K.G., Inc., B-281948, May 10, 1999

B-281948 May 10, 1999 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Protest that awardee's bid should have been rejected as nonresponsive for alleged failure to comply with a solicitation requirement that bids for first 2 performance years be priced in accordance with an applicable wage determination is denied where the bid satisfied the requirement. The protester principally alleges that Miracle's bid should have been rejected as nonresponsive for failure to comply with an IFB pricing requirement. That the bid is unbalanced. The IFB was issued on November 10. Bids were opened on December 10. Bidders were required to submit all-inclusive prices for a base year (year 1) and four 1-year option periods (years 2 through 5). The bidder was to submit separate pricing for: (1) a "DOE Unilateral Option for Cleaning of Forrestal Cafeteria". View Decision Matter of: K.G., Inc. File: B-281948 Date: May 10, 1999 DIGEST Attorneys DECISION K.G., Inc. (KGI) protests the award of a contract to Miracle Services, Inc. under invitation for bids (IFB) No. DE-FB01-99AD66850, issued by the Department of Energy (DOE) as a small business set-aside for certain janitorial and maintenance services to be performed at the agency's Forrestal Building headquarters in Washington, DC and at an adjacent child development center. The protester principally alleges that Miracle's bid should have been rejected as nonresponsive for failure to comply with an IFB pricing requirement, and that the bid is unbalanced. We deny the protest. The IFB was issued on November 10, 1998, and bids were opened on December 10. Bidders were required to submit all-inclusive prices for a base year (year 1) and four 1-year option periods (years 2 through 5). The bid schedule provided that, for each year, the bidder was to submit separate pricing for: (1) a "DOE Unilateral Option for Cleaning of Forrestal Cafeteria"; (2) a "DOE Unilateral Option for Cleaning of the Forrestal Child Development Center," which is adjacent to the Forrestal Building; and (3) "[a]ll remaining cleaning services in accordance with the Statement of Work [SOW]." IFB amend. 3, Sec. B.5; IFB Sec. B.6. The IFB notified bidders that the contract awarded would be subject to the Service Contract Act (SCA). IFB Sec. B.9(c). A Collective Bargaining Agreement (CBA) between the Service Employees International Union and the current contractor was to serve as the SCA wage determination for the first 2 years of the contract. IFB attach. 3. The IFB further provided that price adjustments would be applied to subsequent contract years once a new wage determination had been incorporated into the contract. IFB Sec. B.9(c). The CBA established $13.74 per hour as the minimum labor rate for year 1 and $ 14.62 per hour as the minimum labor rate for year 2. See CBA art. XVI and Sec. 24.2, 25.1 and 26.3(a). Bid prices were to include "all direct and indirect expenses associated with the performance of the contract." IFB Sec. E.1(i). The IFB set forth an agency minimum estimate of 325 hours per work day for SCA personnel to adequately perform the work set forth in the SOW. Id. Contractors were required to perform approximately 251 days per year (i.e., weekdays exclusive of 10 regular government holidays). IFB Sec. B.10.3.C. In addition to providing personnel subject to the SCA wage rates, bidders were responsible for providing supervisory personnel, specified supplies, equipment and uniforms, as well as telephone service for external calls. IFB Sec. B.10.5.C, 6.B. The IFB did not call for bidders to break down the labor costs to separately identify profit and labor costs, or to specify associated overhead, materials, administrative and other costs incorporated into their bid prices. /1/ Section E.1(i) of the IFB provided as follows: This is an all or nothing solicitation, bidders will provide prices for all items in Clauses B.5 and Clause B.6. FAILURE TO PROVIDE ALL PRICES WILL RENDER THE BID NONRESPONSIVE AND IT WILL BE REJECTED. Additionally, the bidder should provide total prices by year and the total cumulative price in Clause B.7 "Summary." The evaluation of price will include all 60 months . . . . The bid prices are to include all direct and indirect expenses associated with the performance of the contract. Bidders will price year one and two in accordance with the [SOW] and Wage Determination. The Wage Determination is applicable through January 31, 2001. Years Three, Four and Five will be bid the same as year two. Afterward and once the new wage determination is incorporated into the contract, the price(s) for the remaining years will be adjusted in accordance with clause B.9. Eleven bids were received. The apparent low bidder was permitted to withdraw its bid for reasons not pertinent to this protest. The next two low bidders were the eventual awardee and the protester.