two proposals.
Under the safety and health plan subfactor, JCWS's proposal was evaluated as
having three major strengths--associated with its internal incentive for
employees to maintain safety, its proposal for personal protective equipment
needs and remedies, and its unified safety and health plan--as compared to no
major strengths for the DynCorp proposal. Both offerors had various minor
strengths. Despite the presence of these apparent qualitative differences,
the SSA's addendum merely states that he considered that JCWS had two major
strengths related to safety and health and a major strength for employee
personnel protection, and that DynCorp had minor strengths under these
subfactors. It is not enough to “consider” that offerors were
evaluated as having certain strengths; the SSA was required to conduct a
comparative analysis of these strengths to justify his cost/technical tradeoff
decision. TRW, Inc., supra.
An agency is not required to give credit for specific features where it
reasonably determines that such features will not contribute in a meaningful
manner to better satisfying the agency's needs. See Tecom, Inc.,
B-275518.2, May 21, 1997, 97-1 CPD ¶ 221 at 7. Similarly, an agency may
reasonably determine that the benefit of proposed specific features is not worth
any additional cost associated with the proposal. Consolidated Eng'g
Servs., Inc., B-279565.2, B-279565.3, June 26, 1998, 99-1 CPD ¶ 75 at 5.
Here, however, the record, including the post-protest addendum, fails to show
that NASA made any determination that numerous features identified by the SEB in
the JCWS proposal will not provide a meaningful benefit to the government.
As a result, we cannot conclude that the SSA reasonably concluded that the value
of JCWS's technical benefits did not offset the cost advantage of the DynCorp
proposal.
We turn next to the SSA's findings regarding the past performance evaluation
factor. The SSA's conclusion that the proposals of JCWS and DynCorp were
essentially equal under the past performance evaluation factor was premised on
two bases. First, the SSA stated that DynCorp received a significantly
higher number of “outstanding” and “highly successful” ratings than did
JCWS in the past performance questionnaires, and that DynCorp's ratio of
“outstanding” to “highly successful” ratings was also greater than that
of JCWS. Addendum at 5. Second, the SSA stated that he considered
DynCorp's “exemplary performance” as the Johnson Space Center's aircraft
operations contractor for the past 8 years. The SSA stated that a
significant number of important aspects of performance under this contract were
directly relevant to the COSS work, and that he was reminded of DynCorp's
“overarching reputation for safe, innovative, and effective operations under
this . . . contract. This was significant to [him] because of the critical
human space flight mission operations support required of the selected COSS
contractor.” Id. at 5, 7. In making his best value
determination, the SSA stated that he could identify no technical, schedule, or
cost risk in awarding to DynCorp. Id. at 7. We agree with
JCWS that the post-protest addendum does not establish that NASA properly
evaluated the relative merits of JCWS's and DynCorp's past performance
proposals.
First, the SSA's reliance upon the mere numbers of “outstanding” and
“highly satisfactory” ratings reflected in each offeror's past performance
questionnaires as a point of comparison was improper. Each questionnaire
also asked for the identification of the contractor's top three management and
technical strengths and weaknesses, and the record shows significant differences
between these contracts in terms of their type, nature, and value. Given
these wide variances, it was irrational to focus only on the number of
“outstanding” and “highly satisfactory” ratings without examining the
circumstances and other data in the agency's possession to reach a considered
judgment regarding the quality of an offeror's performance and to make
comparisons between offerors' performance. OSI Collection Servs., Inc.,
B-286597, B-286597.2, Jan. 17, 2001, 2001 CPD ¶ 18 at 10. There is no
evidence in the record that the SSA considered the ratings in any meaningful
context.
Second, the addendum makes no reference to the apparent qualitative differences
reflected in the evaluation record as between each offerors' overall team past
performance.
