B-297660; B-297660.2, Novex Enterprises, March 6, 2006

B-297660; B-297660.2, Novex Enterprises, March 6, 2006 TITLE: B-297660; B-297660.2, Novex Enterprises, March 6, 2006 BNUMBER: B-297660; B-297660.2 DATE: March 6, 2006 ****************************************************** B-297660; B-297660.2, Novex Enterprises, March 6, 2006 Decision Matter of: Novex Enterprises File: B-297660; B-297660.2 Date: March 6, 2006 Vahe Penbe for the protester. Michael L. Walters, Esq., and Edward C. Hintz, Esq., Defense Logistics Agency, for the agency. Charles W. Morrow, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency unreasonably selected higher-priced proposal based on the fact that its initial delivery was somewhat earlier than the protester's, where the awardee's overall delivery schedule was noncompliant with the delivery schedule established in the solicitation and significantly less advantageous than the protester's compliant delivery schedule, and the agency apparently did not consider this in making the award selection. DECISION Novex Enterprises protests the award of a contract to Badger Truck Center, Inc. under request for proposals (RFP) No. SP0750-06-R-3979, issued by the Defense Logistics Agency (DLA), Defense Supply Center, Columbus, Ohio, for steel side rings. Novex objects to the award on the basis that Badger's proposal was at a higher price and offered a less favorable delivery schedule than Novex's. We sustain the protest. This RFP, issued on September 23, 2005, solicited fixed-price proposals to satisfy an "urgent" DLA requirement for 15,887 military, steel, side rings National Stock Number (NSN) 2530-00-738-9061. The RFP included the following note: This is an urgent requirement. Please quote your best possible price and delivery. Phased delivery is acceptable if delivery can be improved. There are backorders on this NSN and earlier shipments of smaller quantities, phased out longer may be accepted without discussions. The required delivery . . . is for the FAT [first article test] test part in 45 days, up to 3000 each in 165 days and 3000 every 30 days thereafter until complete with FAT required. If FAT is waived, the required delivery is up to 3000 each in 90 days and 3000 every 30 days thereafter until complete. An improved delivery will be appreciated even if it is for smaller shipments. RFP at 2. The RFP also stated that the 45 days for FAT as well as the initial delivery of 165 days were both measured from date of award. RFP at 11. The RFP provided for award on a best-value basis based on a comparative assessment of the following evaluation factors, listed in descending order of importance: price, proposed delivery, past performance, socioeconomic support, and Javits-Wagner-O'Day Act (JWOD) Program. Regarding proposed delivery, the RFP explained that the "[o]fferors will be evaluated based on their offered delivery as compared to the government's required delivery" and that "[p]reference may be given for offered deliveries that are shorter than the required delivery." Regarding past performance, the evaluation included considering the offeror's "automated best value system" (ABVS) score,[1] and any other information related to the offeror's past performance. RFP at 20d. Six offerors, including Novex and Badger, responded to the RFP by the October 14 closing date. Novex proposed a unit price of $38.50, for a total price of $611,649.50, and alternative delivery schedules: one for the required delivery schedule identified in the RFP where there was no waiver of FAT, and the other, if there was waiver of FAT, for 3,000 units in 120 days and 3,000 units every 30 days until contract completion. Badger based its price solely on waiver of FAT with a unit price of $39.11 for a total price of $621,340.57, with delivery of the initial 3,000 units in 150 days and delivery of the remainder at a rate of 1,800 units every 30 days until contract completion. The agency's evaluation of the proposals is documented solely in a "Prenegotiation and Price Memorandum," which includes a comparative assessment of the proposals based on the price, delivery, and past performance evaluation factors. This document indicated that Badger's past performance was superior to the other offerors based on its higher ABVS score; no other past performance discriminators were identified.[2] The document focuses on the facts that "delivery time is critical" because there was very little stock on hand and that Badger was the only offeror for which FAT was waived, so that the initial delivery will be made in 150 days (instead of the required 165 days). This document states that for those offerors, such as Novex, where FAT was not waived, "all required FAT approval . .