CACI, Inc.-Federal

B-416549 Sep 13, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights CACI, Inc.-Federal, of Chantilly, Virginia, challenges the issuance of a task order to Digital Management, LLC, of Bethesda, Maryland, under task order request (TOR) No. ID11170001, issued by the General Services Administration (GSA) for system operations and maintenance for the Department of Housing and Urban Development (HUD), Office of Community Planning and Development. The protester contends that the agency engaged in misleading and unfair discussions. 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 version has been approved for public release. Decision Matter of:  CACI, Inc.-Federal File:  B-416549 Date:  September 13, 2018 Sharon L. Larkin, Esq., and Elizabeth A. Ferrell, Esq., Larkin Ferrell LLP, for the protester. Alfred M. Wurglitz, Esq., and Cameron S. Hamrick, Esq., Miles & Stockbridge P.C., for Digital Management, LLC, the intervenor. Maria G. Bellizzi, Esq., General Services Administration, for the agency. Alexander O. Levine, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency engaged in unfair and misleading discussions is denied where the agency did not limit the proposal aspects that could be revised, and the protester therefore should have been aware of its right to make proposal revisions beyond the specific areas raised by the agency during discussions. DECISION CACI, Inc.-Federal, of Chantilly, Virginia, challenges the issuance of a task order to Digital Management, LLC, of Bethesda, Maryland, under task order request (TOR) No. ID11170001, issued by the General Services Administration (GSA) for system operations and maintenance for the Department of Housing and Urban Development (HUD), Office of Community Planning and Development.  The protester contends that the agency engaged in misleading and unfair discussions. We deny the protest. BACKGROUND On November 2, 2017, GSA issued the TOR to holders of GSA’s Alliant Governmentwide Acquisition Contract to obtain services related to the operations, corrective maintenance, and development/modernization/enhancement of HUD’s grant management information technology systems.  TOR at 10.  The solicitation contemplated the award of a hybrid fixed-price/labor-hour task order with a 12-month base period and four 12-month option periods.  Id. at 52. Proposals were to be evaluated on the basis of three evaluation factors:  technical approach, experience, and price.  Id. at 88.  The non-price factors, when combined, were significantly more important than price.  Id.  The TOR also called for the evaluation of an offeror’s proposal, on a pass/fail basis, for compliance with section 508 of the Rehabilitation Act of 1973.[1]  Id.  On January 8, 2018, the agency timely received proposals from CACI and Digital Management.  See Contracting Officer’s Statement at 5.  On April 10, GSA conducted oral discussions with CACI and Digital Management.  During discussions with CACI, GSA sought additional price discounts from CACI for option years 3 and 4.  See Agency Report (AR), Tab 8, Discussion Minutes, at 2.  The agency also asked CACI to confirm its staffing hours for the first task area, provide confirmation that it had not proposed an escalation rate, and provide further information and confirmation regarding its labor categories and rates for the base year.  See id.   During discussions with Digital Management, the agency requested a rationale for the offeror’s staffing hours for the first and third task areas, and expressed a concern regarding Digital Management’s retention of employees in light of its proposed price discounts.  See id. at 4. On April 13, both offerors submitted final proposal revisions.  GSA evaluated the proposals as follows:   508 Compliance Technical Approach Experience Price CACI Pass Excellent Excellent $46,770,332 Digital Management Pass Excellent Excellent $44,196,342 AR, Tab 13, Award Decision Document, at 23-24.  The agency conducted a best-value tradeoff determination and concluded that “the benefits associated with the CACI proposal do not merit paying a premium of approximately $2.6 million.”  Id.