The SEB evaluated JCWS's past performance proposal as having a major strength
for its “very good” team past performance. The extensive narrative
supporting this finding contains detailed and very positive comments about JCWS,
the prime contractor, and each proposed subcontractor. In addition to
acknowledging its extensive track record in performing contracts the size and
complexity of the COSS contract and numerous other strengths, the SEB noted that
JCWS had been able to provide good cost control, which was an area of particular
interest for this hybrid contract, and that its major focus on measurement of
critical areas could greatly benefit NASA. Each of the three proposed
subcontractors had outstanding overall performance ratings, and specific
qualities of one subcontractor were considered to be an asset. The SEB
concluded that the overall capabilities and past performance of the JCWS team
was in the “very good” to “low excellent” range. SEB Final Report,
Attach. 11, at 22-23.
In contrast, the SEB evaluated DynCorp's past performance proposal as having
only a minor strength for its “strong” team past performance. The
narrative supporting this finding cites several strengths for DynCorp, the prime
contractor, but also cites a concern regarding a lack of follow-up and
verification of information provided by DynCorp's mid-level and subordinate
managers. SEB Final Report, Attach. 13, at 24. Only one of DynCorp's
three proposed subcontractors received positive reviews from the SEB. The
second subcontractor merely met requirements, and the SEB stated that the third
subcontractor had weaknesses for not providing proposed system maintenance
engineers, which was attributed to its underestimating of the job by not
accurately evaluating requirements and affected its ability to fulfill contract
obligations. Id. The SEB concluded that the DynCorp team's
safety record, retention of highly skilled personnel, emphasis on strong
management involvement and customer satisfaction outweighed its weaknesses, but
stated that the third subcontractor posed a “potentially high contract risk
should [it] have maintenance/engineering responsibilities” at certain
buildings. Id. The SEB concluded that, overall, the DynCorp
team should be fully capable of meeting or exceeding performance in the
“good” range. Id.
There is no evidence that the SSA considered these apparent differences in
finding JCWS and DynCorp essentially equivalent under the past performance
evaluation factor. While his comments regarding DynCorp's current Johnson
Space Center contract may have some reference to the major strength found in
DynCorp's proposal regarding its excellent safety past performance, it is
unclear whether the SSA actually compared this aspect of DynCorp's proposal to
any aspect of the JCWS proposal.[7] Moreover, the SSA's
statement that he could identify no technical, schedule, or cost risk in
awarding to DynCorp contradicts, without explanation, the SEB's finding
regarding one of DynCorp's subcontractors.
Where, as here, the evaluation record evidences relative differences in proposal
merit, general statements of equivalency are inadequate to show equivalency; the
agency must compare the relative merits of the proposals in a manner that
reasonably supports a determination of equivalency. Chemical
Demilitarization Assocs., B-277700, Nov. 13, 1997, 98-1 CPD ¶ 171 at 7; see
also Matrix Int'l Logistics, Inc., B-272388.2, Dec. 9, 1996, 97-2
CPD ¶ 89 at 9-10. In view of the SSA's reliance on an overly mechanistic
methodology to compare the past performance of these two offerors, his failure
to consider the qualitative differences between these two offerors, and his
failure to explain why he found no risk in awarding to DynCorp in spite of the
SEB's finding of risk with respect to one of the firm's subcontractors, we
cannot find his conclusion of equivalence to be reasonable.[8]
Our Office will not sustain a protest unless there is a reasonable possibility
of prejudice, that is, but for the agency's actions, the protester would have
had a substantial chance of receiving the award. McDonald-Bradley,
B-270126, Feb. 8, 1996, 96-1 CPD ¶ 54 at 3; see Statistica, Inc. v.
Christopher, 102 F.3d 1577, 1581 (Fed. Cir. 1996). The solicitation
provided that the mission suitability and past performance evaluation factors,
when combined, were approximately equal to the cost/price evaluation factor.
While the record shows that the DynCorp proposal has a documented advantage with
respect to the cost/price evaluation factor, the record also shows that the JCWS
proposal has a documented advantage with respect to the mission suitability and
past performance evaluation factors, and neither the contemporaneous source
selection statement nor the post-protest addendum to that statement contains
sufficient comparative analysis to justify the SSA's cost/technical tradeoff
decision. Under the circumstances, we conclude that JCWS was prejudiced by
the agency's defective source selection decision.
