Metro Machine Corporation, B-295744; B-295744.2, April 21, 2005

Metro Machine Corporation, B-295744; B-295744.2, April 21, 2005 TITLE: Metro Machine Corporation, B-295744; B-295744.2, April 21, 2005 BNUMBER: B-295744; B-295744.2 DATE: April 21, 2005 ********************************************************************** 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: Metro Machine Corporation File: B-295744; B-295744.2 Date: April 21, 2005 Rand L. Allen, Esq., Michael S. Caldwell, Esq., William J. Grimaldi, Esq., and Antonella Karlin, Esq., Wiley Rein & Fielding, for the protester. Thomas O. Mason, Esq., Robert E. Korroch, Esq., Francis E. Purcell, Jr., Esq., and Megan E. Burns, Esq., Williams Mullen, for Norfolk Shipbuilding and Drydock Corp., an intervenor. Catherine Rubino, Esq., Craig L. Kemmerer, Esq., Janice M. Passo, Esq., and Rhonda L. Russ, Esq., Department of the Navy, for the agency. Louis A. Chiarella, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Cost realism evaluation of offerors' proposals was unobjectionable where record shows that agency reasonably considered the information submitted in each offeror's proposal and that the agency's methodology and rationale for its analysis were reasonable. 2. Contracting agency's cost realism analysis of protester's proposal was reasonably based on information reasonably available to it, even when it did not inquire into the conclusions of a Defense Contract Audit Agency audit report, where the agency instead sought additional information from the offeror itself through discussions. 3. Contracting agency engaged in meaningful discussions concerning proposed direct and subcontractor labor rates, such that the protester should have known and understood the agency's concerns, where it specifically requested during written discussions that offeror explain the rationale for the rates being proposed. 4. Protest of agency's past performance evaluation is denied where record shows evaluation was reasonable and consistent with evaluation criteria; mere disagreement with agency's evaluation is insufficient to show it was unreasonable. 5. Protest that agency's source selection decision was improperly based on a mechanical comparison of technical evaluation ratings is denied where the record shows the allegation is without basis. DECISION Metro Machine Corporation protests the award of a contract to Norfolk Shipbuilding & Drydock Corporation (Norshipco) under request for proposals (RFP) No. N00024-04-R-4405, issued by the Naval Sea Systems Command (NAVSEA), Department of the Navy, for the repair, maintenance, and modernization of naval amphibious assault ships (i.e., LHA and LHD class ships) homeported in Norfolk, Virginia. Metro alleges that the agency conducted inadequate discussions with it, and that the agency's cost evaluation of Metro's and Norshipco's proposals, the agency's past performance evaluation of Metro's and Norshipco's proposals, and the source selection decision were improper. We deny the protests. BACKGROUND LHA and LHD class ships represent the largest of all amphibious warfare ships. Each LHA and LHD ship resembles a small aircraft carrier, and is capable of supporting various vertical, short takeoff, tiltrotor, and rotary wing aircraft operations. The RFP, issued on May 13, 2004, contemplated the award of a cost-plus-award-fee contract to provide all materials, services, and facilities necessary to perform phased maintenance on seven LHA/LHD class ships over a 5-year period.[1] Phased maintenance is a strategy in which maintenance is performed through a series of short, frequent phased maintenance availabilities (PMA), in lieu of regular overhauls. The solicitation also called for support to the Norfolk Naval Shipyard (NNSY) in performance of drydock-phased maintenance availabilities (DPMA), which involve putting a ship in drydock to perform repairs below the water line, in addition to the repairs that would be performed in a PMA. The solicitation included a total of 13 availabilities, 10 PMAs and 3 DPMAs, together with various planning and emergent requirements for each availability. RFP at 119-37. Additionally, the RFP mandated a minimum 40 percent small business subcontracting requirement for each scheduled availability. Id. at 176. The solicitation instructed offerors to base their cost proposals on a notional, or standardized, work package included with the solicitation. The notional work package contained 158 individual work items, which constituted a standardized list of repairs and alterations necessary to complete one PMA, as well as the required support to NNSY in furtherance of one DPMA.