New
The
jurisdiction of our Office is established by the bid
protest provisions of the Competition in Contracting Act (CICA),
31 U.S.C. sections 3551-3556. Our Office reviews alleged
violations of procurement laws and regulations to ensure
that the statutory requirements for full and open
competition are met. 31 U.S.C. § 3552(a); Cybermedia
Techs., Inc., B-405511.3, Sept. 22, 2011, 2011 CPD ¶ 180
at 2. Under CICA, our Office has jurisdiction to resolve
bid protests concerning the solicitations and contract
awards that are issued “by a Federal agency.” 31 U.S.C. §
3551(1)(A). Pursuant to our authority under CICA, we
initially took jurisdiction over subcontract awards by
prime contractors to the federal government where, as a
result of the government’s involvement in the award
process, or the contractual relationship between the prime
contractor and the government, the subcontract, in effect,
was awarded on behalf of--i.e., “by or for”--the
government, and federal procurement laws and regulations
otherwise would apply. See, e.g., St. Mary’s Hosp. and
Med. Ctr. of San Francisco, Calif., B-243061, June 24,
1991, 91-1 CPD ¶ 597.
However, the court in U.S. West Communications Servs.,
Inc. v. United States, 940 F. 2d 622 (Fed. Cir. 1991),
held that statutory language essentially identical to that
applicable to our Office did not confer on the General
Services Administration’s Board of Contract Appeals
jurisdiction over subcontract procurements conducted “for”
a federal agency, in the absence of a showing that the
prime contractor was a procurement agent, as defined by
the Supreme Court in United States v. New Mexico, 455 U.S.
720 (1982) and the court of appeals in United States v.
Johnson Controls, Inc., 713 F.2d 1541 (Fed. Cir. 1983). We
subsequently concluded that our jurisdiction generally
does not extend to awards made by others “for” the
government, and that, accordingly, in the absence of a
request by the federal agency concerned, we would not take
jurisdiction over such procurements. Compugen Ltd.,
B‑261769, Sept. 5, 1995, 95-2 CPD ¶ 103 at 3-4. Also, in
response to the U.S. West decision, we issued revisions to
our Bid Protest Regulations confirming that we will review
protests of subcontract awards only upon the written
request of the federal agency that awarded the prime
contract. 4 C.F.R. §§ 21.5(h), 21.13(a); Compugen Ltd.,
supra at 3-5 (“we declined to review subcontract
procurements conducted by Department of Energy management
and operating prime contractors in the absence of a
request by the agency that we do so”).
We will take jurisdiction, however, where we find that a
subcontract essentially was awarded “by” the government.
The Panther Brands, LLC, B-409073, Jan. 17, 2014, 2014 CPD
¶ 54 at 4-6. In this regard, we have considered a
subcontract procurement to be “by” the government where
the agency handled substantially all of the substantive
aspects of the procurement and, in effect, took over the
procurement, leaving to the prime contractor only the
procedural aspects of the procurement, i.e., issuing the
subcontract solicitation and receiving proposals. Id.; St.
Mary’s Hosp. & Med. Ctr. of San Francisco, Cal., B-243061,
June 24, 1991, 91-1 CPD ¶ 597 at 5-6.
The agency requests that we dismiss the protest because
the procurement at issue is a subcontract awarded by LLNS
and not for our consideration under our regulations at 4
C.F.R. section 21.5(h). Request for Dismissal at 1.
Furthermore, the agency argues that this subcontract
procurement is not a procurement “by” the government,
citing to our decision in The Panther Brands, LLC,
discussed above. Id. at 3-4.
PVWC responds that our Office should retain jurisdiction
over the protest, asserting that the agency “admits it has
complete control over the terms of the solicitation and
approval of the award, and that it exercised this power by
submitting input and comments to [LLNS].” Protester’s
Opposition at 1. In this regard, the protester points to
DEAR section 970.4401‑1 to support its contention that the
agency “has the undisputed responsibility for and power
over this solicitation and contract award, such that this
solicitation is ‘by’ the government.” Id. at 2-3. The
specific language cited by the protester is as follows:
In the Department of Energy (DOE), overall responsibility
for the oversight of the performance of management and
operating contractors, including their purchasing
activities, rests with the cognizant DOE contracting
activity and, in particular, the Head of the Contracting
Activity (HCA). Contracting officers are responsible for
the management and operating contractors’ conformance with
this subpart and the applicable terms and conditions of
their contracts, and for determining whether those
purchasing activities provide timely and effective support
to DOE programs.
Id. at 2 citing DEAR section 970.4401-1(a) (emphasis added
by protester). PVWC also points to various aspects of the
procurement, such use of a “.gov” email address by LLNS’s
procurement official, assorted language in the
solicitation, and publication of the solicitation on the
FedBizOps website.[1] Id. at 3-4.
