Teltara Inc., B-280922, December 4, 1998

B-280922 Dec 04, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Source selection decision is not reasonable where the record does not provide any documentation or explanation which supports the decision. Teltara asserts that the agency's selection decision is unreasonable and does not accurately take into account the relative proposal evaluations. The RFP further stated that "[i]n making this comparison the Government is concerned with striking the most advantageous balance between technical features and price to the Government.". The proposals were individually evaluated by a four-member evaluation team. After which the individual scores were averaged to obtain a final score under each evaluation criterion and these final scores were totaled to obtain each offeror's total technical score. View Decision Matter of: Teltara Inc. File: B-280922 Date: December 4, 1998 DIGEST Attorneys DECISION Teltara Inc. protests the award of a contract to TMI Services, Inc. under request for proposals (RFP) No. TIRWR-97-R-00005, issued by the Department of the Treasury, Internal Revenue Service (IRS), for janitorial services at the Ogden Service Center, Ogden, Utah. Teltara asserts that the agency's selection decision is unreasonable and does not accurately take into account the relative proposal evaluations. We sustain the protest. The solicitation, issued on August 1, 1997 as a competitive small business set-aside, contemplated the award of a fixed-price contract for a 1-year base period with four 1-year options. RFP Sec. B.1, B.2. The solicitation provided that award would be made to the offeror whose proposal represented the best overall value to the government, to be determined "by comparing differences in the value of the technical features with differences in the offerors' prices." RFP Sec. M.2. The RFP further stated that "[i]n making this comparison the Government is concerned with striking the most advantageous balance between technical features and price to the Government." Id. Under the evaluation criteria section, the solicitation provided that technical proposals would be scored on the basis of plan of accomplishment (30 points), business management (35 points) and business experience (35 points), for a possible total of 100 points, and provided that price proposals would not be point-scored, but would be compared and considered with the technical score in determining which proposal offered the best overall value to the government. RFP Sec. M.3.B. The RFP did not specify the relative importance of price and technical factors. Fourteen firms, including Teltara and TMI, submitted proposals by the amended September 10 closing date. Source Selection/Technical & Cost Evaluation Memo at 1. The proposals were individually evaluated by a four-member evaluation team, after which the individual scores were averaged to obtain a final score under each evaluation criterion and these final scores were totaled to obtain each offeror's total technical score. Id. at 2. Based on this evaluation, six proposals, including Teltara's and TMI's, were included in the competitive range. Two rounds of discussions were conducted and best and final offers (BAFO) were received from the six competitive range offerors, as a result of which prices were revised but the technical evaluation scores for all offerors remained unchanged. Id. at 2-4. Technical scores and BAFO prices for Teltara and TMI were as follows: Technical Score Price Teltara 78.1 $3,716,275.16 TMI 93.1 $4,458,381.00 The contracting officer determined to make award to TMI as offering the best overall value to the government, concluding that the 16.65-percent price advantage associated with the lowest-priced Teltara proposal did not offset the 16.11-percent inferiority of Teltara's technical proposal relative to TMI's higher-scored technical proposal. Id. at 4-5. Award was made to TMI and this protest followed. While Teltara was entitled to a statutory stay of performance, the agency determined to override the stay and permit TMI to perform on the basis that it was in the best interest of the government. IRS Determination and Findings, September 2, 1998. Teltara challenges the reasonableness of the agency's best value determination, pointing out that the RFP provided "no formula or process for determining 'best overall value'" and that its proposal, which was evaluated 16.11 percent lower technically than TMI's proposal was also 16.65 percent lower in price, thus offering a better value because a direct comparison of these percentages results in a .54 percent advantage to Teltara. Protester Comments at 2. In a negotiated procurement, the government is not required to make award to the firm offering the lowest price unless the RFP specifies that price will be the determinative factor. Shirley Constr. Corp., B-240357, Nov. 8, 1990, 90-2 CPD Para. 380 at 6.