Veterans Electric, LLC

B-415064.2 Feb 01, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Veterans Electric, LLC, of Colgate, Wisconsin, a service-disabled veteran-owned small business (SDVOSB), protests the cancellation of invitation for bids (IFB) No. VA-69D-17-B-0319, which was issued by the Department of Veterans Affairs (VA) for the removal and replacement of obsolete fire alarm devices at the Jesse Brown VA Medical Center in Chicago, Illinois. The VA cancelled the IFB as part of its corrective action in an earlier protest by Veterans Electric that alleged that the IFB was ambiguous, contained obvious errors, and was structured to prevent competition by requiring replacement fire alarm devices to be obtained from the manufacturer. The protester now contends that the VA lacked a compelling reason for the cancellation of the IFB. 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:  Veterans Electric, LLC File:  B-415064.2 Date:  February 1, 2018 Joseph A. Whitcomb, Esq., and Daniel C. McAuliffe, Esq., Whitcomb, Selinsky, McAuliffe, PC, for the protester. Donald C. Mobly, Esq., and Brian R. Reed, Esq., Department of Veterans Affairs, for the agency. Stephanie B. Magnell, Esq., and Amy B. Pereira, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency has a compelling reason to cancel invitation for bids after bid opening where after bid opening the design specifications were no longer accurate and the agency's needs changed.  DECISION Veterans Electric, LLC, of Colgate, Wisconsin, a service-disabled veteran-owned small business (SDVOSB), protests the cancellation of invitation for bids (IFB) No. VA-69D-17-B-0319, which was issued by the Department of Veterans Affairs (VA) for the removal and replacement of obsolete fire alarm devices at the Jesse Brown VA Medical Center in Chicago, Illinois.  The VA cancelled the IFB as part of its corrective action in an earlier protest by Veterans Electric that alleged that the IFB was ambiguous, contained obvious errors, and was structured to prevent competition by requiring replacement fire alarm devices to be obtained from the manufacturer.  The protester now contends that the VA lacked a compelling reason for the cancellation of the IFB.  We deny the protest. BACKGROUND On February 3, 2017, the agency issued the IFB under the provisions of Federal Acquisition Regulation (FAR) part 14.  The solicitation was set aside for SDVOSBs and was amended six times.  B-415064, Agency Report (AR), Tab 2, Initial IFB, at 1.[1]  The IFB anticipated the award of a single contract to the lowest-priced responsive and responsible bidder.  IFB at 28.[2] The solicitation required bids to comply with the subcontracting limitations in 13 C.F.R. § 125.6 and stated that no more than 85 percent of the work could be subcontracted to firms that were not also SDVOSBs.  Id. at 26.  Bidders were required to submit their pricing with a cost breakdown "of material and personnel costs, by specification division listed for the project," and exclusive of materials.  Id. at 1, 26.  In addition, bidders were to submit the "[t]otal personnel costs [of] both prime-contractor and all sub-contractors," as well as "all sub-contractor personnel cost[s] that are not SDVOSB," and calculate the percentage of self-performed work.  Id.  The solicitation also provided that a substantial amount of the parts to be used in completing the work, including those used in work related to the Siemens fire alarm system components, was required to be sole-sourced from the manufacturer.  Id. at 21.  Bidders were required to submit three alternate bids, where various buildings were excluded from the scope of work.  Id. at 27-28.  Bids were due by September 11, 2017.  On August 10, the protester filed a protest with our Office alleging that the IFB's limitation on subcontracting requirements were ambiguous; that Siemens, as a supplier apparently offering different prices to different small businesses, was improperly restricting competition; and that a competitor was nonresponsive and had an organizational conflict of interest.[3]  B-415064, Protest.  By September 6, the Siemens fire alarm system at the Jesse Brown VA Medical Center was experiencing significant malfunctions, and the VA was working with Siemens to obtain repairs under the existing service contract.  Fire Alarm Emails, Sept. 6-7, 2017, at 2-4.[4] On September 7, Veterans Electric's counsel provided correspondence between Veterans Electric and Siemens to the VA, in which Siemens stated that it would not provide bidders with separate quotes for materials and labor.  Comments, Exh. D, Siemens Email to Veterans Electric, Aug.