Criterion Systems, Inc.

B-417240 Apr 16, 2019 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Criterion Systems, Inc. (Criterion) protests the rejection of its quotation under request for quotations (RFQ) No. DE-SOL-0011276, issued by the Department of Energy, National Nuclear Security Administration (NNSA), for cybersecurity operations. Criterion contends that after the agency rejected Criterion's revised quotation as late, the agency improperly failed to evaluate Criterion's initial quotation. 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:  Criterion Systems, Inc. File:  B-417240 Date:  April 16, 2019 David T. Hickey, Esq., William M. Jack, Esq., and Amba M. Datta, Esq., Kelley Drye & Warren LLP, for the protester. Matthew Butsick, Esq., Department of Energy, for the agency. John Sorrenti, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Where protester’s revised quotation is rejected as late, protest alleging that the agency should have evaluated the protester’s initial quotation is denied where the initial quotation did not comply with a material term of the amended solicitation. DECISION Criterion Systems, Inc. (Criterion) protests the rejection of its quotation under request for quotations (RFQ) No. DE-SOL-0011276, issued by the Department of Energy, National Nuclear Security Administration (NNSA), for cybersecurity operations.  Criterion contends that after the agency rejected Criterion’s revised quotation as late, the agency improperly failed to evaluate Criterion’s initial quotation. We deny the protest. BACKGROUND The agency issued the RFQ on June 22, 2017, under Federal Acquisition Regulation (FAR) subpart 8.4 to three holders of blanket purchase agreements (BPAs).[1]  Agency Report (AR), Tab 1, RFQ at 1.[2]  The initial RFQ had a 1-year base period from February 1, 2018 through January 31, 2019, and four, 1-year option periods.  Id. § 5.2, at 10.  If the agency exercised all of the options under the initial RFQ, the contract was scheduled to end on January 31, 2023.  Id.  The RFQ identified six performance objectives:  contract management; security operations and maintenance; cyber program operations and maintenance; security services; systems engineering and development; and threat and risk analysis.  Id., Statement of Objectives (SOO), §§ 5.1-5.6, at 47-54.  For the security operations and maintenance performance objective, the RFQ identified 63 different locations and a variety of services that would be performed at each location.  Id., SOO, Appendix A, at 56-58.  The RFQ also provided estimated labor hours for each of the six performance objectives.  Id., Task/Labor Matrix, at 75-79. On July 14, 2017, Criterion timely submitted a quotation in response to the initial RFQ.  See AR, Tab 4, Criterion Initial Quotation.  On November 16, 2018, the NNSA issued amendment 0003 to the RFQ to update the agency’s requirements and provide all vendors an opportunity to submit updated quotations.  AR, Tab 14, RFQ Amend. 0003, at 1.  As relevant to this protest, the amendment shifted the period of performance by one year, so the base period now ran from February 1, 2019 through January 31, 2020, followed by four 1-year option periods.[3]  Id. at 10.  If all the option periods are exercised under the revised period of performance, the contract will end on January 31, 2024.  Id. Amendment 0003 stated that vendors were “required to update their price quotes due to the change in period of performance.”  Id. at 1.  The amendment further instructed that “[a]t a minimum, the vendor shall submit updated versions of its:  [General Services Administration] FSS price list . . . to reflect the revised period of performance; attachment #7 task labor matrix . . . to reflect updated estimated hours per [performance work statement] task area; and attachment #6 order price quote.”  Id. § 11.4(m), at 35.  Vendors were not required to submit updated versions of other sections of their quotations, but could do so at their own discretion.  Id. at 36.  The amendment stated that the agency would “replace and/or supplement portions of the vendor’s initial quotation from July 2017 with the revisions and/or supplements submitted in response to amendment 0003.”  Id.  The RFQ provided that revised quotations had to be received “no later than 5:00 pm ET on November 21, 2018” and that “LATE QUOTES WILL NOT BE ACCEPTED.”  Id. § 11.4(k), at 35 (emphasis in original). Criterion submitted its revised quotation to the agency on November 21, 2018.  On December 7, 2018, the agency advised Criterion that the receipt time stamp for its revised quotation was 5:01:30 ET on November 21, 2018.  AR, Tab 21, Email dated Dec.