Hydromach Inc.

B-412169 Dec 28, 2015 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Hydromach, Inc., of Chatsworth, California, a small business, protests the issuance of a purchase order to CM Manufacturing, Inc., of Missoula, Montana, by the Defense Logistics Agency (DLA) under request for quotations (RFQ) No. SPE5EC-15-Q-0381, for the requisition of bolts, National Stock Number (NSN) 5306-01-206-5459. Hydromach argues that DLA's best-value tradeoff analysis and source selection decision failed to consider the evaluated differences between the quotations, and was not adequately documented. We deny the protest. We deny the protest. View Decision Decision Matter of:  Hydromach, Inc. File:  B-412169 Date:  December 28, 2015 Charles R. Platt, Hydromach, Inc., for the protester. Amanda Stone, Esq., Defense Logistics Agency, for the agency. Heather Weiner, 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 selection of a higher-priced quotation is denied where the agency’s tradeoff decision was reasonable, and where the agency adequately documented its tradeoff rationale. DECISION Hydromach, Inc., of Chatsworth, California, a small business, protests the issuance of a purchase order to CM Manufacturing, Inc., of Missoula, Montana, by the Defense Logistics Agency (DLA) under request for quotations (RFQ) No. SPE5EC-15-Q-0381, for the requisition of bolts, National Stock Number (NSN) 5306-01-206-5459.  Hydromach argues that DLA’s best‑value tradeoff analysis and source selection decision failed to consider the evaluated differences between the quotations, and was not adequately documented. We deny the protest. BACKGROUND On May 25, DLA issued the RFQ, which sought quotations for the acquisition of 75  “externally, relieved body” bolts, (NSN 5459).[1]  RFQ at 1.  The solicitation was issued as a small business set-aside pursuant to the simplified acquisition procedures of Federal Acquisition Regulation (FAR) part 13.  The RFQ anticipated the issuance of a fixed-price purchase order on a best-value basis, considering the following factors:  (1) first article testing (FAT) cost of $1,000 (unless waived); (2) past performance; and (3) price.  Id. at 26-27. As relevant here, the solicitation advised offerors that the bolts were a designated Air Force critical safety item, and that pursuant to FAR clause 52.209-04, first article approval‑contractor testing would be required under the resulting purchase order, unless the contractor requested and obtained a waiver of the testing.  Id. at 2, 11‑12, 26.  With regard to the evaluation of the FAT, the RFQ stated that “[t]he Government’s testing costs [of $1,000] will be added to the offered price of the applicable item.”  Id. at 26; see Defense Logistics Acquisition Directive (DLAD) clause 52.209-9016, Evaluation of Offers First Article Testing (MAR 2000).The RFQ also stated, however, that “[t]he FAT evaluation fee . . . will not be added to the total amount if a FAT waiver is requested and granted.”[2]  RFQ at 2.  With regard to past performance, the RFQ included DLAD clause 52.215-9022, Contractor Past Performance Evaluation – Information From Automated Systems (FEB 2013), which states that when used in best-value source selections, past performance information will be evaluated based upon the currency and relevancy of past performance information in order to reach a confidence assessment for each offeror from which offers were received.  DLAD clause 52.215-9022.  In conducting this evaluation, this clause provides that the agency may consider the past performance information from various information systems, such as the Past Performance Information Retrieval System – Statistical Reporting (PPIRS-SR).[3] DLA received quotations from five vendors, including Hydromach and CM, prior to the September 9 deadline for receipt of quotations.  Agency Report (AR) at 6.  Hydromach’s quotation offered the bolts at a unit price of $880.67 each, with a FAT unit price of $1.00 each, for a total offered value of $66,051.25.  AR, Tab 3, Hydromach’s Quotation, at 1.  Hydromach’s quotation did not request a waiver of the FAT testing, and therefore, as specified in the RFQ,[4] DLA added $1,000 to Hydromach’s offered price during the evaluation of Hydromach’s quotation.  Id.; AR, Tab 6, Agency Evaluation, at 1.  Accordingly, the total evaluated price for Hydromach’s quotation was $67,051.25.  Id.  CM’s quotation offered the bolts at a unit price of $899 each, with a FAT of $0, for a total offered value of $67,425.  AR, Tab 4, CM Quotation, at 1.  CM’s quotation requested waiver of the FAT testing, which was approved by the agency.[5]  AR at 5; AR, Tab 5, Agency Email (Sept. 9, 2015), at 1-6; Tab 7, DLA Email (Sept.