EDWOSB Transformer Services, LLC

B-416683 Oct 15, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights EDWOSB Transformer Services, LLC, of Jacksonville, Florida, a woman-owned small business (WOSB), protests the terms of invitation for bids (IFB) No. 89503218BWA000007, which was issued by the Department of Energy (DOE) for electrical substation construction. The protester argues that the agency failed to reasonably consider either a set-aside for WOSB concerns or a sole-source award to the protester. 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:  EDWOSB Transformer Services, LLC File:  B-416683 Date:  October 15, 2018 David S. Black, Esq., and Mitchell A. Bashur, Esq., Holland & Knight LLP, for the protester. Stephanie B. Young, Esq., Nicholas M. Bidwell, Esq., David C. Gorlin, Esq., and Thomas C. Cordova, Esq., Department of Energy, for the agency. Jonathan L. Kang, Esq., and Laura Eyester, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest challenging the agency’s decision not to set aside a solicitation for women-owned small business (WOSB) concerns is denied where the agency met the requirement to consider whether to set aside the procurement for WOSB concerns before setting aside the solicitation for small business concerns, and where the decision to set aside a solicitation for WOSB concerns is discretionary. 2.  Protest challenging the agency’s decision not to award a sole-source contract to the protester is denied where the agency met the requirement to consider a sole-source award under the WOSB program, and where the decision to make a sole-source award to a WOSB concern is discretionary. DECISION EDWOSB Transformer Services, LLC,[1] of Jacksonville, Florida, a woman-owned small business (WOSB), protests the terms of invitation for bids (IFB) No. 89503218BWA000007, which was issued by the Department of Energy (DOE) for electrical substation construction.  The protester argues that the agency failed to reasonably consider either a set-aside for WOSB concerns or a sole-source award to the protester.  We deny the protest. BACKGROUND DOE’s Western Area Power Administration (WAPA) “markets and delivers reliable, cost-based hydroelectric power, and related services, across 15 central and western states.”  Contracting Officer’s Statement/Memorandum of Law (COS/MOL) at 1.  The WAPA’s Rocky Mountain Region (RMR) is responsible for “selling federal hydropower, and operates and maintains electrical infrastructure in Colorado, Wyoming, and Nebraska.”  Id.  The challenged solicitation seeks construction at the Ault electrical substation, in Ault, Colorado.  Agency Report (AR), Tab A.1, Conformed IFB, at 1.[2] As discussed in detail below, the agency assigned the acquisition North American Industry Classification System (NAICS)[3] code 237130 (Power and Communication Line and Related Structures Construction), and conducted market research prior to the issuance of the pre-solicitation notice to determine whether the requirement should be set aside for small business concerns.  Consistent with the requirements in the FAR and Small Business Administration (SBA) regulations, the agency considered whether the market research supported a sole-source award or set-aside for small business concerns in one of the following small business programs identified in FAR part 19:  SBA 8(a) business development (BD), service-disabled veteran‑owned (SDVOSB), Historically Underutilized Business Zone (HUBZone), and WOSB.  AR, Tab B.1, Small Business Review, at 2.  The agency found that there was no basis to set aside the solicitation for 8(a), SDVOSB, HUBZone, or WOSB concerns, but that there was a reasonable expectation of receiving at least two bids from two responsible small business concerns at fair and reasonable prices.  Id. The agency issued the IFB on July 5, 2018, seeking bids to provide the required work at the Ault substation.  The solicitation requires the contractor to provide construction services including the removal and replacement of a government-furnished 600 megavolt transformer, seven government-furnished 230 kilovolt breakers, six 13.8 kilovolt government-furnished reactors, as well as other related construction work.  IFB at 5-7.  The solicitation was set aside for small business concerns.  Id.