URS Federal Services, Inc. (N00178-18-R-3014)

B-417643.2,B-417643.3 Feb 24, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights URS Federal Services, Inc., of Germantown, Maryland, protests a determination by the Department of Navy, Naval Surface Warfare Center, Dahlgren Division (NSWCDD), that SimVentions, Inc., of Fredericksburg, Virginia, did not have a significant potential organizational conflict of interest (OCI) under request for proposals (RFP) No. N00178-18-R-3014. URS challenges various aspects of the Navy's OCI determination, and alleges the agency unfairly conducted discussions by only engaging with SimVentions to the detriment of other offerors. 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:  URS Federal Services, Inc. File:  B-417643.2; B-417643.3 Date:  February 24, 2020 Jonathan D. Shaffer, Esq., Mary Pat Buckenmeyer, Esq., and Todd M. Garland, Esq., Smith Pachter McWhorter PLC, for the protester. James Y. Boland, Esq., and Caleb E. McCallum, Esq., Venable LLP, for SimVentions, Inc., the intervenor. Matthew Hawkins, Esq., and Candice Thomas, Esq., Department of the Navy, for the agency. Peter H. Tran, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest that the contracting officer failed to properly evaluate an alleged impaired objectivity organizational conflict of interest in the prospective awardee’s proposal is denied where the record shows that the evaluation was reasonable. 2.  Protest that the agency engaged in discussions with the prospective awardee, and permitted the firm to materially change its proposal without permitting other offerors the same opportunity, is denied where the record shows the exchange between the agency and prospective awardee occurred with respect to a potential organizational conflict of interest, was appropriate, and did not amount to discussions. DECISION   URS Federal Services, Inc., of Germantown, Maryland, protests a determination by the Department of Navy, Naval Surface Warfare Center, Dahlgren Division (NSWCDD), that SimVentions, Inc., of Fredericksburg, Virginia, did not have a significant potential organizational conflict of interest (OCI) under request for proposals (RFP) No. N00178-18-R-3014.  URS challenges various aspects of the Navy’s OCI determination, and alleges the agency unfairly conducted discussions by only engaging with SimVentions to the detriment of other offerors. We deny the protest. BACKGROUND The RFP was issued on May 31, 2018, pursuant to Federal Acquisition Regulation (FAR) subpart 16.5, to holders of the Navy’s SeaPort-e Zone 2 indefinite-delivery, indefinite-quantity (IDIQ) contracts to provide NSWCDD with systems engineering, software development, and test and evaluation subject matter expertise to “facilitate, plan, execute, and deliver Track Management products.”[1]  Agency Report (AR), Tab 1, RFP at 7; Contracting Officer’s Statement/Memorandum of Law (COS/MOL) at 2.  The Navy received timely proposals from URS and SimVentions in response to the RFP.[2]  COS/MOL at 2.  After conducting discussions with both offerors and accepting final proposal revisions, the Navy evaluated revised proposals and made award to SimVentions on May 28, 2019.  Id.  URS, the incumbent contractor, protested the agency’s award decision to our Office on June 6, challenging various aspects of the agency’s evaluation of proposals and award decision, and arguing that SimVentions had an OCI that could not be mitigated.  Protest at 6-7; COS/MOL at 2. On June 17, the Navy informed our Office that it was taking corrective action in response to the protest by reevaluating URS’s and SimVentions’ technical and cost proposals and making a new award decision.  Agency Notice of Corrective Action at 1.  As a result of the agency’s corrective action, we dismissed the protest as academic.  URS Fed.