The agency first asserts that the protest should be
dismissed on the basis that GAO does not have jurisdiction
to review an IGSA awarded under 10 U.S.C. § 2679. Agency’s
Motion to Dismiss, Feb. 24, 2017, at 4. In this regard,
the agency asserts that “an IGSA is not a procurement
contract” subject to the provisions of the Competition in
Contracting Act of 1984 (CICA), maintaining that it is
“similar” to agreements that are identified as “other
transactions,” over which GAO’s bid protest authority does
not extend. Id. at 4-6. We reject the agency’s assertions
regarding our jurisdiction in this matter.
Under CICA and our Bid Protest Regulations, we review
protests concerning alleged violations of procurement
statutes or regulations by federal agencies in the award
or proposed award of contracts for the procurement of
goods and services, and solicitations that lead to such
awards. See 31 U.S.C. §§ 3551(1), 3552; 4 C.F.R. §
21.1(a). In circumstances where an agency has statutory
authorization to enter into “contracts . . . or other
transactions,” we have found that agreements issued by the
agency under its “other transaction” authority “are not
procurement contracts,” and therefore we generally do not
review protests of the award, or solicitations for the
award, of these agreements under our bid protest
jurisdiction. Rocketplane Kistler, B-310741, Jan. 28,
2008, 2008 CPD ¶ 22 at 3; see also Exploration Partners,
LLC, B-298804, Dec. 19, 2006, 2006 CPD ¶ 201 at 3 (finding
that “other transaction” agreements, cooperative
agreements, and other non‑procurement instruments are not
procurement contracts); Strong Envtl., Inc., B‑311005,
Mar. 10, 2008, 2008 CPD ¶ 57 at 4 (GAO does not have
jurisdiction to consider the award of a cooperative
agreement). We have noted that the “other transaction”
authority provided to the Department of Defense is
generally limited to basic, applied, and advanced research
projects. See MorphoTrust USA, LLC, May 16, 2016, 2016 CPD
¶ 133 at 8 n.14.
Here, the language of the statute at issue does not
contain any reference to “other transactions” in
authorizing the award of IGSAs. Rather, the statute
states:
Notwithstanding any other provision of law governing the
award of Federal government contracts . . . the Secretary
concerned may enter into an intergovernmental support
agreement, on a sole source basis, with a State or local
government.
10 U.S.C. § 2679(a)(1).
In our view, if Congress had intended for IGSAs to be
something other than procurement contracts, it would have
so stated--and, more significantly, there would have been
no need to exempt the award of IGSAs, on a sole-source
basis, from other provisions of law governing contract
awards since, in that context, such an exemption would be
redundant and superfluous. See TRW Inc. v. Andrews, 534
U.S. 19, 31 (2001) (restating the principle that statutes
should be construed in a manner such that no clause,
sentence or word is rendered superfluous, void or
insignificant). Further, there is no dispute that the
statute, on its face, anticipates that the federal
government will obtain installation support services under
this authority. Accordingly, we view an agency’s award of
an IGSA pursuant to the authority granted in 10 U.S.C. §
2679 as a procurement contract--albeit one that may be
awarded on a sole-source basis--within our bid protest
jurisdiction. (Red River
Waste Solutions, Inc. B-414367: Mar 21, 2017)
Our jurisdiction generally does not extend to challenges
concerning the sale or lease of government property, since these
activities, by their nature, are not procurements. National
Aeronautics & Space Admin.--Recon., B‑408823.2, May 8, 2014,
2014 CPD ¶ 147 at 3. Nevertheless, we have taken jurisdiction
where an agency’s action involved both a sale (or lease) of
government property and a procurement of goods or services,
which we characterize as a mixed transaction. See, e.g., DNC
Parks & Resorts at Yosemite, Inc., B-410998, April 14, 2015,
2015 CPD ¶ 127 at 7; Blue Origin, LLC, B‑408823, Dec. 12, 2013,
2013 CPD ¶ 289 at 6. We have found that our Office has
jurisdiction over two categories of mixed transactions: (1)
where the agency receives a direct intangible benefit, which
aids the agency in the discharge of its mission, and/or (2)
where the agency receives a concrete tangible benefit that
involves the delivery of goods and/or services to the government
that are of more than a de minimus value. National Aeronautics &
Space Admin.--Recon., supra.
As stated above, the first category of cases where we have taken
jurisdiction is where the agency receives some direct, but
arguably intangible, benefit that aids the agency in the
discharge of its mission. For example, we have found that a
benefit was conferred to the government through a concession for
haircuts for new Air Force recruits (paid for by the recruits),
because “the concession agreement is a contract for services
under which the [agency] will satisfy its need to obtain initial
haircuts for its recruits--which the agency insists is an
important aspect of the training experience.” Gino Morena
Enters., B‑224235, Feb. 5, 1987, 87‑1 CPD ¶ 121 at 4. Similarly,
we have found that a benefit was conferred on the government
through a concession for photocopy services at a U.S. District
Court because the use of a concession-type contract aided the
court’s mission by reducing its workload and also providing a
benefit to the public of more effective access to court records.
West Coast Copy, Inc.; Pacific Photocopy & Research Servs.,
B‑254044, B‑254044.2, Nov. 16, 1993, 93‑2 CPD ¶ 283 at 5‑6; see
also, New York Tel. Co., et al., B‑236023, B‑236097, Nov. 7,
1989, 89‑2 CPD ¶ 435 at 2‑3 (concession to provide pay phone
services to employees and visitors at a General Services
Administration facility was subject to GAO protest jurisdiction
where the services were intended to satisfy agency mission
needs).
The second category is those cases where a more concrete or
tangible benefit is conferred on the agency as part of a mixed
transaction. These cases require the delivery of goods and/or
services to the government that are of more than a de minimus
value. For example, in Open Spirit, LLC, B-410428, B-410428.2,
Dec. 15, 2014, 2014 CPD ¶ 373, we found that the contract was a
“mixed transaction” where the value of the in-kind consideration
was at least equal to the fair market value of the leased
premises. Similarly, in DNC Parks & Resorts at Yosemite, Inc.,
supra, we concluded that a concession contract was a “mixed
transaction” where the concessioner was required to provide
services and supplies valued at approximately $28.6 million,
including snow removal, litter removal, maintenance, paving, and
painting; provision of medical supplies and equipment; visitor
and agency employee transportation services, including three
pre-established shuttle routes and after-hours, on-demand
visitor and employee transportation services; and allowing
agency vehicles to refuel at the concessioner’s gas stations.
