B-298364.6; B-298364.7, TYBRIN Corporation, March 13, 2007

B-298364.6; B-298364.7, TYBRIN Corporation, March 13, 2007 TITLE: B-298364.6; B-298364.7, TYBRIN Corporation, March 13, 2007 BNUMBER: B-298364.6; B-298364.7 DATE: March 13, 2007 ********************************************************** B-298364.6; B-298364.7, TYBRIN Corporation, March 13, 2007 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: TYBRIN Corporation File: B-298364.6; B-298364.7 Date: March 13, 2007 John S. Pachter, Esq., Jonathan D. Shaffer, Esq., Tamara F. Dunlap, Esq., and Mary Pat Gregory, Esq., Smith Pachter McWhorter PLC, for the protester. Kenneth A. Martin, Esq., The Martin Law Firm, PLLC, for The CENTECH GROUP, the intervenor. Maj. John G. Terra, and Martin C. O'Brien, Esq., Department of the Air Force, and John W. Klein, Esq., and Laura Mann Eyester, Esq., United States Small Business Administration, for the agencies. John L. Formica, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency's award of a contract under a solicitation set aside for small businesses was improper where the awardee's proposal as submitted clearly did not meet the material solicitation requirement that at least 50 percent of the cost of contract performance incurred for personnel be expended for employees of the small business awardee, notwithstanding the United States Small Business Administration's (SBA) issuance of a Certificate of Competency to the small business awardee because SBA found that the awardee would be able to comply with the subcontracting limitation during the performance of the contract. DECISION TYBRIN Corporation protests the award of a contract to The CENTECH GROUP under request for proposals (RFP) No. FA9300-04-R-0040, issued by the Department of the Air Force, for advisory and assistance services to support the Aerospace Research, Development, Test and Evaluation (RDT&E) activities at the Air Force Flight Test Center, Edwards Air Force Base, California. TYBRIN argues, among other things, that CENTECH's proposal was unacceptable because it exceeded the limitation on subcontracting included in the RFP. We sustain the protest. The RFP, issued on February 28, 2005 as a total small business set-aside, provided for the award of a contract for the Aerospace Research, Development, Test and Evaluation Advisory and Assistance Services (ARDTEAS) program. The ARDTEAS program provides "non-personal advisory and assistance services" to support the RDT&E activities at the Flight Test Center. RFP at 3. The solicitation's performance requirements document (PRD) described the numerous tasks to be performed by the successful contractor, including, for example, the provision of "assistance with business management in support of ground test, flight test and other associated test and support activities," the support of "all phases of acquisition from identification of needs through contract performance," as well as the provision of systems engineering and technical assistance "required to support ground and flight test and related activities." RFP PRD at 4-5, 8. The RFP provided for the award of a "hybrid" contract on a cost-plus-fixed-fee basis for the non-personal advisory and assistance services, a cost basis for other direct costs such as travel and materials, and a fixed-price-plus-award-fee basis for the phase-in period. The solicitation stated that award of the contract would be made to the offeror submitting the proposal representing the best value to the government, based upon various identified evaluation factors. The RFP incorporated by reference the "Notice of Total Small Business Set-Aside" clause, Federal Acquisition Regulation (FAR) sect. 52.219-6, and the "Limitation on Subcontracting" clause, FAR sect. 52.219-14. RFP at 29. These clauses put the offerors on notice that the procurement was set aside exclusively for small business concerns, and with respect to the limitations on subcontracting, that "[a]t least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern." FAR sect. 52.219-14(b)(1). The agency received proposals from four small business offerors, including TYBRIN and CENTECH. The proposals were evaluated, discussions were conducted, and final proposal revisions were requested and received from the four offerors.