B-311247, Lisa Hartman-Designated Employee Agent, May 6, 2008

B-311247 May 06, 2008 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Lisa Hartman-Designated Employee Agent1 protests the award of a contract to DWBH Services, Inc. under request for proposals (RFP) No. VA-786-07-RP-0220, issued by the Department of Veterans Affairs (VA), National Cemetery Administration for grounds maintenance services for the Chattanooga National Cemetery. The protester argues that the agency is violating Office of Management and Budget (OMB) Circular A-76 by directly converting functions performed by federal employees to contractor performance without conducting a cost comparison. We deny the protest. View Decision B-311247, Lisa Hartman-Designated Employee Agent, May 6, 2008 Decision Matter of: Lisa Hartman-Designated Employee Agent File: B-311247 Date: May 6, 2008 Lisa Hartman, Designated Employee Agent, the protester. Phillipa L. Anderson, Esq., and Denis Foley, 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 Protest filed by a Designated Employee Agent alleging that a public-private competition under Office of Management and Budget Circular A-76 is required before the agency can award a contract for ground maintenance services which are currently being provided by 7 civilian employees (who also perform other functions, and none of whom will lose their jobs here) is denied because the Circular does not require issuance of a solicitation in the case of a function as small as this, and because recently-enacted changes to the Office of Federal Procurement Policy Act, 41 U.S.C. sect. 403, do not impose cost comparison requirements on conversions of functions performed by fewer than 10 employees. DECISION Lisa Hartman-Designated Employee Agent[1] protests the award of a contract to DWBH Services, Inc. under request for proposals (RFP) No. VA-786-07-RP-0220, issued by the Department of Veterans Affairs (VA), National Cemetery Administration for grounds maintenance services for the ChattanoogaNationalCemetery. The protester argues that the agency is violating Office of Management and Budget (OMB) Circular A-76 by directly converting functions performed by federal employees to contractor performance without conducting a cost comparison. We deny the protest. The RFP was issued on September 13, 2007, as a service-disabled veteran-owned small business (SDVOSB) set-aside for a 1-year base period with three 1-year option periods. The services involve the setting and alignment of new or replacement headstones; lawn maintenance, including mowing, trimming and edging; and leaf collection. The amended closing date for receipt of proposals was October 10, 2007. After the receipt and evaluation of proposals, final proposal revisions were received on November 28. Award was made to DWBH on January 16, 2008 and a notice of award was published in FedBizOpps on January 18. This protest followed. The protester states that seven federal employees are currently performing the cemetery maintenance services at the ChattanoogaCemetery.[2] The protester argues that the VA is violating the OMB Circular by directly converting functions performed by federal employees to contractor performance without conducting a cost comparison. The protester also maintains that the affected employees have been placed at a competitive disadvantage by the agency's action because they were not allowed to compete to retain their own work. The VA responds that it has not converted a function performed by federal employees, because no agency job has been affected or lost as a result of the RFP. The agency states that it has been contracting for these services since 2001 and that it has informed current employees that this contract action would not have an impact on current cemetery employees. The agency also states that current employees perform interments, raising/realigning of headstones, grounds maintenance, such as grave repair, over seeding, headstone cleaning, shelter preparations, sod application, herbicide applications, equipment/vehicle maintenance, and program preparations. The agency states that as a result of the award under this RFP, the current employees will perform all of their current functions except headstone alignments and mowing. With respect to the OMB Circular, the protester correctly notes that the current version of the Circular prescribes two types of cost comparisons. Where 65 or more full time equivalents (FTEs) are involved, the Circular requires a –standard competition—; where fewer than 65 FTEs are involved, the Circular permits either a standard or a –streamlined competition.— OMB Circular A-76 (May 29, 2003), attach. B, at B-1.