Our review of the record shows that the procurement by
LLNS was not “by” the government, as contemplated in our
Office’s prior decisions, and, therefore, is not for our
consideration in accordance with our regulations at 4
C.F.R. section 21.5(h). In this regard, the record does
not establish that the agency controlled essentially every
meaningful aspect of the procurement, as would be required
for our Office to assert jurisdiction over the subcontract
procurement. See The Panther Brands, LLC, supra. In The
Panther Brands, LLC, we discuss several aspects of that
procurement that led us to conclude that the procurement
was conducted “by” the government. There, for instance,
the agency established its own evaluation criteria,
evaluated proposals and assigned adjectival ratings.
Moreover, the contractor, there, did not substantively
evaluate proposals or make award recommendations to the
agency, and the solicitation informed offerors that the
agency would make a selection decision. Id. at 5-6.
Here, in contrast, while LLNS was required to submit the
award to the agency for consent in accordance with its
prime contract, the evaluation and ultimate award decision
was made by LLNS. Request for Dismissal at 4-5.
Furthermore, DEAR section 970.4401-1(a), cited by the
protester in support of its argument, does not establish
the level of control by the agency required for our Office
to take jurisdiction over a subcontract protest. In this
regard, the regulation articulates overall responsibility
and oversight by the agency for the management and
operating contractor, but by the plain language of the
cited regulation, such responsibility and oversight is to
ensure compliance with agency regulation and the
applicable prime contract. We conclude that the challenged
subcontract procurement was not “by” the government, and,
therefore, is not for our Office to consider. 4 C.F.R. §
21.5(h); see Baron Serv., Inc., supra.
The protest is dismissed. (Peter
Vander Werff Construction, Inc. B-415676: Feb 6, 2018)
Bombardier
argues that the Air Force has effectively directed L3 to select
Gulfstream for award of a subcontract to provide the aircraft
for the Compass Call re-host. The protester contends that the
Air Force's actions are improper because the agency has not
complied with CICA's requirement for full and open competition
in the selection of the re-host aircraft, and that the agency
has not reasonably evaluated the capabilities of the Gulfstream
aircraft or the aircraft that Bombardier contends could meet the
Compass Call re-host requirements. The protester also contends
that the RFI issued by L3 did not provide prospective
subcontractors with adequate information to prepare responses.
For the reasons discussed below, we conclude that the proposed
contract with L3 anticipates selection of the aircraft by L3 and
not the government. We therefore find no basis to sustain the
protest.
Under CICA, our Office has jurisdiction to resolve bid protests
concerning the solicitations and contract awards that are issued
"by a Federal agency." 31 U.S.C. § 3551(1)(A). Our rules provide
that we do not review procurements where a government prime
contractor enters into a subcontract "for" the government. 4
C.F.R. § 21.5(h); Compugen, Ltd., B-261769, Sept. 5, 1995, 95-2
CPD ¶ 103 at 3-4; Yard USA, Inc., B-232326, Sept. 1, 1988, 88-2
CPD ¶ 207. We will take jurisdiction, however, where we find
that a subcontract essentially was awarded "by" the government.
The Panther Brands, LLC, B-409073, Jan. 17, 2014, 2014 CPD ¶ 54
at 4-6. In this regard, we have considered a subcontract
procurement to be "by" the government where the agency handled
substantially all of the substantive aspects of the procurement
and, in effect, took over the procurement, leaving to the prime
contractor only the procedural aspects of the procurement, i.e.,
issuing the subcontract solicitation and receiving proposals.
Id.; St. Mary's Hosp. & Med. Ctr. of San Francisco, Cal.,
B-243061, June 24, 1991, 91-1 CPD ¶ 597 at 5-6. For example, in
The Panther Brands, our Office concluded it had jurisdiction to
review a subcontract award where the solicitation issued to
prospective subcontractors advised that the government would
make the selection decision, the agency evaluated the proposals
of prospective subcontractors, and the agency selected the
successful proposal without receiving an award recommendation
from the prime contractor. The Panther Brands LLC, supra, at 6.
Here, Bombardier contends that the Air Force has selected the
Gulfstream G550 aircraft for the Compass Call re-host effort,
and that L3 will therefore perform only the procedural aspects
of the subcontract procurement. In support of its argument, the
protester points to the Air Force's correspondence with Congress
on this matter, and statements in the media. See Protest
(B-414380.2) at 12-18. The protester also contends that it was
informed by L3 that the decision to award a contract to
Gulfstream had been made as of January 2017. Protest
(B-414380.2) at 3 ("Indeed, L3 informed Bombardier in January of
this year--before the Air Force had even issued the solicitation
for the sole source lead system integrator contract--that
Gulfstream will supply the aircraft.").
The Air Force contends that this matter concerns a future
determination by L3 that will be conducted under a subcontract
and that, even if it were ripe for review at this time, it is a
matter over which our Office does not have jurisdiction. The
agency specifically represents that the decision to select the
aircraft for the Compass Call re-host will be made by L3 under
the terms of the SOW for the proposed subcontract. COS/MOL
(B-414380.2) at 19-20; Agency Request for Dismissal
(B-414380.2), June 8, 2017, at 7-8. In this regard, the
protester does not cite to any provisions of the SOW or J&A that
specifically direct L3 to select the Gulfstream G550 for the
Compass Call re-host effort.
