Simplix

B-274388 Dec 06, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Objections to terms of revised license agreement for electronic data interchange value added network (VAN) services for the Federal Acquisition Computer Network on the basis that they impose too much risk on VAN providers are without legal merit as the government may impose substantial risk on its contractors. Even though there are numerous small businesses that can provide these services. DITCO has revised the VLA and is requiring licensed EDI VAN providers. The revised VLA was issued in a draft EDI VAN provider application package in June 1996 (designated DCA200-96-R-0124). Were afforded an opportunity to comment on the terms of the draft EDI VAN provider application package. Were invited to apply. View Decision Matter of: Simplix File: B-274388 Date: December 6, 1996 Objections to terms of revised license agreement for electronic data interchange value added network (VAN) services for the Federal Acquisition Computer Network on the basis that they impose too much risk on VAN providers are without legal merit as the government may impose substantial risk on its contractors. Revised license agreement for electronic data interchange value added network services for the Federal Acquisition Computer Network need not be set aside for exclusive small business participation, even though there are numerous small businesses that can provide these services, because the regulatory set-aside requirements do not apply to contractual arrangements, such as the license agreement, that do not involve the expenditure of appropriated funds. Attorneys DECISION Simplix protests the terms of the final revised license agreement for electronic data interchange (EDI) value added network (VAN) services issued by the Defense Information Technology Contracting Organization (DITCO) of the Defense Information Systems Agency. [1] The VAN license agreement (VLA) continues the implementation and operation of the Federal Acquisition Computer Network (FACNET) through the licensing of firms to serve as electronic conduits of acquisition information between government contracting activities and contractors or potential contractors. We deny the protest. Simplix has been a licensed EDI VAN provider under the current VLA (designated DCA200-94-H-0015) since March 1994. DITCO has revised the VLA and is requiring licensed EDI VAN providers, such as Simplix, to reapply under the terms of the revised VLA. The revised VLA was issued in a draft EDI VAN provider application package in June 1996 (designated DCA200-96-R-0124). Prospective EDI VAN providers under the revised VLA, including Simplix, were afforded an opportunity to comment on the terms of the draft EDI VAN provider application package. On July 25, 1996, DITCO held a pre-solicitation conference, which Simplix attended and participated in. On August 21, DITCO issued the final EDI VAN provider application package for the revised VLA (designated DCA200-97-Z-(to be determined)). Current and prospective EDI VAN providers, including Simplix, were invited to apply. The application package contained no closing date for receipt of applications. By signing the revised VLA, a prospective EDI VAN provider agrees to all terms and conditions set forth in the application package. The license agreement becomes effective upon being signed by both the prospective EDI VAN provider and the DITCO contracting officer, and is for a term of 1 year from the effective date and may be extended for 1-year periods by the government. The prospective EDI VAN provider agrees to provide the government with the right to have access to the use of its EDI processing and VAN services at no cost to the government, and further agrees not to charge the government for any costs associated with the transmission of documents and transaction acknowledgments in an electronic format including but not limited to network, processing, or connection costs. On the other hand, the government expressly reserves the right to charge EDI VAN providers for access to the electronic commerce infrastructure at some future date. [2] The government does not guarantee any minimum level of transaction activity. The VLA states that the government may unilaterally change the terms of the VLA by giving the EDI VAN provider 30 days notice. When a license agreement change is made by the government, the EDI VAN provider will have an additional 60 days to comply with the new requirement for a total of 90 days from notification to comply with the change. The VLA may be terminated in whole or in part by either party upon 30 days written notice of the effective date of the termination.