See also, Great S. Bay Marina, Inc., B-293649, May 3, 2004, 2004
CPD ¶ 108 at 2 (concessioner required to provide reconstruction
and rehabilitation services valued at over $3 million for
government-owned facilities); Shields & Dean Concessions, Inc.,
B-292901.2, B-292901.3, Feb. 23, 2004, 2004 CPD ¶ 42, recon.
denied, B‑292901.4, Mar. 19, 2004, 2004 CPD ¶ 71 (concessionaire
required to provide maintenance, repair and other services for
government facility as well as facility improvement valued at
over $800,000); Starfleet Marine Transp., Inc., B‑290181, July
5, 2002, 2002 CPD ¶ 113 (concessionaire required to provide
janitorial services, equip ferries with public address systems
for use by park rangers, and provide transportation for
rangers).
In White Sands Concessions, Inc., B-295932, March 18, 2005, 2005
CPD ¶ 62, we dismissed a protest challenging the award of a
concession contract, finding that our Office did not have
jurisdiction because the value of the goods and services
provided to the government was de minimus. In that case, the
only services that the concessionaire was required to furnish in
connection with its operation of a snack bar/gift shop were
maintenance, repairs, housekeeping, groundskeeping, and pest and
weed control for the concession facilities themselves. In other
words, the only services that the concessionaire was required to
furnish were those pertaining to the upkeep of the space in
which it operated its business. Id. at 2.
Similarly, under the protested solicitation here, the only goods
or services that the contractor will be required to furnish are
directly connected with its purchase of the scrap metals and
recyclable materials. Specifically, the contractor will be
required to provide containers to hold the scrap metals it
purchases and to pick up the materials at regular intervals.
Solicitation at 2. Agency personnel, not the contractor, will
gather the materials, sort the materials, fill the containers,
weigh the metal, and contact the company when the containers are
ready to be picked up. Dismissal Request at 2; see Solicitation
at 2. Further, the agency emphasizes that the contractor will
not be required to provide any maintenance or upkeep of the
facilities. Dismissal Request at 3. We think that the provision
of these goods and services is properly viewed as de minimus,
given that the benefit conferred upon the government is minimal
and is directly related to the sale of the scrap metal.
Therefore, the protested solicitation does not pertain to a
contract for the procurement of property or services, and is
outside our protest jurisdiction. (Santa
Rita, LLC B-411467, B-411467.2: Jul 20, 2015) (pdf)
As a threshold
matter, the Navy argues that our Office lacks jurisdiction to
consider Open Spirit’s protest. The Navy argues that our
jurisdiction is confined to protests challenging the award or
failure to award a contract for the procurement of goods or
services. See Agency Request for Dismissal (Sept. 26, 2014) at
2-3. According to the agency, it is not entering into a contract
for the procurement of goods or services, but, rather, it
intends to execute a lease by a private concern of
federally-owned property. See id. at 4. The agency also argues
that its option to require in-kind consideration, in lieu of
rent payments, “does not change the character of the
transaction--the lease of government-owned property.” Id.
Under the Competition in Contracting Act of 1984, we review
protests concerning alleged violations of procurement statutes
or regulations by federal agencies in the award or proposed
award of contracts for the procurement of goods and services,
and solicitations leading to such awards. 31 U.S.C. §§ 3551,
3552; see also 4 C.F.R. § 21.1(a) (2014). Our jurisdiction
generally does not extend to challenges concerning the sale or
lease of government property, since these activities, by their
nature, are not procurements. National Aeronautics & Space
Admin.--Recon., B‑408823.2, May 8, 2014, 2014 CPD ¶ 147 at 3.
Nevertheless, we have taken jurisdiction where an agency’s
action involved both a sale (or lease) of government property
and a procurement of goods or services, which we characterize as
a mixed transaction. See, e.g., Blue Origin, LLC, B-408823, Dec.
12, 2013, 2013 CPD ¶ 289 at 6; recon. denied, National
Aeronautics & Space Admin.--Recon., supra; Armed Forces
Hospitality, LLC, B-298978.2, B‑298978.3, Oct. 1, 2009, 2009 CPD
¶ 192 at 8. We have found that our Office has jurisdiction over
two categories of mixed transactions: (1) where the agency
receives a direct intangible benefit, which aids the agency in
the discharge of its mission, and/or (2) where the agency
receives a concrete tangible benefit that involves the delivery
of goods and/or services to the government that are of more than
a de minimus value. See, e.g., Blue Origin, LLC, supra, at 6-8;
Public Commc’ns Servs., Inc., B-400058, B‑400058.3, July 18,
2008, 2009 CPD ¶ 154 at 6.
Here, the Navy would have received a direct, concrete benefit
through the lessee’s performance of Specific Maintenance
Projects. See, e.g., Blue Origin, LLC, supra, at 7-8 (finding
jurisdiction over a protest involving a lease that required the
lessee to provide operation and maintenance services such that
the agency would obtain a well-maintained or reconfigured launch
site at the end of the lease); Americable Int’l, Inc., B-225570,
May 5, 1987, 87-1 CPD ¶ 471 at 3 (finding jurisdiction over a
protest involving a lease of a government-owned cable television
trunk system issued pursuant to 10 U.S.C. § 2667 when the
primary purpose of the agreement was to provide cable television
services to the Navy), recon. denied, Dept. of the Navy--Request
for Recon, B‑225570.2, July 20, 1987, 87-2 CPD ¶ 64. The RFP
includes a list of potential alteration, maintenance, and repair
projects that the lessee may be required to perform throughout
Naval Base Point Loma, including, for example, replacing bullet
resistant glass on guard shacks, repaving various areas and
parking lots, replacing copper piping in the brig galley and
cells, insulating Building 538, and replacing the CO2 fire
detection and suppression system in Building 56. See RFP,
Attach. 8. Furthermore, the lease specifically contemplates that
the Navy can require the lessee to perform Specific Maintenance
Projects at other Navy locations throughout the Southwestern
United States. Lease at ¶ 3.2.2.1. Therefore, the Specific
Maintenance Projects are not just for the basic maintenance and
operation of the leased office spaces in the OT-3 building for
the benefit of the lessee, but, rather, will provide direct,
concrete benefits to the Navy.
