Capitol CREAG LLC, B-294958.4, January 31, 2005

B-294958.4 Jan 31, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Capitol CREAG LLC, a small business concern, protests the decision by the General Services Administration (GSA) not to award the firm a contract under request for proposals (RFP) No.GS04P-02-BVD-0035 for the provision of national real estate broker services to support GSA's National Office of Realty Services and 11 regional offices in the acquisition of leasehold interests and related real estate services for GSA's federal tenants. CREAG contends that GSA improperly failed to refer an issue involving the firm's responsibility to the Small Business Administration (SBA) for the possible issuance of a certificate of competency (COC). We deny the protest. View Decision B-294958.4, Capitol CREAG LLC, January 31, 2005 Decision Matter of: Capitol CREAG LLC File: B-294958.4 Date: January 31, 2005 James J. Regan, Esq., John E. McCarthy Jr., Esq., and Daniel R. Forman, Esq., Crowell & Moring, for the protester. Kevin P. Mullen, Esq., and David E. Fletcher, Esq., Piper Rudnick, for Jones Lang LaSalle, and Robert H. Koehler, Esq., Patton Boggs, for Trammell Crow Company, the intervenors. Gary F. Davis, Esq., General Services Administration, and John W. Klein, Esq., and Kevin R. Harber, Esq., Small Business Administration, for the agencies. Linda S. Lebowitz, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Where a solicitation uses traditional responsibility factors as technical evaluation criteria and where the proposal of a small business concern which otherwise would be in line for award is found ineligible for award based on an agency's evaluation under those criteria, the agency has effectively made a determination that the small business offeror is not a responsible contractor capable of performing the solicitation requirements; accordingly, the agency must refer the matter of the firm's responsibility to the Small Business Administration (SBA) for the possible issuance of a certificate of competency (COC). 2. Where the proposal of a small business concern is not selected for award because the agency concludes that the concern's approach to management and staffing creates a high risk of unacceptable performance, the agency's determination is not tantamount to a nonresponsibility determination and there is no requirement for referral to the SBA for the possible issuance of a COC. DECISION Capitol CREAG LLC, a small business concern, protests the decision by the General Services Administration (GSA) not to award the firm a contract under request for proposals (RFP) No.GS04P-02-BVD-0035 for the provision of national real estate broker services to support GSA's National Office of Realty Services and 11 regional offices in the acquisition of leasehold interests and related real estate services for GSA's federal tenants. CREAG contends that GSA improperly failed to refer an issue involving the firm's responsibility to the Small Business Administration (SBA) for the possible issuance of a certificate of competency (COC). We deny the protest. BACKGROUND As explained in the RFP, which was issued on March 5, 2004, GSA provides workspace for more than one million Federal workers through GSA's Public Building Service (PBS). Whenever possible, GSA satisfies tenant agency needs in existing GSA-controlled owned or leased space. When suitable space is not available within the existing inventory, GSA acquires space in privately-owned buildings through leases. GSA's National Office of Realty Services is the PBS entity responsible for the acquisition and administration of leasehold interests. In 1997, GSA awarded eight regional real estate broker service contracts; GSA subsequently awarded additional regional contracts for similar services, but with varying terms and conditions. GSA, in support of its strategic goal of "Operating Effectively and Efficiently," identified a need to award fewer real estate broker service contracts to achieve national consistency and to better manage its realty services program. RFP C.1, at 14. The contracts awarded under this RFP, when compared to the previous contracts awarded by GSA for similar services, will include substantial changes to the contract terms and conditions. For example, under this RFP, the contractors will collect as their payments the real estate commissions paid by building owners in lieu of receiving direct payments or reimbursements from the government for services rendered under the contracts. Id. The RFP stated that GSA intended to make multiple awards of approximately four "no cost," [1] indefinite-delivery/indefinite-quantity contracts, with one contract being set aside for award to a qualified small business concern. RFPL.1, at 113.