B-299981.2; B-299981.4, Legacy Management Solutions, LLC, October 10, 2007

B-299981.2; B-299981.4, Legacy Management Solutions, LLC, October 10, 2007 TITLE: B-299981.2; B-299981.4, Legacy Management Solutions, LLC, October 10, 2007 BNUMBER: B-299981.2; B-299981.4 DATE: October 10, 2007 ************************************************************************** B-299981.2; B-299981.4, Legacy Management Solutions, LLC, October 10, 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: Legacy Management Solutions, LLC File: B-299981.2; B-299981.4 Date: October 10, 2007 Kevin P. Mullen, Esq., and David E. Fletcher, Esq., Cooley Godward Kronish, LLP, for the protester. Joseph P. Hornyak, Esq., and Allison V. Feierabend, Esq., Holland & Knight, for The S.M. Stoller Company, an intervenor. H. Jack Shearer, Esq., and Young H. Cho, Esq., Department of Energy, for the agency. Mary G. Curcio, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Where solicitation contemplated award of fixed-price contract, agency's comparing proposed prices to government estimate and other proposed prices and ensuring that prices reflected labor categories and hours specified in solicitation constituted reasonable price realism analysis. 2. Protest of alleged unbalanced pricing among awardee's proposed labor rates is denied where agency evaluated challenged rates as reasonable and realistic; record shows that rates were within range of all offerors' proposed rates, so that there was no basis to find them significantly overstated or understated, and thus no basis to find them unbalanced. DECISION Legacy Management Solutions, LLC protests the award of a contract to The S.M. Stoller Co. under request for proposals (RFP) No. DE-RP01-07LM00060, issued by the Department of Energy (DOE) for support services. Legacy complains that the agency improperly evaluated the technical proposals and failed to perform an adequate price realism analysis. We deny the protest. DOE's legacy program is responsible for managing land structures and facilities that were associated with nuclear weapons production during the cold war and are now closed. The RFP sought support services for this program, and provided for award of a contract on a time-and-material basis, with provision for a base fee and award fees. The RFP indicated that the award would be made on a "best value" basis considering technical factors--technical approach, management approach, personnel qualifications and staffing, corporate experience, and past performance--and price; the technical factors were more important than price. RFP at 88-92. Regarding price, the RFP, as amended, included a list of 15 labor categories, with multiple experience levels and the estimated number of hours that each level could be expected to perform annually. RFP at 381. The RFP also specified a dollar amount that each offeror was to include in its proposal for other direct costs. RFP at 383. Offerors were to propose a loaded, fixed, hourly rate (minus fee) for each labor category, as well as a base fee and an award fee. RFP at 78-79. Price was to be evaluated for reasonableness, realism, and completeness. RFP at 92. The agency received five proposals, including Legacy's and Stoller's. A technical evaluation committee (TEC) reviewed and scored the proposals under each factor. Stoller's proposal was ranked first, with a technical score of 920 (of 1,000 available) points--320 (of 400) for technical approach, 250 (of 250) for management approach, 200 (of 200) for personnel qualifications and staffing, 100 (of 100) for corporate experience, and 50 (of 50) for past performance. AR at 7. Legacy's proposal was ranked second, with a score of 615 points--200 for technical approach, 125 for management approach, 160 for personnel qualifications and staffing, 80 for corporate experience, and 50 for past performance. Id. Stoller's proposed price was the lowest, at $167,656,172, and Legacy's the second lowest, at $184,943,641. AR at 8. Based on its highest technical score and lowest price, Stoller's proposal was ranked first overall; Legacy's was ranked second. Id. Based on the technical evaluation report, the source selection authority (SSA) determined that Stoller's proposal represented the best value, and thus selected Stoller for award. Legacy protests the award decision. PRICE REALISM ANALYSIS Legacy challenges the reasonableness of the agency's price realism analysis. In this regard, section M of the RFP stated that proposals would be evaluated for realism, reasonableness and completeness in order to establish a probable cost.