Catapult Technology, Ltd., B-294936; B-294936.2, January 13, 2005

Catapult Technology, Ltd., B-294936; B-294936.2, January 13, 2005 TITLE: Catapult Technology, Ltd., B-294936; B-294936.2, January 13, 2005 BNUMBER: B-294936; B-294936.2 DATE: January 13, 2005 ********************************************************************** Decision Matter of: Catapult Technology, Ltd. File: B-294936; B-294936.2 Date: January 13, 2005 Cyrus E. Phillips IV, Esq., for the protester. Timothy B. Mills, Esq., and Mary Beth Bosco, Esq., Patton Boggs LLP, for Bowhead Information Technology Services, an intervenor. Terence W. Carlson, Esq., Department of Transportation, and John W. Klein, Esq., and Kenneth W. Dodds, Esq., Small Business Administration, for the agencies. Paula A. Williams, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that the Small Business Administration (SBA) improperly accepted information technology services requirement into section 8(a) business development program is denied where, under the SBA's interpretation of its regulation, the protester does not appear to meet the condition for a presumption that accepting the requirement would cause it adverse impact and the applicable regulation does not preclude the SBA from deciding to accept a consolidated requirement into the section 8(a) business development program, even if the adverse impact presumption is met. DECISION Catapult Technology, Ltd. protests the decision by the Department of Transportation (DOT) and the Small Business Administration (SBA) to contract with Bowhead Information Technology Services, an Alaskan Native Corporation, under the SBA's section 8(a) business development program for information technology (IT) infrastructure operations and maintenance services at the DOT headquarters in Washington, DC. Catapult, which was performing some of the offered services prior to the section 8(a) offering, alleges that the SBA improperly accepted these IT requirements into the section 8(a) business development program. We deny the protest. The DOT consists of the Office of the Secretary of Transportation and 10 operating administrations each of which has its own individual data center, help desk, desktop computer maintenance contract, common software licenses and unique telephone services, making the sharing of information between organizations cumbersome. Agency Report (AR), exh. 4, Acquisition Plan, at 7. The agency reports that the requirement, which was offered to the SBA, will consolidate the IT infrastructure contracts of these 10 operating administrations into a single common operating environment. According to DOT, this will create a more mission effective, secure, and cost efficient computing environment that will provide common IT services to all of DOT. Contracting Officer's Statement at 2-3. The record shows that in fiscal year (FY) 2004, the agency had awarded two contracts for IT support services--one to Catapult for services such as network operations and "help desk" support, and the other to Bowhead for computer "help desk" services. As it relates to this protest, the Catapult contract, DTOS59-04-C-00408, originated from a task order issued as the result of an unrestricted competition among contractors under a DOT multiple-award, indefinite-delivery/indefinite-quantity (ID/IQ) contract known as "VANITS" to provide IT support for the then existing Transportation Administrative Service Center (TASC) within DOT. When the TASC was abolished by DOT, the Catapult task order (T020001) was novated from the terminated VANITS contract into a stand-alone contract DTOS59-04-C-00408.[3] That stand-alone contract incorporated the task order terms and conditions, including the 1-year option for FY05 and FY06 performance. AR, exh. 3, Catapult's Contract; Contracting Officer's Statement at 3-4. By letter dated August 11, 2004, DOT offered the consolidated IT requirement to the SBA under the 8(a) business development program. The letter described the requirement as a consolidation project planned to create a centrally managed IT support operation and advised the SBA of the current 8(a) contractors providing IT support services to the individual operating administrations within the agency. The DOT letter valued the offered acquisition at approximately $200 million over 5 years and recommended Bowhead for a sole-source award. Offering Letter from DOT to the SBA at 1-2. By letter dated August 19, the SBA accepted the procurement, stating that a determination had been made that "acceptance of this procurement will cause no adverse impact on another small business concern." AR, exh. 2, Letter from the SBA to Contracting Officer. On September 24, Catapult was told of the agency's decision not to exercise the FY05 option under Catapult's stand-alone contract.