B-299936.2, Gonzales-McCaulley Investment Group, Inc., November 5, 2007

B-299936.2 Nov 05, 2007 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Gonzales-McCaulley Investment Group, Inc. (GMIG) protests the decision of the Department of Health and Human Services (HHS) to cancel a solicitation for quotations for grants management courses to be taught at the Health and Human Services University (HHS-U), as authorized by the Government Employees Training Act (GETA), 41 U.S.C. 4101-4121 (2000). We sustain the protest. View Decision B-299936.2, Gonzales-McCaulley Investment Group, Inc., November 5, 2007 Decision Matter of: Gonzales-McCaulley Investment Group, Inc. File: B-299936.2 Date: November 5, 2007 Ollie M. McCaulley for the protester. Steven Simpson, Esq., for Management Concepts, an intervenor. Jonathan A. Baker, Esq., Department of Health and Human Services, for the agency. Nora K. Adkins, Esq., and James Spangenberg, Esq., Office of General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Agency's decision to cancel a solicitation, after a protest was filed, due to a lack of valid delegated procurement authority, was essentially pretextual when no other solicitations issued under the invalid delegation were cancelled. 2. Agency did not have a reasonable basis to rescind the selection of a vendor for providing training classes under the Government Employees Training Act based on its belief that the vendor plagiarized certain material from another vendor and included this material in its quotation, which the agency found indicated a lack of independent knowledge of the course material that rendered the quotation unacceptable, where the agency did not reasonably investigate its concerns, the record contains evidence that the vendor properly obtained this material from the agency and reasonably used it in its quotation, and the vendor's quotation contained information that was not plagiarized that was relevant to its knowledge of the course material. DECISION Gonzales-McCaulley Investment Group, Inc. (GMIG) protests the decision of the Department of Health and Human Services (HHS) to cancel a solicitation for quotations for grants management courses to be taught at the Health and Human Services University (HHS-U), as authorized by the Government Employees Training Act (GETA), 41 U.S.C. sections 4101-4121 (2000).[1] HHS-U was established on February 19, 2003, as an organizational unit of the Human Resources Service within the HHS Program Support Center (PSC) to develop and manage the Department's training and workforce development. 68 Fed. Reg. 8040 (Feb. 19, 2003). On April 14, 2003, the Deputy Assistant Secretary for Program Support in charge of PSC delegated to the Director of the Human Resources Service the authority to approve and acquire training through HHS-U under the GETA acquisition authority. Agency Report (AR), Sept. 10, 2007, Tab 3, Memorandum, Deputy Assistant Secretary for Program Support. [2] HHS'U's training acquisition is administered by a Center Manager who, among other things, oversees vendor selection. On May 11, 2007, the protester received from HHS-U the solicitation for quotations for providing grants management classes for HHS-U's 2008 schedule. In the solicitation, vendors were requested to provide statements of technical capability/subject matter expertise; a statement showing the vendor's understanding of the requirements; assurance of sufficient staff, resources, and instructor knowledge; a list of the grants management courses for which the vendor presents training, including a course agenda/content outline and a list of objectives; itemized costs; and references. This solicitation also listed and described eight grants management training courses for the 2008 fiscal year. Initial Protest, July 2, 2007, Tab 1, HHS-U E-mail to GMIG Requesting Quotation. GMIG and other vendors submitted quotations prior to the May 31 closing date. Upon review of the vendors' technical capabilities and prices, HHS-U selected GMIG, as well as Management Concepts (the incumbent) and one other vendor, to provide grants management training courses at HHS-U. AR, July 27, 2007, Tab 1, Center Manager's Statement, at 1. On June 19, GMIG received from the Center Manager a confirmation of selection to provide the eight grants management courses at HHS-U. Initial Protest, Tab 6, HHS-U E-mail to GMIG Confirming Selection. Prior to the start of classes, the Center Manager states that she was reviewing the Management Concepts website and noticed –a striking similarity with the course descriptions, objectives, and topics— in comparison to GMIG's quotation. AR, July 27, 2007, Tab 1, Center Manager's Statement, at 1. She thus determined that GMIG had submitted –plagiarized— material from the Management Concepts website.