We also find that the services that the agency sought to obtain
as in-kind consideration would have been of more than de minimus
value, as the value of the in-kind consideration had to at least
be equal to the fair market value of the leased premises. See,
e.g., 10 U.S.C. § 2667(b)(4); Draft Lease at ¶ 3.2. Furthermore,
we reject the agency’s argument that the option, as opposed to
the requirement, for the agency to acquire services in lieu of
rent payments undermines our jurisdiction because the RFP
specifically contemplated that the lessee would provide in-kind
consideration. See RFP at ¶ 5.11. Thus, we find that the agency
would have received a direct, concrete benefit in the form of
services of more than de minimus value. Therefore, we conclude
that we have jurisdiction over the protest. (Open
Spirit, LLC, B-410428, B-410428.2: Dec 15, 2014) (pdf)
The protester argues that the agency improperly rejected its
application as noncompliant with prospectus requirements. We
disagree.
We have reviewed the record of the evaluation of the protester’s
application and find no basis to question the reasonableness of
the agency’s evaluation. See Starfleet Marine Transp., Inc.,
supra (where appropriated funds are not used to award a
concession contract, we limit our review to whether the agency’s
actions were reasonable and consistent with applicable
procurement rules; a protester’s mere disagreement with the
agency’s actions does not show they lacked a reasonable basis).
The prospectus contained clear direction, reiterated during
discussions, for, among other things, firms to demonstrate
compliance with the daily janitorial requirements. Moboco,
however, failed to do so since it only committed to cleaning the
toilets, at most, twice per week, not daily, and did not commit
to emptying trash on a daily basis.
Regarding the necessary insurance, again, Moboco did not provide
a firm commitment to provide such insurance. Rather, it made the
provision of insurance contingent on approval by its insurance
carrier of a vessel agreement between the government and Moboco.
Moreover, the protester’s final submission, which imposed an
annual fee on the government to cover the costs of operating the
ferry, and indicated that the government should collect a fee
from users if it wanted to recoup this cost, was fundamentally
at odds with the basic premise of the prospectus, which was to
have the permit holder collect the fees to cover the costs of
operation and the permit holder to pay the government for the
fair market value of using the government’s lands and equipment.
An offeror is responsible for demonstrating affirmatively the
merits of its proposal and risks rejection if it fails to do so.
See John Blood, B‑402133, Jan. 15, 2010, 2010 CPD ¶ 30 at 3-4.
The protester has provided no basis for us to question the
reasonableness of the agency’s rejection of its submission.
(Moboco, Inc., B-409186, B-409186.2:
Feb 5, 2014) (pdf)
AFH raises
various challenges to the Army's decision to proceed with PAL
(Group A) project implementation with Actus. The protester's
primary assertion is that the Army improperly relaxed the
performance requirements of its contract with Actus, thereby
changing the scope of work anticipated by the RFQ and resulting
in an improper sole-source contract of the modified work. As
detailed below, we find that the planned implementation of the
PAL (Group A) project is consistent with the RFQ's statement of
work.
Jurisdiction
As a preliminary matter, the Army contends that the protest
should be dismissed as beyond the bid protest jurisdiction of
our Office. The Army argues that while the phase 1 LDMP [lodging
development and management plan] development effort was a
procurement, as evidenced by the $350,000 contract awarded to
Actus, the phase 2 LDMP implementation is not a procurement.
According to the Army, the implementation phase is separate from
the contract awarded for development of the LDMP, and that it is
a no-cost real estate transaction in which the Army is merely
conveying existing lodging facilities and leasing real property
to a private concern.
Under the Competition in Contracting Act of 1984 (CICA) and our
Office's Bid Protest Regulations, we review protests concerning
alleged violations of procurement statutes or regulations by
federal agencies in the award or proposed award of contracts for
procurement of goods and services, and solicitations leading to
such awards. 31 U.S.C. sections 3551, 3552; 4 C.F.R. sect.
21.1(a) (2009). As a general matter, our jurisdiction does not
extend to challenges concerning the sale or lease of government
property since these activities, by their nature, are not
procurements. Meyers Cos., Inc., B-275963 et al., Apr. 23, 1997,
97-1 CPD para. 148 at 4 (lease of federal land is not a
procurement of property or services encompassed by GAO's bid
protest jurisdiction, notwithstanding the lease requirement to
erect and maintain fencing); Fifeco, B-246925, Dec. 11, 1991,
91-2 CPD para. 534.
In discerning the nature of a contractual transaction, we have
found that the government need not commit to the payment of
funds or incur any monetary liability in order for there to be a
procurement. See Century 21--AAIM Realty, Inc., B-246760, Apr.
3, 1992, 92-1 CPD para. 345 at 3-4. Likewise, the agency need
not receive money in order for a contractual transaction to
constitute a sale. See Government of Harford County, Maryland,
B-283259, B-283259.3, Oct. 28, 1999, 99-2 CPD para. 81 at 4. We
also recognize that certain transactions, including concession
contracts, can involve both a sale and a procurement. For
example, in Government of Harford County, Maryland, supra, the
Army's privatization of utility systems constituted such a
mixed, or bundled, transaction and simultaneously involved both
the sale of government property and the procurement of services.
Id.
Here, the underlying RFQ was not an offer to sell or lease
government-owned property for a monetary payment. Rather, the
RFQ was essentially the solicitation of submissions under which
the Army would obtain the much-needed revitalization of lodging
facilities, with little to no appropriated fund outlay, by
leveraging existing lodging and real property assets. While
project implementation involves the Army conveying existing
lodging facilities and leasing real property, the Army's
decision to convey and lease property is predicated upon Actus'
promise to renovate, manage, and maintain existing lodging
facilities, as well as build, manage, and maintain new lodging
facilities. Quite simply, the agreement between the Army and
Actus for PAL project implementation involves the Army
simultaneously selling property interests and obtaining the
benefit of lodging facility services.