We recommend that NASA make a new source selection decision containing a
sufficient and documented comparative analysis of the proposals and the
rationale for any cost/technical tradeoffs. If the new source selection
decision determines that an offeror other than DynCorp offers the best value to
the government, NASA should terminate DynCorp's contract for the convenience of
the government and make award to the successful offeror. We also recommend
that JCWS be reimbursed its costs of filing and pursuing the protests, including
reasonable attorneys' fees.
4 C.F.R. § 21.8(d)(1). JCWS should submit its certified claim for costs,
detailing the time expended and costs incurred, directly to the contracting
agency within 60 days after receipt of this decision. 4 C.F.R. §
21.8(f)(1).
The protest is sustained.
Anthony H. Gamboa
General Counsel
[1]Offerors A and B were both
evaluated as having a higher probable cost/price than DynCorp and JCWS; both had
mission suitability scores and ratings lower than JCWS but higher than DynCorp;
and both had “very good” past performance ratings.
[2] The record refers to “significant strengths” and
“strengths” in some places, and to “major strengths” and “minor
strengths” in other places. For the sake of clarity, this decision
adopts the use of the latter terms.
[3] The mission suitability rating for Offeror A was actually very
good, not excellent.
[4] Our review of these latter allegations shows them to be without
merit. For example, JCWS cited the SSA's comment that, “[b]ased on
historical and projected requirements, the large majority of future IDIQ work
will be fixed price, and this is reflected in the COSS IDIQ pricing model,”
Addendum at 4, as evidence of an unannounced evaluation criterion. The
record shows that the RFP, as amended, was sufficient to put offerors on notice
of this information. JCWS's arguments, first raised in its supplemental
comments, that the SSA improperly used this “unannounced evaluation
criterion” in making his source selection decision, are untimely; our Bid
Protest Regulations do not contemplate the piecemeal presentation or development
of protest issues. Baldt Inc., B-288315, Aug. 28, 2001, 2001 CPD ¶
149 at 3-4 n.3. JCWS's supplemental protest also alleged that, during oral
discussions, NASA led JCWS to believe it would revise the IGE with regard to the
pricing of one annex but failed to do so. Even if NASA orally indicated it
would revise the IGE, offerors cannot reasonably rely on oral modifications to
an RFP which are inconsistent with its written terms, absent a written
amendment, or confirmation of the oral modification. FAR § 15.206; see
S3 LTD, B-287019.2 et al., Sept. 14, 2001, 2001 CPD ¶ 165 at 6.
This principle provides fairness to all parties by ensuring competitions are
conducted under equal terms. If JCWS believed NASA's requirements were not
reflected in the IGE, it should have raised the matter prior to the next closing
time for receipt of proposals. See 4 C.F.R. § 21.2(a)(1) (2002).
[5] JCWS's alternative contention--that NASA improperly converted the
RFP's stated best value scheme to a low cost/price, technically acceptable
scheme--stems primarily from the emphasis placed on the cost/price evaluation
factor in the SEB's final report, the source selection statement, and the
addendum, and from references in the latter two documents to DynCorp's
“adequacy” and “acceptability.” We find this contention
unpersuasive. In our view, the portions of the record cited by JCWS
reflect NASA's focus on the cost/price evaluation factor as the single most
important evaluation factor, which is consistent with the RFP's stated
evaluation scheme.
[6] JCWS's contention that NASA improperly failed to document the
decision-making process extends to the SEB's evaluation, but the record shows
this portion of the contention is without merit. As for JCWS's allegation
that the agency failed to comply with the requirements of the source selection
plan, alleged violations of a source selection plan do not provide a valid basis
for protest. Urban-Meridian Joint Venture, B-287168, B-287168.2,
May 7, 2001, 2001 CPD ¶ 91 at 4 n.2.
[7] The remaining three minor strengths for DynCorp appear to be
analogous to the three remaining minor strengths for JCWS.
[8] In view of the broad definitions of the adjectival ratings, our
review of the record does not support JCWS's allegation that it should have
received a higher adjectival rating than DynCorp under the past performance
evaluation factor.