CRAssociates, Inc. (36C25718R0773)

B-418194 Jan 23, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights CRAssociates, Inc. of Newington, Virginia, protests the terms of request for proposals (RFP) No. 36C25718R0773, issued by the Department of Veterans Affairs (VA), to provide medical services at a community-based outpatient clinic (CBOC) in Wise County, Texas. The protester challenges the agency's decision to set aside the procurement for service-disabled veteran-owned small businesses (SDVOSBs). 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:  CRAssociates, Inc. File:  B-418194 Date:  January 23, 2020 Matthew R. Keller, Esq., Praemia Law, PLLC, for the protester. Daniel J. McFeely, Esq., Department of Veterans Affairs, for the agency. Sarah T. Zaffina, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the agency’s decision to set aside the procurement for service‑disabled veteran‑owned small businesses is denied where the agency had a reasonable expectation that offers would be received from at least two such firms and that award would be made at a fair and reasonable price. DECISION CRAssociates, Inc. of Newington, Virginia, protests the terms of request for proposals (RFP) No. 36C25718R0773, issued by the Department of Veterans Affairs (VA), to provide medical services at a community‑based outpatient clinic (CBOC) in Wise County, Texas.  The protester challenges the agency’s decision to set aside the procurement for service‑disabled veteran‑owned small businesses (SDVOSBs). We deny the protest. BACKGROUND The RFP, issued as a total SDVOSB set‑aside on September 10, 2019, contemplates the award of an indefinite‑delivery, indefinite‑quantity contract (IDIQ) for a base period of a year and up to four 1‑year option periods.  RFP at 6, 170.[1]  The successful contractor will provide primary care and mental health care services in a clinical environment to veterans who primarily reside in Wise County at either Bridgeport or Decatur, which are between 55 and 65 miles from Dallas.  Id. at 14.  The solicitation requires services for an estimated 1,692 patients per month during the base year and increasing to an estimated 1,847 patients per month in the fourth option year.  Id. at 11‑13.  The RFP was issued pursuant to Federal Acquisition Regulation (FAR) parts 12 and 15, and VA acquisition regulations.  The solicitation was assigned North American Industry Classification System (NAICS) code 621498, All Other Outpatient Care Centers.  Id. at 6. Prior to issuing the solicitation, the agency conducted market research.  The VA issued a sources sought notice on December 21, 2016, and received five responses; only one of the responding firms was an SDVOSB.[2]  AR, Exh. 7, Acquisition Plan, at 252.  On March 9, the agency conducted a search of the Small Business Administration’s Dynamic Small Business website for small businesses registered under the NAICS code 621498.  The search found no such businesses.  AR, Exh. 6, Market Research Memorandum, at 239-40.  Based on the research conducted, the initial market report, which was signed on November 29, 2017, recommended that the VA use tiered evaluation procedures to solicit proposals.[3]  See AR, Exh. 6, Market Research Memorandum, at 241; AR, Exh. 7, Acquisition Plan, at 253‑54.  In June 2019, the contracting officer determined that the original market research needed to be updated in light of the time that had passed since the original market research was conducted and the contracting officer’s personal knowledge regarding other contracts in the area that had been set aside for SDVOSBs.[4]  COS at 2; AR, Exh. 6, Market Research Memorandum, at 234.  The updated market research included a search of the VA’s Vendor Information Pages (VIP) database for SDVOSB/VOSBs, which returned three SDVOSB firms that appeared responsible.  AR, Exh. 6, Market Research Memorandum, at 234.  The contracting officer further investigated the firms individually to verify their capabilities and performance.  Id.  The contracting officer also relied on his personal knowledge of Dallas‑area CBOC procurements that had been set aside for SDVOSBs.  Id.  Based on his updated research and personal knowledge, the contracting officer determined that the procurement should be set aside for SDVOSBs. Prior to the deadline for receipt of proposals, CRAssociates timely filed this protest with our Office challenging the terms of the solicitation. DISCUSSION The protester, which is the incumbent contractor, challenges the agency decision to set aside the procurement for SDVOSBs, arguing that the VA cannot reasonably expect proposals from two or more SDVOSBs at fair and reasonable pricing.  Protest at 3‑6.  The protester...