In reaching this conclusion, we find the reasoning set forth in
our decisions regarding the award of concession contracts
analogous to the issue presented in this case. With respect to
concession contracts, we have held that our Office lacks
jurisdiction to consider a protest challenging the award of a
"pure" concession contract, that is, a no-cost contract that
merely authorizes a concessionaire to provide goods or services
to the public, as opposed to the government. Public Commc'ns
Servs., Inc., B-400058, B-400058.3, July 18, 2008, 2009 CPD para.
154 at 7. We have long recognized, however, that where a
concession or similar type contract also results in a benefit to
the government, the contract is, at least in part, one for the
procurement of property or services and therefore is encompassed
by our bid protest jurisdiction. Id.; see also, Shields & Dean
Concessions, Inc., B-292901.2, B‑292901.3, Feb. 23, 2004, 2004
CPD para. 42, recon. denied, B-292901.4, Mar. 19, 2004, 2004 CPD
para. 71; Starfleet Marine Transp., Inc., B-290181, July 5,
2002, 2002 CPD para. 113; Century 21--AAIM Realty, Inc., supra.
It has consistently been our Office's view that a mixed
transaction, one that both provides a business opportunity to a
private‑sector firm, and which also includes the delivery of
goods or services of more than de minimis value/benefit to the
government, is a procurement within the meaning of CICA. See
Public Commc'ns Servs., Inc., supra.
In determining whether the government will receive a benefit
from the goods or services provided in connection with a
concession, our Office examines whether the transaction in
question reduces the agency's workload, or whether the effort is
somehow rendered, either directly or indirectly, in support of
the agency's mission requirements. Id. For example, we have
found that a benefit was conferred to the government through a
concession for haircuts for new Air Force recruits, because "the
concession agreement is a contract for services under which the
[agency] will satisfy its need to obtain initial haircuts for
its recruits--which the agency insists is an important aspect of
the training experience." Gino Morena Enters., Feb. 5, 1987,
B-224235, 87-1 CPD para. 121 at 4. Similarly, we have found that
a benefit was conferred on the government through a concession
for photocopy services at a U.S. District Court because the use
of a concession-type contract aided the court's mission by
reducing its workload and also providing a benefit to the public
of more effective access to court records. West Coast Copy,
Inc.; Pacific Photocopy & Research Servs., B-254044, B-254044.2,
Nov. 16, 1993, 93-2 CPD para. 283 at 5-6; see also, New York
Tel. Co.; New England Tel. & Tel. Co.; Bell Atlantic Network
Servs., Inc., B-236023, B-236097, Nov. 7, 1989, 89-2 CPD para.
435 at 2-3 (concession to provide pay phone services to
employees and visitors at a General Services Administration
facility was subject to GAO protest jurisdiction where the
services were intended to satisfy agency mission needs).
Here, we conclude that the lodging construction, renovation,
management, and maintenance that the contractor is to perform as
part of PAL project implementation, provides a benefit to the
Army. Specifically, the RFQ states that "[t]he Army needs to
improve the quality of life for soldiers and their families
while in a transient status," and that the purpose of the
project is "to provide quality, on-post hotel accommodations
that meet the varying needs of a mobile military community
through improvements to the on-post lodging inventory and/or new
construction, and to appropriately maintain these facilities . .
. ." RFQ at 4. On this record, we conclude that the requirements
for the contractor to provide transient lodging construction,
renovation, management, and maintenance services is designed to
directly meet the needs of the Army by directly furthering its
mission in support of its soldiers. By leveraging the private
sector through the PAL program, the Army reduces its own
workload since it will no longer have to perform services that
it would otherwise would have needed to perform, or procured
under a separate contract. The fact that the Army created
separate contractual instruments for the project's development
and implementation efforts does not alter the fact that the
agency is receiving benefits at both plan development and
implementation. Thus, we conclude that our Office has
jurisdiction to hear this protest because it concerns a
procurement conducted by the Army to obtain services for the
benefit of government. (Armed
Forces Hospitality, LLC, B-298978.2; B-298978.3,October 1,
2009) (pdf)
As a threshold matter, ICE contends that our Office lacks
jurisdiction to hear this protest because the RFP anticipated
award of concession-type contract. As discussed in detail below,
we conclude that our Office has jurisdiction because this
protest concerns the award of a contract for the procurement of
services by a federal agency for the benefit of the government.
Under the Competition in Contracting Act of 1984 (CICA) and our
Office's Bid Protest Regulations, we review protests concerning
alleged violations of procurement statutes or regulations by
federal agencies in the award or proposed award of contracts for
procurement of goods and services, and solicitations leading to
such awards. 31 U.S.C. sections 3551, 3552 (2000); Bid Protest
Regulations, 4 C.F.R. sect. 21.1(a) (2008). The parties do not
dispute that this protest concerns a solicitation issued by ICE,
a federal agency. Instead, ICE argues that the services being
procured are for the benefit of detainees, not the government.
Our Office lacks jurisdiction to consider a protest challenging
the award of a "pure" concession contract, that is, a no-cost
contract that merely authorizes a concessionaire to provide
goods or services to the public, as opposed to the government.
See Great South Bay Marina, Inc., B-296335, July 13, 2005, 2005
CPD para. 135 at 2. We have long recognized, however, that some
concession contracts are hybrids that require the delivery of
goods and/or services to the government. Id.; see also, Shields
& Dean Concessions, Inc., B-292901.2, B-292901.3, Feb. 23, 2004,
2004 CPD para. 42, recon. denied, B-292901.4, Mar. 19, 2004,
2004 CPD para. 71 (concessionaire required to provide
maintenance, repair and other services for government facility
as well as facility improvement valued at over $800,000);
Starfleet Marine Transp., Inc., B-290181, July 5, 2002, 2002 CPD
para. 113 (concessionaire for ferryboat services required to
provide janitorial services for agency's docks and piers, equip
ferries with public address systems for use by park rangers, and
provide transportation for rangers). It has consistently been
our Office's view that a mixed transaction that includes the
delivery of goods or services of more than de minimis value to
the government is a contract for the procurement of property or
services within the meaning of CICA. Great South Bay, supra;
Starfleet Marine, supra, at 6.
