Moore Medical Corporation

B-261758 Oct 26, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Agency's evaluation of proposals for medical/surgical supplies under a primary distributor program was reasonable where protester's proposal and references did not demonstrate sufficient breadth. The RFP was issued to establish a primary distributor program for procuring medical/surgical supplies through the award of multiple distributor agreements for each of 25 geographic cluster groups. The RFP explained that successful offerors were to maintain inventory for an extensive medical/surgical product line and were to possess the experience. The RFP also stated: "It is VA's desire that all three awards include "stockless" distribution. In the event that an acceptable offer is not received from a small business firm with "stockless" capability. View Decision Matter of: Moore Medical Corporation File: B-261758 Date: October 26, 1995 Agency's evaluation of proposals for medical/surgical supplies under a primary distributor program was reasonable where protester's proposal and references did not demonstrate sufficient breadth, depth, or relevancy of experience to assure contracting officer that the firm could successfully perform the contract. Attorneys DECISION Moore Medical Corporation protests the rejection of its proposal by the Department of Veterans Affairs (VA) under request for proposals (RFP) No. M3-Q1-95, alleging improprieties in the agency's evaluation of proposals. We deny the protest. The RFP was issued to establish a primary distributor program for procuring medical/surgical supplies through the award of multiple distributor agreements for each of 25 geographic cluster groups. The RFP statement of work explained the agency's intention to convert to commercially based distribution systems by establishing a multiple award medical/surgical primary distributor schedule for brand-name specific and generic medical and surgical supplies. The RFP described a primary distributor as a business concern that functions as a purchaser's principal source for a broad product line of medical and surgical supplies. The VA and other government agencies' medical facilities would use the distributor agreements to select primary (and/or secondary) distributors to provide medical/surgical supplies. The RFP explained that successful offerors were to maintain inventory for an extensive medical/surgical product line and were to possess the experience, skills and capability to provide distribution services for such products along a full continuum of distribution strategies, including conventional, just-in-time and stockless distribution strategies. [1] Contractors would enter into customer ordering contracts for delivery of products under particular distribution strategies with authorized VA facilities in the geographic cluster for which the contractor received an award. The RFP stated that awards would be made on a cluster-by-cluster basis and that three awards would be made for each geographic cluster. The RFP also stated: "It is VA's desire that all three awards include "stockless" distribution. However, in the event that an acceptable offer is not received from a small business firm with "stockless" capability, VA will give consideration to small business firms who do not have "stockless" capability. To assure product and distribution service availability through the full continuum of the three distribution strategies, at a minimum, two of the three awards shall include "stockless" distribution." The RFP also stated that awards would be made to the responsible offerors whose offers conform to the solicitation and which represented the best overall expected value, price and technical factors considered. The RFP listed two technical evaluation factors--technical excellence and socioeconomic consideration--and stated that they were listed in descending order of importance and that together, they were more important than price. Technical excellence included the following four subfactors: product availability, distribution services, operational capability, and quality control. Under this factor, the RFP stated that "[t]he offeror's proposed range and breadth of products and distribution services (including value-added) together with its supporting operational expertise and quality assurance programs will be evaluated to determine the offeror's relative ability to deliver an extensive medical/surgical product line and to furnish a full continuum of distribution services in accordance with the Statement of Work." In addition, the RFP advised that the agency would develop a level of confidence assessment rating ("LOCAR") for each offeror. This rating was to reflect the government's degree of confidence that the offeror would keep the promises it made in its proposal.