Wackenhut International, Inc./Instituto di Viglanza

B-251398.2 Jan 26, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Firm that submitted a proposal in response to solicitation to provide security services for United States Embassy in Italy was ineligible for award of 5-point preference reserved for United States persons or qualified joint venture persons. Where the firm is incorporated in Italy. The Italian and American owners of the corporation are not jointly and severally liable for contract performance. The protester asserts that the award to UMI was improper because UMI improperly was determined eligible for a 5-point evaluation preference reserved for United States persons and qualified joint venture persons. The solicitation provided that technical factors were worth 60 points. Price was worth 40 points. View Decision Matter of: Wackenhut International, Inc./Instituto di Viglanza Citta' di Roma S.r.l (Mettronotte)--a joint venture File: B-251398.2 Date: January 26, 1996 Firm that submitted a proposal in response to solicitation to provide security services for United States Embassy in Italy was ineligible for award of 5-point preference reserved for United States persons or qualified joint venture persons, under section 136 of the Foreign Relations Authorization Act for Fiscal Years 1991 and 1992, where the firm is incorporated in Italy, the Italian and American owners of the corporation are not jointly and severally liable for contract performance. Attorneys DECISION Wackenhut International Inc./Instituto di Viglanza Citta' di Roma S.r.l. (Mettronotte)--a joint venture protests the award of a contract to United Mondialpol International S.r.l. (UMI) under solicitation No. 11/92, issued by the U.S. Embassy, Rome, Italy, for security guard services. The protester asserts that the award to UMI was improper because UMI improperly was determined eligible for a 5-point evaluation preference reserved for United States persons and qualified joint venture persons. We sustain the protest. The solicitation provided that technical factors were worth 60 points, price was worth 40 points, and that 5 points were to be awarded to firms that qualified as United States offerors. During the course of the procurement, the agency issued 13 amendments, held three rounds of discussions, and requested and received 3 best and final offers (BAFO). Following the final evaluation, UMI's BAFO with 104.93 points and Wackenhut/Instituto's with 104.42 points were the highest-rated proposals. Both offerors' proposals were awarded the 5-point United States offeror preference. The agency awarded the contract to UMI based on its high score. Wackenhut/Instituto protests that UMI does not qualify as a United States person or qualified joint venture person and that, consequently, the agency improperly awarded UMI the 5-point preference. Since UMI's total score was only .51 points higher, Wackenhut/Instituto maintains that without the 5 points awarded UMI's proposal Wackenhut/Instituto's proposal would be the highest rated and in line for award. The preference in question is awarded pursuant to section 136 of the Foreign Relations Authorization Act for Fiscal Years 1991 and 1992, as amended, 22 U.S.C. Sec. 4864(c)(7) (1994), which provides that the State Department should "give preference to United States persons and qualified United States joint venture persons where such persons are price competitive to the non-United States persons bidding on the contract, are properly licensed by the host government, and are otherwise qualified to carry out all terms of the contract." A United States person is defined as a person which, among other things, is incorporated or legally organized under the laws of the United States. 22 U.S.C. Sec. 4864(d)(1)(A). A qualified joint venture person is defined as a joint venture in which a United States person or persons owns at least 51 percent of the assets of the joint venture. 22 U.S.C. Sec. 4864(d)(2). Under the solicitation, offerors wishing to qualify for the 5-point preference for United States persons or joint venture persons were required to submit, with their proposal, a "Statement of Qualifications for Purposes of Obtaining Preference as a U.S. Person." The statement of qualifications form defines a joint venture as: "a formal or de facto association of two or more persons or entities to carry out a single business enterprise for profit, for which purpose they combine their property, money, effects, skill, and knowledge. To be acceptable, all members of a joint venture must be jointly and severally liable for full performance and resolution of matters arising out of the contract." United International Investigative Services, Inc. (UIIS), a U.S. corporation, and Mondialpol Roma S.p.a., an Italian corporation, formed a joint venture with the name United Mondialpol International, Ltd. and, as a joint venture, submitted an offer executed by William J.