Consortium Argenbright Security-Katrantzos Security, B-288126; B-288126.2, September 26, 2001

Consortium Argenbright Security-Katrantzos Security, B-288126; B-288126.2, September 26, 2001 TITLE: Consortium Argenbright Security-Katrantzos Security, B-288126; B-288126.2, September 26, 2001 BNUMBER: B-288126; B-288126.2 DATE: September 26, 2001 ********************************************************************** Consortium Argenbright Security-Katrantzos Security, B-288126; B-288126.2, September 26, 2001 Decision Matter of: Consortium Argenbright Security-Katrantzos Security File: B-288126; B-288126.2 Date: September 26, 2001 Thomas P. McLish, Esq., Scott M. Heimberg, Esq., and Michael S. Caldwell, Esq., Akin, Gump, Strauss, Hauer & Feld, for the protester. Dennis J. Gallagher, Esq., Department of State, for the agency. Jennifer D. Westfall-McGrail, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Request for proposals providing for the submission of offers priced in local currency cannot reasonably be interpreted as prohibiting the submission of offers priced in euros where the euro has been adopted as a country's national currency. DECISION The consortium of Argenbright Security and Katrantzos Security (AS-KS) protests the award of a contract to the joint venture of Wackenhut International Inc. and Wackenhut Security Hellas S.A. under request for proposals (RFP) No. SGR100-00-R-0002, issued by the Department of State for guard services for the U.S. Embassy in Athens, Greece. The protester contends that its proposal was improperly rejected as non-compliant because it was priced in euros. We sustain the protest. The RFP, which was issued on December 11, 2000, contemplated the award of a time-and-materials contract for a base and 4 option years. The solicitation advised offerors that, as required by 22 U.S.C. sect. 4864 (1994 and Supp. IV 1998), the government would award the contract to the technically acceptable, responsible offeror with the lowest evaluated price. The solicitation further advised that award might be made on the basis of initial proposals, without discussions. Evaluation factors to be considered in the determination of technical acceptability were management plan, experience and past performance, and preliminary transition plan. The RFP provided for the submission of offers in U.S. dollars or local currency. Consistent with the terms of 22 U.S.C. sect. 4864(c), the RFP also provided that for evaluation purposes, the government would reduce the price of each offer determined to be eligible for U.S. preference by 10 percent. Six offerors submitted proposals by the April 19, 2001 closing date. AS-KS and another offeror priced their offers in euros; the other four offerors priced their offers in Greek drachmas or U.S. dollars. The contracting officer determined that the euro-priced offers were non-compliant with the solicitation provision requiring the submission of prices in U.S. dollars or local currency. Of the remaining four proposals, Wackenhut's was the lowest in price. It was also technically acceptable. On June 7, the contracting officer awarded a contract to Wackenhut, without conducting discussions. AS-KS argues that it was not inconsistent with the requirements of the RFP for it to have priced its offer in euros. As discussed below, we agree. Section B.1.1 of the RFP provided as follows with regard to the currency to be used in the pricing of offers: Offers and Payment in U.S. Dollars. U.S. firms are eligible to be paid in U.S. dollars. U.S. firms desiring to be paid in U.S. dollars should submit their offers in U.S. dollars. A U.S. firm is defined as a company which operates as a corporation incorporated under the laws of a state within the United States. NOTE: The definition of U.S. Firm for payment purposes should not be confused with the definition of U.S. Person for purpose of applying U.S. preference in the proposal evaluation. Foreign Firms. Any firm which is not a U.S. firm is a foreign firm. Any firm that does not meet the above definition of U.S. firm shall submit its prices and receive payment in local currency. At the time offers were received, the euro was the official currency of Greece, the Greek parliament having on September 27, 2000 enacted legislation providing that: As from 1 January 2001 the euro shall substitute for the drachma as the currency of Greece in accordance with the provisions of [governing regulations of the Council of the European Union]. [1] Banknotes and coins in drachmas shall continue to have the status of legal tender within the Greek territory until 28 February 2002. Law 2842/27/9/2000. The agency maintains that despite the foregoing legislation establishing the euro as the currency of Greece as of January 1, 2001, it intended "local currency" for purposes of this solicitation to mean Greek drachmas only. According to the agency, it conveyed that intent to offerors in sect.