B-298651, 2B Brokers et al., November 27, 2006

B-298651 Nov 27, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights 2B Brokers and 89 other firms protest the terms of request for proposals (RFP) No. HTC711-06-R-0001, issued by the United States Transportation Command, Department of Defense (DoD), for freight transportation and transportation coordination services within the continental United States (CONUS) in support of the agency's Defense Transportation Coordination Initiative (DTCI). The agency describes DTCI as a CONUS freight initiative aimed at increasing operational effectiveness and at the same time obtaining efficiencies. The premise is that DoD will increase operational effectiveness by reducing cycle times and improving predictability through the use of more dedicated truck schedules and cross docking operations. This premise also includes obtaining efficiencies through best business practices such as increased consolidations and mode conversions. The DTCI coordinator would have the visibility of freight movement requirements across the CONUS and access to a network of transportation providers to schedule and fulfil[l] those requirements. Agency Report (AR), Tab 44, DTCI Information Paper, May 3, 2004, at 1. The protesters complain that the RFP improperly bundles requirements, is unduly restrictive of competition, and provides for the performance of services that are inherently governmental in nature. We deny the protest. View Decision B-298651, 2B Brokers et al., November 27, 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 Matter of: 2B Brokers et al. File: B-298651 Date: November 27, 2006 Richard D. Gluck, Esq., Benjamin J. Lambiotte, Esq., Robert A. Boraks, Esq., Harold G. Bailey, Jr., Esq., and Amy Morton, Esq., Garvey Schubert Barer, for the protesters. Lary W. Mohl, Esq., and Peter Ries, Esq., U.S. Transportation Command, Department of Defense, and Kenneth Dodds, Esq., Small Business Administration, for the agencies. Guy R. Pietrovito, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that solicitation for the Defense Transportation Coordination Initiative that consolidated transportation coordination and freight transportation services was unduly restrictive of competition and was an impermissible bundling of requirements under the Small Business Act is denied, where the agency reasonably determined that consolidation would result in substantial cost savings and efficiencies and was necessary to meet the agency's needs. DECISION 2B Brokers and 89 other firms[1] protest the terms of request for proposals (RFP) No. HTC711-06-R-0001, issued by the United States Transportation Command, Department of Defense (DoD), for freight transportation and transportation coordination services within the continental United States (CONUS) in support of the agency's Defense Transportation Coordination Initiative (DTCI).[2] The agency describes DTCI as a CONUS freight initiative aimed at increasing operational effectiveness and at the same time obtaining efficiencies. The premise is that DoD will increase operational effectiveness by reducing cycle times and improving predictability through the use of more dedicated truck schedules and cross docking operations. This premise also includes obtaining efficiencies through best business practices such as increased consolidations and mode conversions. The DTCI coordinator would have the visibility of freight movement requirements across the CONUS and access to a network of transportation providers to schedule and fulfil[l] those requirements. Agency Report (AR), Tab 44, DTCI Information Paper, May 3, 2004, at 1. The protesters complain that the RFP improperly bundles requirements, is unduly restrictive of competition, and provides for the performance of services that are inherently governmental in nature. We deny the protest. BACKGROUND Currently, DoD transports freight from more than 600 sites using hundreds of commercial freight transportation providers to move the freight to thousands of destinations within CONUS. AR, Tab 25, Acquisition Plan, at 2; Contracting Officer's Statement of Facts (COSF) at 1. This freight transportation is managed by more than 600 transportation officers, who are assigned to various components of DoD, such as the Defense Logistics Agency, the Army, the Navy, and the Air Force, and accorded the authority to place orders under the Tailored Transportation Contract (TTC) or to issue tenders for freight shipment. Hearing Transcript (Tr.), day 1, at 21-22, 40; Agency's Post-Hearing Comments at 2.[3] According to the agency, –[m]ultiple information systems are employed to execute and manage this shipment activity; but there is no centralized planning, coordination, or control.