Concepts Building Systems, Inc., B-281995, May 13, 1999

B-281995 May 13, 1999 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Agency rejection of offer under multiple-award Federal Supply Schedule solicitation on the basis that the offered prices were not reasonable is unobjectionable where the offeror increased its markup of supplier prices after negotiations were concluded and failed to provide any explanation to support the reasonableness of the increase. Items are typically listed by special item numbers (SINs). Indefinite-delivery contracts are established with commercial firms to provide supplies and services at stated prices for given periods of time. The contract duration was 5 years. The solicitation is open indefinitely and is updated as required to include the most current contract clauses and provisions. View Decision Matter of: Concepts Building Systems, Inc. File: B-281995 Date: May 13, 1999 DIGEST Attorneys DECISION Concepts Building Systems, Inc. protests the rejection of its offer submitted in response to request for proposals (RFP) No. 7FXG-P5-97-5406-B, issued by the General Services Administration (GSA) for multiple-award Federal Supply Schedule (FSS) contracts to supply and install prefabricated storage buildings and outdoor storage structures. GSA rejected Concepts' offer because the agency determined that Concepts had failed to establish the reasonableness of its offered prices. We deny the protest. The RFP, issued on May 21, 1997, contemplated multiple awards of indefinite-delivery, indefinite-quantity contracts at firm, fixed prices with an economic price adjustment, under GSA's FSS program. This program, as described in Subpart 8.4 of the Federal Acquisition Regulation (FAR), provides federal agencies with a simplified process for obtaining commonly used commercial supplies and services at prices associated with volume buying. Items are typically listed by special item numbers (SINs), which represent groupings of similar products. Contracting Officer's Statement at 1. Indefinite-delivery contracts are established with commercial firms to provide supplies and services at stated prices for given periods of time. FAR Sec. 8.401. Here, the contract duration was 5 years, beginning at the time of award, with multiple contracts to be awarded for similar items. RFP at 55. The RFP sought offers for three SINs: prefabricated buildings (storage buildings and smoking shelters), ancillary services (assembly, training, consultation and design assistance), and installation and site preparation. RFP at 2-3. The solicitation is open indefinitely and is updated as required to include the most current contract clauses and provisions. The RFP included General Services Administration Acquisition Regulation (GSAR) clause 552.212-73, "Evaluation—Commercial Items (Multiple Award Schedule) (Aug 1997)," advising offerors that multiple awards may be made "to those responsible offerors that offer reasonable pricing, conforming to the solicitation, and will be most advantageous to the Government . . . ." RFP at 59; Agency Report, Tab 29, Letter from the Contracting Officer to Concepts enclosure 2, at 5 (Dec. 15, 1998). /1/ It also included several clauses pertaining to the submission of cost or pricing information. FAR Clause 52.215-41, "Requirements for Cost or Pricing Data or Information Other than Cost or Pricing Data (Jan 1997) (Alternative IV—Oct 1995) (Variation I— Aug 1997)," (RFP at 10; Agency Report, Tab 29, supra, enclosure 2, at 3.) advised that offers were to be prepared and submitted in accordance with GSAR clause 552.212-70, "Preparation of Offer (Multiple Award Schedule) (Aug 1997)." GSAR clause 552.212.70 requires offerors to provide two copies of the offeror's current published commercial descriptive catalogs and/or price list(s) from which discounts are offered, for each special item being offered; to identify the offered items in the published catalogs or price lists by the special item number listed in the RFP; to describe the discounts being offered; to describe any concessions being offered which are not granted to other customers; and if the offeror is a dealer/reseller, or will use dealers to perform any aspect of the contract, to describe the functions that the dealer/reseller will perform. RFP at 56; Agency Report, Tab 29, supra, enclosure 2, at 4. In addition, FAR Clause 52.215-41 required offerors to provide "[a]ny additional supporting information requested by the Contracting Officer to determine whether the price(s) offered is fair and reasonable." Agency Report, Tab 29, supra, enclosure 2, at 3. Concepts submitted an offer on December 2, 1997, as a broker for NCI Building Systems, since it had no commercial price list of its own, and had no sales history in supplying or installing the buildings.