On this record, we find that the proposed sole-source award to
L3 requires that firm to select the aircraft for the Compass
Call re-host, subject to the requirements established by the Air
Force. We find that neither the terms of the SOW, nor the
classified J&A, demonstrate that the Air Force will handle the
substantive aspects of the subcontract procurement, such that L3
would be left with only a procedural role in the selection of
the aircraft. See The Panther Brands LLC, supra, at 4-6.
Consequently, we conclude that the decision to select an
aircraft is a matter that will occur under a proposed
subcontract, and therefore the terms of the subcontract
competition and the merits of the selection decision are matters
that are not within the jurisdiction of our Office. (The
Boeing Company; Bombardier, Inc. B-414706, B-414380.2: Aug
25, 2017)
As an initial matter, the Army argues that GAO does not
have jurisdiction over the protest because the protest
involves the selection of a second-tier subcontractor. The
Army primarily relies on our decision in Yard USA, Inc.,
B-232326, Sept. 1, 1988, 88-2 CPD ¶ 207, in support of its
position that we do not consider protests of the award of
a second-tier subcontract. AR at 6-7. We do not agree that
this case is applicable here.
Under the Competition in Contracting Act of 1984 (CICA),
our Office has jurisdiction to resolve bid protests
concerning the solicitations and contract awards that are
issued “by a Federal agency.” 31 U.S.C. § 3551(1)(A)
(2006). In the context of subcontractor procurements, we
initially interpreted CICA as authorizing our Office to
review protests where, as a result of the government’s
involvement in the award process or the contractual
relationship between the prime contractor and the
government, the subcontract in effect is awarded on behalf
of the government, that is, where the subcontract is
awarded “by or for the government.” See Ocean Enters.,
Ltd., B-221851, May 22, 1986, 86-1 CPD ¶ 479 at 2; recon.
denied, B‑221851.2, June 26, 1986, 86-2 CPD ¶ 10. Pursuant
to this interpretation, we traditionally reviewed
subcontractor selections that were “for” the government,
where the subcontract awards concerned (1) subcontracts
awarded by prime contractors operating and managing
certain Department of Energy, or other agency, facilities;
(2) purchases of equipment for government-owned,
contractor-operated plants; and (3) procurements by
certain construction management prime contractors. Id.
However, the Court of Appeals for the Federal Circuit in
U.S. West Commc’ns Servs., Inc. v. United States, 940 F.2d
622 (Fed. Cir. 1991) held that statutory language
basically identical to that applicable to our Office did
not provide the General Services Administration’s Board of
Contract Appeals with jurisdiction over subcontract
procurements conducted “for” a federal agency, in the
absence of a showing that the prime contractor was a
procurement agent, as defined by the Supreme Court in
United States v. New Mexico, 455 U.S. 720 (1982) and the
court of appeals in United States v. Johnson Controls,
Inc., 713 F.2d 1541 (Fed. Cir. 1983). We subsequently
concluded that our jurisdiction generally does not extend
to awards made by others “for” the government, and that,
accordingly, in the absence of a request by the federal
agency concerned, we would not take jurisdiction over such
procurements. Compugen, Ltd., B-261769, Sept. 5, 1995,
95‑2 CPD ¶ 103 at 3-4.
Our decision in Yard involved the award of a contract by a
subcontractor for a steering control subsystem on the
Navy’s AOE–6 Fast Combat Support Ship. We declined to
review the award under our authority to review
procurements “for” the government, because a subcontractor
could not be considered a purchasing agent for the
government. Yard USA, Inc., supra, at 2. As explained
above, we have not taken jurisdiction over such
procurements that are allegedly “for” the government since
1995. See Compugen, Ltd., supra.
We continue to take jurisdiction, however, where we find
that a subcontract essentially was awarded “by” the
government. See RGB Display Corp., B-284699, May 17, 2000,
2000 CPD ¶ 80 at 3. In this regard, we have considered a
subcontract procurement to be “by” the government where
the agency handled substantially all the substantive
aspects of the procurement and, in effect, took over the
procurement, leaving to the prime contractor only the
procedural aspects of the procurement, i.e., issuing the
subcontract solicitation and receiving proposals. Baron
Servs., Inc., B-402109, Dec. 24, 2009, 2009 CPD ¶ 264 at
3; St. Mary’s Hosp. & Med. Ctr. of San Francisco, Cal.,
B-243061, June 24, 1991, 91-1 CPD ¶ 597 at 5-6.
Panther Brands argues, and we agree, that our decision in
St. Mary’s Hosp. is applicable to the circumstances here.
In that case, we agreed to consider the award of a
second-tier subcontract where the government identified
the need for the services, drafted the solicitation
criteria, selected government officials to serve on the
evaluation committee, and approved the committee’s
recommendation for award. We concluded that the government
controlled “every meaningful aspect of the procurement.”
