B-297398, Crane & Company, Inc., January 18, 2006

B-297398 Jan 18, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Crane & Company, Inc. protests the terms of request for proposals (RFP) No. BEP-06-0001, issued by the Department of the Treasury, Bureau of Engraving and Printing (BEP), for the procurement of "distinctive currency paper." Crane principally argues that the RFP provides for the award of contracts which are 6 years in length, in violation of 31 U.S.C. sect. 5114(c) (2000), which, according to Crane, limits the total length of contracts for distinctive currency paper to not more than 4 years. Crane further argues that the solicitation improperly discriminates against Crane, the incumbent contractor. We sustain the protest. View Decision B-297398, Crane & Company, Inc., January 18, 2006 Decision Matter of: Crane & Company, Inc. File: B-297398 Date: January 18, 2006 John S. Pachter, Esq., Jonathan D. Shaffer, Esq., Stephen D. Knight, Esq., and Erin R. Karsman, Esq., Smith Pachter McWhorter & Allen PLC, for the protester. Michael J. Davidson, Esq., Department of the Treasury, Bureau of Engraving and Printing, 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 Agency's solicitation for distinctive currency paper is defective where it provides for the award of a contract with a 6-year term in violation of 31 U.S.C. sect. 5114(c), which limits contracts for currency paper to periods of not more than 4 years. DECISION Crane & Company, Inc. protests the terms of request for proposals (RFP) No. BEP-06-0001, issued by the Department of the Treasury, Bureau of Engraving and Printing (BEP), for the procurement of –distinctive currency paper.— Crane principally argues that the RFP provides for the award of contracts which are 6 years in length, in violation of 31 U.S.C. sect. 5114(c) (2000), which, according to Crane, limits the total length of contracts for distinctive currency paper to not more than 4 years. Crane further argues that the solicitation improperly discriminates against Crane, the incumbent contractor.[1] We sustain the protest. BACKGROUND On September 9, 2005, the BEP issued the RFP inviting firms to submit proposals to furnish all facilities, labor, and materials to provide distinctive currency paper for the printing of U.S. currency in accordance with requirements set forth in the RFP, including specific security features. RFP at 21. The RFP provides for the award of up to two indefinite-delivery/indefinite-quantity (ID/IQ) contracts and, depending on the award scenario, discussed below, the award or awards will be for a contract period of either 4 or 6 years. Specifically, the RFP provides for the manufacture of three distinct types of currency paper, with varying security features: (1) type I paper, which utilizes distinctive fibers as its security feature and is used for printing $1 and $2 notes; (2) type III, which is for printing new currency design 1996 series $5 and $100 notes with security features consisting of a watermark, embedded denomination specific thread, and distinctive fibers; and (3) type IV, which is for printing 2004 series $10, $20, $50 and $100 notes, and provides for the same security features as found in type III paper. Contracting Officer's Statement at 1. Section B of the RFP provides for seven different potential award scenarios, and depending on the award scenario selected, can result in a contract for a period of either 4 or 6 years. Scenarios I and II are limited to manufacturing the BEP's currency paper requirements for program years 1 through 4, with a total contract period of 4 years. Scenarios III through VII, in contrast, provide for a 24-month mobilization period during program years 1 and 2, followed by a 4-year manufacturing period during program years 3 through 6, with a total contract period of 6 years. RFP at 2. These scenarios would allow firms without the current ability to meet the agency's immediate need for paper in years 1 and 2, to –gear up— for production during the 24-month mobilization period. Id.All award scenarios other than award scenario I provide for split awards of the currency paper requirements between two separate lots to two separate offerors. The RFP explains that if the government makes a single award, it will be made under award scenario I, consisting of lot 1 only, and that if the government elects to make –an award to two separate offerors—, only one of the award scenarios (illustrated in the table below) will be awarded.