In determining whether the government will receive the requisite
value from the goods or services provided in connection with a
concession, our Office examines whether the transaction in
question reduces the agency's workload, or whether the effort is
somehow rendered, either directly or indirectly, in support of
the agency's mission requirements. Meyers Cos., Inc., B-275963
et al., Apr. 23, 1997, 97-1 CPD para. 148 at 4. For example, we
have found that a benefit was conferred to the government
through a concession for haircuts for new Air Force recruits,
because "the concession agreement is a contract for services
under which the [agency] will satisfy its need to obtain initial
haircuts for its recruits--which the agency insists is an
important aspect of the training experience." Gino Morena
Enters., Feb. 5, 1987, B-224235, 87-1 CPD para. 121 at 4.
Similarly, we have found that a benefit was conferred on the
government through a concession for photocopy services at a U.S.
District Court because the use of a concession-type contract
aided the court's mission by reducing its workload and also
providing a benefit to the public of more effective access to
court records. West Coast Copy, Inc.; Pacific Photocopy and
Research Servs., B-254044, B-254044.2, Nov. 16, 1993, 93-2 CPD
para. 283 at 5-6; see also, New York Tel. Co.; New England Tel.
& Tel. Co.; Bell Atlantic Network Servs., Inc., B-236023,
B-236097, Nov. 7, 1989, 89-2 CPD para. 435 at 2-3 (concession to
provide pay phone services to employees and visitors at a
General Services Administration facility was subject to GAO
protest jurisdiction where the services were intended to satisfy
agency mission needs).
Here, we conclude that the pro bono phone services component of
the contract, which the contractor must perform in addition to
the fee-based phone services, furthers the mission of ICE. The
RFP states that the purpose of the contract is to "support
DHS/ICE[] operations and compliance with . . . [National
Detention Standards]-Telephone Access" requirements, and to
"provide DHS/ICE with repeatable, defined, accurate, timely, and
well managed detention telephone services and processes that
will ensure quality service and products that will meet these
standards." RFP at 6.
As discussed above, the RFP states that the National Detention
Standards "guarantee[] all detainees free telephone access to
ICE identified entities," including "foreign Embassies,
Consulates, Immigration Courts and approved pro bono and
community based free immigration legal services providers." RFP
at 5. ICE's website further confirms that the National Detention
Standards are intended to aid the agency's mission:
The ICE National Detention Standards, promulgated in November
2000, are the result of negotiations between the American Bar
Association (ABA), the U.S. Department of Justice (DOJ), the
legacy Immigration and Naturalization Service (INS), and other
organizations involved in pro bono representation and advocacy
for immigration detainees. The 38 standards are comprehensive,
encompassing areas from legal access to religious and medical
services and marriage requests. The legal access standards
concern visitation, access to legal materials, telephone
access and group presentations on legal rights. The standards
further the goals of ICE to provide safe, secure and humane
conditions for all detainees in ICE custody.
ICE Detention Management Program Website, available at:
http://www.ice.gov/partners/dro/dmp.htm (emphasis
added).
On this record, we conclude that the RFP's requirement for the
contractor to provide the pro bono portion of these services
furthers ICE's mission and reduces the agency's workload by
performing services that the agency would either need to perform
itself, or procure under a separate contract. Thus, we conclude
that our Office has jurisdiction to hear this protest because it
concerns a procurement conducted by ICE to obtain services for
the government. (Public
Communications Services, Inc., B-400058; B-400058.3, July
18, 2008) (pdf)
The Army initially argues that our Office does not have
jurisdiction to decide this protest because the DPS is a
technology computer system that accepts and processes government
rate tenders from qualified TSPs, and the acquisitions are
exempt from the Federal Acquisition Regulation (FAR).
The Competition in Contracting Act of 1984 (CICA), 31 U.S.C.
sect. 3551 (2000), which established the bid protest
jurisdiction of our Office, defines "protests" as including
objections to solicitations for bids or proposals for proposed
contracts as well as objections to proposed or actual awards of
such contracts. We have found that this definition encompasses
objections to agency actions that result in the "award" of
instruments that are not in themselves contracts, such as basic
order agreements, which become binding when an order is issued,
or a rate tender, which becomes binding when a GBL issued. Humco,
Inc., B-244633, Nov. 6, 1991, 91-2 CPD para. 431 at 3; recon.
denied, Department of State--Recon., B‑244633.2, Apr. 2, 1992,
92-1 CPD para. 339 at 3. Moreover, we have recognized the term
"procurement" as used in CICA can include the process of
acquiring transportation services by the government, even though
the acquisition of such services is generally exempt from the
FAR. Federal Transport, Inc.--Recon., B‑233393.3, June 1, 1989,
89-1 CPD para. 542 at 3. Thus, transportation services procured
by and provided to the government are subject to our bid protest
jurisdiction, where the agency obtains these services by means
of a procurement. Humco, Inc., supra, at 2-4; recon. denied,
Department of State--Recon., supra, at 2; Federal Transport,
Inc.--Recon., supra. Because the request for competitive rate
tenders under protest here will form the basis for the placement
of GBLs for transportation services, our Office will consider
the protests of the terms of this request, except as explained
below. Humco, Inc., supra, at 2-4; recon. denied, Department of
State--Recon., supra, at 2. (Abba
International, Inc. et al., B-311225.4, February 2, 2009) (pdf)
The
United Way of the National Capital Area protests the
selection of Global Impact by the Combined Federal
Campaign of the National Capital Area (CFCNCA) to serve as
the principal combined fund organization (PCFO) for the
Combined Federal Campaign (CFC) activities in the
Washington, D.C. metropolitan area. The United Way argues
that the CFCNCA did not conduct a fair and reasonable
competition in selecting Global Impact as the PCFO for the
2008 CFC campaign year. The Office of Personnel Management
(OPM) argues that the CFCNCA is not a federal agency, and
that our Office therefore does not have jurisdiction to
hear this protest. As discussed below, we agree with OPM
that our Office does not have jurisdiction to hear the
protest and dismiss it on that basis.