St. Mary’s Hosp., supra, at 6.
Here, the record shows that the Army National Guard
controlled essentially every meaningful aspect of the
procurement. The Army National Guard, using its own
evaluation criteria, evaluated Docupak’s summaries of the
proposals, assigning adjectival ratings and identifying
strengths and weaknesses. See AR, Tab 17, Consensus
Evaluation for Panther Brands; Tab 18, Consensus
Evaluation for RLL. Moreover, the Guard’s CO selected RLL
based upon the agency’s own evaluation. Although Docupak
summarized proposals and obtained additional information
from offerors, the record shows no evidence that Docupak
substantively evaluated proposals or recommended any
offeror to the Army National Guard or LM&O, the prime
contractor. Indeed, the solicitation itself informed
offerors that the government would make the selection
decision. See AR, Tab 5, Solicitation, at 1. Accordingly,
under the circumstances present here, we conclude that we
have jurisdiction here, because the Corps handled
substantially all the substantive aspects of the
procurement, such that the procurement was “by” the
government. (The Panther
Brands, LLC, B-409073: Jan 17, 2014) (pdf)
DOE
requests that we dismiss Baron’s protest because it
concerns a subcontract awarded by Battelle as a DOE prime
contractor and not a procurement conducted by the
government. Dismissal Request.
Under the Competition in Contracting Act of 1984 (CICA),
our Office has jurisdiction to resolve bid protests
concerning solicitations and contract awards that are
issued “by a Federal agency.” 31 U.S.C. sect. 3551(1)(A)
(2006). Pursuant to our authority under CICA, we initially
took jurisdiction over subcontract awards by prime
contractors to the federal government where, as a result
of the government’s involvement in the award process, or
the contractual relationship between the prime contractor
and the government, the subcontract, in effect, was
awarded on behalf of‑-i.e., “by or for”--the government,
and federal procurement laws and regulations otherwise
would apply. See, e.g., St. Mary’s Hosp. & Med. Ctr. of
San Francisco, Cal., B-243061, June 24, 1991, 91-1 CPD
para. 597. However, in its decision U.S. West Commc’ns
Servs., Inc. v. United States, 940 F.2d 622 (Fed. Cir.
1991), the court of appeals construed statutory language
basically identical to that applicable to our Office as
not conferring on the General Services Administration’s
Board of Contract Appeals jurisdiction over subcontract
procurements conducted “for” a federal agency, in the
absence of a showing that the prime contractor was a
procurement agent, as defined by the Supreme Court in
United States v. New Mexico, 455 U.S. 720 (1982) and the
court of appeals in United States v. Johnson Controls,
Inc., 713 F.2d 1541 (Fed. Cir. 1983). We subsequently
concluded that our jurisdiction generally does not extend
to awards made by others “for” the government, and that,
accordingly, in the absence of a request by the federal
agency concerned, we would not take jurisdiction over such
procurements. Compugen, Ltd., B-261769, Sept. 5, 1995,
95-2 CPD para. 103 at 3-4.
We continue to take jurisdiction, however, where we find
that a subcontract essentially was awarded “by” the
government. See RGB Display Corp., B-284699, May 17, 2000,
2000 CPD para. 80 at 3. In considering whether a
procurement was conducted “by” the government, we assess
the totality of the circumstances, including the question
of which party was responsible for the preparation of the
solicitation, the receipt and evaluation of proposals, the
conduct of discussions, the selection of a prospective
awardee and the conduct of responsibility determinations.
Alatech Healthcare, LLC, B-400925, B-400925.2, Mar. 9,
2009, 2009 CPD para. 57 at 3. We have found a subcontract
procurement to be “by” the government only where the
agency handled substantially all substantive aspects--in
effect, “took over”--the procurement, leaving to the prime
contractor only the procedural aspects of the procurement,
i.e., issuing the subcontract solicitation and receiving
proposals. See St. Mary’s Hosp. & Med. Ctr. of San
Francisco, Cal., supra, at 5-6; University of Mich.;
Indus. Training Sys. Corp., B-225756, B-225756.2, June 30,
1987, 87-1 CPD para. 643 at 5‑6. In such cases, the prime
contractor’s role in the procurement was essentially
ministerial such that it was merely acting as a conduit
for the government, Alatech Healthcare, LLC, supra, at 3.
On the other hand, we have found subcontractor
procurements were not “by” the government where the prime
contractor handled meaningful aspects of the procurement,
such as preparing the subcontract solicitation and
evaluation criteria, evaluating the offers, negotiating
with the offerors, and selecting the awardee. See
Kerr-McGee Chem. Corp.--Recon., B‑252979.2, Aug. 25, 1993,
93‑2 CPD para. 120 at 4-6; ToxCo, Inc., B-235562, Aug. 23,
1989, 89-2 CPD para. 170 at 4-5.
