Vertex Aerospace, LLC

B-417065,B-417065.2 Feb 05, 2019 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Vertex Aerospace, LLC, of Madison, Mississippi, protests the Department of the Navy's award of a contract to DynCorp International, LLC, of Fort Worth, Texas, pursuant to request for proposals (RFP) No. N61340-18-R-0905, to provide maintenance and logistics support services for the Navy's TH-57 Sea Ranger helicopters. 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: Vertex Aerospace, LLC File: B-417065; B-417065.2 Date: February 5, 2019 W. Jay DeVecchio, Esq., J. Alex Ward, Esq., James A. Tucker, Esq., R. Locke Bell, Esq., and Caitlin A. Crujido, Esq., Morrison & Foerster LLP, for the protester Scott F. Lane, Esq., and Katherine S. Nucci, Esq., Thompson Coburn LLP, for DynCorp International, LLC, the intervenor. R. Montana Erickson, Esq., and Lisa D. Wentz, Esq., Department of the Navy, for the agency. Glenn G. Wolcott, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency reasonably assessed a significant weakness in protester's proposal, and properly assigned it a moderate technical risk rating, based on protester's failure to provide adequate substantiation for its proposed indirect rates. DECISION Vertex Aerospace, LLC, of Madison, Mississippi, protests the Department of the Navy's award of a contract to DynCorp International, LLC, of Fort Worth, Texas, pursuant to request for proposals (RFP) No. N61340-18-R-0905, to provide maintenance and logistics support services for the Navy's TH-57 Sea Ranger helicopters.1 We deny the protest. BACKGROUND On December 7, 2017, the agency issued the RFP, seeking proposals to provide "maintenance, logistics, and technical support for the TH-57 aircraft and associated equipment in order to meet the Daily Flight Schedule (DFS) as detailed in [the solicitation]."2 PWS at 3. The solicitation provided for the award of a contract with a 2-year base performance period and two 1-year option periods; provided that the source selection decision would be made on a best-value tradeoff basis; and established the following evaluation factors, listed in descending order of importance: technical, past performance, and price. RFP at 214. The solicitation contained multiple fixed-price contract line item numbers (CLINs), and identified in detail the activities that would be required under each CLIN. Of relevance to this protest, under CLIN 0X08,3 depot conditional maintenance, the contractor will be required to provide the labor necessary to perform the depot-level maintenance and repairs that are identified during the aircraft condition inspection (ACI).4 The solicitation contained an estimate of 80,000 hours per year for CLIN 0X08. With regard to evaluation under the technical factor, the solicitation provided for two assessments: (1) compliance with the solicitation requirements and (2) risk associated with the offeror's proposed approach.5 Id. at 215. The solicitation provided that, in evaluating compliance with the solicitation requirements, the agency would assign only ratings of acceptable or unacceptable. Id. In evaluating technical risk, the solicitation provided that the agency would consider an offeror's proposal with regard to, among other things, the likelihood of unsuccessful contract performance.6 Id. In performing the technical risk assessments, the solicitation provided that the agency would identify risk reducers,7 weaknesses,8 significant weaknesses,9 and deficiencies in an offeror's proposed approach, and assign technical risk ratings of low, moderate,10 high, or unacceptable. Id. at 215-19. With regard to evaluation of price, the solicitation provided that proposed prices would be evaluated for reasonableness and completeness and, with regard to certain fixed-price CLINs, including CLIN 0X08, the solicitation provided for a price realism evaluation. The solicitation specifically advised offerors that "[a]dequate substantiation is necessary for the Government to evaluate the [proposed] price," warning that "[t]he burden of proof for the proposed price rests with the Offeror." Id. at 205. Further, with regard to indirect rates, the solicitation stated that "the Offeror shall clearly identify the source of the indirect rates and substantiate their buildup." Id. at 209. Finally, after stating that CLIN 0X08 would be evaluated for price realism, the solicitation provided a separate admonition regarding CLIN 0X08, stating: "[a]dditionally, for CLIN 0X08, the adequacy of the build-up of the composite labor rate may be assessed a significant weakness under the Technical Factor evaluation."11 Id. at 216. On February 7, 2018, DynCorp and Vertex submitted their initial proposals.