B-295959, International Outsourcing Services, LLC, May 25, 2005

B-295959 May 25, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights International Outsourcing Services, LLC (IOS) protests the rejection of its proposal and the award of a contract to NCH Marketing Services under request for proposals (RFP) No. HDEC08-04-R-0019, issued by the Defense Commissary Agency (DeCA), for coupon redemption services. The protester argues that the agency's evaluation of its proposed price as unrealistic, and the resultant rejection of its proposal, were unreasonable. We deny the protest. View Decision B-295959, International Outsourcing Services, LLC, May 25, 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: International Outsourcing Services, LLC File: B-295959 Date: May 25, 2005 Richard L. Moorhouse, Esq., Dorn C. McGrath III, Esq., David T. Hickey, Esq., and Joe R. Reeder, Esq., Greenberg Traurig, for the protester. Richard P. Rector, Esq., and Christine E. Trew, Esq., DLA Piper Rudnick Gray Cary, for NCH Marketing Services, the intervenor. Elliot J. Clark, Esq., Defense Commissary Agency, for the agency. John L. Formica, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST The elimination of the protester's proposal from the competition for the award of a fixed-price contract is unobjectionable where the agency reasonably determined under the solicitation's price realism evaluation factor that the protester's proposed price was unrealistically low and the agency was reasonably concerned that the protester's contract performance may therefore be adversely affected. DECISION International Outsourcing Services, LLC (IOS) protests the rejection of its proposal and the award of a contract to NCH Marketing Services under request for proposals (RFP) No. HDEC08-04-R-0019, issued by the Defense Commissary Agency (DeCA), for coupon redemption services. The protester argues that the agency's evaluation of its proposed price as unrealistic, and the resultant rejection of its proposal, were unreasonable. We deny the protest. DeCA commissaries provide –for the resale of groceries and household supplies at the lowest practical price (consistent with quality) to members of the military services, their families and other authorized patrons— at locations worldwide. Contracting Officer's Statement at 1. In performing this mission, the RFP here estimates that the commissaries will receive 160,000,000 coupons for merchandise, which DeCA –must redeem for cash from the manufacturer who issued the coupon.— Id. at 1-2. The successful contractor here will be required to provide all management, supervision, labor, equipment, materials, supplies, facilities and transportation necessary to audit, count, sort, and forward coupons and invoices to the issuing manufacturers. The RFP provided for the award of a fixed-price indefinite-quantity contract, with a base period of 1 year and four 1-year option periods, to the offeror submitting the proposal determined to represent the –best value— to the government based upon the evaluation factors of –performance capability— and –price.— RFP at 15. The RFP specified that the performance capability and price factors would be considered equal in importance, and that the performance capability factor was comprised of the following three subfactors: technical capability, personnel, and past performance.[1] The RFP (at 16) also provided that proposals would be evaluated under the price factor as follows: Proposals will be evaluated to determine whether offered prices are realistic in relation to the work to be performed, reflect a clear understanding of the requirements, and are consistent with other portions of the offeror's proposal. The PRICE factor will not be scored. Price will be evaluated by adding the total price of all line items, base year plus four one year options. The solicitation required that proposals include, among other things, a technical capability and personnel proposal, and a past performance proposal. Offerors were informed that their technical capability and personnel proposals were to include plans for accomplishing the coupon redemption services, staffing, and subcontracting, as well as narratives regarding the qualifications of key personnel. Past performance proposals were to include information regarding contracts performed in the past 3 years and references. With regard to price, offerors were to complete the schedule set forth in the RFP as amended. In order to complete the schedule, offerors were to insert a unit price per thousand coupons for the services required, as well as an extended price based upon the agency's estimate of 160,000,000 coupons per year, for each of the five contract periods (base plus four options).