RCR Properties, G.P.

B-414590 Jul 21, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights RCR Properties, G.P. (RCR), of Lima, Ohio, protests the terms of the Department of Veterans Affairs' (VA) request for lease proposals (RLP) No. VA250-17-R-0273 LIMA/OHIO, for space for a VA medical facility. RCR also protests the VA's decision to cancel an earlier solicitation, RLP No.VA250-15-R-0461, for the same requirement. The protester contends that the terms of the current RLP are restrictive of competition and that the agency lacked a reasonable basis for canceling the earlier solicitation. 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:  RCR Properties, G.P. File:  B-414590 Date:  July 21, 2017 Diana Parks Curran, Esq., John Ringhausen Esq., Curran Legal Services Group, Inc., for the protester. Jennifer L. Hedge, Esq., Department of Veterans Affairs, for the agency. Frank Maguire, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  A solicitation requirement that is burdensome, or even impossible for a particular firm to meet, does not make the requirement objectionable if it properly reflects the agency's needs. 2.  In light of the broad discretion afforded contracting agencies in taking corrective action, agency properly cancelled solicitation when it discovered several flaws in the solicitation that needed to be addressed. DECISION RCR Properties, G.P. (RCR), of Lima, Ohio, protests the terms of the Department of Veterans Affairs' (VA) request for lease proposals (RLP) No. VA250-17-R-0273 LIMA/OHIO, for space for a VA medical facility.  RCR also protests the VA's decision to cancel an earlier solicitation, RLP No.VA250-15-R-0461, for the same requirement.  The protester contends that the terms of the current RLP are restrictive of competition and that the agency lacked a reasonable basis for canceling the earlier solicitation. We deny the protest. BACKGROUND RCR is the incumbent and currently-performing lessor for the VA outpatient clinic in Lima, Ohio.  On April 4, 2017, the VA issued request for lease proposals (RLP) No. VA250-15-R-0461 LIMA/OHIO.  Award was made to LIMA IV Medical Properties on September 29, 2016.  RCR protested that award to our Office on October 17, 2016.  In its protest, RCR asserted that the VA failed to evaluate proposals in accordance with the terms of the solicitation.  The VA subsequently advised our Office that it would take corrective action as follows: After reviewing the protest, VA has determined that it may not have adhered to required procurement regulations and therefore corrective action is necessary.  Therefore, at a minimum VA intends to terminate the contract award, amend the solicitation if necessary, re-open discussions and make a new award decision.  Agency Report (AR), Tab 4, Corrective Action Letter, Nov. 8, 2016.  We dismissed the protest as academic on November 16, 2016.  RCR Properties, G.P., B-414016, Nov. 16, 2016 (unpublished decision). In implementing the agency's corrective action, the contracting officer noted the following shortcomings in the existing RLP: While reviewing the old RLP, I noted a major flaw - the RLP failed to require the incumbent to address how the existing clinic could be converted to the Patient Aligned Care Team (PACT)[1] configuration without disrupting clinic operations.  In addition, the solicitation did not provide information, other than a conceptual diagram, of the PACT requirement.  This RLP was also written as a lowest price technically acceptable procurement; based on my experience, FAR [Federal Acquisition Regulation] 15.101-1, Tradeoff Process, would provide a better opportunity to obtain the best value for the leased property. Leasing Contracting Officer (LCO) Statement of Facts (LCOS) at 2.  The LCO subsequently determined that rather than amend the solicitation, reopen discussions, and make a new award decision, the agency would issue a new solicitation.  In support of his decision to initiate a new procurement, the LCO noted: A new procurement would permit the LCO to "cleanly address the current needs of the facility and issues not documented in the previous solicitation, to include additional details on PACT, the build out of the incumbent's space and changes to the service's requirements." LCOS at 3. The VA issued the second RLP on April 4, 2017.  The solicitation set the due date for offers as April 24.[2]  RCR protested to our Office on April 14. DISCUSSION The protester argues that it was improper for the VA to fail to implement the corrective action set forth in its request for dismissal of RCR's first protest, and instead to cancel the first RLP and issue a new solicitation.  The protester also argues that several terms o...