Qbase, LLC (HT0015-18-R-0013)

B-417371.4,B-417371.5 Jun 26, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Qbase, LLC, a small business located in Herndon, Virginia, protests the cancellation of request for quotation (RFQ) No. HT0015-18-R-0013, issued by the Department of Defense (DOD), Defense Health Agency (DHA), for information technology (IT) operations and sustainment services for DHA's Enterprise Systems Branch (ESB). Qbase also challenges DHA's decision to terminate a Federal Supply Schedule (FSS) task order that had been issued to Qbase under the RFQ. Qbase contends that the agency's decision to cancel the solicitation and terminate the task order lacks a reasonable basis and was a pretext to avoid litigating a protest filed with our Office. 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:  Qbase, LLC File:  B-417371.4; B-417371.5 Date:  June 26, 2020 Richard J. Conway, Esq., Dominique L. Casimir, Esq., and Michael J. Slattery, Esq., Blank Rome LLP, for the protester. Michael R. Bibbo, Esq., and Kevin E. Bolin, Esq., Defense Health Agency, for the agency. Heather Weiner, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging agency’s decision to cancel the solicitation following a GAO protest is denied where the record reflects that the agency identified substantial changes to its requirements that warranted canceling the solicitation and issuing a revised solicitation. DECISION Qbase, LLC, a small business located in Herndon, Virginia, protests the cancellation of request for quotation (RFQ) No. HT0015-18-R-0013, issued by the Department of Defense (DOD), Defense Health Agency (DHA), for information technology (IT) operations and sustainment services for DHA’s Enterprise Systems Branch (ESB).  Qbase also challenges DHA’s decision to terminate a Federal Supply Schedule (FSS) task order that had been issued to Qbase under the RFQ.  Qbase contends that the agency’s decision to cancel the solicitation and terminate the task order lacks a reasonable basis and was a pretext to avoid litigating a protest filed with our Office.  We deny the protest. BACKGROUND DHA issued the RFQ on October 17, 2018, seeking a contractor to assist ESB in fulfilling its requirement to provide IT support services to the DOD customers in DHA’s medical Joint Active Directory (mJAD) system.[1]  The RFQ was issued as a small business set-aside using procedures set forth in Federal Acquisition Regulation subpart 8.4 and part 12, to vendors holding General Services Administration, FSS No. 70 (Health Information Technology) contracts.  RFQ at 1; COS at 1.  The RFQ contemplated the issuance of a fixed price task order with a period of performance of a base year, four 1-year options, and a six-month extension period.  RFQ at 2-48, 78; COS at 1. DHA awarded the task order to Qbase on February 27, 2019.  COS at 2.  On March 8, another vendor, Inserso Corporation, filed a protest with our Office challenging the agency’s evaluation and award.  Id.  In response, the agency notified our Office that it had decided to take corrective action.  Our Office dismissed the protest as academic.  Inserso Corp., B-417371, Mar. 22, 2019 (unpublished decision). In July 2019, a new DHA contracting officer was assigned to the procurement and was tasked with implementing the corrective action.  As part of the corrective action, DHA reevaluated quotations and conducted a new source selection.  COS at 2.  On November 12, 2019, Qbase was again selected as the best-value vendor and issued the task order.  Inserso protested the award to GAO on November 15.  In response to the protest, DHA notified our Office that it had determined that it would again need to take corrective action.  Id.  The next day, however, the agency withdrew that notice at the request of Qbase, which asserted that it would attempt to settle the protest with Inserso.  Id. at 2-3.  When settlement between the parties failed, DHA resubmitted a notice of corrective action on December 10, 2019.  Id. at 3.  Our Office thereafter dismissed the protest as academic.  Inserso Corp., B-417371.2, Dec. 17, 2019 (unpublished decision). The agency conducted a reevaluation of technical quotations and revised the source selection decision document.  COS at 3.  On February 13, 2020, DHA selected Qbase as the awardee for a third time.  Id.  Inserso protested the award to our Office, challenging various aspects of the agency’s evaluation of proposals and award decision.