Southeastern Kidney Council

B-412538 Mar 17, 2016 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Southeastern Kidney Council (SKC), located in Raleigh, North Carolina, protests the award of a contract for network six to Island Peer Review Organization (IPRO), located in Lake Success, New York, under request for proposals (RFP) No. CMS-2016-ESRD-NETWORKS, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) for quality improvement services to improve the care of patients with end stage renal disease in eighteen different geographical regions (referred to as networks). SKC challenges the discussions conducted by CMS, and alleges that CMS failed to conduct a proper cost/price realism analysis. We deny the protest. We deny the protest. View Decision 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:  Southeastern Kidney Council File:  B-412538 Date:  March 17, 2016 Alexander J. Brittin, Esq., Brittin Law Group, PLLC, and Jonathan D. Shaffer, Esq., and Mary Pat Buckenmeyer, Esq., Smith Pachter McWhorter PLC, for the protester. Kenneth B. Weckstein, Esq., Tammy Hopkins, Esq., and Andrew C. Crawford, Esq., Brown Rudnick LLP, for Island Peer Review Organization, the intervenor. Douglas Kornreich, Esq., Department of Health and Human Services, for the agency. K. Nicole Willems, Esq., and Jennifer Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest that discussions were not meaningful because the agency did not inform the protester that it had a higher price than the price proposed by the awardee is denied where the record does not show that the agency found the protester’s proposed price to be excessive or unreasonable. 2. Protest challenging an agency’s price analysis, and the resulting determination that the awardee’s low fixed price was realistic, is denied where the methodology used by the agency was reasonable, consistent with the terms of the solicitation, and well-documented. DECISION Southeastern Kidney Council (SKC), located in Raleigh, North Carolina, protests the award of a contract for network six to Island Peer Review Organization (IPRO), located in Lake Success, New York, under request for proposals (RFP) No. CMS‑2016‑ESRD‑NETWORKS, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) for quality improvement services to improve the care of patients with end stage renal disease in eighteen different geographical regions (referred to as networks).  SKC challenges the discussions conducted by CMS, and alleges that CMS failed to conduct a proper cost/price realism analysis. We deny the protest. BACKGROUND The RFP was issued on June 24, 2015, and contemplated the award of eighteen separate fixed-price contracts, for services in eighteen distinct geographic regions, for a one-month transition period, one-year base period, and four one-year options.  RFP at 5-6.  The RFP provided that award would be made on a best‑value basis, considering:  (1) technical approach; (2) past performance and experience; (3) management plan; (4) staffing plan and personnel; and (5) cost/price.  Id. at 176‑181.  The RFP provided that, when combined, the non‑cost/price factors were significantly more important than cost/price.  The RFP also provided that the evaluation factors were of equal importance with the exception of technical approach, which was the most important.  Id. at 181. As relevant here, regarding discussions, the RFP established that, unless the award was made without discussions, the agency intended to conduct written discussions with all offerors in the competitive range.  RFP at 181.  Regarding cost/price, in addition to requesting a fixed price for each period of performance, the solicitation instructed offerors to provide a breakdown of the costs underlying the proposed prices (eg., the labor rates for proposed personnel and indirect rates).