Ohio KePRO, Inc. (190361)

Case: B-417836 Agency: Department of Health and Human Services : Centers for Medicare & Medicaid Services Protester: Ohio KePRO, Inc. Date: 2020-11-04 Sustained
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B-417836.4,B-417836.5 Nov 04, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Ohio KePRO, Inc. (KEPRO), of Harrisburg, Pennsylvania, protests the issuance of a task order to Livanta, LLC, of Annapolis Junction, Maryland, under task order request for proposals (TORP) No. 190361, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), for beneficiary oversight and claim review services. KEPRO challenges the agency's evaluation of proposals and contends that the agency engaged in unequal discussions. We sustain 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:  Ohio KePRO, Inc. File:  B-417836.4; B-417836.5 Date:  November 4, 2020 Michael D. McGill, Esq., Kristen E. Ittig, Esq., Thomas A. Pettit, Esq., and James R. S. Mestichelli, Esq., Arnold & Porter Kaye Scholer, LLP, for the protester. Alexander J. Brittin, Esq., Brittin Law Group, PLLC, Mary Pat Buckenmeyer, Esq., Dunlap Bennett & Ludwig PLLC, Daniel P. Graham, Esq., and Ryan D. Stalnaker, Esq., Vinson & Elkins LLP, for Livanta LLC, the intervenor. Pamela R. Waldron, Esq., and Kevin Misener, Esq., Department of Health and Human Services, for the agency. Katherine I. Riback, Esq., and Evan C. Williams, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly engaged in post-final proposal revision discussions only with the awardee when it allowed the awardee to submit previously omitted pricing is sustained where the record shows that the exchange resulted in material changes to the awardee’s proposal.  DECISION Ohio KePRO, Inc. (KEPRO), of Harrisburg, Pennsylvania, protests the issuance of a task order to Livanta, LLC, of Annapolis Junction, Maryland, under task order request for proposals (TORP) No. 190361, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), for beneficiary oversight and claim review services.  KEPRO challenges the agency’s evaluation of proposals and contends that the agency engaged in unequal discussions. We sustain the protest. BACKGROUND On March 28, 2019, the agency issued the solicitation, pursuant to the procedures of Federal Acquisition Regulation (FAR) subpart 16.5, to contractors holding CMS’s Beneficiary and Family Centered Care – Quality Improvement Organization (BFCC‑QIO) indefinite-delivery, indefinite-quantity (IDIQ) contracts.  Agency Report (AR),[1] Tab 5, TORP.  The solicitation sought proposals to provide beneficiary oversight and expert services for Medicare claim reviews nationwide.  TORP, attach. 1, Statement of Work (SOW) at 1, 12.  The contracting officer explains that the purpose of this task order is “to decrease the paid claims error rate and address medical review related coverage, coding and billing errors to improve healthcare services for Medicare beneficiaries and protect the Medicare Trust Fund.”  Contracting Officer’s Statement (COS) at 1. Prior Award Decisions Livanta and KEPRO submitted timely proposals in response to the original solicitation.  AR, Tab 4, Source Selection Decision (SSD) at 2-3.  After conducting discussions with the two offerors, the agency evaluated the proposals and made award to Livanta on July 30, 2019.  Id. at 3; COS at 3.  KEPRO protested the award to our Office.  Protest, B‑417836; B-417836.2.  On November 18, 2019, our Office sustained KEPRO’s protest, finding that the agency had failed to reasonably evaluate the proposals, and had failed to properly document its evaluation.  Ohio KePRO, Inc., B‑417836, B-417836.2, Nov. 18, 2019, 2020 CPD ¶ 47.  As corrective action, the agency revised the solicitation, and evaluated revised proposals.  COS at 3.  On February 26, 2020, the agency made award to KEPRO.  Id.  Livanta filed a protest challenging the agency’s award decision.  Protest, B‑417836.3.  On April 14, our Office dismissed Livanta’s protest as academic due to the agency’s stated intention to take corrective action.  Livanta, LLC, B‑417836.3, Apr. 14, 2020 (unpublished decision).  Specifically, the agency notified our Office that it intended to terminate the award to KEPRO, amend the solicitation, seek and evaluate revised proposals, conduct discussions, and make a new award decision.  Id. Current Award Decision  Under the solicitation, as amended, award would be made to the offeror on a best-value tradeoff basis, considering price and non-price factors, listed in descending order of importance:  technical approach and understanding, key and other recommended personnel and staffing plan, past performance, and 508 compliance.[2]  AR, Tab 4, TORP, amend. 15, attach.

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