DataTrak Consulting, Inc., B-292502; B-292502.2; B-292503; B-292503.2, September 26, 2003

DataTrak Consulting, Inc., B-292502; B-292502.2; B-292503; B-292503.2, September 26, 2003 TITLE: DataTrak Consulting, Inc., B-292502; B-292502.2; B-292503; B-292503.2, September 26, 2003 BNUMBER: B-292502; B-292502.2; B-292503; B-292503.2 DATE: September 26, 2003 ********************************************************************** DataTrak Consulting, Inc., B-292502; B-292502.2; B-292503; B-292503.2, September 26, 2003 Decision Matter of: DataTrak Consulting, Inc. File: B-292502; B-292502.2; B-292503; B-292503.2 Date: September 26, 2003 Terry L. Pechota, Esq., Pechota Leach & Dewell LLP, and Karen D. Powell, Esq., Petrillo & Powell, PLLC, for the protester. Michael Colvin, Department of Health and Human Services, for the agency. Paula A. Williams, Esq., Paul I. Lieberman, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Contracting agency had a reasonable basis to cancel request for quotations and recompete requirement for third party billing support services where the only quote that was received in response to the initial solicitation was evaluated as unacceptable and the record shows that during the course of evaluation the agency reasonably concluded that initial solicitation no longer meets the agency*s needs. DECISION DataTrak Consulting, Inc. protests the evaluation of its quotation as unacceptable and the subsequent cancellation of request for quotations (RFQ) No. 03-085, issued by the Indian Health Service (IHS), Department of Health and Human Services (HHS) as a Buy-Indian set aside for third party billing support services at the Ft. Berthold Service Unit/Minnetohe IHS clinic in North Dakota. DataTrak also protests the terms of the revised solicitation, RFQ No. 03-099, issued after cancellation of the initial solicitation. DataTrak challenges the agency*s decision on numerous grounds primarily alleging that the agency*s evaluation of its quotation was inconsistent with the RFQ evaluation factors and was inadequately documented, and that the agency acted in bad faith in order to avoid issuing a purchase order to DataTrak.The protester also contends that the revised RFQ is unduly restrictive of competition. We deny the protests. The initial RFQ was issued on May 16, 2003 under the simplified acquisition procedures set forth in Federal Acquisition Regulation (FAR) subpart 13.3 for the acquisition of other than commercial items.[1] As amended, the initial RFQ calls for the contractor to provide all personnel, supplies, materials and equipment necessary to provide third party claim processing services for the Ft. Berthold Service Unit/Minnetohe IHS clinic. RFQ statement of work (SOW) at 3. Vendors were instructed to provide unit and extended prices on the RFQ schedule for four line items: (1) third party claim processing and filing (paper and/or electronic filing for an estimated 5,000 claims); (2) accounts receivable posting of the estimated 5,000 claims billed by the contractor; (3) revenue generation consultative services (which requires two on-site visits by a consultant to evaluate and recommend improvement of the billing processes at the clinic); and (4) software for electronic claim filing using a clearinghouse compatible with the agency*s Resource Patient Management System (RPMS). RFQ schedule at 1; RFQ SOW at 1-2. Quotations were to be evaluated on the basis of price and the following factors: (1) ability to meet performance schedule, (2) reasonableness of price, (3) responsiveness to requirement, and (4) technical qualifications. RFQ Notice to Quoters (Notice) at 1. Under technical qualifications, the RFQ instructed vendors to furnish full and complete information in its proposal that *need not be more than five pages.* Id. According to the RFQ, this information was to address the following criteria: technical capability, past performance, revenue generation consultative services, and personnel and management capability.[2] RFQ Notice at 1-3. In addition, the RFQ identified numerous separate elements under the technical qualification criteria. For example, with respect to technical capability, the RFQ stated: Each offeror shall specifically outline their third party billing, clearinghouse capability with Indian Health Services, accounts receivable and follow-up, and consultative services in terms of knowledge and experience as it relates to: . RPMS Third Party Billing software . RPMS Accounts receivable program . RPMS Patient Registration program . Electronic claim filing processing for similar IHS facilities . IHS coding, data entry, and reimbursement issues . Privacy Act .