Lawton-Penna JV

B-416848 Nov 15, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Lawton-Penna Joint Venture (LPJV), an 8(a) joint venture of Dallas, Texas, protests the decision of the Department of the Army, Army Corps of Engineers, to rescind its letter requesting LPJV to submit a proposal in response to request for proposals No. W9126G18R0379, for gate repair services at Sommerville, Lake. LPJV asserts that the agency acted in bad faith and failed to follow applicable procurement regulations concerning the Small Business Administration's (SBA) 8(a) program. 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: Lawton-Penna JV File: B-416848 Date: November 15, 2018 Sean D. Forbes, Esq., and Bryant S. Banes, Esq., Neel, Hooper & Banes, P.C., for the protester. Thomas J. Warren, Esq., and Blake M. Hedgecock, Esq., Department of the Army, and John Klein, Esq., and Sam Q. Le, Esq., Small Business Administraton, for the agencies. Mary G. Curcio, Esq., and Laura Eyester, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. Sean D. Forbes, Esq., Neel, Hooper & Banes, PC, for the protester. DIGEST 1. Protest that agency conducting procurement using sole-source authority of the Small Business Administration (SBA) 8(a) program was motivated by bad faith to rescind letter requesting protester to submit a proposal is denied where record demonstrates that letter was sent to protester in error. 2. Under sole-source authority of the SBA's 8(a) program, a contracting agency is authorized to nominate the 8(a) participant it desires to perform the contract. DECISION Lawton-Penna Joint Venture (LPJV), an 8(a) joint venture of Dallas, Texas, protests the decision of the Department of the Army, Army Corps of Engineers, to rescind its letter requesting LPJV to submit a proposal in response to request for proposals No. W9126G18R0379, for gate repair services at Sommerville, Lake. LPJV asserts that the agency acted in bad faith and failed to follow applicable procurement regulations concerning the Small Business Administration's (SBA) 8(a) program. We deny the protest. BACKGROUND On July 10, 2018, an employee of the field office which required the services contacted the agency contract specialist and indicated that based on prior experience, Sturm Welding, Inc., an 8(a) small business, was the preferred contractor for an 8(a) sole-source award. See Request for Dismissal, Exh. A, attach. A, Email from Field Office to Contract Specialist. On August 17, a new contract specialist, hereinafter, the second contract specialist, who was not informed that Sturm Welding was the preferred contractor, submitted an offer letter for the project to the SBA identifying LPJV as the intended 8(a) sole-source awardee.1 Id. at 1, Exh. B, Offering Letter. LPJV is an SBA-approved 8(a) joint venture comprised of The Lawton Group and The Penna Group, LLC. Response to Req. for Dismissal at 1 n.1. The second contract specialist was also replaced by, hereinafter, the third contract specialist. On September 7, the SBA notified the third contract specialist that the requirement was accepted into the 8(a) program on behalf of LPJV. Request for Dismissal, Exh. C, SBA Acceptance Letter. That same day, the third contract specialist provided LPJV with a copy of the solicitation, and advised the protester that its proposal was due no later than 3:00 pm, Central time, on September 17. Protest, Encl. 1, Emails between LPJV and Agency, at 4. On September 10, the employee from the field office requiring the services contacted the third contract specialist and asked why Sturm Welding, its preferred contractor, was not selected for the project. Request for Dismissal, Exh. A, Decl. of Third Contract Specialist, at 1-2. The third contract specialist notified the SBA that its offer letter had identified the wrong contractor, and asked for guidance. Id. at 2. The SBA advised the third contract specialist to inform LPJV of the error, and submit a new 8(a) offer letter to the SBA identifying Sturm Welding as the selected contractor. Id. The third contract specialist notified LPJV that the solicitation was sent in error, and withdrew the request for LPJV to submit a proposal. Protest, Encl. 1, Email from Agency to LPJV, at 1. The third contract specialist also prepared a new offer letter for the SBA identifying Sturm Welding as the 8(a) contractor selected for performance. Request for Dismissal, Exh. D, Offer Letter. The new offer letter also revised the contemplated award date and the estimated project amount. Id. On September 17, the SBA accepted the revised requirement into the 8(a) program on behalf of Sturm Welding. Id., Exh. E, SBA Acceptance Letter.