Steel Point Solutions, LLC (831812287)

B-418224,B-418224.2 Jan 31, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Steel Point Solutions, LLC, of Calverton, Maryland, protests the award of a task order contract to Creative IT Solutions, LLC, of Fort Cobb, Oklahoma, under request for quotations (RFQ) No. 831812287, issued by the Defense Information Systems Agency (DISA) to reprocure communications support services after default by the original contractor. Steel Point alleges that DISA unreasonably awarded the contract to Creative IT Solutions because DISA should have conducted a new acquisition, arbitrarily failed to evaluate quotations for realistic prices, and improperly made its tradeoff on a lowest-priced, technically acceptable basis. 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:  Steel Point Solutions, LLC File:  B-418224; B-418224.2 Date:  January 31, 2020 Kevin J. Maynard, Esq., Kendra P. Norwood, Esq., and Gary S. Ward, Esq., Wiley Rein LLP, for the protester.  Matthew P. Moriarty, Esq., Ian P. Patterson, Esq., and Robert D. Kampen, Esq., Koprince Law, LLC, for Creative IT Solutions, LLC, the intervenor.  Colleen A. Eagan, Esq., Michelle L. Sabin, Esq., and Nati Silva, Esq., Defense Information Systems Agency, for the agency.  Todd C. Culliton, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest that the agency unreasonably awarded a reprocurement contract for a term greater than the undelivered term remaining on the terminated contract is sustained where repurchasing services for a term greater than the undelivered term is inconsistent with applicable procurement regulations. 2.  Protest that the agency unreasonably failed to evaluate whether awardee’s pricing was realistic is denied where the solicitation did not expressly require the agency to conduct a price realism evaluation. 3.  Protest that the agency unreasonably issued the reprocurement contract on the basis of quotations previously submitted is denied where the protester did not demonstrate that the agency improperly concluded that prices submitted were an accurate measure of expected competition. DECISION Steel Point Solutions, LLC, of Calverton, Maryland, protests the award of a task order contract to Creative IT Solutions, LLC, of Fort Cobb, Oklahoma, under request for quotations (RFQ) No. 831812287, issued by the Defense Information Systems Agency (DISA) to reprocure communications support services after default by the original contractor.  Steel Point alleges that DISA unreasonably awarded the contract to Creative IT Solutions because DISA should have conducted a new acquisition, arbitrarily failed to evaluate quotations for realistic prices, and improperly made its tradeoff on a lowest‑priced, technically acceptable basis. We sustain the protest. BACKGROUND On September 12, 2018, pursuant to Federal Acquisition Regulation (FAR) part 8, DISA issued the RFQ for communications infrastructure design, implementation, and sustainment in an enterprise-computing environment.  Agency Report (AR), Tab 2, RFQ at 1-2; Combined Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 5-6.  DISA restricted competition to Historically Underutilized Business Zone (HUBZone) small businesses holding General Services Administration (GSA), Information Technology Schedule 70, Special Item Number 132-51 Federal Supply Schedule (FSS) contracts.  AR, Tab 2, Conformed RFQ at 2.  The RFQ contemplated the award of a fixed‑price contract to be performed over a 6-month base period, and two 1-year option periods.  Id.  Award would be made to the vendor with the lowest-priced, technically acceptable (LPTA) quotation.  Id.  In making the award, DISA would consider technical/management and price factors.  AR, Tab 2, Conformed RFQ at 4.  The technical/management factor was comprised of four subfactors, including:  design services engineering; communications automation; network application support; and, minimum personnel qualifications matrix.  Id.  The RFQ advised that price quotations would be evaluated to determine whether quoted prices were reasonable and complete, and also advised that DISA may conduct a realism analysis.  Id.  Five vendors submitted quotations by the November 13, 2018, closing date.  COS/MOL at 7.  Akira Technologies, Inc. quoted the lowest price ($34,461,714), Creative IT Solutions quoted the second lowest price ($47,362,819), and Steel Point quoted the highest price of the five vendors ($54,326,287).  AR, Tab 8C, Original Price Negotiation Memorandum (PNM) at 5.  After evaluating Akira’s quotation as technically acceptable, DISA issued a task order to Akira on February 25, 2019.  Id.