Here, Baron contends that, although radars were procured
under Battelle’s prime contract with DOE, the agency had a
pervasive role in the procurement such that the
procurement was essentially conducted by DOE. That is,
Baron argues that the agency, by virtue of its review and
approval of the RFP (including its “associated evaluation
criteria”), retained ultimate control over the evaluation
of proposals and selection of the subcontractor.
Opposition to Dismissal Request at 2‑3. The protester also
contends that the fact that the solicitation was posted on
the FedBizOpps website, the government-wide port of entry
where agency contracting officers are required to
synopsize certain contract actions and solicitations under
the FAR, demonstrates that the procurement was conducted
by DOE. In addition, the protester believes that DOE must
have been substantially involved in this procurement
because the subcontract will be funded under the American
Recovery and Reinvestment Act and argues that Act requires
DOE to implement certain competition requirements. See id.
at 5, citing Pub. L. No. 111-5, sect. 1554, 123 Stat.
302.[5] Baron also argues that the expenditure of
government funds and the determination of which supplies
or services are to be procured and at what cost are
inherently governmental functions that must be performed
by the agency. See id. at 6. In this regard, the protester
notes that title to the radars passes directly to the
government, that the Battelle agents involved in the
procurement use “.gov” email extensions, and that the
solicitation bears DOE’s official seal. Id., n.3 at 3.
In response, DOE states that it did not have a substantial
role in the procurement and that no federal employees were
involved in receipt of proposals and the selection
process. Dismissal Request at 2. In this regard, DOE has
provided a declaration from its contracting officer and
affidavits from two Battelle employees who state that (1)
DOE did not receive, review, or evaluate any proposals
submitted in response to the RFP, (2) DOE did not
participate in the selection of the awardee, and (3)
Battelle had the sole responsibility for determining the
evaluation criteria and the extent of information that was
to be included in the RFP. See DOE’s Response to
Opposition to Dismissal Request, Tab 8, Declaration of DOE
Contracting Officer; Tab 9, Affidavit of Battelle
Evaluation Panel Chairperson; and Tab 10, Affidavit of
Battelle Contracts Specialist. DOE states that its only
participation in the solicitation involved reviewing the
RFP and approving its issuance.
The record shows that Battelle, and not DOE, handled all
the meaningful aspects of this procurement, including
preparing the subcontract solicitation and evaluation
criteria, evaluating the offers, and selecting the awardee.
DOE’s approval of the issuance of the RFP does not
demonstrate that DOE took over the procurement. See, e.g.,
Alatech Healthcare, LLC, supra, at 1-3 (agency review,
comment, and discussion of RFP with prime contractor did
not show that procurement was “by” the government, where
the contractor was responsible for significant aspects of
the procurement); see also STR, L.L.C., B-297421, Dec. 22,
2005, 2006 CPD para. 11 at 3 (government involvement in
evaluation/selection process not enough to make
procurement by government). Nor does the fact that
Battelle posted the RFI and RFP on the FedBizOpps website
and used DOE’s agency seal on the FedBizOpps postings, and
that Battelle employees at PNNL use .gov email addresses
demonstrate that DOE handled substantially all substantive
aspects of the procurements, given that it was Battelle,
and not DOE, that prepared the RFP, received and evaluated
proposals, and selected Advanced Radar’s proposal for
award. See Compugen, Ltd., supra, at 2 (prime contractor’s
use of Commerce Business Daily for subcontract
solicitation). We also do not find significant here that
DOE would obtain title to the radars in accordance with
the terms of Battelle’s prime contract. See Merrick Eng’g,
Inc.--Recon., B-247334.2, May 14, 1992, 92-1 CPD para. 444
at 2-3 (government acquisition of title to property
purchased under a subcontract does not establish that
procurement was conducted by or for the government).
We also do not agree with Baron that the subcontract
procurement of the radars by Battelle under its prime
contract was an inherently governmental function, which
meant that DOE had to conduct the procurement. See
Opposition to Dismissal Request at 6. The FAR specifically
recognizes that prime contractors may award subcontracts
to obtain supplies and services for the performance of the
prime contract. See, e.g., FAR Part 44, Subcontracting
Policies and Procedures. There also is no merit to Baron’s
arguments that this subcontract procurement was
necessarily by the government because of the requirements
of the American Recovery and Reinvestment Act and the use
of funds under this Act. As noted by Baron, section 1554
of the Act provides that “[t]o the maximum extent
possible, contracts funded under this Act shall be awarded
as fixed-price contracts through the use of competitive
procedures.” Included in Battelle’s prime contract is a
specific clause, “Special Provisions Relating to Work
Funded under American Recovery and Reinvestment Act of
2009,” which is required to be flowed-down to first-tier
subcontractors and which includes a number of
requirements, including the segregation of obligations and
expenditures related to funding under the Act, and
otherwise complying with all requirements of the Act. See
Battelle Contract, sect. H.38, at H-51 -- H-53. Here,
Battelle awarded a fixed-price subcontract competitively.
