Veteran Shredding, LLC

B-417399 Jun 04, 2019 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Veteran Shredding, LLC, of Burnsville, Minnesota, a small business, protests the terms of request for quotations (RFQ) No. 36C26319Q0276, issued by the Department of Veterans Affairs (VA) for document destruction services for the Minneapolis Veteran's Affairs Healthcare System (MVAHCS). Veteran Shredding argues that the contracting officer improperly failed to set aside the RFQ for award to service-disabled veteran-owned small businesses (SDVOSB), and instead designated the RFQ as a small business set-aside. 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: Veteran Shredding, LLC File: B-417399 Date: June 4, 2019 Joseph A. Whitcomb, Esq., Michael C. Milazzo, Esq., Whitcomb, Selinsky, McAuliffe PC, for the protester. Donald C. Mobly, Esq., Natica Chapman Neely, Esq., Department of Veterans Affairs, for the agency. Christopher Alwood, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency failed to set aside solicitation for document destruction services for service-disabled veteran-owned small businesses (SDVOSB) is denied where agency reasonably concluded that it was unlikely to receive quotations from two or more SDVOSBs and that award could be made at a fair and reasonable price. DECISION Veteran Shredding, LLC, of Burnsville, Minnesota, a small business, protests the terms of request for quotations (RFQ) No. 36C26319Q0276, issued by the Department of Veterans Affairs (VA) for document destruction services for the Minneapolis Veteran's Affairs Healthcare System (MVAHCS). Veteran Shredding argues that the contracting officer improperly failed to set aside the RFQ for award to service-disabled veteran-owned small businesses (SDVOSB), and instead designated the RFQ as a small business set-aside. We deny the protest. BACKGROUND The RFQ at issue here was preceded by an earlier solicitation for document destruction services for the MVAHCS. Specifically, on February 9, 2018, the VA issued RFQ No. 36C26318Q0181 as an SDVOSB set-aside, seeking quotations to provide document destruction services for a 1-year base period and four 1-year option periods at a fixed-price. Memorandum of Law (MOL) at 1-2. The VA received quotations from five SDVOSBs, the lowest of which was 83 percent higher than the agency's independent government cost estimate (IGCE). Contracting Officer's Statement (COS) at 2. The contracting officer concluded that none of the quoted prices were fair and reasonable, and canceled the RFQ. Id. Veteran Shredding filed two unsuccessful protests challenging the contracting officer's decision to cancel the solicitation, and prospective set-aside determination for the resolicitation of the requirement.1 MOL at 3. During the pendency of the protests, the contracting officer conducted market research to assess whether the RFQ could be set aside for veteran-owned small businesses (VOSB) or small business concerns. COS at 2-3. Regarding a VOSB set-aside, the contracting officer concluded that there was not a reasonable expectation that two or more VOSBs would submit quotations and that award could be made at a fair and reasonable price. COS at 2. Regarding a small business set-aside, however, the contracting officer concluded that there was a reasonable expectation that at least two small business concerns would submit quotations and that award could be made at a fair market price. COS at 3. After resolution of the protests, MVAHCS submitted an updated requirements package and the contracting officer updated the IGCE.2 Id. The contracting officer found that the five quotations previously received from SDVOSBs still unreasonably exceeded the updated IGCE.3 COS at 3-4. The contracting officer performed additional market research based on the updated requirements, including publishing a new sources-sought notice. Id. The contracting officer received responses to the source-sought notice from two SDVOSB concerns and one small business. Id. The protester did not respond to the sources sought notice. Id. After considering this additional information, the contracting officer decided to set aside the requirement for small business concerns. COS at 5. On March 1, 2019, the VA issued RFQ No. 36C26319Q0276 as a small business set-aside, once again seeking quotations to provide document destruction services for a 1-year base period and four 1-year option periods at a fixed-price. MOL at 1-2. The VA reports that it received four quotations, one from an SDVOSB, one from a VOSB, and two from small businesses.4 COS at 5. Veteran Shredding did not submit a quotation. Id.