Mecca Investments, L.L.C., B-277375; B-277375.2, October 8,
Case: B-277375
Agency:
Protester: Mecca Investments, L.L.C., B
Date: 1997-10-08
Denied
Mecca Investments, L.L.C., B-277375; B-277375.2, October 8,
BNUMBER: B-277375; B-277375.2
DATE: October 8, 1997
TITLE: Mecca Investments, L.L.C., B-277375; B-277375.2, October 8,
1997
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Matter of:Mecca Investments, L.L.C.
File: B-277375; B-277375.2
Date:October 8, 1997
Lawrence P. Block, Esq., Doyle & Bachman, for the protester.
Joel D. Malkin, Esq., General Services Administration, for the agency.
Susan K. McAuliffe, Esq., and Christine S. Melody, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Protest that evaluation of offers and agency's subsequent award of a
lease for office space were improper because awardee's offer failed to
meet material requirements of the solicitation is denied where
awardee's offer reasonably was found acceptable and record shows that,
even if agency did relax minimum space requirement for awardee, as
protester contends, protester was not competitively prejudiced by
agency's actions.
DECISION
Mecca Investments, L.L.C. protests the award of a lease by the General
Services Administration (GSA) to ARC Construction under solicitation
for offers (SFO) No. GS-05B-16162 for space for Social Security
Administration (SSA) offices in Evansville, Indiana. Mecca contends
that ARC's offer should have been rejected for failure to comply with
material requirements of the SFO regarding public transportation,
location/amenities, and minimum occupiable space.
We deny the protest.
The agency evaluated the acceptability of potential sites in the
Evansville area for the SSA office space and issued the SFO to
prospective offerors whose sites were deemed acceptable. The factors
for consideration in assessing a site's acceptability were set out in
the SFO, which provided, among other things, that "[a]dequate public
transportation is required to the proposed location." The following
property location requirements (for properties located outside of the
city center area) were also set out in the SFO:
Space must be located in an office, research, technology, or
business park that is modern in design with a campus-like
atmosphere, or on an attractively landscaped site containing one
or more modern office buildings that are professional and
prestigious in appearance with surrounding development
well-maintained and in consonance with a professional image. . .
. Adequate eating facilities are to be located within 2 city
blocks and other employee services, such as retail shops,
cleaners, banks, etc. should be located within 2 city blocks.
The SFO advised offerors that GSA was interested in leasing
approximately 10,929 square feet of net rentable space and that the
rentable space "must yield a minimum of 9,935 occupiable square feet
to a maximum of 10,432 occupiable square feet." The SFO defined
"rentable space" as "the area for which a tenant is charged rent" and
listed those areas within a proposed building that may or may not be
included in the calculation of rentable space. "Occupiable space" was
defined in the SFO as:
that portion of rentable space that is available for a tenant's
personnel, equipment and furnishings and is the method of
measurement for the area for which the Government will evaluate
offers. Net usable [space] and [occupiable space], for purposes
of this solicitation, are identical.
The SFO provided that for space on a single tenancy floor, occupiable
space was to be determined by computing "the inside gross area by
measuring between the inside finish of the permanent exterior building
walls," and then deducting, among others, the following areas and
their enclosing walls from the gross area: equipment/service areas;
corridors in place or required for access or safety; vestibules; and
visitor rest rooms. For price evaluation purposes, the SFO provided:
Offerors are required to submit plans and any other information
to demonstrate that the rentable space yields occupiable space
within the required occupiable range. The Government will verify
the amount of occupiable square footage and convert the rentable
prices offered to occupiable prices, which will subsequently be
used in the price evaluation.
The SFO provided that an award of the 10-year lease would be made to
the responsible offeror whose proposal conformed to the requirements
of the SFO and offered the lowest price.
Mecca's and ARC's offers were among those submitted in response to the
SFO and each proposed to construct a new building on its offered site.
Mecca, on its best and final offer's (BAFO) GSA Form 1364 (entitled
"proposal to lease space"), offered 10,432 square feet of "net usable"
(i.e., occupiable) space at a square foot rate per year of $24.34, for
a total amount of $253,914.88.
Full decision text continues on ProtestIntel...