In sum, the record shows that Battelle’s involvement in
the procurement is more than that of a mere conduit for
the government, and we therefore find that this
procurement was not conducted by the government. (Baron
Services, Inc., B-402109, December 24, 2009) (pdf)
The record
shows that the agency issued a task order to JSI under its
DELIVER contract to, among other things, conduct a
procurement for male condoms. AR, exh. 4; exh. 7, para.
21. Consistent with the terms of the task order, JSI
prepared the RFP that is the subject of the current
protest. AR, exh. 5. AID reviewed the RFP and provided
comments to JSI concerning various provisions, informed
JSI of AID’s interpretation of the above-quoted statutory
language, and discussed revisions to the RFP that it
viewed as necessary to reflect AID’s interpretation of
that language. AR, exh. 7, paras. 21-22. After the RFP was
issued, AID assisted JSI in responding to vendor questions
relating to the RFP and, specifically, provided the
response to a question relating to implementation of the
statutory language. Id. para. 24. Beyond these activities,
AID’s involvement with the acquisition was limited. JSI
prepared and issued the RFP, received and evaluated
proposals, presented AID with the results of its
evaluation, and advised the agency of its selection
decisions; AID reviewed JSI’s proposed subcontractor
selections, requested clarifying information, and approved
the selections. AR, exh. 7, paras. 25-29.
The record shows that an AID employee with no management
role in connection with JSI’s prime contract observed
JSI’s proposal evaluation panel’s deliberations as a
non-voting member. According to the agency, her role was
to observe JSI’s conduct of the evaluation to ensure that
the agency’s requirements received due attention, and that
its interpretation of the statutory language noted above
was implemented. Id. para. 25.
AID requests that we dismiss the protest as beyond our
jurisdiction because the acquisition was conducted by a
prime contractor for the award of subcontracts, rather
than by a federal agency. The protester asserts that AID
essentially directed JSI in its implementation of the
statutory requirement, and that this aspect of the
acquisition therefore essentially was conducted “by” AID
through JSI. Alatech concludes that we have jurisdiction
to consider the protest to the extent that it challenges
the agency’s implementation of the statutory language.
We agree with the agency that the procurement at issue is
not subject to our jurisdiction. Under the Competition in
Contracting Act of 1984 (CICA), our Office has
jurisdiction to resolve bid protests concerning
solicitations and contract awards that are issued “by a
Federal agency.” 31 U.S.C. sect. 3551(1)(A) (2000).
Pursuant to our authority under CICA, we initially took
jurisdiction over subcontract awards by prime contractors
to the federal government where, as a result of the
government’s involvement in the award process, or the
contractual relationship between the prime contractor and
the government, the subcontract, in effect, was awarded on
behalf of‑-i.e., “by or for”--the government, and federal
procurement laws and regulations otherwise would apply.
See, e.g., St. Mary’s Hosp. and Med. Ctr. of San
Francisco, Calif., B-243061, June 24, 1991, 91-1 CPD para.
597. However, in its decision U.S. West Communications
Servs., Inc. v. United States, 940 F. 2d 622 (Fed. Cir.
1991), the court of appeals construed statutory language
basically identical to that applicable to our Office as
not conferring on the General Services Administration’s
Board of Contract Appeals jurisdiction over subcontract
procurements conducted “for” a federal agency, in the
absence of a showing that the prime contractor was a
procurement agent, as defined by the Supreme Court in
United States v. New Mexico, 455 U.S. 720 (1982) and the
court of appeals in United States v. Johnson Controls,
Inc., 713 F.2d 1541 (Fed. Cir. 1983).[1] We subsequently
concluded that our jurisdiction generally does not extend
to awards made by others “for” the government, and that,
accordingly, in the absence of a request by the federal
agency concerned, we would not take jurisdiction over such
procurements. Compugen Ltd., B-261769, Sept. 5, 1995, 95-2
CPD para. 103 at 3-4.
We continue to take jurisdiction where we find that a
subcontract essentially was awarded “by” the government.
RGB Display Corp., B-284699, May 17, 2000, 2000 CPD para.
80 at 3. We have considered a subcontract procurement to
be “by” the government where the agency handled
substantially all substantive aspects--in effect, “took
over”--the procurement, leaving to the prime contractor
only the procedural aspects of the procurement, i.e.,
issuing the subcontract solicitation and receiving
proposals. See St. Mary’s Hosp. and Med. Ctr. of San
Francisco, Calif., supra, at 5-6; University of Mich.;
Industrial Training Sys. Corp., B-225756, B-225756.2, June
30, 1987, 87-1 CPD para. 643 at 5-6. In such cases, the
prime contractor’s role in the procurement was essentially
ministerial, such that it was merely acting as a conduit
for the government. On the other hand, we have found
subcontractor procurements were not “by” the government
where the prime contractor handled other meaningful
aspects of the procurement, such as preparing the
subcontract solicitation and evaluation criteria,
evaluating the offers, negotiating with the offerors, and
selecting the awardee. See Kerr-McGee Chem. Corp--Recon.,
B-252979.2, Aug. 25, 1993, 93‑2 CPD para. 120 at 4-6;
ToxCo, Inc., B-235562, Aug. 23, 1989, 89-2 CPD para. 170
at 4-5.
