B-400216, AT&T Government Solutions, Inc., August 28, 2008

B-400216 Aug 28, 2008 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights AT&T Government Solutions, Inc. protests its disqualification, due to a perceived organizational conflict of interest (OCI), under request for proposals (RFP) No. N00189-08-R-0003, issued by the Department of the Navy for information operations (IO) support services, including analysis of computer network security systems. AT&T contends that the agency improperly failed to consider the OCI mitigation plan included in its proposal; unreasonably concluded that the firm would evaluate its own products, given that the agency does not subscribe to the firm's network's products and services; and improperly failed to give the firm notice of and an opportunity to respond to the agency's OCI concerns before being disqualified. We sustain the protest. View Decision B-400216, AT&T Government Solutions, Inc., August 28, 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: AT&T Government Solutions, Inc. File: B-400216 Date: August 28, 2008 David Z. Bodenheimer, Esq., James J. Regan, Esq., and James Peyster, Esq., Crowell & Moring LLP, for the protester. Davis Young, Esq., Department of the Navy, Fleet and IndustrialSupplyCenter, for the agency. Susan K. McAuliffe, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of firm's elimination from competition due to perceived organizational conflict of interest (OCI) is sustained where agency failed to evaluate protester's proposed mitigation plan, failed to consider whether protester would actually be in a position to evaluate its own products, and did not give protester notice of and an opportunity to respond to OCI findings prior to firm's disqualification. DECISION AT&T Government Solutions, Inc. protests its disqualification, due to a perceived organizational conflict of interest (OCI), under request for proposals (RFP) No. N00189-08-R-0003, issued by the Department of the Navy for information operations (IO) support services, including analysis of computer network security systems. AT&T contends that the agency improperly failed to consider the OCI mitigation plan included in its proposal; unreasonably concluded that the firm would evaluate its own products, given that the agency does not subscribe to the firm's network's products and services; and improperly failed to give the firm notice of and an opportunity to respond to the agency's OCI concerns before being disqualified. We sustain the protest. The RFP, issued on January 2, 2008, sought proposals for the award of an indefinite-delivery/indefinite-quantity contract for a 1-year base period and 4 option periods for IO support services related to the following 11 performance tasks: fleet training; computer network operations; strategic, operational and tactical planning; operational support; functional data management; IO requirements; experimentation, tactics evaluation and doctrine development; systems assessment; information technology management and administration; engineering and technical services; and IO management and professional support services. RFP at 14-17. Award is to be made to the firm that submits the proposal deemed to represent the best value to the agency considering technical factors and price. Id. at 83-84. The RFP advised that the contracting officer would evaluate all proposals to determine whether a prime contractor or subcontractor had an actual or apparent OCI in performing the RFP's tasks. Id. at 38. To help offerors determine if they had an OCI, the RFP listed various computer-related products and equipment used for the operations to be supported under the RFP; while not intended as an exhaustive listing of all possible areas of conflict, the list nevertheless did not identify any AT&T products or equipment. Id. at attach. 4. The RFP stated that, in accordance with the agency's interpretation of the rules set out in Federal Acquisition Regulation (FAR) sect. 3.101 (providing for OCIs to be strictly avoided), sect. 1.602-2 (providing for the nation's interests to be safeguarded in its contractual relationships), and FAR subpart 9.5 (regarding the use of limits on a contractor's activities if appropriate to avoid, neutralize, or mitigate OCIs in order to prevent bias and unfair advantage), firms with even an appearance of an OCI –will be disqualified and eliminated.— Id. at 38. The RFP, under a heading entitled –contracting restrictions,— referenced several FAR subpart 9.5 provisions that permit participation in a procurement and the award of a contract where appropriate actions are taken, and safeguards are put in place, that resolve perceived conflicts of interest. Id. at 39-41.