Daston Corporation, B-292583; B-292583.2, October 20, 2003

Daston Corporation, B-292583; B-292583.2, October 20, 2003 TITLE: Daston Corporation, B-292583; B-292583.2, October 20, 2003 BNUMBER: B-292583; B-292583.2 DATE: October 20, 2003 ********************************************************************** Daston Corporation, B-292583; B-292583.2, October 20, 2003 Decision Matter of: Daston Corporation File: B-292583; B-292583.2 Date: October 20, 2003 Richard J. Webber, Esq., and Frederick D. McKalip, Esq., Arent Fox Kintner Plotkin & Kahn, for the protester. Cyrus E. Phillips, IV, Esq., for Catapult Technology, Ltd., an intervenor. Sherri L. Pappas, Esq., and Terence W. Carlson, Esq., Department of Transportation, for the agency. Katherine I. Riback, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency had a reasonable basis to cancel solicitation for information technology support services for one agency division, where the record shows that the agency no longer had a need for these services due to an agency-wide plan to consolidate information technology services. DECISION Daston Corporation protests the cancellation of request for proposals (RFP) No. DTRS56-03-R-0006 by the Department of Transportation (DOT) for information technology (IT) support services. Daston maintains that the decision to cancel the solicitation lacks a reasonable basis. Daston also contends that the agency*s modification of an existing contract with Catapult Technology, Ltd., for operational maintenance services, to add this work was outside the scope of that contract. We deny the protest. The RFP was issued on May 16, 2003 by the Research and Special Programs Administration (RSPA), 1 of the 11 divisions of DOT. The RSPA operates the Hazardous Materials Information System (HMIS), the primary source of national data for the federal, state, and local government agencies responsible for the safety of hazardous materials transportation. RSPA issued the solicitation to four Small Business Administration (SBA) certified 8(a) businesses with General Services Administration Federal Supply Schedule contracts. The RFP requested proposals for a base year commencing July 1 with two 1-year options for services that had previously been provided by two different contractors: (1) system development and integration, database design and management, data analysis and entry, and dissemination of the HMIS database, which provides data and database administration, statistical analysis, and standard and specialized reports concerning hazardous materials spills and on regulatory matters; and (2) systems and operational support of the RSPA local area network, wide area network, website development, and web infrastructures, and help desk services. The agency received three proposals in response to the RFP by the May 27 proposal due date, including Daston*s and Catapult*s. Meanwhile, on May 28, DOT*s Chief Information Officer (CIO) informed the CIOs of the DOT divisions, including RSPA*s CIO, of a proposal that the IT infrastructures of the various divisions be consolidated into the CIO*s office by September 30, 2005. The agency conducted an oral presentation and question and answer sessions with each of the three vendors on May 29, and, on June 3, the agency began evaluating the proposals. Clarifications were requested on June 4 and received on June 5. Meanwhile, on June 5, the RSPA*s CIO received the timeline for DOT*s consolidation of IT infrastructures; this timeline indicated that consolidation was to commence by March 2004, with the consolidation of all DOT IT operations to be completed by September 30, 2005. RSPA*s CIO held a meeting with other RSPA officials on June 6 to discuss this consolidation plan. It was at this meeting that the contracting officer first learned of DOT*s consolidation plan and timetable. As a result of that meeting, the contracting officer on that same day instructed that the evaluation of the proposals be suspended pending a decision on whether the agency would continue with this procurement or cancel the solicitation. Since the timetable established by the CIO indicated that consolidation was to commence in March 2004, 4 months before the base year term was to expire, the agency determined that it would be necessary to terminate any award it might make under this RFP to meet the agency*s requirements. To avoid this scenario, the agency cancelled the solicitation on June 10. On June 13, the RSPA entered into a *customer agreement* with, and transferred funds to, the Office of the Secretary of Transportation for that office to provide RSPA with these solicited IT services.