B-298394.3, Phyllis M. Chestang, November 20, 2006

B-298394.3 Nov 20, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Phyllis M. Chestang protests the failure to be awarded a contract under solicitation No. SBAHQ-06-Q-0004, issued by the Small Business Administration (SBA) for home and business loan processing to support SBA's response to disaster recovery. We deny the protest. View Decision B-298394.3, Phyllis M. Chestang, November 20, 2006 Decision Matter of: Phyllis M. Chestang File: B-298394.3 Date: November 20, 2006 Phyllis M. Chestang for the protester. Laura Mann Eyester, Esq., U.S. Small Business Administration, for the agency. Nora K. Doolin, Esq., and John L. Formica, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency's evaluation of the protester's proposal as –poor— overall was reasonable where the protester's proposal, submitted in response to a solicitation for home and business loan processing, failed to provide information specifically requested by the solicitation and necessary for evaluation purposes. DECISION Phyllis M. Chestang protests the failure to be awarded a contract under solicitation No. SBAHQ-06-Q-0004, issued by the Small Business Administration (SBA) for home and business loan processing to support SBA's response to disaster recovery.[1] We deny the protest. The RFP provided for multiple awards of fixed-price contracts with reimbursable items for a base period of 1 year with four 1-year option periods. The successful contractors will perform loan processing and loan closing functions in support of SBA's response to disaster recovery. According to the record, SBA is authorized –to make loans to eligible applicants [that experienced losses from] declared disasters,— and accomplishes this through SBA's Office of Disaster Assistance (ODA). RFP at 4. The solicitation explained that ODA's mission –is to help people recover from disasters and rebuild their lives by providing affordable, timely and accessible financial assistance to homeowners, renters, businesses of all sizes and nonprofit organizations.— Id.The solicitation added that the destruction caused by Hurricanes Katrina, Rita, and Wilma in the fall of 2005 caused more home and business owners to apply for ODA loans than any previous disaster, and that through this solicitation SBA –will, for the first time, partner with the private sector— to process the more than 400,000 applications for home and business disaster loans that SBA expects to receive. Id. The solicitation stated that SBA will provide the successful contractors under this RFP with training, the disaster loan program's standard operating procedures, rules and regulations, as well as SBA's financial analysis tool and –updates on the loan processing and loan closing requirements.— RFP at 4. In terms of the actual processing of loans, the RFP explained that the contractors will receive case files from SBA, which will contain, among other things, Internal Revenue Service transcripts, credit reports, and loss verification cost information. The contractor will then –obtain insurance information; perform credit and repayment analysis; review eligibility factors; discuss terms with disaster applicants; make approval/decline/withdrawal recommendation[s]; complete the loan officer report; and return the file— to SBA. Id.Following this, SBA will –[r]eview the file for final approval and preparation of documents to be signed,— and if the loan is approved and after taking certain other actions, SBA –will prepare and review the loan closing documents.— Once this is accomplished, the successful contractor will –[s]chedule closing with [the] disaster applicant and close [the] loan with [the] disaster applicant.— Id. The RFP provided detailed proposal preparation instructions, requesting that proposals consist of two volumes, with volume one including sections addressing past performance, technical approach, staffing, management approach, and representations and certifications, and volume two addressing price/cost. RFP at 22. The solicitation provided that awards would be made to the firms submitting the proposals determined to represent the best value to the government based upon the following evaluation factors: past performance, technical approach, staffing, management approach, and price/cost. Id. at 28-30. The RFP added here that in determining which proposals represented the best value, the agency would consider the past performance, technical approach, staffing, and management approach factors equal in weight, and these factors combined equal in importance to price/cost. Id. at 30. The solicitation specifically outlined how the SBA would evaluate proposals and explained, for example, that SBA would assign a rating of –poor— to those proposals where –serious doubt exists that the Offeror(s) will successfully perform the required effort.— Id. at 28-30.