Richen Management, LLC

B-417888 Nov 06, 2019 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Richen Management, LLC, a small business concern located in Dover-Foxcroft, Maine, protests the award of a contract to Sparkle Janitorial Services, Inc., also a small business concern, of Detroit, Michigan, under request for proposals (RFP) No. 47PF0019R0070, issued by the General Services Administration (GSA) for janitorial and related services. Richen argues that the best-value tradeoff and source selection decision was unreasonable. We deny the protest. View Decision Decision Matter of:  Richen Management, LLC File:  B-417888 Date:  November 6, 2019 Richard McCue for the protester. Robert W. Foltman, Esq., General Services Administration, for the agency. Jacob Talcott, Heather Weiner, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency’s selection of a higher-rated, higher-priced proposal for award is unobjectionable where the agency’s best-value tradeoff decision was reasonable and consistent with the terms of the solicitation. DECISION Richen Management, LLC, a small business concern located in Dover-Foxcroft, Maine, protests the award of a contract to Sparkle Janitorial Services, Inc., also a small business concern, of Detroit, Michigan, under request for proposals (RFP) No. 47PF0019R0070, issued by the General Services Administration (GSA) for janitorial and related services.  Richen argues that the best‑value tradeoff and source selection decision was unreasonable. We deny the protest. BACKGROUND On May 3, 2019, GSA issued the solicitation, which was set aside for Historically Underutilized Business Zone (HUBZone) small businesses, and issued under the procedures of Federal Acquisition Regulation (FAR) part 15.  RFP at 85; Agency Report (AR), Tab A, Source Selection Decision/Price Negotiation Memorandum (SSD/PNM) at 1-2.  The solicitation sought janitorial and related services at three locations in Michigan--Blue Water Bridge, Ambassador Bridge, and the Detroit Metro Airport--and required that the contractor provide the management, supervision, manpower, equipment, and supplies necessary for these janitorial and related services.  RFP § B.1.  The solicitation anticipated the award of a fixed-price contract for a base year and four 12-month options.  Id. at 1, 151.  The solicitation provided for award on a best-value tradeoff basis considering the following two evaluation factors:  price and past performance.  Id. § M.1.  The solicitation provided that past performance was “significantly more important” than price.  Id. Under the past performance factor, offerors were instructed to identify a minimum of three references from contracts considered recent and relevant in demonstrating their ability to perform the RFP’s requirements.  Id. § L.6.  The solicitation provided that the agency would evaluate the offeror’s past performance by analyzing those references, and interviewing the offeror’s current and past customers.  Id.  The solicitation also allowed the contracting officer to analyze “any other relevant contract” of the offeror.  Id. GSA received six proposals prior to the June 3 closing date, including those of Richen and Sparkle.  AR, Tab A, SSD/PNM at 1-2.  Following the evaluation, the contracting officer established a competitive range, which included Richen and Sparkle.  Id.  The agency entered into discussions with all of the offerors in the competitive range and requested revised proposals.  Id. at 2.  The agency evaluated the revised proposals submitted by Richen and Sparkle as follows:   SPARKLE RICHEN Past Performance Excellent Satisfactory Total Evaluated Price $1,832,165 $1,383,494 Id. at 11. Sparkle received a past performance rating of excellent.  Id. at 14.  Sparkle’s total evaluated price was approximately 1.2 percent above the government cost estimate.  Id. at 14-15.  Richen, on the other hand, received the lowest past performance rating among qualified offerors of satisfactory.  Id. at 15.  Richen’s total evaluated price was 23.6 percent less than the government cost estimate.  Id. at 11.  Ultimately, the source selection authority (SSA) concluded that, although Richen’s proposal was lower priced, Sparkle’s past performance was “significantly better” and thus offered the best value to the government.  Id. at 16.  Based on this evaluation, GSA awarded the contract to Sparkle on August 1, 2019, and notified Richen of the award decision that same day.  Protest at 7.  After requesting and receiving a debriefing, Richen filed this protest with our Office.  Id.