Here, as discussed, JSI was responsible for virtually all
significant aspects of the procurement. JSI prepared the
solicitation, including the evaluation criteria (taking
into consideration input from AID); evaluated and scored
the proposals; engaged in discussions with the prospective
subcontractors; performed responsibility determinations of
the prospective awardees; and made award recommendation
findings that were approved by AID. AR, exh. 8, at 3-4.
AID’s assistance in implementing the statutory
appropriations language and approving the award
recommendations made by JSI was not sufficient to render
this an acquisition conducted “by” AID; a procurement is
only “by” the government where the agency controls the
procurement process to such an extent that the contractor
has no real input into substantive decisions. STR, L.L.C.,
supra at 5. That clearly was not the case here.
Moreover, we decline to adopt the view advanced by the
protester--that the agency effectively conducted that
aspect of the procurement relating to implementation of
the statutory language--and therefore could be said to
have effectively awarded the subcontract, at least in that
respect. In considering whether a procurement was
conducted “by” the government, we assess the totality of
the circumstances, including the question of which party
was responsible for the preparation of the solicitation,
the receipt and evaluation of proposals, the conduct of
discussions, the selection of a prospective awardee and
the conduct of responsibility determinations. As reflected
in our prior decisions in this area, we do not break the
procurement into segments and consider the “by” question
on a segment-by-segment basis. The protester has presented
no information or argument that leads us to question the
correctness of our approach in this regard. We conclude
that our Office lacks jurisdiction to consider the
propriety of the awards here.
The protest is dismissed. (Alatech
Healthcare, LLC, B-400925; B-400925.2, March 9, 2009)
(pdf)
We continue to take jurisdiction where the subcontract is
“by” the government. RGB Display Corp., B-284699, May 17,
2000, 2000 CPD para. 80 at 3. We have considered a
subcontract procurement to be “by” the government where
the agency handled substantially all the substantive
aspects of the procurement and, in effect, “took over” the
procurement, leaving to the prime contractor only the
procedural aspects of the procurement, i.e., issuing the
subcontract solicitation and receiving proposals. See St.
Mary’s Hosp. and Med. Ctr. of San Francisco, Calif.,
supra, at 5-6; University of Mich.; Industrial Training
Sys. Corp., B-225756, B-225756.2, June 30, 1987, 87-1 CPD
para.643 at 5-6. In such cases, the prime contractor’s
role in the procurement was essentially ministerial, such
that it was merely acting as a conduit for the government.
On the other hand, we have found subcontractor
procurements were not “by” the government where the prime
contractor handled other meaningful aspects of the
procurement, such as preparing the subcontract
solicitation and evaluation criteria, evaluating the
offers, negotiating with the offerors, and selecting an
awardee. See Kerr-McGee Chem. Corp--Recon., B-252979.2,
Aug. 25, 1993, 93-2 CPD para. 120 at 4-6; ToxCo, Inc.,
B-235562, Aug. 23, 1989, 89-2 CPD para. 170 at 4-5. STR
contends that SRA is acting merely as a conduit for the
government here and that, accordingly, we should take
jurisdiction over its protest. We do not agree with the
protester that the government’s involvement in and control
over the acquisition process here was so pervasive as to
render the procurement essentially by the government.
First, contrary to STR’s contention, the RFI issued by SRA
is not “nearly identical” to the solicitation issued by
AID; as noted above, the two differ significantly in that
the AID RFI did not include evaluation criteria, whereas
the SRA solicitation did. Both the AID program manager and
the SRA project manager report that SRA had primary
responsibility for drafting the evaluation criteria.
Second, it is clear from the record that SRA personnel
played a major role in the evaluation of proposals and
selection of an awardee. In this connection, the
evaluation team consisted of both government
representatives and SRA employees, with the two subgroups
providing differing types of substantive input into the
evaluation/selection process. As explained by the AID
program manager in the following excerpt:
The government team members represented various user
stakeholders of the COTS system to include grants
officers, program officers, financial analyst, policy
analyst, and IT analyst. These representatives focused
primarily on the requirements and the ability of the
software to meet them from a users’ perspective, e.g.,
ease of use, intuitiveness, logical flow.
Concurrently, SRA conducted in-depth technical and
cost assessments and performed customer reference
interviews. SRA analysis, from the integration
perspective, included requirements, technical
feasibility, implementation factors to configure the
system, and the complexity of the integration points
of the software from a risk and schedule impacts.
