American Artisan Productions, Inc., B-292380, July 30, 2003

B-292380 Jul 30, 2003 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where agency reasonably determined that bonds were necessary to ensure timely completion of project and to protect the government from losses that would result from contractor default. 2. Agency's determination not to set aside procurement for small businesses was proper where agency reasonably concluded. Should have been set aside for small businesses. That the bid and performance bond requirement restricts small business competition and is unnecessary. The centers were intended to. Were to be constructed and opened between 2003 and 2006 to coincide with the national bicentennial celebration of that expedition. The "project has great historical significance" and completion of the exhibit work before the bicentennial celebration ends is "critical.". View Decision American Artisan Productions, Inc., B-292380, July 30, 2003 DIGEST Attorneys DECISION American Artisan Productions, Inc. (AAP), protests the terms of request for proposals (RFP) No. NDR030034, issued by the Department of the Interior, Bureau of Land Management (BLM), for the design, fabrication, and installation of exhibits for two "Interpretive Centers" in Montana. AAP contends that the RFP, issued as an unrestricted solicitation, should have been set aside for small businesses, and that the bid and performance bond requirement restricts small business competition and is unnecessary. We deny the protest. The RFP, issued May 19, 2003, as an unrestricted solicitation, sought fixed-price proposals for the design, fabrication, shipment, and installation of interior and exterior exhibits for two new Interpretative Centers depicting the Lewis and Clark expedition. The centers were intended to, among other things, increase recognition of the areas' history, including the areas' connection with the Lewis and Clark expedition, and were to be constructed and opened between 2003 and 2006 to coincide with the national bicentennial celebration of that expedition. RFP at 2-3; Sec. C, Statement of Work (SOW), at 1, 3-4. According to the BLM, the "project has great historical significance" and completion of the exhibit work before the bicentennial celebration ends is "critical." Contracting Officer's Statement at 1, 5. In this regard, the RFP established performance periods for building construction, exhibit installation, and opening dates for each center, and provided an estimated budget for the total project that was "not to exceed" $1.4 million. RFP, Sec. C, SOW, at 2-3, 5. The RFP also required an offeror to provide a bid guarantee and performance bond, and expressly included Federal Acquisition Regulation (FAR) Sec. 52.228-1 ("Bid Guarantee"), Sec. 52.228-2 ("Additional Bond Security"), and Sec. 52.228-16 ("Performance and Payment Bonds--Other Than Construction"). RFP, amend. 0001, at 1, 3-4. Prior to issuing the RFP, the BLM conducted several nationwide market searches on the Small Business Administration's (SBA) Procurement Marketing Access Network (Pro-Net) to ascertain whether the requirement should be set aside for small businesses. /1/ The BLM searched North American Industry Classification System (NAICS) 541420, Industrial Exhibit Design, and found two Historically Underutilized Business Zone (HUBZone) firms with bonding capacity; however, neither firm was found to have experience in designing, fabricating, and installing exhibits. The BLM also searched Pro-Net utilizing the keyword "exhibits." This search returned 124 firms, but the listing did not identify the business status of the firms or their bonding capacity. Based upon its market research, the BLM concluded that two or more small business with bonding capacity were not likely to submit proposals and that the RFP should not be set aside for small businesses. On April 11, the BLM submitted a Department of the Interior Acquisition Screening and Review Form to the SBA, indicating that the work would be advertised as an unrestricted procurement. Agency Report, Tab 2. After reviewing the form, the SBA suggested that the BLM perform a Pro-Net search of NAISC 541850, Display Advertising; however, upon further discussions between the agencies, it was agreed that NAISC 541890, Other Specialized Design Services, was a more appropriate classification. The BLM searched Pro-Net for NAISC 541890, which revealed three HUBZone firms with adequate bonding capacity, but the BLM found that these firms had no experience in the design, fabrication, and installation of exhibits. The SBA procurement center representative signed the Acquisition and Review Form on April 29, authorizing the issuance of an unrestricted solicitation. On May 19, the BLM issued the RFP, open to both large and small businesses. On May 21, AAP notified the SBA's local office that it believed the "contracting officer has ignored the 'Rule of Two'" set forth in FAR Sec.