(sections deleted)
The CFC is comprised of more
than 250 local campaigns across the country. Each local
campaign is run by a local federal coordinating committee
(LFCC), which is “the group of Federal officials
designated by the Director to conduct the CFC in a
particular community.” Id. LFCCs are comprised of
volunteers who are federal government employees and
representatives of employee unions and other employee
groups. 5 C.F.R. sect. 950.103(a). Among the duties of the
LFCC are ensuring compliance with OPM regulations,
determining the eligibility of local charitable
organizations to participate in the CFC, and selecting a
PCFO to act as the LFCC’s “fiscal agent and campaign
coordinator” to administer the campaign. 5 C.F.R. sect.
950.104(b), (c).
(sections deleted)
As discussed in detail
below, we conclude that our Office does not have
jurisdiction to hear the protest because it does not
concern the award of a contract for the procurement of
services by a federal agency. Under the Competition in
Contracting Act of 1984 (CICA) and our Office’s Bid
Protest Regulations, we review protests concerning alleged
violations of procurement statutes or regulations by
federal agencies in the award or proposed award of
contracts for procurement of goods and services, and
solicitations leading to such awards. 31 U.S.C. sections
3551, 3552 (2000); Bid Protest Regulations, 4 C.F.R. sect.
21.1(a) (2008). Our analysis of the issues in this protest
concludes that, while what is at issue appears to be a
procurement for services for the benefit of the
government, the procurement was not conducted by a federal
agency, and we therefore lack jurisdiction.
We first conclude that the MOU appears to concern a
procurement for services. We reach this conclusion based
on the fact that the LFCC issued a solicitation seeking
competitive proposals for the performance of various
services, in return for a reimbursement of the successful
offeror’s costs of performing those requirements. In
addition, the solicitation specifically identifies the
“services to be provided” by the PCFO in a “statement of
work” that details the “requirements, performance
expectations and deliverables required to serve as the
PCFO to the local CFC campaign as outlined in 5 CFR 950
and CFC Guidance Memoranda.” Solicitation at 2, 4.
Further, the MOU awarded here states that Global Impact,
the successful offeror, will “conduct CFC campaign support
operations during the campaign year,” including supporting
the CFCNCA’s oversight and audit responsibilities, and
providing “annual, periodic, and monthly financial and
programmatic reports of CFCNCA activities and events,
budget, and financial matters.” MOU at 1-2. Next, we
think that these services are for the benefit of the
government because the head of the executive branch,
acting via the above-described executive orders, has
decided that there is a benefit to having a streamlined
system for the collection and distribution of charitable
employee donations in the federal workplace. As discussed
above, the relevant executive orders specifically charge
the director of OPM with establishing the CFC in order to
“provide a convenient channel through which Federal public
servants may contribute” to charitable causes, and “to
minimize or eliminate disruption of the Federal workplace
and costs to Federal taxpayers that such fund-raising may
entail.” E.O. No. 12404, 48 Fed. Reg. 6685 (Feb. 10,
1983). The services provided under the MOU here are thus
procured for the purpose of assisting OPM in meeting its
obligations under the relevant executive orders. In light
of the purposes set forth in the executive orders, and the
scope of the services identified in the solicitation and
MOU, we conclude that the MOU would appear to be a
contract for the procurement of services of more than de
minimis value to the government, which would normally
place the protest within the scope of our bid protest
jurisdiction. See Great South Bay Marina, Inc., B-296335,
July 13, 2005, 2005 CPD para. 135 at 3.
Finally, we address whether this procurement for services
was conducted by a federal agency. OPM argues that this
protest concerns a competition conducted by the LFCCs,
which, it contends, are entities outside of, or other
than, the government. While we view this matter as a
considerably closer call than does OPM, we agree. The
legal character of LFCCs and their relationship to OPM is
sui generis. LFCCs are a creation of OPM, and OPM plays a
central role in their function. The regulations
promulgated by OPM state that the CFC shall be run at the
local level by LFCCs, each of which is established by, and
subject to the direct control and supervision of, the
director of OPM. 5 C.F.R. sect. 950.101. The Director of
OPM has authority to supervise, audit, investigate, and
discipline the LFCCs. 5 C.F.R. sections 950.102(c),
950.603. LFCCs, in turn, must obtain PCFO services, and
must solicit proposals to do so, in accordance with OPM
regulations. 5 C.F.R. sect. 950.104(c). Specifically, the
OPM regulations direct the LFCCs to conduct a competition
to select a PCFO. 5 C.F.R. sect. 950.104(c). While
we recognize that LFCCs appear to act in a quasi-official
capacity, we see no basis to find that the LFCCs are
themselves federal agencies. Moreover, while LFCCs are
regulated by OPM, it is not clear that OPM is actually
involved in, or responsible for the MOUs. As OPM notes,
the agency is not involved with the drafting or issuance
of solicitations, evaluation of proposals, or selection of
successful offerors. Further, OPM notes that the LFCC
here, the CFCNCA, is not comprised of OPM employees, but
rather representatives from other federal agencies and
employee unions, all of whom are acting on a voluntary
basis. Additionally, the MOU here between the CFCNCA and
Global Impact is signed by the chair of the CFCNCA, and
was not signed or otherwise approved by OPM. See MOU at 6.
On this record, while we think this issue is a close one,
and while we recognize that the LFCCs are being used by
OPM to supplement its management of the government-wide
CFC effort, we cannot conclude the procurement conducted
here by the CFCNCA was actually conducted by OPM, or any
other federal agency.
In summary, we conclude that this protest does not concern
a procurement for services by a federal agency, and that
therefore we do not have jurisdiction to hear this
protest. (United Way of
the National Capital Area, B-311235, May 16, 2008) (pdf)
In arguing that we lack jurisdiction, the agency relies on
the House and Senate committee reports that accompanied
the NPS Concessions Management Improvement Act of 1998,
Pub. L. No. 105-391, Sections 401-419, 112 Stat. 3503-18
(1998), which expressed the view that concession contracts
do not constitute "contracts for the procurement of goods
and services for the benefit of the government or
otherwise." S. Rep. No. 105-202, at 39 (1998); H. R. Rep.
No. 105-767, at 43 (1998). As we noted in Starfleet Marine
Transp., Inc., supra , at 7, however, committee report
language is not binding legal authority. Further, it is
not clear that in stating that concession contracts are
not contracts for the procurement of goods or services for
the government, the committees envisioned the sort of
"concession-plus" contract at issue here, i.e., mixed
transactions that include the delivery of goods or
services to the government. The agency also points to the
fact that NPS regulations provide that "concession
contracts are not contracts within the meaning of 41 U.S.C.
