All Phase Services, Inc., B-294640; B-294640.2, December 1, 2004

All Phase Services, Inc., B-294640; B-294640.2, December 1, 2004 TITLE: All Phase Services, Inc., B-294640; B-294640.2, December 1, 2004 BNUMBER: B-294640; B-294640.2 DATE: December 1, 2004 ********************************************************************** 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: All Phase Services, Inc. File: B-294640; B-294640.2 Date: December 1, 2004 Edward J. Kinberg, Esq., Kinberg & Associates, for the protester. Clarence D. Long, III, Esq., Department of the Air Force, for the agency. Glenn G. Wolcott, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. In evaluating past performance, agency properly considered prior contracts performed by awardee's proposed subcontractor where solicitation expressly advised offerors that such information would be considered, and awardee submitted a letter from the proposed subcontractor expressly authorizing consideration of its past performance information. 2. In awarding contract for demolition services, agency reasonably determined that various demolition contracts performed by the awardee and the awardee's proposed subcontractor were relevant for purposes of evaluating past performance. 3. Agency's procurement record reasonably supports the determination that awardee's higher priced, higher rated proposal represented the best value to the government where solicitation advised offerors that past performance was significantly more important than price and the contracting officer expressly documented the bases for concluding that the risks associated with protester's lower past performance rating outweighed the protester's price advantage. DECISION All Phase Services, Inc. protests the Department of the Air Force's award of a contract to Fencon Corporation pursuant to request for proposals (RFP) No. FA4418-04-R-0009 to perform various demolition services at Charleston Air Force Base (AFB), South Carolina. All Phase protests that the agency improperly evaluated Fencon's past performance and failed to make a reasonable best value determination. We deny the protest. BACKGROUND The agency issued RFP No. FA4418-04-R-0009 on June 10, 2004, seeking proposals to provide all personnel, vehicles and equipment necessary to perform demolition of military family housing units and various industrial facilities at Charleston AFB, South Carolina. The solicitation limited the competition to small disadvantaged businesses under the Small Business Administration's section 8(a) program and contemplated award of an indefinite-delivery requirements contract for a 1-year base period and four 1-year option periods. The solicitation provided that proposals would be evaluated only with regard to price and past performance, and advised offerors that past performance was significantly more important than price. Agency Report, Tab 4, at 49 (bold in original). Regarding the evaluation of past performance, the solicitation stated that [r]elevant contracts include, but are not limited to, those contracts . . . of similar scope, magnitude and complexity to the services required to be performed at Charleston AFB, and provided that each offeror's past performance would be rated as exceptional, very good, satisfactory, neutral, marginal, or unsatisfactory. Id. at 47-48. The solicitation also provided that [t]he evaluation of past performance . . . will take into account past performance information regarding . . . subcontractors that will perform major or critical aspects of the requirement. [1] Id. at 47. Accordingly, offerors were directed to [p]rovide with the proposal a letter from all subcontractors that will perform major or critical aspects of the requirement, consenting to the release of their past performance information. Id at 48. Finally, the solicitation stated that, in selecting the awardee, the contracting officer would make an integrated assessment best value award decision based on price and past performance considerations. Id. at 49. Proposals were submitted by several offerors, including All Phase and Fencon; thereafter, the agency obtained past performance information regarding the four lowest-priced offerors.[2] Consistent with the solicitation provision regarding subcontractors, Fencon submitted a letter from S&A Services, Inc., stating: Fencon Corporation is hereby authorized to use S&A Services, Inc. past performance information in the submission of your proposal for [the solicitation at issue here]. Agency Report, Tab 15, at 15.