Curtin Maritime Corporation

B-414335.2 May 05, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Curtin Maritime Corporation, of Long Beach, California, protests the Department of the Navy's award of a standing route order (SRO) to Pacific Maritime Freight, Inc. dba Pacific Tugboat Service, of San Diego, California, under solicitation No. ILWX170030N-EL, for freight services. Curtin asserts that the agency's cancellation of Curtin's award and the re-award of the SRO to Pacific was improper because Curtin offered the best value. We deny the protest. We deny the protest. View Decision Decision Matter of:  Curtin Maritime Corporation File:  B-414335.2 Date:  May 5, 2017 Martin Curtin, Curtin Maritime Corporation, for the protester. Clinton D. Hubbard, Esq., Law Offices of Clinton D. Hubbard, for Pacific Tugboat Service, the intervenor. Hallie L. Balkin, Esq., Department of the Navy, for the agency. Mary G. Curcio, Esq., and Laura Eyester, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly made award of standing route order to lowest- priced bidder is denied where solicitation defined best value as the lowest-priced, acceptable bid. DECISION Curtin Maritime Corporation, of Long Beach, California, protests the Department of the Navy’s award of a standing route order (SRO) to Pacific Maritime Freight, Inc. dba Pacific Tugboat Service, of San Diego, California, under solicitation  No. ILWX170030N-EL, for freight services.  Curtin asserts that the agency’s cancellation of Curtin’s award and the re-award of the SRO to Pacific was improper because Curtin offered the best value. We deny the protest.  BACKGROUND The solicitation, issued on January 11, 2017, sought service for 48 weekly round trips to transport freight between the Naval Base in San Diego and San Clemente Island.[1]  Solicitation at 1.  Only approved Transportation Service Providers (TSP) were permitted to submit a bid.  Id. at 3.  The solicitation provided for award on the basis of the best value to the government, and stated: “For this solicitation, the best value is defined as the lowest-priced acceptable bid.”  Id. at 4.  Bids were to be rated acceptable or unacceptable under the following technical factors: barge equipment and availability; experience; and arms, ammunition, and explosives certification.  Id. at 5.  The solicitation also instructed TSPs to indicate whether they had a voluntary intermodal sealift agreement (VISA).  VISA status would be used as a tie-breaker to determine the awardee in the event bidders were equal for both the technical factors and price.  Id.  With respect to price, TSPs were required to complete a bid sheet with a price per trip and a proposed demurrage (idle time) rate.  The agency would calculate the total prices by multiplying the round trip bid price by 48 trips and adding a representative amount for demurrage (250 hours minus proposed free time multiplied by the proposed demurrage rate).  Id. Both Curtin and Pacific submitted acceptable bids in response to the solicitation.  The agency evaluated Curtin’s total price as $1,912,800, and Pacific’s as $1,824,000.  Transportation Officer’s Statement at 3.  On January 24, the agency awarded the SRO to Curtin, the incumbent, after the transportation officer concluded, based on prior experience with Curtin, that its higher-priced bid offered superior performance.  Id.  Pacific protested the award to Curtin to our Office, asserting that it submitted the lowest-priced, acceptable bid, and in accordance with the solicitation should have received the award.  The agency agreed that it had not awarded the SRO in accordance with the terms of the solicitation, and on February 6, revoked the SRO it had awarded to Curtin.  Notice of Corrective Action, Feb. 8, 2017.  We dismissed Pacific’s protest.  Pacific Tugboat Service, B-414335, Feb.