Information Resources Incorporated
Case: B-271767
Agency:
Protester: Information Resources Incorporated
Date: 1996-07-24
Denied
Information Resources Incorporated
BNUMBER: B-271767; B-271768; B-271769; B-271770
DATE: July 24, 1996
TITLE: Information Resources Incorporated
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Matter of:Information Resources Incorporated
File: B-271767; B-271768; B-271769; B-271770
Date:July 24, 1996
Charles E. Marks for the protester.
Kerry L. Miller, Esq., Government Printing Office, for the agency.
Jerold D. Cohen, Esq., Office of the General Counsel, GAO,
participated in the preparation of the decision.
DIGEST
Record does not support the protester's argument that the contracting
agency acted in bad faith in finding the protester nonresponsible
based on poor past performance while awarding contracts to other firms
with poor records where the performance records of the other firms
were substantially better than the protester's, who recently had
experienced serious performance deficiencies on similar contracts with
the same agency.
DECISION
Information Resources Incorporated (IRI) protests the Government
Printing Office's (GPO) determinations that IRI was nonresponsible for
purposes of awards under GPO programs B-880S, B-562S, B-354S, and
B-532S for microfilm reproduction and distribution.
We deny the protests.
IRI submitted the lowest bid under each of the four invitations, but
was rejected following the contracting officer's determination that
IRI was a nonresponsible concern for purposes of any awards. The
contracting officer was the same individual in each case, and his
determination, concurred in by the GPO Contract Review Board, was made
concurrently with the nonresponsibility determinations made regarding
IRI's other three bids. IRI protests that the contracting officer's
nonresponsibility determinations discriminated against IRI essentially
because the companies that ultimately were awarded contracts (and
companies previously awarded GPO contracts) had performance records no
better than IRI's.
We will not question a nonresponsibility determination absent a
showing of bad faith by the contracting agency or the lack of any
reasonable basis for the finding, since the determination is
essentially a matter of business judgment and encompasses a wide
degree of discretion. Triad Mechanical, Inc., B-258129,
Dec. 6, 1994, 94-2 CPD para. 224. In reviewing a nonresponsibility
determination based on prior performance, we will consider whether the
determination was reasonably based on the information available to the
contracting officer. Id. Moreover, in order to show bad faith, a
protester must present virtually irrefutable evidence that the
contracting agency directed its actions with the specific and
malicious intent to injure the protester. Schenker Panamericana
(Panama) S.A., B-253029, Aug. 2, 1993, 93-2 CPD para. 67.
The contracting officer's determination regarding IRI in each case
included the following finding:
". . . This firm consistently had production and quality problems
for the past 6 months on various similar contracts as evidenced
by the attached documentation which shows consistent problems
with non compliance with various terms of existing and past
contracts.
"Over the past 12 month period, of 244 orders performed, 30
orders have been rejected for a rate of 12%. Additionally, the
contractor has received 26 cure notices and has been defaulted 4
times[[1]] over the past 12 months."
IRI takes issue with some of the contracting officer's decisions in
that 12-month period with respect to, for example, whether cure or
show cause notices should have been sent, whether performance concerns
should have been handled through oral communication (rather than
written notices), and whether GPO should have subjected IRI's
performance to as many inspections as it did. We will not consider
IRI's arguments in that regard, however, since we do not consider as
part of our bid protest function the propriety of a contracting
agency's decisions about the best way to administer an existing
contract. See Bid Protest Regulations, 4 C.F.R. sec. 21.5(a) (1996). In
this respect, we point out that we have recognized that a contracting
officer may base a nonresponsibility determination on a reasonable
perception of inadequate prior performance even where the agency did
not terminate a prior contract for default, or where the contractor
disputes the agency's interpretation of the facts. See Schenker
Panamericana (Panama) S.A., supra.
IRI further argues that GPO has a history of awarding contracts to
firms with unsatisfactory performance records, including the awardees
here.
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