Grand Strategy, LLC

B-410726 Feb 02, 2015 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Encompass Group, LLC, of McDonough, Georgia, protests the terms of request for quotations (RFQ) No. VA119-14-Q-0221, issued by the Department of Veterans Affairs (VA) to both General Services Administration (GSA) and VA Federal Supply Schedule (FSS) holders, for bed linens. Encompass contends that the VA's decision to set the procurement aside for small businesses was unreasonable. The protester also argues that the agency improperly bundled the requirements. We deny the protest. We deny the protest. View Decision Decision Matter of: Encompass Group, LLC File: B-410726 Date: February 2, 2015 H. K. Tyler, Jr., Encompass Group, LLC, for the protester. Bridget E. Grant, Esq., Department of Veterans Affairs, for the agency. Peter D. Verchinski, Esq., and Nora K. Adkins, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging agency’s decision to set aside a solicitation for small business federal supply schedule holders is denied where the agency’s market research demonstrated that multiple small businesses could provide the items and expressed interest in competing for the requirement. 2. Protest alleging improper bundling under the Small Business Act is denied where the requirement was set aside for award to a small business and there was expression of interest by small businesses. DECISION Encompass Group, LLC, of McDonough, Georgia, protests the terms of request for quotations (RFQ) No. VA119-14-Q-0221, issued by the Department of Veterans Affairs (VA) to both General Services Administration (GSA) and VA Federal Supply Schedule (FSS) holders, for bed linens.[1] Encompass contends that the VA’s decision to set the procurement aside for small businesses was unreasonable. The protester also argues that the agency improperly bundled the requirements. We deny the protest. BACKGROUND Prior to issuing the RFQ, the VA Veterans Health Administration, Textile Integrated Product Team, concluded that bed linens were suitable for standardization. Contracting Officer (CO) Statement at 1. The agency sought to reduce costs by standardizing products and sources of supply, while balancing the needs of medical professionals. Id. The RFQ was intended to establish a blanket purchase agreement (BPA) that would be available for all VA medical center facilities to use when ordering bed linens.[2] Id.; see RFQ at 4. On August 13, 2013, the VA issued a request for information (RFI) on GSA’s e-Buy website and on the federal government’s FedBizOpps (Federal Business Opportunities) website, seeking information from vendors regarding the agency’s bed linens requirements.[3] CO Statement at 2. 17 vendors responded to the RFI, stating that they could provide the bed linens. AR, exh. 6, RFI Results. Of the 17 vendors, 16 were small businesses, and 5 hold FSS contracts. Id. In addition to this market research, the VA also reviewed GSA/VA Advantage and GSA’s e‑library, and identified 10 small business firms that could supply the required products. AR, exh. 8, Market Research Memo., at 3-4. The agency then emailed these firms, and 8 confirmed that they had the capability to meet VA’s needs. Agency Legal Memo. at 8; see AR, exh.8, Market Research Memo., at 3-4. All 8 of these companies are small businesses who supply the items, and 4 of them manufacture the items themselves. AR, exh. 8, Market Research Memorandum at 3-4. Based on this market research, the VA concluded that there were at least seven small businesses manufacturers (or small businesses that could provide the manufactured products of other small businesses in the U.S.) who held FSS contracts that could meet the requirements for bed linens. Agency Legal Memo. at 8-9. On October 10, 2014, the VA posted the RFQ on GSA e-Buy. The solicitation provided that the BPA would be issued to a vendor holding GSA FSS contract No. 65IIA, or VA FSS contract No. 73, special item No. 852-7. CO Statement at 3; RFQ at 1. The RFQ was issued as a total small business set-aside, and anticipated the establishment of a single fixed-price BPA, for a base year and four 1-year options. RFQ at 1; Agency Legal Memo. at 2. The selection decision was to be based on two evaluation factors: price and technical acceptability. RFQ at 21. DISCUSSION Encompass primarily challenges two aspects of the agency’s procurement. First, the protester alleges that the agency’s decision to set aside the procurement was improper because no small business vendor has all the required items on its FSS contract. Encompass also contends that the agency improperly bundled the requirements. For the reasons discussed below, we find no basis to sustain the protest.[4] The FSS programs directed and managed by GSA and the VA give federal agencies a simplified process for obtaining commonly used commercial supplies and services. FAR § 8.402(a).