Wackenhut International, Inc., B-286193.2, May 18, 2001

B-286193.2 May 18, 2001 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Protest of evaluation of offerors' compensation plans is denied where evaluation was reasonable and consistent with solicitation terms. Offerors were to propose prices for the guard services in terms of fixed hourly rates for an estimated number of labor hours for stated labor categories. Each offeror was to include in its business management proposal a compensation plan of anticipated employee wage rates and benefits. The agency was to review each plan to assess the offeror's understanding of the performance requirements and its ability to provide uninterrupted high-quality work. Proposals envisioning compensation levels lower than the current contractor for the same work will be evaluated on the basis of maintaining program continuity. View Decision Matter of: Wackenhut International, Inc. File: B-286193.2 Date: May 18, 2001 DIGEST Attorneys DECISION Wackenhut International, Inc. protests the award of a contract to U.S. Defense Systems, Inc./Armor Group (USDS) under request for proposals (RFP) No. SOTH200-99-R-0001, issued by the Department of State for guard services at the American Embassy in Bangkok, Thailand. Wackenhut challenges the adequacy of the agency's evaluation of the offerors' compensation plans performed in response to our decision of December 11, 2000, in which we sustained Wackenhut's earlier protest of the agency's failure to properly review the plans prior to award. /1/ We deny the protest. The RFP, issued on September 27, 1999, contemplated the award of a time-and-materials contract, with fixed prices for vehicles and equipment, for a base year and 4 option years, to the technically acceptable offeror with the lowest evaluated price. RFP Secs. F.4.1, L Para. 52.216-1, M.1.2. Offerors were to propose prices for the guard services in terms of fixed hourly rates for an estimated number of labor hours for stated labor categories, including guard; guard/driver; senior guard; surveillance detection (SD) specialist; SD supervisor; and supervisor. RFP Secs. B.3, C.1.2.1-1.2.4. Each offeror was to include in its business management proposal a compensation plan of anticipated employee wage rates and benefits. The agency was to review each plan to assess the offeror's understanding of the performance requirements and its ability to provide uninterrupted high-quality work. The RFP did not, however, provide guidance as to the degree of detail required for the offeror's plan or instruct the agency as to any particular method or scope of review. Rather, the RFP generally recognized the possibility that a follow-on procurement of services with lower compensation levels than previously paid for the work could indicate a lack of understanding of performance requirements or hinder the contractor's ability to obtain the quality of services needed for adequate contract performance. Accordingly, the RFP advised each offeror that the compensation plan would be considered in terms of its impact upon recruiting and retention . . . [so that] compensation levels proposed . . . should indicate the capability . . . to obtain and keep suitably qualified personnel. . . . Additionally, proposals envisioning compensation levels lower than the current contractor for the same work will be evaluated on the basis of maintaining program continuity, uninterrupted high-quality work, and availability of required competent service employees. Offerors are cautioned that lowered compensation for essentially the same work may indicate lack of sound management judgment and lack of understanding of the requirement. . . . Failure to comply with these provisions may constitute sufficient cause to justify rejection of the proposal. RFP Sec. L.1.3.4(2)(a)-(d). Each of the three final revised proposals was considered technically acceptable. The USDS final proposal (at an evaluated price of 167,858,600 bahts or approximately $4,399,848) offered the lowest evaluated price; Wackenhut's final proposal (at 175,689,101 bahts or approximately $4,605,098) was the highest priced. /2/ Price Negotiation Memorandum at 3. On August 11, 2000, a contract was awarded under the RFP to USDS. /3/ Following a debriefing, Wackenhut, the incumbent contractor of the services, filed a protest with our Office challenging, among other things, the adequacy of the agency's evaluation of the offerors' compensation plans.