Amoje Food System Ltd

B-413794.2 Apr 06, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Amoje Food System Ltd, of Seoul, Korea, protests the Defense Logistics Agency's (DLA) elimination of its proposal from the competitive range under request for proposals (RFP) No. SPE300-16-R-0001 for a food distributor in Korea. Amoje challenges the agency's determination that the firm failed to demonstrate sufficient resources to perform the contract. 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:  Amoje Food System Ltd. File:  B-413794.2 Date:  April 6, 2017 Kenneth A. Martin, Esq., The Martin Law Firm, PLLC, for the protester. Katherine B. McCulloch, Esq., Defense Logistics Agency, for the agency. Peter D. Verchinski, Esq., and Amy B. Pereira, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Determination that offeror’s proposal was no longer in the competitive range was proper where agency reasonably determined that the proposal was unacceptable for failing to provide evidence of sufficient financial resources to perform the contract. 2.  Protest challenging agency’s conduct of discussions is denied where the record provides no basis to conclude that discussions were not meaningful or were otherwise improper.  DECISION Amoje Food System Ltd, of Seoul, Korea, protests the Defense Logistics Agency’s (DLA) elimination of its proposal from the competitive range under request for proposals (RFP) No. SPE300-16-R-0001 for a food distributor in Korea.  Amoje challenges the agency’s determination that the firm failed to demonstrate sufficient resources to perform the contract. We deny the protest. BACKGROUND The RFP, issued on February 19, 2016, sought to establish an indefinite-delivery, indefinite-quantity fixed‑price contract for a food distributor to act as a prime vendor for the supply and delivery of food items, and related services, in the Republic of Korea for a period of 60 months.  The RFP provided that the estimated dollar value of the contract was $150,500,000, with a minimum value of $15,050,000 and a maximum value of $301,000,000.[1]  RFP at 23.  Award was to be made on a best‑value basis, considering price and the following four technical evaluation factors:  warehouse location and capacity; experience; quality control, assurance and warehouse management system/procedures; resource availability (cash flow, equipment, and carrier agreements); and past performance.  RFP, SOW at 166.[2]  The RFP stated that the technical evaluation factors, when combined, were more important than price.  Id. Relevant to this protest, the resource availability evaluation factor provided that offerors were to describe their “financial capability to perform during the 6‑month contract implementation period and throughout the life of the contract (i.e. bank commitment letters, financial strength of your firm, etc.).”  RFP, SOW, at 151.  Offerors were informed that the agency would evaluate the offeror’s resources, including financial resources, to successfully perform the requirements of the solicitation.  Id. at 168.  The RFP further stated that the government reserved the right to verify any information contained in the technical proposal, including “[s]ite visits to assess the accuracy of the information provided in an offeror’s proposal [which] may be conducted by the Defense Contract Management Agency [DCMA] . . . .”  RFP, SOW, at 145. The agency received 5 proposals, including Amoje’s, by the RFP’s April 15, 2016 closing date.  Under the “resources available” portion of its proposal, Amoje explained that the firm had a monthly credit line of $971,741, and that the “monthly credit line will be increased to over $1,500,000.00 upon award of any resultant contract.”  Agency Report (AR), Tab 8, Amoje Proposal, at 139.  The firm also submitted two “verifications of debt balance” statements (both from the same bank).  AR, Tab 8, Amoje Proposal, at 397-398.  One showed a credit line of $3,000,000, with a balance of $971,741, and the second showed a credit line of $2,823,719.  The second “verification of debt balance” showed a “date of commitment” of September 9, 2009, and an “expiry date of loan” as September 9, 2016.  It also showed a 0 balance, a total amount of 0, and an equivalent amount of 0 dollars.[3] Id.