American Management Systems, Inc., B-285645, September 8, 2000

B-285645 Sep 08, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The project was organized into four phases: Phase I. Was to acquire integration services and JFMIP certified software from two separate vendors on GSA FSS non-mandatory Schedule 70. These vendors are AMS. VA subsequently notified our Office of its determination that urgent and compelling circumstances exist that significantly affect the interest of VA and will not permit suspension of an award pending resolution of the protest. Neutralized or mitigated unless either VA eliminates from the competition the three software vendors that have alliances with KPMG (which would leave only AMS). A person is unable or potentially unable to render impartial assistance or advice to the Government. Or the person's objectivity in performing the contract work is or might be other impaired. View Decision Matter of: American Management Systems, Inc. File: B-285645 Date: September 8, 2000 DIGEST Attorneys DECISION American Management Systems, Inc. (AMS) protests a procurement by the Department of Veterans Affairs (VA) under General Services Administration (GSA) Federal Supply Schedule (FSS) contract No. GS-35F-4997H, for Joint Financial Management Improvement Program (JFMIP) certified software. AMS protests that assistance on this procurement given to VA by the agency's system integration contractor, KPMG Peat Marwick, creates an impermissible organizational conflict of interest. We deny the protest. Since 1992, VA has been using financial management software from AMS. Agency Report at 2. In 1998, VA began planning improvements to the agency's financial and logistical management systems, which the agency refers to as the core Financial and Logistics System (coreFLS) project. Id. at 1-2. The project was organized into four phases: Phase I--planning, Phase II--business process reengineering, Phase III--acquisition of commercial-off-the-shelf (COTS) financial software package, and Phase IV--implementation of the software package. Agency Report, Tab 79, Acquisition Methodology, at 1. VA intended to select an integration services contractor for Phase II and, if the contractor performed successfully on that task, that contractor would continue as the agency's integration partner during Phases III and IV. Id. On November 30, 1999, VA issued a White Paper on its website stating the agency's intent to conduct separate procurements for integration services and software. Agency Report at 2; Tab 64, White Paper Integrator IFMS, at 1. VA's plan, which has since been implemented, was to acquire integration services and JFMIP certified software from two separate vendors on GSA FSS non-mandatory Schedule 70. Agency Report at 2; Contracting Officer's Statement at 10. On December 22, after evaluating quotations from four integration services vendors, the agency selected KPMG as its integration services partner and issued a task order for integration support and professional services under KPMG's FSS contract. /1/ Agency Report, Tab 94, Best Value Determination, at 7. VA then identified four vendors on FSS Schedule 70 with COTS software packages capable of meeting the agency's requirements. Agency Report at 1. These vendors are AMS, PeopleSoft, Inc., Oracle Corporation and SAP America, Inc. Id. On March 30, 2000, VA issued another White Paper stating its intent to acquire a COTS software package, identifying the agency's requirements, and stating the selection criteria for awarding a blanket purchase agreement pursuant to one of these vendors' FSS contract. Agency Report, Tab 144, White Paper coreFLS. On April 7, VA issued pricing and software solution surveys requesting that these vendors propose JFMIP certified software solutions to the agency's requirements and to propose price adjustments to their FSS contracts. Agency Report, Tabs 146-49, Pricing Surveys; Tab 150, Third Party Software Solution Surveys. AMS filed an agency-level protest on April 17, alleging that the services provided by KPMG create a conflict of interest, given that KPMG assertedly has significant business relationships with PeopleSoft, Oracle and SAP. Agency Report, Tab 138, AMS's Agency-Level Protest, at 2-3. On June 2, VA dismissed the protest as untimely, but nonetheless reviewed the facts and determined that the relationships between KPMG and PeopleSoft, Oracle and SAP did not create a conflict of interest. Agency Report, Tab 143. AMS filed the present protest in our Office on June 12, prior to a selection decision by VA. VA subsequently notified our Office of its determination that urgent and compelling circumstances exist that significantly affect the interest of VA and will not permit suspension of an award pending resolution of the protest.