B-311314.3, New Jersey & H Street, LLC, June 30, 2008

B-311314.3 Jun 30, 2008 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights New Jersey & H Street, LLC (Justice Plaza Development Team or JPDT) protests the General Service Administration's (GSA) award of a lease to CS Master V, LLC (Stonebridge), under solicitation for offers (SFO) No. 07-018, for office and related space to be occupied by the Department of Justice (DOJ) in Washington, DC. JPDT alleges several evaluation and other improprieties in the procurement. We sustain the protest. View Decision B-311314.3, New Jersey & H Street, LLC, June 30, 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: New Jersey & H Street , LLC File: B-311314.3 Date: June 30, 2008 Alex D. Tomaszczuk, Esq., and Daniel S. Herzfeld, Esq., Pillsbury Winthrop Shaw Pittman LLP, for the protester. Fernand A. Lavallee, Esq., Jeffrey R. Keitelman, Esq., and J. Philip Ludvigson, Esq., DLA Piper US LLP, for the intervenor. Robert A. Hauser, Esq., General Services Administration, for the agency. Peter D. Verchinski, Esq., David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest is sustained where agency credited awardee's proposed building with availability of certain future amenities based solely on promise in offer, without requiring supporting evidence that amenities would exist, which was required by solicitation; agency essentially relaxed evidence requirement only for awardee, without providing protester with opportunity to propose amenities under relaxed standard. 2. Protest that agency failed to engage in meaningful discussions is sustained where agency failed to raise during discussions significant weaknesses associated with access to amenities in or near protester's proposed office building. DECISION New Jersey & H Street, LLC (Justice Plaza Development Team or JPDT) protests the General Service Administration's (GSA) award of a lease to CS Master V, LLC (Stonebridge), under solicitation for offers (SFO) No. 07-018, for office and related space to be occupied by the Department of Justice (DOJ) in Washington, DC. JPDT alleges several evaluation and other improprieties in the procurement. We sustain the protest. The solicitation, which anticipated the award of a 15-year lease, provided for a –best value— award based on four evaluation factors (with subfactors): location (access to DOJ facilities, access to Metrorail, and access to amenities); building characteristics (quality of building architecture, building systems, construction, and finishes; planning efficiency and flexibility; and access to natural light); key personnel and past performance (key personnel and past performance); and price. Agency Report (AR), Tab 2, SFO, at 20-21. The location factor was approximately equal in importance to the building characteristics factor, and each was significantly more important than the key personnel/past performance factor; the technical evaluation factors combined were significantly more important than price. Id.In addition, the SFO stated that the phased occupancy of the building was to begin no earlier than January 1, 2010, and was to be completed no later than June 30, 2010. Id. at 8. Following the submission and evaluation of initial offers, a round of discussions, and the submission and evaluation of final revised offers, Stonebridge's offer and JPDT's offer were among the highest rated, both receiving an overall technical score of –highly successful plus.— JPDT's price (annual present value [DELETED] per square foot) was higher than Stonebridge's ([DELETED] per square foot), resulting in an overall difference of approximately $38,000,000 in net present value terms. The ratings under the individual technical evaluation factors and subfactors were as follows (including specific weights of each factor and subfactor, which were not disclosed in the SFO):[1] Factor Subfactor JPDT Stonebridge Location (45%) Access to DOJ (20%) Highly Successful Successful Plus Access to Metro (15%) Poor Highly Successful Access to Amenities (10%) Successful Highly Successful Factor Score Successful Highly Successful Minus Building Characteristics (45%) Quality of Building Architecture, etc. (20%) Superior Superior Planning Efficiency and Flexibility (20%) Superior Highly Successful Access to Light (5%) Superior Superior Factor Score Superior Superior Minus Key Personnel/ Past Performance (10%) Key Personnel (5%) Superior Superior Past Performance (5%) Superior Successful Factor Score Superior Highly Successful OVERALL SCORE Highly Successful Plus Highly Successful Plus AR, Tab 5, at 49.