Crosstown Courier Service, Inc.

B-410936 Mar 12, 2015 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Crosstown Courier Service, Inc., of Chicopee, Massachusetts, protests the terms of request for proposals (RFP) No. VA263-14-R-3610, a small business set-aside, issued by the Department of Veterans Affairs (VA) for courier services for the Minneapolis VA Health Care System (MVAHCS). Crosstown, a service-disabled veteran-owned (SDVOSB) concern, argues that the VA should have set the procurement aside for SDVOSB concerns. We deny the protest. We deny the protest. View Decision Decision Matter of: Crosstown Courier Service, Inc. File: B-410936 Date: March 12, 2015 Christopher J. Noyes, for the protester. Natica C. Neely, Esq., Department of Veterans Affairs, for the agency. Evan D. Wesser, Esq., and Jonathan L. Kang, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the agency’s decision not to set aside a procurement for service-disabled veteran-owned small business (SDVOSB) concerns is denied where the agency reasonably concluded from its market research that it did not have an expectation of receiving proposals from two or more SDVOSB concerns capable of performing the required services. DECISION Crosstown Courier Service, Inc., of Chicopee, Massachusetts, protests the terms of request for proposals (RFP) No. VA263-14-R-3610, a small business set-aside, issued by the Department of Veterans Affairs (VA) for courier services for the Minneapolis VA Health Care System (MVAHCS). Crosstown, a service-disabled veteran-owned (SDVOSB) concern, argues that the VA should have set the procurement aside for SDVOSB concerns. We deny the protest. BACKGROUND The RFP seeks proposals for all necessary labor, equipment, and transportation services for pick-up and delivery each weekday between the MVAHCS and 10 VA Community Based Outpatient Clinics (CBOC) located throughout Minnesota and western Wisconsin. RFP at 11, 19-28.[1] The courier will be required to transport laboratory specimens, mail, X-rays, CD materials, and pharmacy coolers from the CBOCs to the MVAHCS, and to deliver empty specimen containers and coolers from the MVAHCS to the CBOCs. Id. at 11. The RFP includes three evaluation factors: (1) technical; (2) past performance; and (3) price. Id. at 54.[2] Award is to be made on a best-value basis. Id. Prior to setting aside the procurement for small businesses, the contracting officer (CO) conducted market research to determine whether there was a reasonable expectation of receiving proposals from two or more SDVOSB concerns capable of performing the required services at reasonable prices. The CO determined that it was appropriate to limit the market research to Minnesota-based SDVOSB concerns, in light of the daily delivery and pickup requirements from Minneapolis to locations throughout Minnesota and western Wisconsin. In this regard, the RFP required offerors to demonstrate their capability of managing all operations at a local level to ensure proper quality assurance. RFP at 12. Additionally, the RFP directed that all vehicles to be used in the performance of the resulting contract had to be owned by the contractor or its subcontractor. Id.[3] For these reasons, the CO concluded that a vendor located within 50-100 miles of the MVAHCS would “keep costs to the government reasonable.” AR, Tab 4, Market Research Report (May 16, 2014), at 1.[4] The CO conducted research in a number of government databases. First, she searched the General Service Administration’s (GSA) e-Library for local couriers in Minnesota under Federal Supply Schedule 48, Transportation, Delivery and Relocation Services, Special Item Number 451 3, Local Courier Delivery Services – (Small Business Set-aside). That search identified no local vendors. AR, Tab 4, Market Research Report, at 1; Tab 5, Minnesota Market Research, at 1‑6. Next, the CO searched for firms with the RFP’s applicable North American Industry Classification System (NAICS) code, No. 492110 (courier services), using the VA’s Veterans Information Pages (VIP).[5] That search identified only one Minnesota-based SDVOSB concern. AR, Tab 4, Market Research Report, at 1; Tab 5, Minnesota Market Research, at 7. Next, the CO searched using the keyword “courier” in the Small Business Administration’s Dynamic Small Business Search (DSBS) database. That search identified six active, Minnesota-based small business concerns, including the same SDVOSB concern identified in the VIP. AR, Tab 4, Market Research Report, at 1; Tab 5, Minnesota Market Research, at 9‑10. Finally, the CO searched using the RFP’s applicable NAICS code for Minnesota-based vendors in the System for Award Management. That search identified eleven total vendors, six of which were small businesses, including the SDVOSB concern located utilizing the VIP and DSBS database.