601 et seq. (the Contract Disputes Act) and are not
service or procurement contracts within the meaning of
statutes, regulations or policies that apply only to
federal service contracts or other types of federal
procurement actions." 36 C.F.R. Section 51.3. Again, we
have previously considered this argument, noting in
Starfleet that NPS cannot by regulation limit the
authority of our Office to decide protests and that it is
our Office, not NPS, that has interpretive authority over
the bid protest provisions of CICA. Starfleet Marine
Transp., Inc., supra , at 7. Further, regarding the
agency's argument that both the U.S. District Court and
the Court of Appeals upheld this regulation against a
facial challenge, see Amfac Resorts, LLC v. Dept. of the
Interior , 142 F. Supp. 2d 54 (D.D.C. 2001) and Amfac
Resorts, LLC v. Dept. of the Interior , 282 F. 3d 818
(D.C. Cir. 2002), we note that the decision of the Court
of Appeals was subsequently vacated by the Supreme
Court--and that the Supreme Court pointed out that NPS was
not the agency empowered to administer the procurement
statute at issue in the case (the Contract Disputes Act)
and that the NPS regulation was therefore "nothing more
than 'a general statemen[t] of policy' designed to inform
the public of NPS' views on the proper application of the
[Contract Disputes Act]." National Park Hospitality Ass'n
v. Dept. of the Interior , 538 U.S. 803, 809 (2003). We
continue to be of the view that where a contract
authorizing the provision of concession services also
requires the delivery of goods or services of more than de
minimis value to the government, the contract is one for
the procurement of property or services within the meaning
of CICA, and, as such, is encompassed within our bid
protest jurisdiction. Great South Bay Marina, Inc. ,
B-293649, May 3, 2004, 2004 CPD Paragraph 108 at 2. At the
same time, it has always been--and remains--our view that
concession contracts that do not require the delivery of
goods or services to the government (or that require the
delivery of goods or services of only de minimis value to
the government) are not contracts for the procurement of
property or services within the meaning of CICA and do not
fall within our Office's bid protest jurisdiction. White
Sands Concessions, Inc., B-295932, Mar. 18, 2005, 2005 CPD
Paragraph 62, recon. denied , B-295932.2, Apr. 12, 2005;
Crystal Cruises, Inc., B-238347, Feb. 1, 1990, 90-1 CPD
Paragraph 141 at 2, aff'd, B-238347.2, June 14, 1990, 90-1
CPD Paragraph 560. In this case, in addition to
authorizing the contractor to furnish concession services
on Fire Island, the prospectus requires the contractor to
invest not less than $1,259,000 in building rehabilitation
and improvements over the first 5 years of the contract.
The scope of the required rehabilitation and improvement
work and the timetable on which it is to be performed are
spelled out in great detail in the prospectus; the work
includes, for example, the replacement of dock sections
(4,096 square feet per year for the first 5 years of the
contract) at the NPS marina and the replacement of roofs,
siding, and doors on concession facilities (all work to be
completed in first year of contract). Prospectus at
Exhibit B, p. 16. Since the prospectus here clearly
requires the concessionaire to furnish goods and services
of more than de minimis value to the government in
addition to authorizing it to provide concession services,
we find that Great South Bay Marina's protest falls within
our jurisdiction. (Great South
Bay Marina, Inc., B-296335, July 13, 2005) (pdf)
Before resolving SHDE’s reconsideration request, we
address a March 4 (post-decision) letter to our Office
from the Department of the Interior advising that we had
misinterpreted NPS’s position on our jurisdiction to hear
SHDE’s bid protest in the first instance. In our decision,
we pointed out, as a threshold matter, that NPS “does not
dispute” our Office’s authority to review the protest
pursuant CICA, which applies to contracts for the
procurement of property or services. Decision at 5. We
further noted that in addition to providing visitor
recreational services for the 10‑year term of the
concession contract, the concessioner in this case would
be providing services to the government of a more than de
minimis value;[5] citing our decision in Starfleet Marine
Transp., Inc., B‑290181, July 5, 2002, 2002 CPD ¶ 113 at
6, we concluded that our review of this “mixed
transaction” therefore was appropriate. Decision at 5.
Interior now advises that “NPS’s consistent position has
been and continues to be that GAO does not have CICA
jurisdiction over NPS concessions matters, including
SHDE’s protest.” Interior Letter at 1. Interior states:
To the extent that we acquiesced in GAO review of SHDE’s
protest under GAO’s “general authority to review agency
actions,” we made clear that this authority was not CICA.
We understand that GAO has general authority under 31
U.S.C. 717 to evaluate agency programs and activities,
and . . . to consider “non-statutory protests” in
accordance with 4 C.F.R. § 21.13 [i.e., section 21.13 of
GAO’s Bid Protest Regulations].
Id. at 2.
Our understanding from NPS’s protest submissions regarding
our review authority was as we stated in our decision. To
the extent that we misunderstood NPS’s position, and that
the agency in fact does not believe we have jurisdiction
under CICA to review concession contracts, the decision is
modified accordingly. Irrespective of this point, however,
and as noted above, the contract in issue here was more
than a simple concession contract, but rather was a mixed
transaction that included the delivery of services to the
government (which the government might otherwise have had
to purchase or perform itself), of significant value. As
we stated in Starfleet Marine (at 8), “[w]here the
government invites private offerors to compete for a
business opportunity, the performance of which also
involves the delivery of property or services to the
government, all elements necessary to involve our [CICA]
jurisdiction are present.” (Shields
& Dean Concessions, Inc.--Reconsideration, B-292901.4,
March 19, 2004) (pdf)
As a threshold matter, we point out that the NPS does not
dispute the authority of our Office, pursuant to the
Competition in Contracting Act of 1984 (CICA), 31 U.S.C.
