Inter-Con Security Services, Inc.

B-270828 Apr 03, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Protest of contract award on basis of initial proposals without discussions is denied where agency concluded that acceptance of low offer would result in lowest overall cost to the government and solicitation advised offerors of possibility of award without discussions. Argues that discussions should have been held because of changes in economic conditions which occurred during the 3-month delay in awarding the contract. The maximum 40 points available in the price evaluation were to be assigned to the lowest-priced proposal. All other proposals were to receive proportionately fewer points based on a comparison with the low price. Prices were to be stated in U.S. dollars. Five proposals were received by the August 25. View Decision Matter of: Inter-Con Security Services, Inc. File: B-270828 Date: April 3, 1996 * Redacted Decision Protest of contract award on basis of initial proposals without discussions is denied where agency concluded that acceptance of low offer would result in lowest overall cost to the government and solicitation advised offerors of possibility of award without discussions; record does not support protester's position that change in exchange rate occurring after submission of initial proposals, but before award, indicated that discussions would be advantageous to the government. Attorneys DECISION Inter-Con Security Services, Inc. protests award, based on initial offers, of a time-and-materials contract to Wackenhut International, Inc., under solicitation No. SOJM370-93-R-0002, issued by the Department of State (DOS) for security guard services at the United States Embassy in Kingston, Jamaica. Inter-Con, the incumbent contractor, argues that discussions should have been held because of changes in economic conditions which occurred during the 3-month delay in awarding the contract. We deny the protest. The RFP contemplated award of a fixed-price contract for a base 9-month period, with four 1-year options. The solicitation provided for award on a best value basis pursuant to a 60/40 technical/price formula, with an additional 5 points for a "United States person" preference. The maximum 40 points available in the price evaluation were to be assigned to the lowest-priced proposal, and all other proposals were to receive proportionately fewer points based on a comparison with the low price. Prices were to be stated in U.S. dollars. The RFP incorporated Federal Acquisition Regulation (FAR) Sec. 52.215-16(c) (FAC 90-29), which provides that award may be made on the basis of initial offers, without discussions, and advises that initial offers should contain the offerors' best terms from a cost or price and technical standpoint. Five proposals were received by the August 25, 1995, closing date. Wackenhut's proposal received the highest total score of 92 points, comprised of 47 technical points (second highest technical score), 40 price points (lowest total price of ($11,528,272), and 5 preference points. Inter-Con received the next highest total score of [deleted] points, comprised of [deleted] technical points ([deleted]), [deleted] price points ([deleted]), and 5 preference points. After determining that Wackenhut's price was fair and reasonable and that there were no significant technical or price deficiencies requiring discussions, the contracting officer made a written determination to award to the firm without discussions. On December 13, before award was made (i.e., before Wackenhut signed the contract it had received on December 12), Inter-Con submitted a letter to the contracting agency (and a revised price schedule) stating that it was prepared to reduce its price by 18 percent, to [deleted], based on an approximately 28-percent devaluation of the Jamaican currency since submission of initial proposals. Inter-Con urged the agency to request best and final offers (BAFO). However, the contracting officer determined that discussions were not in the government's interest, and proceeded with award to Wackenhut on December 19, without discussions. Inter-Con argues that, based on its indication that it could offer a reduced price, and the potential for receiving lower prices from other offerors due to the currency devaluation, discussions were in the government's interest and should have been conducted. Additionally, the protester contends that, given the opportunity to submit a BAFO, its technical score would have been increased, since the evaluated weaknesses in its proposal were minor and easily correctable. Inter-Con concludes that it would have been in line for award. Under FAR Sec.