Techno-Sciences, Inc., B-277260.2, March 25, 1998

B-277260.2 Mar 25, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Which sustained a protest because the agency failed to properly determine whether a section 8(a) contract was awarded at a fair market price. Is not a reasonable method of making this determination because the 8(a) contractor is not performing all of the requirements that the respondents to the survey were requested to price. The USMCC is the United States's component of the International Cospas-Sarsat satellite-based search and rescue system that uses satellites to detect and locate emergency beacons emitted by ships. The contract was to have a 12-month base period and three 12-month options at a total estimated value of $500. After determining its cost was reasonable. Which was substantially less than the 8(a) award price. View Decision Matter of: Techno-Sciences, Inc. File: B-277260.2 Date: March 25, 1998 * Redacted Decision DIGEST Attorneys DECISION Techno-Sciences, Inc. protests a market survey undertaken by the National Oceanic and Atmospheric Administration (NOAA), Department of Commerce to implement corrective action recommended in our decision in Techno-Sciences, Inc., B-277260, Sept. 22, 1997, 97-2 CPD Para. 115. That decision sustained Techno-Sciences's protest of the award of a contract to Research and Professional Services, Inc. (RPS) negotiated through the Small Business Administration's (SBA) section 8(a) set-aside program under request for proposals (RFP) No. 50-DDNE-7-90034, for software development, testing, and maintenance to support the United States Mission Control Center (USMCC). We sustain the protest. BACKGROUND As detailed in our prior decision, the USMCC is the United States's component of the International Cospas-Sarsat satellite-based search and rescue system that uses satellites to detect and locate emergency beacons emitted by ships, aircraft, or individuals. Techno-Sciences has been a NOAA contractor for software services supporting the USMCC since 1990 and owns the proprietary software that supports the on-line functions of the USMCC. After unsuccessfully attempting to purchase the software from, and renegotiate the contract with, Techno-Sciences, NOAA determined not to exercise Techno-Sciences's contract option commencing May 10, 1996. On November 11, 1996, NOAA issued a requisition for a contractor to code and test nonproprietary software to operate the on-line functions of the USMCC, which would replace Techno-Sciences's proprietary software. /1/ NOAA offered the requirement to the SBA to be performed under the section 8(a) program and identified RPS as the recommended contractor for this requirement. The contract was to have a 12-month base period and three 12-month options at a total estimated value of $500,000. /2/ On November 26, the SBA nominated RPS as the 8(a) contractor. On March 14, 1997, following negotiations with RPS, and after determining its cost was reasonable, NOAA awarded a cost-plus-fixed-fee 8(a) contract to RPS at a total estimated cost of $829,256, reflecting a base estimated cost of $323,650 and estimated costs for the option years of $160,517, $168,472, and $176,617, respectively. The basic contract price simply reflects the costs of four computer programmers who would code and test the developed replacement software. Section C.4 of the RPS contract statement of work (SOW) described the USMCC on-line functions included in the contract and section C.5.a stated that the contractor would code modules following Program Design Specifications (PDS) provided by the government. /3/ Meanwhile, at the International Cospas-Sarsat manufacturers meeting on October 24, 1996, Techno-Sciences introduced its fourth generation mission control center (MCC) software purportedly satisfying all of the current Cospas-Sarsat requirements at an advertised price of $100,000. In November 1996, Techno-Sciences informed NOAA of its interest in participating in a competition for its USMCC software development and maintenance requirement. On April 8, 1997, Techno-Sciences presented NOAA with an unsolicited offer to provide its fourth generation software at a price of $100,000. Techno-Sciences protested that RPS's award price exceeded the fair market price for the software in violation of Federal Acquisition Regulation (FAR) Sec. 19.806(b); that the agency did not conduct a proper market survey as required by applicable regulations; and that the agency did not consider Techno-Sciences's offered $100,000 fixed price for its fourth generation MCC software, which assertedly meets the agency's requirements. We agreed and found that FAR Sec.