Valor Healthcare, Inc. (36C26219R0026)

B-418606.2,B-418606.3 Jan 21, 2021 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Valor Healthcare, Inc., of Addison, Texas, protests the award of a contract to STG International, Inc. (STGi), of Arlington, Virginia, under solicitation No. 36C26219R0026, issued by the Department of Veterans Affairs (VA) for five community-based outpatient clinics (CBOCs) in the VA's Loma Linda Healthcare System (VALLHS). The protester contends that the agency's evaluation of its price as unreasonable was based on a flawed independent government cost estimate (IGCE) and resulted in an unreasonable evaluation and selection decision. The protester further contends that STGi's proposal contained errors and omissions that render the proposal ineligible for award such that the agency should have rejected the proposal or required STGi to correct it. 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:  Valor Healthcare, Inc. File:  B-418606.2; B-418606.3 Date:  January 21, 2021 Stuart B. Nibley, Esq., Amy C. Hoang, Esq., Erica L. Bakies, Esq., and Sarah F. Burgart, Esq., K&L Gates LLP, for the protester. Craig A. Holman, Esq., Nathaniel E. Castellano, Esq., and James R. S. Mestichelli, Esq., Arnold & Porter Kaye Scholer, LLP, for STG International, Inc., the intervenor. Daniel J. McFeely, Esq., Department of Veterans Affairs, for the agency. Charmaine A. Stevenson, Esq., and Laura Eyester, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the agency’s price evaluation and selection decision is denied where the record shows that both were reasonable and in accordance with the terms of the solicitation. DECISION   Valor Healthcare, Inc., of Addison, Texas, protests the award of a contract to STG International, Inc. (STGi), of Arlington, Virginia, under solicitation No. 36C26219R0026, issued by the Department of Veterans Affairs (VA) for five community-based outpatient clinics (CBOCs) in the VA’s Loma Linda Healthcare System (VALLHS).[1]  The protester contends that the agency’s evaluation of its price as unreasonable was based on a flawed independent government cost estimate (IGCE) and resulted in an unreasonable evaluation and selection decision.  The protester further contends that STGi’s proposal contained errors and omissions that render the proposal ineligible for award such that the agency should have rejected the proposal or required STGi to correct it. We deny the protest. BACKGROUND The solicitation, issued on August 2, 2019, using the procedures of Federal Acquisition Regulation (FAR) parts 12 and 15, contemplated the award of five fixed-price lease contracts (one lease for operating space for each CBOC), and a fixed-price indefinite-delivery, indefinite-quantity contract for medical services at each of the CBOCs.  Solicitation at 73, 78, 83, 214.[2]  The purpose of the contract is to provide primary care, mental health, audiology and other specialty care services in a private office or clinic environment to veterans primarily residing in San Bernardino and Riverside Counties, California.  Id. at 83.  The period of performance includes a base year and four 1-year option periods, and the maximum aggregate order value is $110 million.  Id. at 78, 82. The solicitation stated that award would be made to the responsible offeror whose proposal was most advantageous to the government, price and other factors considered.  Id. at 218.  Proposals would be evaluated under the following factors, listed in descending order of importance:  (1) activation and transition plan, (2) facility layout, (3) proposed sites, (4) experience, (5) price, (6) past performance, and (7) veteran involvement.  Id. at 218-219.  All non-price factors, when combined, were significantly more important than price for the purpose of determining the best value to the government.  Id. at 219.  All leased space was required to meet certain minimum codes and design standards consistent with the clinical services to be provided at each CBOC.  Id. at 128. The solicitation required that offerors propose two categories of prices as follows: 1) Schedule of Services and Price-Section B.2.  Pricing submitted shall be for enrolled patients on a “per-member per month (PMPM)” basis and shall represent an “all inclusive” reimbursement for all requirements as described in the [performance work statement]. 2) Schedule of Services and Price-Section F 1.07.  Pricing submitted shall be for the requested space required for VA Staff for Mental Health, Audiology, and other Specialty care at each clinic.[[3]] Id.