B-311141, In and Out Valet Co., April 3, 2008

B-311141 Apr 03, 2008 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights In and Out Valet Co., a service-disabled veteran-owned small business (SDVOSB), concern protests the Department of Veterans Affairs (VA) decision to make a sole-source award to Veterans Parking Management, LLC (VPM), also an SDVOSB, for valet parking services at the Pittsburgh VA Medical Center under request for proposals (RFP) No. VA244-08-RP-0090. We deny the protest. View Decision B-311141, In and Out Valet Co., April 3, 2008 Decision Matter of: In and Out Valet Co. File: B-311141 Date: April 3, 2008 James T. Tramonte for the protester. Jose H. Lopez, Esq., and Kate Gorney, Esq., Department of Veterans Affairs, 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 The Department of Veterans Affairs has statutory authority to make a sole-source award to a service-disabled veteran-owned small business (SDVOSB) concern where the anticipated award price exceeds the simplified acquisition threshold but does not exceed $5 million, the SDVOSB is determined to be a responsible source, and the contracting officer has determined that award can be made at a fair and reasonable price. DECISION In and Out Valet Co., a service-disabled veteran-owned small business (SDVOSB), concern protests the Department of Veterans Affairs (VA) decision to make a sole-source award to Veterans Parking Management, LLC (VPM), also an SDVOSB, for valet parking services at the Pittsburgh VA Medical Center under request for proposals (RFP) No. VA244-08-RP-0090. We deny the protest. BACKGROUND On May 3, 2007, the VA issued a competitive SDVOSB set-aside solicitation (RFP No. 244-07-RP-0010). Four offerors responded to the solicitation. VPM submitted the lowest-priced, most highly rated technical proposal and was awarded a contract on June 15 for a contract period of June 18 to January 31, 2008. In and Out protested VPM's eligibility as a small business concern to the Small Business Administration (SBA). On August 6, the SBA made a formal determination that VPM was other than a small business. As a result, the agency terminated VPM's contract and issued a noncompetitive RFP to In and Out which was ranked second technically under the original competition. Award was made to In and Out on October 1 for the remainder of VPM's contract -- i.e., for the period of October 15 through January 31, 2008.[1] On October 4, VPM was re-certified as a small business concern by the SBA. Around October 14, the agency hired the former project manager for VPM under a temporary appointment to assist with the transition from performance by VPM to In and Out. When the temporary appointment expired, the former project manager was hired for a completely different and unrelated position. The contracting officer (CO) states that she decided on December 13, to award a sole-source contract for the new work to VPM because the VA has statutory authority to make sole-source awards to SDVOSB concerns. The CO states that her determination was based on the following: VPM was re-certified by the SBA as a small business, VPM was registered as an SDVOSB, VPM provided excellent services under the previous contract prior to the termination, and there were serious performance issues with In and Out. The RFP was issued to VPM on a sole-source basis on December 21, 2007, and on January 16, 2008 the contract was awarded to VPM for a 1 year period. On January 25, In and Out filed this protest with our Office. DISCUSSION The protester essentially objects to the sole-source award to VPM primarily because VPM had been previously determined by the SBA to be other than a small business concern.[2] The protester argues that the agency erred in contracting with VPM on a sole-source basis without taking into consideration the favorable performance it provided on the incumbent contract. The protester also points to the VA's hiring of VPM's former project manager to assist with the performance transition from VPM to In and Out, and maintains that this employee contributed to the protester's performance problems and influenced the agency's decision to contract with VPM on a sole-source basis. The agency asserts that it was within its authority to award the contract to VPM on a sole-source basis. We agree. The VA's statutory authority to make sole-source awards to SDVOSBs is set forth at 38 U.S.C. sect. 8127, Pub. L. No. 109-461, 120 Stat. 3431, 3432 (2006). This authority allows the VA to award to an SDVOSB on a sole-source basis when: (1) such concern is determined to be a responsible source with respect to performance of such contract opportunity; (2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.