Phoenix Environmental Design, Inc. (DOIAFBO200034)

B-418473,B-418473.2 May 20, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Phoenix Environmental Design Inc., a service-disabled veteran-owned small business of West Richland, Washington, protests the award of a contract to Alligare LLC, of Opelika, Alabama, on a sole-source basis, under solicitation No. DOIAFBO200034, issued by the Department of the Interior, for distribution of Magnacide H, an aquatic herbicide. Phoenix contends that award to Alligare is improper because its System for Award Management (SAM) registration contains incorrect information. We deny the protest. View Decision Decision Matter of:  Phoenix Environmental Design, Inc. File:  B-418473; B-418473.2 Date:  May 20, 2020 C. Chad Gill, for the protester. Sheryl L. Rakestraw, Esq., and Brian A. Quint, Esq., Department of the Interior, for the agency. Lois Hanshaw, Esq., and Evan C. Williams, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that the awardee’s proposal was unacceptable because the awardee’s registration in the System for Award Management was inaccurate is denied where there is no basis to conclude that the protester was prejudiced by the agency’s alleged waiver of the registration requirements. DECISION   Phoenix Environmental Design Inc., a service-disabled veteran-owned small business of West Richland, Washington, protests the award of a contract to Alligare LLC, of Opelika, Alabama, on a sole-source basis, under solicitation No. DOIAFBO200034, issued by the Department of the Interior, for distribution of Magnacide H, an aquatic herbicide.  Phoenix contends that award to Alligare is improper because its System for Award Management (SAM) registration contains incorrect information.  We deny the protest. BACKGROUND On January 2, 2020, the agency issued a sources sought notice seeking responses from qualified vendors authorized to distribute Magnacide H for canal and irrigation application.[1]  Agency Report (AR), Tab 10, Sources Sought Notice at 1.  On February 12, the agency executed a justification and approval (J&A) that concluded that Alligare was the only responsible source capable of satisfying the agency’s requirements.  AR, Tab 17, J&A at 1.  The agency also checked Alligare’s Federal Acquisition Regulation (FAR)/Defense Federal Acquisition Supplement (DFARS) Report in the SAM and verified that Alligare identified its immediate and highest-level owner pursuant to FAR clause 52.204-17, Ownership or Control of Offeror.  COS at 9; AR, Tab 18, FAR/DFARS Reports at 9-10.  The next day, on February 13, the agency issued an amendment changing the sources sought notice to a sole-source synopsis and inviting qualified vendors that could show authorization to distribute Magnacide H to respond by February 20.  AR, Tab 12, amend. 2 at 1.  On February 14, Phoenix protested to our Office.[2] DISCUSSION As one of the required representations and certifications in the SAM, FAR clause 52.204-17, Ownership or Control of Offeror, requires an offeror to identify in the SAM whether it has an immediate owner, which is defined as “an entity, other than the offeror, that has direct control of the offeror.”  FAR clause 52.204-17(a), (b).  The clause further requires that if the offeror’s immediate owner is owned or controlled by another entity, the offeror must identify the highest-level owner, which is defined as “the entity that owns or controls an immediate owner of the offeror, or that owns or controls one or more entities that control an immediate owner of the offeror.”  Id. at (a), (d). Phoenix’s sole allegation is that Alligare lacks a valid SAM registration because it failed to accurately identify its immediate and highest-level owners in its SAM registration as required by FAR clause 52.204-17.  Protest at 10.  Based on this assertion, Phoenix argues that the agency should cancel the sole-source award because Alligare has not complied with the requirements of this clause.  Id.  In response, the agency asserts that it investigated Phoenix’s allegations, and requested and received from Alligare information verifying that its SAM registration accurately identified its immediate and highest-level owners.  Memorandum of Law at 2 n.1; AR, Tab 19, Emails from Alligare to Agency, Feb.