Walker Development & Trading Group, Inc.

B-413924 Jan 12, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Walker Development & Trading Group, Inc., of Reno, Nevada, protests the cancellation of request for quotations (RFQ) No. VA262-16-Q-0766 by the Department of Veterans Affairs (VA) for laundry services, and the extension of the period of performance of an existing contract previously awarded to Railroad Cleaners of Pittsburg, California, for the same services. We sustain the protest. We sustain the protest. View Decision Decision Matter of:  Walker Development & Trading Group, Inc. File:  B-413924 Date:  January 12, 2017 Terrance Walker, Walker Development & Trading Group, Inc., for the protester. Paul K. Petraborg, Esq., Department of Veterans Affairs, for the agency. Katherine I. Riback, Esq., and Amy B. Pereira, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency’s cancellation of a solicitation cannot be found reasonable where the agency failed to provide a coherent and consistent rationale for the cancellation. DECISION Walker Development & Trading Group, Inc., of Reno, Nevada, protests the cancellation of request for quotations (RFQ) No. VA262-16-Q-0766 by the Department of Veterans Affairs (VA) for laundry services, and the extension of the period of performance of an existing contract previously awarded to Railroad Cleaners of Pittsburg, California, for the same services.  We sustain the protest. BACKGROUND On July 7, 2016, the agency posted the RFQ on the Federal Business Opportunities (FedBizOpps) website for laundry services for the Los Angeles, Loma Linda and Long Beach VA hospitals.  The RFQ anticipated the award of an indefinite‑delivery/ indefinite-quantity (IDIQ), fixed‑priced contract for a base year and four 1-year options.[1] Quotations were to be evaluated considering price and technical acceptability.[2]  RFQ at 89.  The solicitation stated that award would be made to the lowest-priced, technically acceptable offeror.  Id. After the closing date for receipt of quotations, the agency reopened the solicitation on September 1, amending the solicitation to increase the maximum award amount from $2,500,000 to $10,000,000.  FedBizOpps Notice, Agency Supp. Filing (Nov. 11, 2016) at 118‑119; Agency Supp. Filing (Dec. 7, 2016), Tab 4, Contract Specialist’s Statement (undated).  Revised quotations were due by September 13.  Walker submitted a timely revised quotation.  Id. On October 3, the protester received a notice that the agency had cancelled the solicitation which stated as follows: After careful consideration, we’ve decided to cancel our efforts to procure laundry services upon receiving legal guidance to do so.  We plan to re-solicit our laundry project within the next few months.  We will keep you informed with news on our next steps.  Once a new solicitation is issued, you will be the first to know.  Thank you for your patience and feel free to contact me with any questions. Protest, Tab 3, Agency Cancellation Notice (Oct. 3, 2016).  On September 30, the same contracting activity stated that it was exercising its rights under FAR clause 52.217-8, option to extend services, to extend its contract with Railroad Cleaners, for $1.7 million, to continue procuring these services.  RFQ at 41; Protest, Tab 2, Award Notice to Railroad Cleaners (Sept. 30, 2016).[3]  The protester received notice of the cancellation and the subsequent award to Railroad Cleaners.  This protest followed on October 5. Walker argues that the agency lacked a reasonable basis to cancel the solicitation, that the agency’s stated rationale for cancelling the solicitation is a pretext, and that the agency’s actual motivation was to award a contract to Railroad Cleaners “who seem to win all of the awards for laundry out of the contracting office.”  Protest at 1.  The protester also contends that the agency, in essence, has made a sole-source award to Railroad Cleaners that “foreclosed competition” for this work.  Id. at 5. On November 4, the due date of the agency report, the agency filed a document titled “Agency response and motion to dismiss” with three attachments.  The attachments show that the agency made award to Railroad Cleaners on August 1, for emergency laundry services for the Los Angeles, Loma Linda and Long Beach VA hospitals for one month under solicitation No. VA262-16-Q-0766.  Agency Motion to Dismiss, Tab 1, Agency Contract with Railroad Cleaners (Aug. 1, 2016).  The agency extended this contract until September 2016 by amendment No. 1, and then by amendment No. 2, extended the contract until February 28, 2017.  Agency Motion to Dismiss, Tab 2, Amend No. 1, Sept. 1, 2016; Amend No. 2, Sept.