Declaration of AID Program Manager, Dec. 6, 2005, at
4-5. It is also clear from the record that the SRA team
members were full participants in the deliberations that
led to recommendation of the Infoterra product. While we
recognize that it is apparent from the foregoing that
government personnel, as well as SRA personnel, played
major roles in the evaluation, government involvement in
the evaluation/selection process is not enough to make the
procurement “by” the government, Perkins-Elmer Corp.;
Metco Div., B-237076, Dec. 24, 1989, 89-2 CPD para. 604 at
4; we consider a procurement to be “by” the government
only where the agency controls the procurement process to
such an extent that the contractor has no real input into
substantive decisions, which was clearly not the case
here.
Third, it is apparent from the record that administration
of the contract is to be handled by SRA and that privity
of contract will be between the SRA and Infoterra and not
between the government and Infoterra. Declaration of AID
Program Manager, Dec. 6, 2005, at 5; Declaration of SRA
Project Manager, Dec. 6, 2005, at 3. (STR,
L.L.C., B-297421, December 22, 2005) (pdf)
We continue to take jurisdiction where the subcontract is
“by” the government. RGB Display Corp., B-284699, May 17,
2000, 2000 CPD ¶ 80 at 3. We have considered a subcontract
procurement to be “by” the government where the agency
handled substantially all the substantive aspects of the
procurement and, in effect, “took over” the procurement,
leaving to the prime contractor only the procedural
aspects of the procurement, i.e., issuing the subcontract
solicitation and receiving proposals. See St. Mary’s Hosp.
and Med. Ctr. of San Francisco, Calif., supra, at 5-6;
University of Mich.; Industrial Training Sys. Corp.,
B-225756, B-225756.2, June 30, 1987, 87-1 CPD ¶ 643 at
5-6. In such cases, the prime contractor’s role in the
procurement was essentially ministerial, such that it was
merely acting as a conduit for the government. On the
other hand, we have found subcontractor procurements were
not “by” the government where the prime contractor handled
other meaningful aspects of the procurement, such as
preparing the subcontract solicitation and evaluation
criteria, evaluating the offers, negotiating with the
offerors, and selecting an awardee. See Kerr-McGee
Chemical Corp.--Recon., B-252979.2, Aug. 25, 1993, 93-2
CPD ¶ 120 at 4-6; ToxCo, Inc., B-235562, Aug. 23, 1989,
89-2 CPD ¶ 170 at 4-5. (Addison
Construction, Inc., B-293805, April 20, 2004) (pdf)
Under the Competition in
Contracting Act of 1984 (CICA), our Office has
jurisdiction to resolve bid protests concerning
solicitations and contract awards that are issued
"by a Federal agency." 31 U.S.C. sect.
3551(1)(A) (1994). Pursuant to our authority under CICA,
we initially took jurisdiction over subcontract awards
by prime contractors to the federal government where, as
a result of the government's involvement in the award
process, or the contractual relationship between the
prime contractor and the government, the subcontract in
effect was awarded on behalf of--i.e., "by or
for"--the government, and federal procurement laws
and regulations otherwise would apply. See Compugen,
Ltd., B-261769, Sept. 5, 1995, 95-2 CPD para. 103 at
3-4. However, consistent with the holding in U.S. West
Communications Servs., Inc. v. United States, 940 F.2d
622 (Fed. Cir. 1991), it now is our view that our
jurisdiction generally does not extend to awards made by
others but "for" the government; we therefore
no longer review protests of such subcontract awards
where, as here, the agency involved has not requested in
writing that we do so. See 4 C.F.R. sect.sect. 21.5(h),
21.13(a) (2000); see also Compugen, Ltd., supra, at 4-5.
We continue to take jurisdiction where the subcontract
is "by" the government. See Peter Bauwens
Bauunternehmung GmbH & Co. KG, B-277734 et al., Oct.
8, 1997, 97-2 CPD para. 98 at 2-3. Generally, we have
reviewed subcontract procurements where the government's
involvement in the award process was so pervasive that
the subcontract in effect was awarded "by" the
government. We have considered a subcontract procurement
to be "by" the government where the agency
handled substantially all the substantive aspects of the
procurement and, in effect, "took over" the
procurement, leaving to the prime contractor only the
procedural or ministerial aspects of the procurement,
i.e., issuing the subcontract solicitation and receiving
proposals. See St. Mary's Hosp. and Med. Ctr. of San
Francisco, California, B-243061, June 24, 1991, 91-1 CPD
para. 597 at 5-6; University of Mich.; Industrial
Training Sys. Corp., B-225756, B-225756.2, June 30,
1987, 87-1 CPD para. 643 at 5-6. In such cases, the
prime contractor's role in the procurement was
essentially ministerial, such that it was merely acting
as a conduit for the government. On the other hand, we
have found subcontractor procurements were not
"by" the government, even where the agency
effectively directed the subcontractor selections, where
the prime contractor handled other meaningful aspects of
the procurement. See Kerr-McGee Chemical Corp.--Recon.,
B-252979.2, Aug. 25, 1993, 93-2 CPD para. 120 at 4;
ToxCo, Inc., B-235562, Aug. 23, 1989, 89-2 CPD para. 170
at 4-5. (RGB
Display Corporation, B-284699, May 17, 2000) (pdf) |