Spur Design, LLC

B-412245.3 Feb 24, 2016 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Spur Design, LLC (Spur) of Oklahoma City, Oklahoma, protests the Department of Veterans Affairs' (VA) decision not to set aside for service-disabled veteran-owned small business (SDVOSB) or veteran-owned small business (VOSB) concerns solicitation number VA-255-15-R-0752 for architect/engineer (A/E) services. Spur, an SDVOSB, argues that the VA decision not to set the solicitation aside for SDVOSB concerns was in contravention of the VA Acquisition Regulation (VAAR) §§ 819.7004 and 819.7005. We sustain the protest. We sustain the protest. View Decision Decision Matter of:  Spur Design, LLC File:  B-412245.3 Date:  February 24, 2016 Steven J. Koprince, Esq., Matthew P. Moriarty, Esq., and Matthew T. Schoonover, Esq., Koprince Law LLC, for the protester. John W. Gannan, II, Esq., Department of Veterans Affairs, for the agency. Young H. Cho, Esq., and Christina Sklarew, 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 an indefinite-delivery, indefinite-quantity architect/engineer services contract for service-disabled veteran-owned small business (SDVOSB) concerns is sustained where the record shows that the agency had a reasonable expectation of receiving proposals from two or more SDVOSB concerns capable of performing the required services. DECISION Spur Design, LLC (Spur) of Oklahoma City, Oklahoma, protests the Department of Veterans Affairs’ (VA) decision not to set aside for service-disabled veteran-owned small business (SDVOSB) or veteran-owned small business (VOSB) concerns solicitation number VA-255-15-R-0752 for architect/engineer (A/E) services.  Spur, an SDVOSB, argues that the VA decision not to set the solicitation aside for SDVOSB concerns was in contravention of the VA Acquisition Regulation (VAAR) §§ 819.7004 and 819.7005. We sustain the protest. BACKGROUND The solicitation was issued on September 4, 2015, as a small business set-aside seeking a variety of professional A/E services for nine Veterans Integrated Service Network (VISN)[1] region 15 medical centers located in Missouri, Kansas, and Illinois.  The solicitation stated that the VA intended “to award an adequate number of [indefinite-delivery, indefinite-quantity (IDIQ)] contracts for the needs of VISN 15” for a one-year base period and four one-year options.  Solicitation at 2.[2]  The solicitation also stated that the value of the task orders to be placed under the IDIQ contracts may range from $3,500 to $1 million each, with a maximum award value of $5 million per contract over a five-year period.  Id. The solicitation sought firms that included multidisciplinary design teams capable of providing a variety of professional services and possessing a thorough working knowledge of applicable codes, requirements, and standards as they pertained to hospitals.  Id.  The solicitation, further, required that firms have “an established bonafide working office within a 200 mile radius of one of the VISN 15 Medical Centers” because the agency contemplated that the firms “primarily work with the closest medical center.”  Id.  However, the solicitation advised that task orders could be issued to support any of the VISN 15 medical centers and that “[f]irms must be capable of responding to and working on multiple task orders concurrently.”  Id. The solicitation provides for selection based on the following evaluation criteria: (1) professional qualifications; (2) specialized experience and technical competence; (3) capacity to accomplish the work in the required time; (4) past performance; (5) location in the general geographical area of the project and knowledge of the locality; and (6) ability to comply with FAR clause 52.219-14, Limitation on Subcontracting.  Id. at 3-8.  The solicitation designated the North American Industry Classification System (NAICS)[3] code 541310, architectural services, and 541330, engineering services, for this requirement.  Id. at 1.    Prior to conducting market research, the agency determined that based on its projected needs for the next five years, it would need to award a minimum of 14 contracts.  Id.  The agency’s integrated planning team (IPT) subsequently conducted market research to determine the availability of small business concerns in the region that could perform the services sought by the agency.  The IPT first reviewed the market research conducted by the previous IPT in 2010.[4]  AR, Exh. 4, CO Declaration (Dec. 16, 2015) at 1; Exh. 16, CO Declaration (Jan.