Chromalloy Component Services, Inc

B-417362.2 Nov 06, 2019 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Chromalloy Component Services, Inc. (Chromalloy), of San Antonio, Texas, protests the terms of request for proposals (RFP) No. FA8122-19-R-0001, issued by the Department of the Air Force, for the remanufacture of F108 low pressure turbine assembly modules. The protester contends that the solicitation includes a requirement that no offeror can meet and is structured in a manner that will result in offerors submitting unbalanced pricing. 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:  Chromalloy Component Services, Inc. File:  B-417362.2 Date:  November 6, 2019 William M. Weisberg, Esq., Law Offices of William Weisberg, for the protester. Colonel Patricia S. Wiegman-Lenz, Esq., Michael J. Farr, Esq., and Waynette L. McKay, Esq., Department of the Air Force, for the agency. Michael P. Grogan, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging requirement in solicitation as impossible to meet is denied where the record shows that the agency reasonably expected that offerors would be able to meet the requirement. DECISION Chromalloy Component Services, Inc. (Chromalloy), of San Antonio, Texas, protests the terms of request for proposals (RFP) No. FA8122-19-R-0001, issued by the Department of the Air Force, for the remanufacture of F108 low pressure turbine assembly modules.  The protester contends that the solicitation includes a requirement that no offeror can meet and is structured in a manner that will result in offerors submitting unbalanced pricing. We deny the protest. BACKGROUND The RFP, issued on January 16, 2019, under Federal Acquisition Regulation (FAR) parts 12 and 15, contemplates the award of a fixed-price, indefinite-delivery,  indefinite-quantity contract, to be performed over a 1-year base period and four 1-year option periods.  Agency Report (AR), Tab 25, RFP amend. 8 at 1, 3-5.  The Air Force’s requirement concerns the remanufacture of Air Force module 13/15 for use in the F108 engine.  Id. at 73; Contracting Officer’s Statement (COS) at 2.  This module, part of the low pressure turbine (LPT) major module in the F108 engine, converts hot gas pressure and velocity into mechanical power to drive the fan rotor and booster assembly, and also provides support for rear engine installation mounting to the aircraft.  COS at 2.  The awardee will be required, as part of the remanufacture process, to perform inspections, replacement of parts, remanufacture, reassembly, adjustments, calibrations, approved modifications, testing and operational checks, correct discrepancies and malfunctions, and verify adequate and proper condition of any component, system, or subsystem.  RFP amend. 8 at 75.  As pertinent to this protest, one of the components of module 13/15 is the LPT Stage 1 rotor blade, of which there are 174 within each module.  COS at 2.  The awardee will be required to acquire LPT blade components from approved vendors to complete an agency-issued order.  RFP amend. 8 at 75.  If blades cannot be returned, as part of the remanufacture process, to fully serviceable and like new condition by the contractor, they “shall be replaced with new manufacture (OEM) blades.”  Id.  The solicitation advises that award will be made to the offeror with the lowest total evaluated price.  Id. at 38.  Price will be evaluated for reasonableness, balanced pricing, realism, and total evaluated price.  Id. at 42.  As relevant here, the solicitation states that an offeror’s “price may be rejected, if the determination is made that it contained unbalanced pricing to the extent it poses an unacceptable risk to the Government.”  Id.  On March 6, prior to the initial due date for proposals, Chromalloy, the incumbent contractor, filed a pre-award protest with our Office, challenging the terms of the solicitation.  AR, Tab 7, Chromalloy Component Services, Inc., B-417362.  Chromalloy withdrew its protest on March 12.  AR, Tab 8, Withdrawal of Protest.  Subsequently, the Air Force amended the RFP to revise the contract line item number (CLIN) structure, specifically as it relates to LPT blades.  Following the eighth amendment to the RFP, the solicitation includes three categories of CLINs:  (1) X001, for each remanufacture project ordered, inclusive of all labor, indirect rates, and all materiel, except LPT blades; (2) X001AA, for each LPT blade ordered per remanufacture unit; and (3) X002, for required data.  RFP amend. 8 at 5‑18.  For CLIN X001, the agency provides its best estimate of the number of remanufacture projects for each contract year, with the base year identified as requiring an estimated 112 remanufacture projects.  Id.