B-298870.3; B-298870.4, Axiom Resource Management, Inc., July 12, 2007

B-298870.3; B-298870.4, Axiom Resource Management, Inc., July 12, 2007 TITLE: B-298870.3; B-298870.4, Axiom Resource Management, Inc., July 12, 2007 BNUMBER: B-298870.3; B-298870.4 DATE: July 12, 2007 ********************************************************************** B-298870.3; B-298870.4, Axiom Resource Management, Inc., July 12, 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: Axiom Resource Management, Inc. File: B-298870.3; B-298870.4 Date: July 12, 2007 James S. DelSordo, Esq., Argus Legal, LLC, for the protester. LTC Frank A. March, Department of the Army, for the agency. Linda C. Glass, Esq., and Ralph O. White, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Contracting agency reasonably determined that the issuance of a task order to a vendor to provide program management support services to the TRICARE Acquisitions Directorate did not create an impermissible organizational conflict of interest (OCI) where the agency reviewed both existing and future support requirements, and concluded that no OCI exists for current support contracts, that any potential future OCIs can be mitigated and that the awardee here will be barred from competing as a prime contractor or subcontractor on future support contracts to provide healthcare benefits directly to TRICARE benefit recipients. DECISION Axiom Resource Management, Inc. protests the issuance of a task order to Lockheed Martin Federal Healthcare, Inc. under request for quotations (RFQ) No. 154160, issued by the United States Army Medical Research Acquisition Activity (USAMRAA), for program management support services for the TRICARE Acquisitions Directorate, including support for the TRICARE Office of General Counsel and TRICARE transition and integration contracts. The protester argues that the agency failed to recognize, or properly mitigate, an alleged organizational conflict of interest (OCI) created by award[1] to Lockheed, erred in deciding not to hold discussions, and conducted an unreasonable evaluation. We deny the protests. BACKGROUND TRICARE is a managed health care program implemented by the Department of Defense (DoD) for active duty and retired members of the uniformed services, their families and survivors. See generally 32 C.F.R. sect. 199.17 (2006). TRICARE is a blend of the military's direct care system of hospitals and clinics (known as Military Treatment Facilities) and the Civilian Health and Medical Program of the Uniformed Services. The TRICARE Management Activity (TMA) is the DoD office that directs the TRICARE program. The RFQ, issued July 30, 2006, anticipated the issuance of a fixed-price task order under the vendors' Federal Supply Schedule contracts; the task order would be for a base year with four 1-year option periods. The RFQ advised that the selection decision would be made on a best value basis considering the following five evaluation factors (in descending order of importance): technical approach, experience, quality control approach, past performance and price/cost. With respect to the past performance evaluation factor, vendors were required to provide a list of at least three, but no more than five references, for past and present contracts. The RFQ further provided that the agency did not anticipate holding discussions before selecting a vendor. The RFQ provided extensive guidelines regarding potential OCIs. Specifically the solicitation stated that for purposes of identifying, avoiding or mitigating against OCIs, the TMA had categorized its non-purchased care requirements[2] into the following three broad categories: Category 1: TMA Internal Support: Services which, by their very nature, give the Contractor access to extensive data about the contracts of all other TMA contractors. Category 2: Program Management Support: Services which assist TMA in planning and managing its activities and programs. This includes, for example: requirements analysis, acquisition support, budget planning and management, business process reengineering, program planning and execution support, and independent technical management support. Category 3: Product Support: Services or end items required to meet the mission requirements of TMA's non-purchased care activities and programs. This includes, for example: concept exploration and development; system design; system development and integration; COTS procurement and integration; internal development testing; deployment; installation; operations; and maintenance. RFQ sect.