ABC HealthCare

B-266043 Jan 23, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Protest objecting to solicitation requirement for contractor accreditation by the Joint Commission on Accreditation of Healthcare Organizations as unduly restrictive of competition is denied where agency demonstrates reasonable basis for the requirement. ABC protests that the solicitation requirement that the contractor be accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) is not necessary to meet the agency's minimum needs. Which was issued on July 27. Which has applied for an accreditation survey but which is not yet JCAHO-accredited. Five bids were received. Three of which were from JCAHO-accredited companies. ABC was the low bidder. The protester complains that the requirement for JCAHO accreditation is unduly restrictive of competition since it excludes from award companies such as itself. View Decision Matter of: ABC HealthCare File: B-266043 Date: January 23, 1996 Protest objecting to solicitation requirement for contractor accreditation by the Joint Commission on Accreditation of Healthcare Organizations as unduly restrictive of competition is denied where agency demonstrates reasonable basis for the requirement. Attorneys DECISION ABC HealthCare protests the terms of invitation for bids (IFB) No. 590-05-96, issued by the Department of Veterans Affairs (VA) Medical Center in Hampton, Virginia, for home oxygen equipment. Specifically, ABC protests that the solicitation requirement that the contractor be accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) is not necessary to meet the agency's minimum needs. We deny the protest. The IFB, which was issued on July 27, 1995, sought prices for the rental of oxygen equipment, delivery service, and monthly visits to the homes of eligible VA beneficiaries. The solicitation required that the contractor be accredited by the JCAHO and that a copy of the accreditation be submitted to the contracting officer prior to contract award. [1] On August 17, ABC, which has applied for an accreditation survey but which is not yet JCAHO-accredited, filed an agency-level protest objecting to the requirement for accreditation. The agency denied the protest, and proceeded with bid opening on the scheduled date of August 31. Five bids were received, three of which were from JCAHO-accredited companies. ABC was the low bidder. On September 8, ABC protested to our Office. By letter dated November 3, the VA notified us that it intended to proceed with award notwithstanding the protest. The protester complains that the requirement for JCAHO accreditation is unduly restrictive of competition since it excludes from award companies such as itself, which meet JCAHO standards but which have not yet had their applications for accreditation approved. ABC points out that not all VA facilities that contract for home oxygen services require JCAHO accreditation, and further notes that the JCAHO Accreditation Manual itself recognizes that accredited facilities might contract with non-accredited firms. In preparing a solicitation for supplies or services, a contracting agency must specify its needs and solicit offers in a manner designed to achieve full and open competition, 41 U.S.C. Sec. 253a(a)(1)(A) (1994), and may include restrictive provisions or conditions only to the extent necessary to satisfy the agency's needs. 41 U.S.C. Sec. 253a(a)(2)(B). Where a protester alleges that a requirement is unduly restrictive, we review the record to determine whether the requirement has been justified as necessary to satisfy the agency's minimum needs. Aegis Analytical Labs., Inc., B-252511, July 2, 1993, 93-2 CPD Para. 4. The determination of the agency's minimum needs and the best method of accommodating them are primarily within the agency's discretion and, therefore, we will not question such a determination unless the record shows that it lacked a reasonable basis. CardioMetrix, B-257408, Aug. 3, 1994, 94-2 CPD Para. 57. Here, we find reasonable the VA's determination that its minimum needs require that the home care organization with which it contracts be JCAHO-accredited. The Chief of the VA Medical Center's Prosthetics and Sensory Aids Service explains that unless the facility contracts with an accredited home health care organization, it will be required to expend a substantial amount of time and resources to monitor the contractor's compliance with the safety and quality requirements established for the home health care industry by JCAHO's Accreditation Manual for Home Health Care.