MEI, Inc., B-277235.2, November 12, 1997

B-277235.2 Nov 12, 1997 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights A firm protested an Army contract award for the inspection and repair of storm and sanitary sewer lines, contending that: (1) the awardee did not meet a definitive responsibility criterion; (2) the contracting officer improperly considered the qualifications of the awardee's subcontractor; and (3) there was not sufficient evidence to show that the subcontractor satisfied the criterion on the awardee's behalf. GAO held that the contracting officer lacked objective evidence to reasonably determine that the awardee met the definitive responsibility criterion. Accordingly, the protest was sustained, and GAO recommended that the Army: (1) refer the matter of the awardee's responsibility to the Small Business Administration (SBA); (2) if SBA does not certify the awardee, make award to the protester, if otherwise appropriate; and (3) reimburse the protester for its protest costs. View Decision Matter of: MEI, Inc. File: B-277235.2 Date: November 12, 1997 Digest Protest that awardee does not meet solicitation's definitive responsibility criterion requiring proof of 5 years of experience for the type of work to be performed is sustained where record shows the contracting officer did not have adequate, objective evidence the bidder satisfied the criterion; contracting officer improperly considered qualifications of bidder's subcontractor in determining bidder's responsibility; and, in any event, contracting officer did not have adequate, objective evidence that the subcontractor satisfied the criterion on behalf of bidder. Attorneys DECISION MEI, Inc. protests the award of a contract to Solutions to Environmental Problems, Inc. (STEP) under invitation for bids (IFB) No. DABAT10-97-B- 0008, issued by the Department of the Army for the inspection and repair of storm and sanitary sewer lines at Fort Benning, Georgia. MEI argues that STEP does not meet the solicitation's definitive responsibility criterion and is thus ineligible for award. We sustain the protest. The successful bidder was to be awarded a fixed-price requirements contract to provide an array of services associated with the inspection and repair of storm and sanitary sewer lines. The type of work to be performed includes sewer line cleaning; television inspection of sewer lines; testing, grouting, and retesting of joints; repair of point deficiencies; sliplining; pipe bursting and relining; manhole work; excavation, trenching, and backfilling; replacement of building service laterals; concrete and asphalt work; and site work. Paragraph H.26 of the IFB required the contractor to "provide proof of (5 years) experience for the type of work to be performed under this contract . . . ." [1] The Army received four bids by the June 4, 1997, bid opening. STEP submitted the apparent low bid of $5,641,861 and MEI submitted the apparent second low bid of $7,123,012. On June 10, MEI filed a protest in this Office arguing that STEP did not have the experience required under paragraph H.26 of the IFB and thus had not met a definitive responsibility criterion and was ineligible for award. MEI withdrew the protest pending the Army's final award determination and reinstated the protest after learning that award was made to STEP on September 5. The contracting officer's determination that STEP satisfied the requirements set forth in paragraph H.26 was based upon his review of promotional material, resumes, and prior contracts performed by both STEP and J.L. Young Enterprises, Inc., a firm identified after bid opening as STEP's subcontractor. In its comments, MEI argues that this evidence was insufficient to show that STEP satisfied the definitive responsibility criterion in its own right; that the contracting officer improperly considered the qualifications of J.L. Young because there was no pre-award evidence of that firm's commitment to STEP's successful performance of the contract; and that, in any event, the evidence reviewed was insufficient to show that J.L. Young satisfied the criterion on STEP's behalf. The Army declined the opportunity to rebut any portion of MEI's legally and factually detailed comments, which we conclude are supported by the record in every respect. Definitive responsibility criteria are specific and objective standards designed to measure a prospective contractor's ability to perform the contract. Such criteria, which must be met as a precondition to award, limit the class of contractors to those meeting specified qualitative and quantitative qualifications necessary for adequate performance, e.g., unusual expertise or specialized facilities. Topley Realty Co., Inc., 65 Comp.Gen. 510, 512-513 (1986), 86-1 CPD Para. 398 at 4.