§§ 3551-56 (2000), to review this protest. Agency Report
(AR), Dec. 15, 2003, at 1; AR, Feb. 3, 2004, at 1, 3. In
this regard, where the government invites private offerors
to compete for a business opportunity, the performance of
which also involves the delivery of goods or services to
the government, the contract is one for the procurement of
property or services within the meaning of CICA and,
therefore, is encompassed within our Office’s bid protest
jurisdiction. Starfleet Marine Transp., Inc., B-290181,
July 5, 2002, 2002 CPD ¶ 113 at 6. Here, in addition to
providing visitor recreational services for the 10-year
term of the concession contract, the concessioner also is
required to provide a variety of maintenance, repair,
housekeeping, and groundskeeping services, as well as to
undertake a construction and demolition program projected
to cost more than $800,000. Clearly, the value of the
services to be provided by the concessioner to the
government is significant, not de minimis, and it is,
therefore, adequate to justify our review of this mixed
transaction. Id. at 8. While the portions of CICA
regarding our Office’s bid protest jurisdiction thus apply
here, the CICA provisions governing the conduct of
procurements do not. This is because CICA exempts
“procurement procedures [that are] otherwise expressly
authorized by statute.” 41 U.S.C. § 253(a)(1) (2000). The
NPS statute, as referenced earlier, provides for such a
procedure since it establishes the processes that are to
be followed when the NPS awards a concession contract.
Where, as here, CICA and the implementing Federal
Acquisition Regulation (FAR) (see FAR §§ 1.104, 2.101) do
not apply to procurements that are within our
jurisdiction, we review the record to determine if the
agency’s actions were reasonable and consistent with any
statutes and regulations that do apply. Starfleet Marine
Transp., Inc., supra, at 9-10. In this case, based on our
review of the record, including the proposals submitted by
SHDE and GLGO, the agency’s contemporaneous evaluation
narratives, and the agency’s arguments in response to the
protest, we conclude that the agency did not reasonably
evaluate the SHDE and GLGO proposals in accordance with
the terms of the prospectus. (Shields
& Dean Concessions, Inc., B-292901.2; B-292901.3,
February 23, 2004) (pdf)
The authority of our Office to decide bid protests is
established by the Competition in Contracting Act of 1984
(CICA), 31 U.S.C. §§ 3551-3556 (2000), which provides that
the Comptroller General shall decide protests challenging,
among other things, solicitations and awards of contracts.
This includes solicitations and awards of orders under the
FSS. See Severn Cos., Inc., B-275717.2, Apr. 28, 1997,
97-1 CPD ¶ 181, at 2-3 n.1. Our jurisdiction to hear
challenges of solicitations includes jurisdiction to
consider a protester's challenge that it was unreasonably
not solicited by an agency. See, e.g., GMA Cover Corp.,
B-288018, Aug. 17, 2001, 2001 CPD ¶ 144 at 3 (failure to
solicit a vendor's quote under simplified acquisition
procedures). Because Savantage is challenging DOJ's
decision not to provide the firm a copy of the RFQ (and
thus not to allow the firm to compete for the FSS order),
we conclude that we have jurisdiction to hear the protest.
(Savantage Financial Services,
Inc., B-292046; B-292046.2, June 11, 2003)
The authority for our Office to decide bid protests is
based on the Competition in Contracting Act of 1984 (CICA),
31 U.S.C.
§
§
3551-56 (2000), and provides for consideration of
challenges to solicitations by federal agencies for offers
for contracts for the procurement of property or services,
as well as challenges to the award or proposed award of
such contracts. 31 U.S.C.
§ 3551(1). Our Office
has previously determined that where a contractual
transaction includes the delivery of goods or services to
the government, the contract is one for the procurement of
property or services within the meaning of CICA, and
therefore is encompassed by our bid protest jurisdiction.
See Starfleet Marine Transp., Inc., B-290181, July 5,
2002, 2002 CPD ¶ 113 at 6; Government of Harford County,
Md., B-283259, B-283259.3, Oct. 28, 1999, 99-2 CPD ¶ 81 at
4. As the SAMS project transaction involves the
government's acquisition of a facility (in this instance,
valued in excess of $100 million), we conclude that the
contract to be awarded here is one for the procurement of
property and is within our bid protest jurisdiction.
Separate from the question of our jurisdiction is the
question of what competition requirements apply (and, in
particular, whether CICA's standards for full and open
competition apply). We need not resolve that question with
regard to the Act here, because the protest issues raised
by SES all challenge the propriety of the agency's actions
in light of the terms of the solicitation. We note,
however, that there is a legal presumption that CICA's
competition requirements apply "except in the case of
procurement procedures otherwise expressly authorized by
statute." 10 U.S.C. S: 2304(a)(1) (2000); see Jacobs
COGEMA, LLC, B-290125.2, B-290125.3, Dec. 18, 2002, 2002
CPD ¶ __ at 10. Here, the Act is silent as to the
applicability of CICA and it does not establish any
alternative procurement procedures (other than the general
framework cited earlier in this decision). (SAMS
El Segundo, LLC, B-291620; B-291620.2, February 3,
2003) (pdf) (txt
version)
Where a mixed
transaction includes the delivery of goods or services
to the government, the contract is one for the
procurement of property or services within the meaning
of CICA, and therefore is encompassed by our bid protest
jurisdiction. Thus, for example, our Office has assumed
jurisdiction over a protest against the award of a
contract involving both a sale of government property
and a procurement of services where the services to be
received by the government were one of the transaction’s
main objectives. Id. Similarly, where the award of a
concession contract included the provision of numerous
services to the government, which the agency might
otherwise have had to purchase or perform itself, we
found that the solicitation involved a procurement of
services. See Alpine Camping Servs., B-238625.2, June
22, 1990, 90-1 CPD ¶ 580 at 4-5. On the other hand,
where a concession or similar type contract does not
include the delivery of goods or services to the
government, the contract is not one for the procurement
of property or services as envisioned by CICA. Thus, for
example, where the agency’s issuance of concession
permits merely allowed entry by visitors into a national
park, and did not also include the provision of services
to the government, we did not exercise jurisdiction.
Crystal Cruises, Inc., B-238347, Feb. 1, 1990, 90-1 CPD
¶ 141, aff’d, B-238347.2, June 14, 1990, 90-1 CPD ¶ 560.
(Starfleet
Marine Transportation, Inc., B-290181, July 5, 2002
(pdf))
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