Northrop Grumman Information Technology, Inc.; Broadwing, B-295526; B-295526.2; B-295526.3; B-295526.4; B-295526.5; B-295526.6;, March 16, 2005

Northrop Grumman Information Technology, Inc.; Broadwing, B-295526; B-295526.2; B-295526.3; B-295526.4; B-295526.5; B-295526.6;, March 16, 2005 TITLE: Northrop Grumman Information Technology, Inc.; Broadwing, B-295526; B-295526.2; B-295526.3; B-295526.4; B-295526.5; B-295526.6;, March 16, 2005 BNUMBER: B-295526; B-295526.2; B-295526.3; B-295526.4; B-295526.5; B-295526.6; DATE: March 16, 2005 ********************************************************************** Decision Matter of: Northrop Grumman Information Technology, Inc.; Broadwing Communications LLC; Level 3 Communications, Inc.; Qwest Government Services, Inc.; MCI WORLDCOM Communications, Inc. File: B-295526; B-295526.2; B-295526.3; B-295526.4; B-295526.5; B-295526.6; B-295526.7; B-295526.8; B-295526.9; B-295526.10 Date: March 16, 2005 John C. Chierichella, Esq., Anne B. Perry, Esq., Jonathan S. Aronie, Esq., CharmaineA A. Howson, Esq., and Jaime H. Weinberg, Esq., Sheppard Mullin, for Northrop Grumman Information Technology, Inc.; Camron S. Hamrick, Esq., MarciaA G. Madsen, Esq., David F. Dowd, Esq., Adrian L. Steel, Jr., Esq., William L. Olsen, Esq., and Michael J. Farley, Esq., Mayer, Brown, Rowe & Maw, for Broadwing Communications LLC; Rand L. Allen, Esq., John A. McCullough, Esq., James T. Bruce, III, Esq., and John W. Kuzin, Esq., Wiley Rein & Fielding, for Qwest Government Services, Inc.; David A. Churchill, Esq., Kevin C. Dwyer, Esq., HeatherA M. Trew, Esq., and David B. Robbins, Esq., Jenner & Block, for MCI WORLDCOM Communications, Inc.; Shelly L. Ewald, Esq., Timothy H. Heffernan, Esq., Todd R. Metz, Esq., and Julie L. Gentry, Esq., Watt, Tieder, Hoffar & Fitzgerald, for Level 3 Communications LLC, the protesters. Richard J. Conway, Esq., David N. Adler, Esq., Scott Arnold, Esq., Austi Fulk, Esq., and Lynne DeSarbo, Esq., Dickstein, Shapiro, Morin & Oshinsky, for AT&T, an intervenor. Lori R. Larson, Esq., David A. Ingold, Esq., Holly L. Hagen, Esq., and John T. Kirsch, Esq., Internal Revenue Service, Department of the Treasury, for the agency. David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest is sustained where Department of Treasury negotiated during procurement for network services a memorandum of understanding (with the Office of Management and Budget and General Services Administration's Federal Technology Service) that significantly changed the approach set forth in solicitation and Federal Acquisition Regulation to determining whether to exercise the options, making it significantly less likely that the options would be exercised, and thus materially altering the basis upon which offerors prepared their proposals. DECISION Northrop Grumman Information Technology, Inc., Broadwing Communications LLC, Level 3 Communications LLC, Qwest Government Services, Inc., and MCI WORLDCOM Communications, Inc. protest the Department of the Treasury, Internal Revenue Service's (IRS), award of a contract to AT&T, under request for proposals (RFP) No. TIRNO-04-R-00001, for the Treasury Communications Enterprise (TCE) network. The protesters challenge the evaluation of proposals and several other aspects of the procurement. We sustain the protests. b) No compromise of continuity; c) Strict adherence to the post-award schedulea**a**neither ahead of nor behind schedule will be acceptable to the Government. SOW S C.3.2.1. Award was to be made to the responsible offeror whose proposal was most advantageous and represented the best overall value to the government based upon consideration of price and five non-price criteria: (1) transition, including whether the proposed transition and implementation approach demonstrates a comprehensive, sound, and reasonable approach to ensuring a seamless transition of all sites to the TCE network, demonstrates successful experience in transitioning networks of similar size and complexity, minimizes disruption to business operations, mitigates risk, demonstrates a thorough understanding of the requirements, and assumes responsibility for government equipment so as to reduce the burden to the government for removal of equipment from the government inventory; (2)A technical requirements for managed services, including whether the proposal demonstrates a comprehensive, sound, and reasonable approach to providing fully managed WAN services, and whether the approach to continuity of operations and disaster recovery is reasonable and effective, demonstrating redundancy, resiliency, and ability to provide uninterrupted service, as well as the demonstrated ability to recover from unavoidable service disruptions; (3)A operations and management approach to managed services; (4) corporate experience and past performance; and (5) small business participation/subcontracting plan.