B-310971; B-310971.2; B-310971.3, Colson Services Corporation, March 21, 2008

B-310971; B-310971.2; B-310971.3, Colson Services Corporation, March 21, 2008 TITLE: B-310971; B-310971.2; B-310971.3, Colson Services Corporation, March 21, 2008 BNUMBER: B-310971; B-310971.2; B-310971.3 DATE: March 21, 2008 ***************************************************************************** B-310971; B-310971.2; B-310971.3, Colson Services Corporation, March 21, 2008 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: Colson Services Corporation File: B-310971; B-310971.2; B-310971.3 Date: March 21, 2008 Scott E. Pickens, Esq., Craig S. Burkhardt, Esq., and Richard H. Streeter, Esq., Barnes & Thornburg LLP, for the protester. Philip J. Davis, Esq., Nicole P. Wishart, Esq., and Tracye Winfrey Howard, Esq., Wiley Rein LLP, for Retirement System Group, Inc., an intervenor. Laura Mann Eyester, Esq., Small Business Administration, for the agency. Jennifer D. Westfall-McGrail, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging source selection decision is denied where source selection authority recognized that solicitation requirements not addressed by protester in its technical proposal had been satisfactorily addressed in protester's business proposal. 2. Request for clarification of whether proposed rebate amounts had been offered on a monthly or an annual basis did not constitute discussions where offerors were not given the opportunity to revise their rebate amounts. DECISION Colson Services Corporation protests the award of a contract to Retirement System Group, Inc. (RSG) under request for proposals (RFP) No. SBAHQ-07-R-0010, issued by the Small Business Administration (SBA) for Fiscal and Transfer Agent (FTA) services for the secondary market program of SBA's 7(a) Guaranteed Loan program. Colson argues that the agency's evaluation of proposals was unreasonable and that the agency improperly failed to conduct discussions with the firm. We deny the protest. BACKGROUND SBA's 7(a) Guaranteed Loan program is the primary federal lending program devoted to small businesses. The program extends a full faith and credit guarantee of the U.S. government to lenders that make small business loans pursuant to SBA rules and regulations. The program currently provides guarantees on loans up to $2 million, and a maximum guarantee amount of $1.5 million. At present, the 7(a) portfolio of loans exceeds 300,000 accounts with an outstanding gross principal balance of $46.5 billion. RFP at 6. The purpose of the RFP at issue here is to facilitate the receipt and recording of guaranteed interests in loan payments from lending institutions participating in the 7(a) Guaranteed Loan program and to conduct a primary and secondary market in the individual loans and certificates guaranteed by the SBA. To this end, the contractor is to develop, implement, and operate an interactive, electronic fiscal and transfer payment system. The contractor is also to furnish custodial care and safekeeping services for documents relating to structured credit facilities and loan portfolio securitization instruments. Id. The RFP authorizes the contractor to collect various service fees from lenders as compensation for the services that it furnishes under the contract; it also authorizes the contractor to collect and retain float income on any loan payment funds in its possession. RFP at 4-5. In lieu of prices, the RFP asks offerors for proposed "rebate" amounts--that is, it asks offerors for the amounts (of the income that they make under the contract) that they will remit to the government.[1] The solicitation contemplated the award of a contract for a 4-month phase-in period, an 8-month base period, and four 1-year option periods. The RFP provided for award to the responsible offeror whose proposal represented the best value to the government, price and other factors considered, with the non-price factors of significantly greater importance in the determination of best value than price. Non-price factors consisted of technical approach, management approach, personnel, and past performance; the first two factors were of equal importance and of greater significance than the second two, which were also of equal weight. The solicitation advised offerors of the possibility that the agency might choose to award on the basis of initial proposals. Two offerors, RSG and Colson, submitted proposals by the RFP's October 24, 2007 closing date.