B-296317, Antmarin Inc.; Georgios P. Tzanakos; Domar S.r.l., July 26, 2005

B-296317 Jul 26, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Antmarin, Inc., Georgios P. Tzanakos, and Domar S.r.l. protest the Department of the Navy's decision to exercise an option (specifically, option year 6) under contract No. N68171-99-D-4029, awarded to MLS-Multinational Logistic Services, Ltd. for the provision of husbanding services to the U.S. Navy, Coast Guard, Military Sealift Command, and Naval Fleet Auxiliary Force vessels in over 40 ports throughout the Mediterranean. The protesters argue that the Navy's exercise of the option failed to comply with regulatory requirements, the decision was arbitrary, and that it was the result of the agency's lack of advance planning. We deny the protest. View Decision B-296317, Antmarin Inc.; Georgios P. Tzanakos; Domar S.r.l., July 26, 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: Antmarin Inc.; Georgios P. Tzanakos; Domar S.r.l. File: B-296317 Date: July 26, 2005 Craig A. Holman, Esq., and Kara L. Daniels, Esq., Holland & Knight LLP, for the protesters. Walter A. I. Wilson, Esq., Lawrence M. Prosen, Esq., and Donald E. Santarelli, Esq., Bell, Boyd & Lloyd PLLC, for MLS, Limited, an intervenor. Vicki E. O'Keefe, Esq., and Michael D. Rossiter, Esq., Naval Supply Systems Command, for the agency. Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly exercised option is denied where agency reasonably determined that exercising the option was the most advantageous means of satisfying the agency's needs. DECISION Antmarin, Inc., Georgios P. Tzanakos, and Domar S.r.l. protest the Department of the Navy's decision to exercise an option (specifically, option year 6) under contract No. N68171-99-D-4029, awarded to MLS-Multinational Logistic Services, Ltd.[1] for the provision of husbanding services to the U.S. Navy, Coast Guard, Military Sealift Command, and Naval Fleet Auxiliary Force vessels in over 40 ports throughout the Mediterranean. The protesters argue that the Navy's exercise of the option failed to comply with regulatory requirements, the decision was arbitrary, and that it was the result of the agency's lack of advance planning.[2] We deny the protest. BACKGROUND On January 13, 1999, the Navy awarded a requirements contract to MLS for –husbanding— services in over 40 ports throughout the Mediterranean. MLS's contract was awarded at a total evaluated price of approximately $234.6 million, for a base year from April 1, 1999 through March 31, 2000, plus nine 1-year options. As explained by the parties, U.S. Navy ships visiting ports (at which the Navy does not maintain a base) frequently require and obtain husbanding services and supplies from contractors. These services and supplies generally include trash and sewage removal, refueling arrangements, force protection for ships, transportation for ship members, as well as the provision of fresh food and water. Historically, husbanding services in the Mediterranean region had been awarded under 36 port-specific contracts. In early 1998, however, the Navy issued a single solicitation for regional husbanding services throughout the Mediterranean, including the Gulf of Aqaba for Israeli and Jordanian ports, the Sea of Marmara, the AzoresIslands, the Canary Islands, Madeira, Portugal, as well as France, Monte Carlo, Greece, Italy, Spain, Turkey, Libya, Lebanon, Morocco, Syria, Tunisia, Gibraltar, Albania, and Algeria. The Navy awarded the subject contract to MLS as a result of this solicitation. Eight firms competed for the Mediterranean regional contract. MLS,[3] however, was the only contractor to submit a proposal for all countries and all ports (MLS submitted its proposal on an –all or none— basis)--the other offerors submitted proposals for only portions of the requirement, limited to particular ports or countries. Overall, MLS's total price ($234.6 million) was substantially lower than the lowest composite price of the other firms' proposals ($412 million), a difference of approximately $177 million. Agency Report (AR), Tab 6, Determination Not to Exercise Option Year Seven, at 1. Under its contract, MLS is required to provide, among other services, force protection for the ships, trash and sewage disposal, replenishment of water and food, arranging for pilots, tugs, and line handlers, providing water taxi services, and other supplies or services as needed.