Wolverine Tube, Inc. (FA8534-19-R-0001)

B-418339 Mar 17, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights AAR Manufacturing Inc., d/b/a AAR Mobility Systems (AAR), of Cadillac, Michigan, protests the terms of request for proposals (RFP) No. FA8534-19-R-0001, issued by the Department of the Air Force for the supply of "Next Generation" (Next-Gen) air cargo pallets. AAR argues that a potential competitor, Taber Extrusions, LLC, of Russellville, Arkansas, has organizational conflicts of interest (OCI) that are unmitigatable and that the RFP's past performance evaluation criterion is unduly restrictive of competition. 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:  AAR Manufacturing Inc., d/b/a AAR Mobility Systems File:  B-418339 Date:  March 17, 2020 Paul R. Hurst, Esq., Michael J. Navarre, Esq., and Caitlin T. Conroy, Esq., Steptoe & Johnson, LLP, for the protester. Anthony H. Anikeeff, Esq., and Stephen H. Swart, Esq., Williams Mullen, for Taber Extrusions, LLC, the intervenor. Captain Seiji Ohashi, Alexis J. Bernstein, Esq., Major Darren S. Gilkes, and Charles R. Epperson, Esq., Department of the Air Force, for the agency. Louis A. Chiarella, Esq., and Peter H. Tran, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest that agency failed to give adequate consideration to a prospective offeror’s organizational conflicts of interest is denied where the agency reasonably evaluated whether the prospective offeror had an improper ability to shape the ground rules for the procurement, or unequal access to information, or impaired objectivity to perform the required effort, and where the protester’s assertions fail to present hard facts indicating the existence of an impermissible conflict. 2.  Protest challenging solicitation’s past performance evaluation rating scheme as unduly restrictive of competition is denied where the agency provides a rational explanation for its requirements and demonstrates that they reasonably relate to the agency’s actual needs.  DECISION   AAR Manufacturing Inc., d/b/a AAR Mobility Systems (AAR), of Cadillac, Michigan, protests the terms of request for proposals (RFP) No. FA8534-19-R-0001, issued by the Department of the Air Force for the supply of “Next Generation” (Next-Gen) air cargo pallets.  AAR argues that a potential competitor, Taber Extrusions, LLC, of Russellville, Arkansas, has organizational conflicts of interest (OCI) that are unmitigatable and that the RFP’s past performance evaluation criterion is unduly restrictive of competition. We deny the protest. BACKGROUND The current air cargo pallet, assigned the designation 463L, is used for the transportation of air cargo throughout the Air Force.  The 463L pallet was first fielded in 1963, with few subsequent modifications.  In its current design, the 463L pallet is made of a balsa wood core with an aluminum skin.  Contracting Officer’s Statement (COS) at 2; Agency Report (AR), Tab 39, Cargo Pallet Program Acquisition Strategy at 61.  AAR has been the sole supplier and maintenance provider for the legacy 463L pallet for decades.  AR, Tab 39, Cargo Pallet Program Acquisition Strategy at 4, 24-25, 33, 77. In 2012, the Air Force began an effort to redesign the 463L air cargo pallet to enhance its longevity and other performance characteristics.  In August 2012, the Air Force awarded a contract to the University of Dayton Research Institute (UDRI) to conduct a feasibility study regarding air cargo pallets, including alternative suppliers, materials, and designs, to the legacy 463L pallet.  AR, Tab 104, UDRI Next-Gen Program Review Presentation at 5.  The UDRI study considered multiple alternative designs, materials, and processes before deciding upon an all-aluminum, extruded aluminum core design, similar to military airfield runway matting.  Id.