Millennium Data Systems, Inc., B-292357.2, March 12, 2004

B-292357.2 Mar 12, 2004 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Protester's contention that the agency improperly issued a task order to a Federal Supply Schedule contract holder that did not meet the applicable size standard in the request for quotations (RFQ) is denied where the RFQ did not indicate that eligibility for the task order was limited to small businesses. That were also certified as small disadvantaged business (SDB) concerns by the Small Business Administration (SBA). MDS argues that RS is ineligible for the order because it is not an SDB. Because SBA determined that RS was other than a small business for purposes of this procurement. BACKGROUND The procurement here was reopened after an earlier selection decision. The procurement was reopened. View Decision Millennium Data Systems, Inc., B-292357.2, March 12, 2004 *REDACTED DECISION DIGEST Attorneys DECISION Millennium Data Systems, Inc. (MDS) protests the issuance by the Environmental Protection Agency (EPA) of a task order for information services for EPA's Region 5 offices to RS Information Systems, Inc. (RS), pursuant to request for quotations (RFQ) No. R5-03-2003. The RFQ, as initially issued, sought "quotation packages"--in essence, technical proposals--from entities holding a contract under Federal Supply Schedule (FSS) GS-35F-5355H for information services, that were also certified as small disadvantaged business (SDB) concerns by the Small Business Administration (SBA). MDS argues that RS is ineligible for the order because it is not an SDB, and because SBA determined that RS was other than a small business for purposes of this procurement. MDS also argues that EPA failed to conduct a proper realism analysis of the price in RS's quotation. We deny the protest. BACKGROUND The procurement here was reopened after an earlier selection decision, also of RS, led to a protest to our Office from MDS. EPA took corrective action in response to that protest, and reopened the competition, using the same RFQ. To properly analyze the issues in this protest, we need to set forth background information on events that occurred before, and after, the procurement was reopened. The RFQ package was first issued March 14, 2003, and included the following: a 17-page letter from the contracting officer (CO), entitled a letter RFQ; a price schedule; a performance work statement; and a client authorization letter (to allow EPA to gather past performance information). The RFQ anticipated issuance of a fixed-price, performance-based task order for specified IT services, for a 1-year base period followed by three 1-year options, to the "offeror who best represents the best value to the government." RFQ at 1. To evaluate responses, the RFQ identified four evaluation factors--technical approach, past performance, price, and special features. Id. at 3-4. The IT services solicited included providing support for printers, equipment attached to Ethernet LAN segments, voice mail, and telecommunications equipment that link EPA's region 5 offices with other EPA offices and states. The first page of the RFQ, under the heading "Business Size Information," stated: "The offeror must be certified as a SDB (small disadvantaged business) concern, or have completed a SDB application pending at the [SBA], or a Private Certifier (see Federal Acquisition Regulation 19.001). The government will only consider prospective offerors who are currently certified SDB concerns. Id. at 1 (emphasis in original). In addition, the original RFQ included the following standard Federal Acquisition Regulation (FAR) clauses: Small Business Program Representations (FAR Sec. 52.219-1), and Small Disadvantaged Business Status (FAR Sec. 52.219-22). Id. at 10-13. Within the Small Business Program Representations clause the agency identified North American Industry Classification System (NAICS) code 541513 as applicable to this procurement; the clause also advised that the applicable small business size standard was $21 million. Id. at 10. Between the time this RFQ was issued, and responses were received, there were several communications between EPA and the parties regarding the small business issues in dispute here. On March 21, an RS representative sent an e-mail seeking inclusion of a second NAICS code and size standard in the RFQ. Agency Report (AR), Tab 2. On March 25, the CO distributed a revised RFQ, with changes marked in bold. AR, Tab 5. Of relevance here, the revised RFQ included the second NAICS code requested by RS, code 517710, and added a second size standard of 1,500 employees; as with the original NAICS code and size standard, these additions were reflected within the text of FAR clause 52.219-1. /1/ AR, Tab 5 at 12. In an e-mail to the CO, dated March 26, an MDS representative wrote, "I would like to know if this is an 8(a) set-aside or SDB set-aside opportunity." AR, Tab 16.