B-296493.6, Advanced Technology Systems, Inc., October 6, 2006

B-296493.6 Oct 06, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Advanced Technology Systems, Inc. (ATS) protests the issuance of a task order by the Department of Housing and Urban Development (HUD) to Pyramid Systems Inc. (PSI) under that firm's General Services Administration (GSA) Federal Supply Schedule (FSS) contract, pursuant to request for quotations (RFQ) No. R-OPC-23036 for operational support and corrective maintenance services in support of the HUD Tenant Rental Assistance Certification System (TRACS). ATS argues that HUD's evaluation of PSI's quotation was unreasonable. In addition, ATS challenges the agency's affirmative determination of PSI's responsibility. We sustain the protest in part and deny it in part. View Decision B-296493.6, Advanced Technology Systems, Inc., October 6, 2006 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: Advanced Technology Systems, Inc. File: B-296493.6 Date: October 6, 2006 William A. Roberts III, Esq., Richard B. O'Keeffe Jr., Esq., and Michael S. Caldwell, Esq., Wiley Rein & Fielding LLP, for the protester. Jonathan D. Shaffer, Esq., John S. Pachter, Esq., Tamara F. Dunlap, Esq., and Mary Pat Gregory, Esq., Smith Pachter McWhorter PLC, for Pyramid Systems Inc., an intervenor. R. Ren- Dupuy, Esq., Department of Housing and Urban Development, and Thedlus L. Thompson, Esq., General Services Administration, for the agencies. Louis A. Chiarella, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, particiated in the preparation of the decision. DIGEST 1. An ordering agency is not required to perform a responsibility determination when placing a task or delivery order under a Federal Supply Schedule (FSS) contract, since the General Services Administration performed a responsibility determination at the time of award of the underlying contract. 2. When ordering services priced at hourly rates from vendors holding FSS contracts, and when a statement of work is required, an agency is required under Federal Acquisition Regulation sect. 8.405-2(d) to consider a vendor's proposed level of effort and labor mix in its selection decision. 3. Protest challenging the agency's evaluation of the awardee's proposed level of effort and labor mix is sustained where the agency failed to sufficiently document its determination that the awardee's proposed level of effort and labor mix were acceptable. DECISION Advanced Technology Systems, Inc. (ATS) protests the issuance of a task order by the Department of Housing and Urban Development (HUD) to Pyramid Systems Inc. (PSI) under that firm's General Services Administration (GSA) Federal Supply Schedule (FSS) contract, pursuant to request for quotations (RFQ) No. R-OPC-23036 for operational support and corrective maintenance services in support of the HUD Tenant Rental Assistance Certification System (TRACS). ATS argues that HUD's evaluation of PSI's quotation was unreasonable. In addition, ATS challenges the agency's affirmative determination of PSI's responsibility. We sustain the protest in part and deny it in part. BACKGROUND TRACS is a computer system developed to help improve HUD's financial controls over agency-administered multifamily housing assistance programs by automating manual procedures and incorporating automated controls. TRACS represents HUD's official source of data on multifamily housing subsidy contracts, tenant rental assistance information, and voucher payments. TRACS is designed to collect tenant data, certify tenant eligibility for financial assistance under various project-based assistance programs, authorize payment, and then process requests for payment (vouchers) to project owners, management agents, and other third-party contract administrators. In fiscal year 2003, TRACS processed approximately 221,000 financial transactions worth approximately $4.7 billion. Agency Report (AR), July 20, 2006, at 3-4. The RFQ, issued on June 22, 2006, to ATS and PSI, contemplated the issuance of a fixed-price task order for a 2-month base period with two 1-month option periods.[1] The solicitation included a performance work statement (PWS), instructions to vendors regarding the submission of quotations, and the evaluation factors for award. The RFQ established two evaluation criteria of equal importance: qualifications of key personnel and price. With regard to the qualifications of key personnel factor, vendors were to submit the names and resumes for the five identified key personnel positions, demonstrating relevant knowledge of multifamily housing subsidy programs and funds control processes. RFQ attach. 1, Proposal Instructions, at 1.