Carmon Construction, Inc., B-292387; B-292387.3, September 5, 2003

Carmon Construction, Inc., B-292387; B-292387.3, September 5, 2003 TITLE: Carmon Construction, Inc., B-292387; B-292387.3, September 5, 2003 BNUMBER: B-292387; B-292387.3 DATE: September 5, 2003 ********************************************************************** Carmon Construction, Inc., B-292387; B-292387.3, September 5, 2003 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Carmon Construction, Inc. File: B-292387; B-292387.3 Date: September 5, 2003 David J. Taylor, Esq., Tighe Patton Armstrong Teasdale, for the protester. Gary L. Brooks, Esq., National Archives and Records Administration, 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 Agency properly awarded contract to large business offeror with higher evaluated price than that of protester, a Historically Underutilized Business Zone small business concern, where request for proposals provided for award on a *best value* basis and agency determined that technical superiority of awardee*s proposal outweighed price differential. DECISION Carmon Construction, Inc., a Historically Underutilized Business Zone (HUBZone) small business concern, protests the award of a contract to Batson-Cook Company, a large business, under request for proposals (RFP) No. NAMA02SEM0009, issued by the National Archives and Records Administration for construction of an archives facility in Morrow, Georgia. Carmon contends that its offer should have been selected for award because it represents no significant risk to the government and is lower in price than Batson-Cook*s after application of the 10 percent HUBZone price evaluation preference provided for in the RFP. We deny the protest. The RFP, which was issued on an unrestricted basis on November 15, 2002, contemplated the award of a fixed-price contract to the offeror whose proposal represented the best value to the government, with technical factors significantly more important than price. Technical factors and their corresponding weights were as follows: experience (20 percent), past performance (20 percent), key personnel (20 percent), management plan and schedule (35 percent), and subcontracting plan (5 percent). The RFP incorporated both Federal Acquisition Regulation (FAR) S: 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business (SDB) Concerns, and S: 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns. Pursuant to the former clause, the price of each non-SDB offeror was to be evaluated by adding a factor of 10 percent to the actual price offered, while pursuant to the latter, the price of each non-HUBZone small business, with the exception of *[an] otherwise successful offer[] from [a] small business concern[],* was to be evaluated by adding a factor of 10 percent to the actual price offered. RFP, Part II, S: I, at 48, 49; Part IV, S: K at 10. FAR S: 52.219-4(b)(3) further states that *[a] concern that is both a HUBZone small business concern and a small disadvantaged business concern will receive the benefit of both the HUBZone small business price evaluation preference and the small disadvantaged business price evaluation adjustment.* The RFP at S:S: M3.3 and M3.4 furnished additional guidance with regard to the application of the SDB price evaluation adjustment and the HUBZone price evaluation preference, as follows: M3.3. Price Evaluation Adjustment (PEA) The PEA will be used in the event that a small disadvantaged business (SDB) meets the following three criteria: a. The SDB must be located within the following regions: middle atlantic, east south central, east north central and west south central. b. The SDB must perform work in the following (formerly) SIC Major Group: 15. c. The SDB has not waived the right to a PEA. If a SDB meets the above criteria and its price is fair and reasonable, a PEA factor of 10% will be added to the prices of non-qualifying contractors. M3.4. HUBZone Price Evaluation Preference (PEP) The Hub Zone PEP will be used in the event that a company is certified to be a Hub Zone by the Small Business Administration and its price is fair and reasonable. A PEP factor of 10% will be added to the prices of non-qualifying contractors. Nine proposals were received by the January 24, 2003 closing date.