B-298102; B-298102.3, GC Services Limited Partnership, June 14, 2006

B-298102 Jun 14, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights GC Services Limited Partnership protests the issuance of task orders to The CBE Group, Inc., Pioneer Credit Recovery, Inc., and Linebarger Goggan Blair & Sampson, LLP under request for quotations (RFQ) No. TIRNO-05-Q-00187, by the Department of the Treasury, Internal Revenue Service (IRS), for private debt collection services. GC Services challenges the IRS's evaluation of its quotation, the evaluation of Linebarger's quotation, as well as the IRS's alleged failure to make a proper affirmative determination of responsibility for Linebarger. We deny the protest in part and dismiss it in part. View Decision B-298102; B-298102.3, GC Services Limited Partnership, June 14, 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 Decision Matter of: GC Services Limited Partnership File: B-298102; B-298102.3 Date: June 14, 2006 James J. McCullough, Esq., Deneen J. Melander, Esq., and Steven A. Alerding, Esq., Fried, Frank, Harris, Shriver & Jacobson LLP, for the protester. Charles R. Marvin, Jr., Esq., Sharon A. Jenks, Esq., and Carol F. Westmoreland, Esq., Venable LLP, for The CBE Group, Inc.; Scott M. Heimberg, Esq., Thomas P. McLish, Esq., and Andrea T. Vavonese, Esq., Akin Gump Strauss Hauer & Feld, LLP, for Linebarger Goggan Blair & Sampson, LLP; and William L. Walsh, Jr., Esq., Scott Hommer III, Esq., Peter A. Riesen, Esq., and Keir X. Bancroft, Esq., Venable LLP, for Pioneer Credit Recovery, Inc., the intervenors. Richard M. Sudder II, Esq., H.R. Roberson, Esq., and Lori R. Larson, Esq., Internal Revenue Service, and Thedlus L. Thompson, Esq., General Services Administration, for the agencies. Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protester's challenge to agency's technical evaluation of its quotation in response to solicitation for private debt collection services is denied where the record shows that the agency's evaluation was reasonable and consistent with the terms of the solicitation. DECISION GC Services Limited Partnership protests the issuance of task orders to The CBE Group, Inc., Pioneer Credit Recovery, Inc., and Linebarger Goggan Blair & Sampson, LLP under request for quotations (RFQ) No. TIRNO-05-Q-00187, by the Department of the Treasury, Internal Revenue Service (IRS), for private debt collection services. GC Services challenges the IRS's evaluation of its quotation, the evaluation of Linebarger's quotation, as well as the IRS's alleged failure to make a proper affirmative determination of responsibility for Linebarger. We deny the protest in part and dismiss it in part. BACKGROUND On October 22, 2004, Congress enacted the American Jobs Creation Act (the –Act—), which, in relevant part, authorizes the IRS to contract with private debt collection firms to assist with the recovery of outstanding federal tax debts. See Pub. L. No. 105-357, Title VIII, Sec. 881(a), codified at 26 U.S.C. sect. 6306. Towards this end, the Act provides that the IRS may allow private debt collection firms to retain, as a fee for their services, up to 25 percent of the amounts that they collect for the government. Id.In implementing the provisions of the Act, the IRS has adopted a two-phase approach. The first phase, the –limited implementation phase,— provides for placing only a small number of tax debt accounts with a limited number of private debt collection agencies--effectively a pilot program. Agency Report (AR) at 2. Provided this limited phase proves successful, the IRS –will launch into full implementation of its program.— Id.At issue in this case is the IRS's issuance of debt collection task orders to three firms for the first phase of its private debt collection program. On October 15, 2005, the IRS issued the subject RFQ for private debt collection services, which limited the field of competition to vendors holding Federal Supply Schedule (FSS) contracts under the General Services Administration's (GSA) –Financial and Business Solutions— schedule, Debt Collection Services schedule (GSA FABS Schedule 520, Special Item Number (SIN) 4, Debt Collection). RFQ at 2. The RFQ contemplated the issuance of –fee-for-service— task orders to three vendors, each for a base period of 1 year, plus 1 option year. Id.The IRS indicates that the combined contract value for the three task orders is between $20 million and $25 million. Contracting Officer's (CO) Statement at 1. Under the terms of the RFQ, vendors were required to submit quotations with two separate volumes.