AeroSage, LLC

B-416200 Jul 06, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights AeroSage, LLC, a small business of Tampa Florida, protests the Defense Logistics Agency's issuance of a purchase order to Tayrona Investments, LLC, a small business of West Palm Beach, Florida, for 2,000 gallons of red-dyed diesel fuel. The purchase order was issued as a reprocurement following the default of the original lowest-priced vendor, and the protester contends that as the second lowest-priced vendor it should have received award. We deny the protest. We deny the protest. View Decision Decision Matter of:  AeroSage, LLC File:  B-416200 Date:  July 6, 2018 David M. Snyder, for the protester. Suzanne L. Brangan, Esq., Defense Logistics Agency, for the agency. Michael Willems, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging agency’s decision to make reprocurement award on basis of third lowest-priced quotation is denied, where record reflects that protester, the second lowest-priced vendor, could not immediately commit to its previously quoted price, and a relatively short time-span had elapsed between the receipt of quotations and the reprocurement award. DECISION AeroSage, LLC, a small business of Tampa Florida, protests the Defense Logistics Agency’s issuance of a purchase order to Tayrona Investments, LLC, a small business of West Palm Beach, Florida, for 2,000 gallons of red-dyed diesel fuel.  The purchase order was issued as a reprocurement following the default of the original lowest-priced vendor, and the protester contends that as the second lowest-priced vendor it should have received award. We deny the protest. BACKGROUND The agency issued a request for quotations (RFQ) on March 20, for delivery of 2,000 gallons of red-dyed diesel fuel to Mechanicsburg, Pennsylvania, on March 22.  Agency Report (AR), Memorandum of Law (MOL) at 2.  The RFQ, issued under Federal Acquisition Regulation (FAR) part 13 simplified acquisition procedures, contemplated a fixed-price, one-time order, issued to the vendor submitting the lowest-priced quotation.  Id.  Several quotations were received, including quotations from Aero Energy, AeroSage, and Tayrona.  Id.  Aero Energy quoted the lowest price, and award was made to Aero Energy later the same day that the RFQ was issued, March 20.  Id.  AeroSage’s quotation was the second lowest-priced, and Tayrona’s the third lowest-priced.  MOL at 2-3; AR, Tab 17, Memorandum for the Record at 1. At 10:52 a.m. on March 22 (the day of delivery), Aero Energy sent written notice to the agency that it was unable to perform the contract.  Id.  At 11:39 a.m., the agency called AeroSage seeking to confirm whether AeroSage was capable and willing to perform under the terms of its previous quotation, but AeroSage did not immediately commit to performing on those terms.  MOL at 3.  At 11:52 a.m., the agency emailed AeroSage to clarify which procurement was under discussion and again seek confirmation of whether AeroSage could perform on the terms previously quoted, and at 12:24 p.m. AeroSage responded that “I will get back to you shortly on whether we can delivery [sic] today and pricing for this short notice request.”  AR, Tab 7, Email from Agency to Protester, March 22, 2018 (11:52 a.m.); AR, Tab 8, Email from Protester to Agency, March 22, 2018 (12:24 p.m.). At 2:08 p.m., having received no further correspondence from AeroSage, the agency contacted Tayrona, the next lowest-priced vendor, who immediately confirmed its originally quoted price, but could not deliver the fuel until the following day.  MOL at 3-4; Agency Response to Agency-Level Protest at 2.  The agency agreed to Tayrona’s updated delivery schedule, and at 2:17 p.m. and 2:23 p.m. sent emails to AeroSage indicating that it had made award to Tayrona and to disregard the agency’s prior inquiries.  AR, Tab 9, Email from Agency to Protester, March 22, 2018 (2:17 p.m.); AR, Tab 10, Email from Agency to Protester, March 22, 2018 (2:23 p.m.) At 2:42 p.m., after award had been made to Tayrona and the agency had notified AeroSage of the award, AeroSage forwarded it’s prior quotation confirming that it would be willing to perform for the price it originally quoted, but was still waiting for its supplier to confirm possible delivery times.  AR, Tab 11, Email from Protester to Agency, March 22, 2018 (2:42 p.m.).  At 3:08 p.m., AeroSage filed an agency-level protest of the award to Tayrona on the basis that the agency had failed to award to the lowest-priced vendor.  MOL at 4-5.  At 10:14 a.m.