Krueger International, Inc.

B-260953.4 Oct 04, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Is unobjectionable where discussions are necessary only to correct technical proposals. Corrections are unlikely to have a cost impact. Which was "slightly more important than" (2) technical quality. Component or data are protected by patent or proprietary rights. That is. The solicitation advised offerors that: "[UNICOR] is interested in vertically integrating its chair assembly line to maximize [UNICOR] chair production capability and inmate employment while reducing overall costs. Whether the equipment is unique to the offeror's product line.". Although the references to "proposed bases" and "alternative bases" were unclear. The transcript of which was incorporated by amendment into the solicitation. View Decision Matter of: Krueger International, Inc. File: B-260953.4 Date: October 4, 1995 * Redacted Decision Agency proposal to reopen discussions and request the submission of samples and technical information, but not to permit revision of cost proposals, is unobjectionable where discussions are necessary only to correct technical proposals, and corrections are unlikely to have a cost impact. Attorneys DECISION Krueger International, Inc. protests the award of a contract to Nightingale, Inc. under request for proposals (RFP) No. 1PI-C-2010-95, issued by the Department of Justice, Federal Prison Industries (known as UNICOR), for stacking chairs and occasional seating. Krueger contends that the awardee's proposal fails to comply with mandatory solicitation requirements and challenges the agency's proposed corrective action as inadequate. We deny the protest. The RFP contemplated the award of a 5-year requirements contract. The solicitation generally provided for award to be made "to the responsible offeror whose proposal represents the best value to the Government." The RFP listed two specific evaluation factors: (1) total cost, which was "slightly more important than" (2) technical quality. The technical quality factor included consideration of compliance with the "performance standards" in RFP section C ("Description/Specifications/Statement of Work"), as well as four specific subfactors: (1) the acceptability of the components offered; (2) whether any assembly, component or data are protected by patent or proprietary rights; (3) the offeror's approach to vertical integration, that is, the process by which UNICOR would perform some of the manufacturing of the chairs at one or more of UNICOR's 75 manufacturing facilities using inmate labor; and (4) the equipment required to complete each type of chair. With respect to vertical integration, the solicitation advised offerors that: "[UNICOR] is interested in vertically integrating its chair assembly line to maximize [UNICOR] chair production capability and inmate employment while reducing overall costs. Offerors shall identify the level of vertical integration possible for each type of chair, and the effect upon [UNICOR] production capability, inmate employment, and overall production costs. Offerors should propose a schedule of backward vertical integration including a list of each logical progressive step. "This schedule should take into account required training, equipment, etc. for each progressive step." The RFP further stated that "[t]he contractor shall provide a list of required equipment including estimates of cost (installed), indicate delivery lead time for each piece of equipment, and whether the equipment is unique to the offeror's product line." The RFP provided that the total cost (evaluation factor) "includes the price of the proposed bases, and the cost of equipment, etc. necessary for [UNICOR] to begin production using the alternative bases." Although the references to "proposed bases" and "alternative bases" were unclear, having been, according to the agency, mistakenly taken from a prior procurement for chair bases, the agency advised potential offerors at the pre-proposal conference, the transcript of which was incorporated by amendment into the solicitation, that: "[a]ward will be based on the combination of total cost and technical quality. . . . Total cost is the cost of the components themselves, of course[,] and any cost of equipment that will be needed to produce it if we don't have that already would be something that has to be identified in your proposal and will be evaluated." Finally, the RFP required offerors to provide a "detailed listing of the components with all salient characteristics," and also stated that "[f]irms in the competitive range will be required to send production or prototype samples to a UNICOR location for evaluation and testing. . . . Firms submitting a prototype sample will be required to submit a production sample after award." Six proposals were received by the closing time. Four--including Krueger's and Nightingale's--were included in the competitive range.