SMS Systems Maintenance Services, Inc.

B-270816 Apr 29, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where both quotations submitted by two firms under a request for quotations for computer equipment maintenance services reasonably required clarification regarding whether the required on-site engineer was being offered as a part of the quoted prices. The award selection was based on unequal and unfair treatment and the procurement should be reopened to permit clarifications by both firms. SMS principally argues that it submitted the low-priced quotation and that the issuance of the order to Digital was improper. The RFQ stated that only quotations under General Services Administration (GSA) schedule contracts would be considered and that the agency would consider one-time price reductions from schedule prices. [1] Quotations were required by September 28 for services to be performed October 1. View Decision Matter of: SMS Systems Maintenance Services, Inc. File: B-270816 Date: April 29, 1996 Where both quotations submitted by two firms under a request for quotations for computer equipment maintenance services reasonably required clarification regarding whether the required on-site engineer was being offered as a part of the quoted prices, and where the agency instead effectively rejected protester's quotation (by unreasonably adding a 20-percent cost increase for the on-site engineer to the protester's quotation) without requesting clarification of the matter, but asked the awardee for clarification on its quotation, and then relaxed the on-site engineer requirements for the awardee, the award selection was based on unequal and unfair treatment and the procurement should be reopened to permit clarifications by both firms. Attorneys DECISION SMS Systems Maintenance Services, Inc. protests the issuance of a delivery order to Digital Equipment Corporation for the maintenance of Digital computer equipment under a request for quotations (RFQ) issued by the Department of the Treasury. SMS principally argues that it submitted the low-priced quotation and that the issuance of the order to Digital was improper. We sustain the protest. By letter of September 26, 1995, the agency issued the RFQ to SMS and Digital. The RFQ stated that only quotations under General Services Administration (GSA) schedule contracts would be considered and that the agency would consider one-time price reductions from schedule prices. [1] Quotations were required by September 28 for services to be performed October 1, 1995, through September 30, 1996. Quotations were to be submitted in the form of fixed monthly prices for each piece of listed equipment. The RFQ provided that the principal period of maintenance (PPM) for on-call, basic maintenance "is expected" to be from 8 a.m. to 12 a.m. (16 hours) Monday through Saturday. The RFQ also provided that the following optional PPMs and maintenance coverage shall be available: for on-call maintenance coverage, from 9 a.m. to 6 p.m. (9 hours) Monday through Friday and from 12 a.m. to 12 a.m. (24 hours) Sunday through Saturday; and for on-site maintenance coverage, requiring the stationing of one engineer and all required tools, test equipment, and supplies at the Treasury site, from 9 a.m. to 6 p.m. (9 hours) Monday through Friday. Offerors were required to have the capability to perform all required services on site as well as to have a technical support center that would be available for per-call maintenance 24 hours a day, 7 days a week. Both SMS and Digital submitted quotations. SMS submitted a total monthly price of $11,123 for a 12-hour PPM (8 a.m. to 8 p.m.) Monday through Friday. It also provided a $117 hourly rate for maintenance performed outside of that time frame. However, because the agency interpreted SMS' quotation as not offering an on-site engineer except at prices 20-percent higher than the prices quoted, SMS' prices were increased by 20 percent and then decreased by the 3-percent discount provided in the firm's quotation for orders exceeding $10,000 in monthly maintenance, resulting in an evaluated total monthly price of $12,947.17. The decision to increase SMS' prices by 20 percent resulted from the agency's interpretation of the following language in the SMS quotation: "For GSA Schedule contracts, our standard Principal Period Maintenance is 8 AM to 8 PM, Monday though Friday, see page 22 of our GSA Schedule." "For service any time outside these hours our hourly rate is $117." "SMS provides any Principal Period of Maintenance up to and including 7 X 24 [i.e., 7 days a week, 24 hours a day] but we feel that using the GSA Schedule standard PPM with guaranteed per-call service for all other hours at the above rate [$117 per hour] gives you protection 7 days a week 24 hours a day at the least expensive cost.