B-299526; B-299526.2, Medical Matrix, LP, June 12, 2007

B-299526; B-299526.2, Medical Matrix, LP, June 12, 2007 TITLE: B-299526; B-299526.2, Medical Matrix, LP, June 12, 2007 BNUMBER: B-299526; B-299526.2 DATE: June 12, 2007 ******************************************************* B-299526; B-299526.2, Medical Matrix, LP, June 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: Medical Matrix, LP File: B-299526; B-299526.2 Date: June 12, 2007 Kenneth Weckstein, Esq., Shlomo D. Katz, Esq., and Tammy Hopkins, Esq., Epstein Becker & Green, PC, for the protester. Marcia G. Madsen, Esq., David F. Dowd, Esq., and David B. Robbins, Esq., Mayer, Brown, Rowe & Maw LLP, for SXC Health Solutions, Inc., an intervenor. Maura C. Brown, Department of Veterans Affairs, for the agency. Scott H. Riback, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging reasonableness of agency's past performance evaluation is denied where challenge is based on assumption that awardee had not previously performed requirements called for in solicitation, which is not supported by record. 2. Protest alleging that agency improperly failed to consider past performance in connection with its evaluation of proposals under technical evaluation criteria is denied where evaluation scheme included separate technical and past performance evaluation criteria, and did not provide for evaluation of past performance under technical criteria. 3. Protest that agency failed to recognize that awardee's proposed price was unrealistically low as compared to protester's is denied where record shows that, although protester was incumbent contractor, solicitation called for work not previously performed by protester; price disparity between protester's and awardee's proposals is attributable to this component of the requirement; and awardee has previous experience performing this aspect of the requirement, which agency recognized as basis for price disparity. DECISION Medical Matrix, LP protests the award of a contract to SXC Health Solutions, Inc. under request for proposals (RFP) No. 741-07-05, issued by the Department of Veterans Affairs (VA) for services in connection with providing and managing pharmaceutical transactions. Medical Matrix asserts that the agency misevaluated proposals and made an unreasonable source selection decision. We deny the protest. BACKGROUND VA provides pharmacy benefits under three programs that it administers: VA's civilian health and medical program, the spina bifida health care program, and the children of women Vietnam veterans healthcare program. The RFP contemplated the award of a fixed-price contract for a base year, with four 1-year options, to provide various services in connection with these programs. Specifically, the contractor is to provide: retail pharmacy services to the agency's beneficiary population through a nationwide network of pharmacies; a range of pharmacy claims transaction processing services; help desk services, as well as a web site, for the agency's beneficiary population; and various reports that distill information relating to the pharmacy transactions being processed. RFP at 14-27. Offerors were advised that the beneficiary population for the programs was 251,108, that the total number of prescriptions for this group was approximately 3.5 million, and that, of this number, approximately 1.34 million prescriptions would be filled through retail pharmacies, 1 million prescriptions would be filled at the VA mail order pharmacy, and 1.13 million prescriptions were beneficiary-submitted retail or VA in-house treatment initiative paper claims. Id. at 12. Offerors were advised that award would be made on a "best value" basis, considering technical capability, past performance, and price, with technical capability more important than past performance, and technical capability and past performance together more important than price. RFP at 4.