FCS Construction Services, Inc., B-283726.2, January 3, 2000

B-283726.2 Jan 03, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where the only acceptable bid received was at an unreasonable price. 2. Agency's corrective action of canceling converted negotiated procurement was permissible where agency determined that a potentially ambiguous solicitation requirement may have resulted in unduly restricted competition. Renovation and/or repair on Fort McPherson and Fort Gillem are required to have Georgia State licenses for conducting work involving Asbestos and Lead-[based] paint.". The provision further provided at paragraph D that "[f]ailure to include the required license and training certifications with the initial proposal submission will render offeror's bid/proposal as ineligible for award and further consideration will not be given.". View Decision Matter of: FCS Construction Services, Inc. File: B-283726.2 Date: January 3, 2000 DIGEST Attorneys DECISION FCS Construction Services, Inc. protests the cancellation of solicitation No. DAKF11-99-B-1001, issued by the Department of the Army for the renovation and repair of certain buildings at Fort McPherson, Atlanta, Georgia. We deny the protest. The solicitation, originally issued as an invitation for bids (IFB) on August 5, 1999, contained a schedule calling for prices for demolition work at two barracks buildings including the removal and disposition of any hazardous materials encountered, and for the installation of new partitions, ceilings, plumbing, electrical wiring and heating ventilating and air conditioning equipment. The schedule also required the attachment of certificates and the entry of license numbers for Georgia asbestos and LBP (lead-based paint) licenses; it stated that failure to submit these license numbers would render the bid ineligible for award. IFB Sec. B. Section H of the solicitation contained a provision entitled "SPECIAL REQUIREMENT FOR PRIME CONTRACTORS ON FORT MCPHERSON AND FORT GILLEM," which provided at paragraph A that "[a]ll prime contractors involved in alteration, renovation and/or repair on Fort McPherson and Fort Gillem are required to have Georgia State licenses for conducting work involving Asbestos and Lead-[based] paint." The provision further provided at paragraph D that "[f]ailure to include the required license and training certifications with the initial proposal submission will render offeror's bid/proposal as ineligible for award and further consideration will not be given." Internal agency correspondence shows that, because of asbestos and LBP related performance problems that had necessitated delays and stoppages of a renovation contract for building 56, the agency intended to have the solicitation at issue, as well as any other solicitation for similar work at Fort McPherson and Gillem, require Georgia asbestos and LBP licensing and certification for all prime contractors in order to be eligible to compete. Agency Report, Tab D. Five firms submitted bids in response to the solicitation by the September 15 bid opening time, as follows: Government Estimate $2,600,180 FCS $2,683,349 Reams Enterprises $2,687,201 Total Systems $3,365,808 Georgia/Atlantic $3,385,702 CompuCraft, Inc. $3,606,000 Agency Report, Tab I. FCS, the apparent low bidder, submitted with its bid Georgia licenses for conducting work involving asbestos and LBP for Morley Environmental, Inc., a subcontractor. Agency Report, Tab R. Reams Enterprises and CompuCraft, Inc. were the only bidders that submitted the required licenses in their own names as prime contractors. Id. The bids from the three firms (including FCS) that did not submit licenses in their own names were rejected. Legal Memorandum at 2. On September 17, award was made to Reams as the lowest responsive, responsible bidder. Contracting Officer's Statement at 2. CompuCraft then filed an agency-level protest alleging that Reams did not hold the Georgia certificates in its own name. Id. The agency concluded that the awardee's asbestos certification was defective and the award was terminated for convenience. CompuCraft, the remaining eligible bidder, was considered for award, but the contracting officer concluded that its bid was too high to permit a determination that the price was reasonable. Pursuant to Federal Acquisition Regulation (FAR) Sec. 14.404-1 (e) and (f), the contracting officer determined that the use of negotiation was in the government's interest, and elected to convert the solicitation to a request for proposals, and to negotiate and make an award without issuing a new solicitation. Each bidder under the sealed bid acquisition was given notice that negotiations would be conducted and was given an opportunity to participate in the negotiations. Amendment No.