Battelle Memorial Institute, B-278673, February 27, 1998

B-278673 Feb 27, 1998 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights A firm protested an Army contact award for development, licensure, and production of biological defense vaccines, contending that the: (1) Army's award violated the conflict-of-interest provisions in a federal regulation; and (2) Army improperly evaluated its bid. GAO held that: (1) the Army reasonably determined that a government entity's minimal, potential involvement in contract performance did not create a significant conflict of interest; and (2) the Army's technical evaluation was reasonable and consistent with the solicitation's evaluation criteria. Accordingly, the protest was denied. View Decision Matter of: Battelle Memorial Institute File: B-278673 Date: February 27, 1998 * Redacted Decision DIGEST Attorneys DECISION Battelle Memorial Institute protests the award of a contract to DynPort LLC for development, licensure, and production of biological defense vaccines under request for proposals (RFP) No. DAMD17-95-R-5020, issued by the Department of the Army, Joint Program Office for Biological Defense. Battelle challenges the propriety of the technical and cost evaluations, based in part on an allegation of an organizational conflict of interest. Battelle asserts that the conflict arises from DynPort's proposal to use testing facilities located at the U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID), an Army installation which employs two members of the source selection evaluation board (SSEB). We deny the protest. BACKGROUND The Department of Defense (DOD) has an active medical biological defense (BD) research program focused on the development of vaccines and other medical products to protect U.S. forces from biological warfare agents. This program is overseen by the Joint Vaccine Acquisition Program (JVAP) Project Management Office, /1/ and USAMRIID is the entity directly responsible for developing candidate vaccines and other medical products. Most of the products developed by USAMRIID are maintained as investigational new drugs (IND), and have not been licensed for use by the Food and Drug Administration (FDA). Absent FDA approval, there are limitations on the manner in which the products may be used. Based on industry input and an economic study, DOD developed an acquisition strategy for a prime systems contractor approach, and issued an RFP on August 9, 1996. /2/ The stated purpose of the RFP was "to establish a prime systems contractor who will use information and materials from the existing DOD program to create and execute an integrated approach leading to FDA licensure and long term production/stockpiling of each vaccine." RFP, Sec. C.1. The RFP contemplated award of a cost-plus-award-fee contract, with two cost reimbursable contract line item numbers (CLINs), with a maximum performance period of 10 years. The RFP provided for a base effort to obtain FDA licensure for 3 BD vaccine products (tularemia, vaccinia, and Q-fever), options for 15 additional vaccines, and production options for all vaccines including storage, testing, and disposition. /3/ Licensure options were to be exercised following affirmative DOD "Milestone I" decisions for each product, /4/ and production options were to be exercised after successful FDA product and establishment licensing to initiate production. Rather than setting forth a statement of work (SOW), the RFP provided a statement of objectives (SOO) and required that offerors propose their own SOWs and tailor CLIN structures which would allow them to best execute their proposed programs. The SOO identified five overall objectives: (1) complete development and testing of vaccines for FDA licensure for the DOD-required product indication; (2) manufacture licensed vaccines in sufficient quantities to establish an initial stockpile; (3) maintain, test, and store vaccines in compliance with FDA and DOD requirements; (4) distribute or dispose of vaccines as required; and (5) conduct special studies in support of JVAP requirements.