North American Construction Corp.

B-270085 Feb 06, 1996 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights A firm protested the Naval Facilities Engineering Command's (NAVFAC) rejection of its bid for underground storage tank removal and replacement, contending that NAVFAC improperly determined that it was not responsible. GAO held that NAVFAC reasonably determined that the protester was not responsible, based on its unsatisfactory performance on previous contracts. Accordingly, the protest was denied. View Decision Matter of: North American Construction Corp. File: B-270085 Date: February 6, 1996 Agency reasonably determined that protester was nonresponsible, despite some indication of satisfactory performance on certain contracts, based upon information that the protester's performance on five recent contracts was deficient. Attorneys DECISION North American Construction Corp. protests the agency determination that it is nonresponsible under invitation for bids (IFB) No. N68711-95-B-7525 issued by the Department of the Navy, the Naval Facilities Engineering Command, Southern Division, for the excavation, removal, and replacement of underground storage tanks at the Marine Corps Base, Camp Pendleton, California. North American argues that the nonresponsibility determination was improper. We deny the protest. Nine bids, including one from North American, were opened on the August 24, 1995, bid opening date. The low bid of $2,174,717 was eliminated as nonresponsive. North American, the second low bidder at $2,608,517, was then considered for award. The Navy requested information from North American about its experience in performing similar contracts and made its own inquiries as to North American's ability to perform the work. Specifically, the contracting officer relied upon two sources: a telephone survey, including four references submitted by North American, concerning recently completed work or current work being performed by North American, and, to a lesser extent, information from the United States Army Corps of Engineers Construction Contractor Appraisal Support System (CCASS), which is a computerized listing of previous contracts held by a firm with the Corps. The Navy's six telephone inquiries revealed that North American was rated highly satisfactory on two contracts, satisfactory on two contracts, and unsatisfactory on two contracts. The two unsatisfactory evaluations were for a power system modification at Miami International Airport, contract No. DTFA06-94-C-50049, and a clinic addition/alteration at Keesler Air Force Base, Mississippi, contract No. 92-C-0779. On the Miami International Airport contract, North American was rated unsatisfactory for poor management of subcontractors, poor subcontractor electrical work which North American had to redo, and for being extremely slow. Also, the government representative faulted North American for submitting an overabundance of change order requests. Similarly, on the Keesler Air Force Base project, North American was rated unsatisfactory for poor management, requiring the redesign and rework of concrete columns, and for being significantly behind schedule. This government representative also characterized North American as a "change order artist," stated that there were many outstanding claims against North American, and indicated that North American was being audited for fraudulent claims by the Defense Contract Audit Agency (DCAA). Additionally, with respect to contract No. N63387-89-E-4924 for repairs to a power plant on San Clemente Island, the Navy was apprised that, although North American had been rated satisfactory, North American's performance was unsatisfactory because of its handling of contaminated soil, insulation of engines on concrete, and the operation and testing of the engines. The Navy's report indicated that North American was given a satisfactory evaluation to avoid liquidated damages and to get the project completed. Based on the telephone interview, the Navy assessed this project as a "unsatisfactory" in its overall review. The CCASS summarized 23 completed projects from November 1990 through January 1996. Of these 23, North American's performance was evaluated as outstanding on 5 projects, satisfactory on 16 and unsatisfactory on 2. The two unsatisfactory performance ratings were both for construction contracts: contract No. DACA4591C0099 at Whiteman Air Force Base, Missouri and No. DACW6892C0038 at Walla Walla, Washington. North American was rated unsatisfactory on the Whiteman contract with respect to quality of work, timely performance, effectiveness of management and compliance with safety standards. North American was rated unsatisfactory on the Walla Walla project on timely performance and effectiveness of management.