AeroSage, LLC

Case: B-417289 Agency: Department of Defense : Defense Logistics Agency Protester: AeroSage, LLC Date: 2019-05-14 Denied In Part
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B-417289 Apr 24, 2019 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights AeroSage LLC, a service-disabled veteran-owned small business of Tampa, Florida, protests the award of a purchase order to Infinite Energy Corp., a woman-owned small disadvantaged business of New York, New York, under request for quotations (RFQ) No. SPE605-19-Q-0253, issued by the Defense Logistics Agency (DLA) for diesel fuel. The protester argues the agency unreasonably withdrew the government's offer and moved to the next lowest-priced technically acceptable vendor for award after providing AeroSage less than three hours to provide written acceptance of the offer. The protester also alleges the agency violated the Competition in Contracting Act by failing to stay contract performance. We deny the protest in part and dismiss it in part. We deny the protest in part and dismiss it in part. View Decision Decision Matter of: AeroSage, LLC File: B-417289 Date: April 24, 2019 David M. Snyder, AeroSage LLC, for the protester. Matthew Vasquez, Esq., and May Sena, Esq., Defense Logistics Agency, for the agency. Heather Self, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest of an agency's requirement for vendor to provide written acceptance of government offer made pursuant to a request for quotations in less than three hours is denied where the amount of time provided was not unreasonable under the circumstances of the procurement, including that the agency required performance on the next day. 2. Protest of an agency's failure to implement the statutorily required stay of performance is dismissed as it is not a matter for consideration by GAO. DECISION AeroSage LLC, a service-disabled veteran-owned small business of Tampa, Florida, protests the award of a purchase order to Infinite Energy Corp., a woman-owned small disadvantaged business of New York, New York, under request for quotations (RFQ) No. SPE605-19-Q-0253, issued by the Defense Logistics Agency (DLA) for diesel fuel. The protester argues the agency unreasonably withdrew the government's offer and moved to the next lowest-priced technically acceptable vendor for award after providing AeroSage less than three hours to provide written acceptance of the offer. The protester also alleges the agency violated the Competition in Contracting Act by failing to stay contract performance.1 We deny the protest in part and dismiss it in part. BACKGROUND The agency issued the RFQ as a small business set-aside on February 5, 2019, pursuant to the commercial item and simplified acquisition procedures of Federal Acquisition Regulation (FAR) parts 12 and 13. Agency Report (AR), Tab 1, RFQ, at 1. The initial RFQ sought quotations for delivery of 10,000 gallons of diesel fuel to Fort Drum, New York. Id. Shortly after posting the RFQ on the Federal Business Opportunities website, the agency amended the RFQ to increase the quantity of fuel to 10,200 gallons. AR, Tab 3, RFQ amend., at 1. The RFQ contemplated award of a single fixed-price purchase order to the vendor evaluated as providing the best value to the government. RFQ at 1-2. The agency utilized a lowest-priced technically acceptable (LPTA) award methodology.2 Agency Response to Questions for the Record, Mar. 6, 2019, at 2; AR, Tab 19, Supplemental Contracting Officer's Statement (COS), Mar. 6, 2019, at 1 ¶ 4. The RFQ established the time for receipt of quotations as 4 p.m.3 February 6, and a delivery date for the required fuel of February 8. RFQ at 2. Both AeroSage and Infinite Energy submitted timely quotations via e-mail on February 6. AR, Tab 4, AeroSage Quotation; Tab 20, Infinite Energy Quotation. The agency evaluated quotations and found that AeroSage submitted the LPTA quotation. Supp. COS at 1 at ¶ 5; AR, Tab 21, Abstract of Quotations. At 7:17 a.m.4 on February 7, the CO e-mailed an offer for the fuel requirement to AeroSage's President, who was the company's point of contact for the procurement. AR, Tab 6, E-mail from CO to AeroSage, Feb. 7, 2019. The CO's e-mail instructed AeroSage to accept the government's offer by signing an attached purchase order and returning it no later than 10 a.m. Id. Specifically, the e-mail provided as follows. You must sign and return the attached document [purchase order] to the attention of Janet Richards and myself by e-mail no later than 10:00 AM today if you wish to accept this order. * * * * * If we do not receive the signed document [purchase order] by 10:00 AM this morning, we will move on to the next lowest priced offer. Id. At 9:36 a.m., the CO e-mailed AeroSage a reminder that if the purchase order was not signed and returned by 10:00 a.m. the "lack of response will indicate that you do not wish to accept the order and we will then move on to the next lowest price." AR, Tab 7, E-mail from CO to AeroSage, Feb. 7, 2019.

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