Primary Care Solutions, Inc. (36C25718R0842)

B-418799 Sep 10, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights CRAssociates, Inc. (CRA), a large business located in Newington, Virginia, protests the terms of request for proposals (RFP) No. 36C25718R0842, issued by the Department of Veterans Affairs (VA) as a set-aside for service-disabled veteran-owned small businesses (SDVOSBs) to obtain medical care services for veterans at a community-based outpatient clinic (CBOC) in San Antonio, Texas. CRA, the current incumbent contractor, asserts that the VA's decision to set aside the procurement for SDVOSBs was unreasonable. 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-418799 Date:  September 10, 2020 Matthew R. Keller, Esq., and Kristen L. Loesch, Esq., Praemia Law, PLLC, for the protester. Deborah K. Morrell, Esq., Department of Veterans Affairs, for the agency. Paula A. Williams, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging agency’s decision to set aside a procurement for service-disabled veteran-owned small businesses is denied where the agency reasonably concluded from its market research that there was a reasonable expectation of receiving proposals from at least two service-disabled veteran-owned small businesses capable of performing the required services at a fair and reasonable price. DECISION CRAssociates, Inc. (CRA), a large business located in Newington, Virginia, protests the terms of request for proposals (RFP) No. 36C25718R0842, issued by the Department of Veterans Affairs (VA) as a set-aside for service-disabled veteran-owned small businesses (SDVOSBs) to obtain medical care services for veterans at a community-based outpatient clinic (CBOC) in San Antonio, Texas.  CRA, the current incumbent contractor, asserts that the VA’s decision to set aside the procurement for SDVOSBs was unreasonable.  We deny the protest.  BACKGROUND The VA issued the RFP on January 15, 2020, as an SDVOSB set-aside, seeking proposals for the award of an indefinite-delivery, indefinite-quantity contract for a 1-year base period and four 1-year options to provide medical care services for veterans at a CBOC in San Antonio, Texas.  RFP at 1, 166.  The estimated patient load at the clinic for the base year is 3,000 patients per month, with patient enrollment estimated to increase to 5,400 patients per month by the final option year.  Id. at 6-8.  The VA received proposals from [DELETED] SDVOSB offerors by the June 4 proposal due date:  [DELETED].  Prior to issuance of the solicitation, the contracting officer conducted market research to inform its acquisition strategy.  The record reflects that the contracting officer sought to identify potential SDVOSBs capable of performing the required services at reasonable prices by initially reviewing responses to a November 2017 sources sought notice.  Based on the sources sought response data, the contracting officer identified three SDVOSB concerns that appeared capable of performing the agency’s requirements.  Agency Report (AR) exh. 6a, Market Research Report at 3.  The contracting officer also reviewed the results of an industry day meeting with firms registered in the VA’s Vendor Information Pages (VIP)[1] under North American Industry Classification System (NAICS) code 621498 (all other outpatient care centers), and the results of an internet search in the Small Business Administration’s (SBA) dynamic small business database.  That search identified no small business concerns.  Id. at 2-3; Contracting Officer Statement at 3.  In January 2020, the contracting officer conducted additional market research to assess current market conditions.[2]  The contracting officer searched the VIP database for VA-verified SDVOSB concerns.  That search identified the following three SDVOSBs:  (1) Clinovators, LLC, operating CBOCs for over 10 years, and starting three CBOCs in New Mexico; (2) Nephrology Rounding Solutions, Inc. dba Primary Care Solutions, currently performing one CBOC contract in Sherman, Texas, and four separate CBOC contracts in New Mexico; and (3) Potomac Valor Healthcare, LLC, currently operating a CBOC in Granbury, Texas.  Id. exh.