B-297552, Computers Universal, Inc., February 14, 2006

B-297552 Feb 14, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Computers Universal, Inc. (CUI) protests the issuance of a purchase order to WINTEK IT, CO., LTD., by the Department of Defense Dependents Schools (DoDDS), pursuant to an oral solicitation, to reestablish operability of the Korea Vehicle Tracking System (KVTS). CUI contends that award was improperly made at a higher price than quoted by CUI. We sustain the protest. View Decision B-297552, Computers Universal, Inc., February 14, 2006 Decision Matter of: Computers Universal, Inc. File: B-297552 Date: February 14, 2006 Peter L. Cannon for the protester. Jonathan A. Beyer, Esq., Department of Defense, for the agency. Katherine I. Riback, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency unreasonably evaluated protester's quotation for repairing a vehicle tracking system when it added to protester's price, for evaluation purposes, the protester's proposed increase in telecommunications charges under another contract for maintaining the system, without first verifying with the protester whether costs for necessary telecommunications to accomplish the purchase order work were already included in the purchase order price. DECISION Computers Universal, Inc. (CUI) protests the issuance of a purchase order to WINTEK IT, CO., LTD., by the Department of Defense Dependents Schools (DoDDS), pursuant to an oral solicitation, to reestablish operability of the Korea Vehicle Tracking System (KVTS). CUI contends that award was improperly made at a higher price than quoted by CUI. We sustain the protest. DoDDS is the overseas educational division of the Department of Defense Education Activity (DoDEA) that operates schools worldwide for students in United States military communities. The agency asserts that the safe transportation of these students to and from their schools is integral to DoDEA's mission. In this regard, the KVTS was designed to track the buses and students being transported to and from DoDDS throughout South Korea using global positioning system and digital telecommunications technologies. In order for the KVTS to function properly the system must be connected to an active telecommunications server. Agency Supplemental Report, Declaration of Logistics Division Chief. CUI was awarded a contract to maintain the KVTS on August 26, 2005, for 1 base year with 2 option years beginning September 1. Shortly after CUI initiated performance of the contract, it discovered that the new Korea-wide cell phone standard of 11 digits required a change in the existing system's database program, given that the tracking devices in KVTS were programmed with cell phone numbers that were 10 digits long and the vehicle tracking database program would accept only 10 digit numbers.[1] Protester's Response to Agency Supplemental Report at 1. CUI informed the agency in an e-mail that it could perform the required changes to make the system operable, plus required testing, for $20,000. Agency Report (AR), Tab D-2, E-mail from CUI to Contract Specialist (Sept. 6, 2005).[2] In response, the agency instructed CUI to –not take any action as to the efforts you mentioned [which] would require the $20,000— because this work was considered to be outside the scope of the maintenance contract. AR, Tab D-2, E'mail from Contract Specialist to CUI (Sept. 7, 2005). On September 8, the contract specialist sent CUI an e-mail requesting a plan from CUI for making the KVTS fully operational, in which the agency again stated that these changes were outside the scope of CUI's current contract. CUI's Response to Agency Supplemental Report, Tab 3, E-mail from Contract Specialist to CUI (Sept. 8, 2005). On that same day, CUI provided the Contract Specialist, in an e-mail, the list of the steps that it proposed to make the KVTS operational: 1. Deinstall of all MDT's [mobile data terminals] from the buses at each base. 2. The purchase of the new cell phone lines. 3. The programming of the MDT Cell phone modules with the new 010 numbers. 4. Permanent programming of the alias between the new 010 and 019 numbers. 5. Entry of the new 019 alias's in the DODDS Control Program. 6. Reinstallation of the MDT's into the buses. 7. Testing to insure all is working OK. We can have all work completed 10 working days after approval of the additional $20,000 required for the purchase of the new phone lines, [p]rogramming of the numbers into the MDT Cell Phone modules, and alias set up between the 010 and 019 numbers. CUI's Response to Agency Supplemental Report, Tab 3, E-mail from CUI to Contract Specialist (Sept. 8, 2005). On September 9, the contracting officer contacted CUI by telephone, and issued an oral request for quotations (RFQ) pursuant to the simplified acquisition procedures set forth in Federal Acquisition Regulation (FAR) sect.