Bluewater Management Group, LLC (36C10X20R0019)

B-418831 Sep 02, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Bluewater Management Group, LLC, a small business of Norfolk, Virginia, protests the Department of Veterans Affairs's (VA) decision to enter into discussions only with Brian Hall Properties, a service-disabled veteran-owned small business (SDVOSB), under request for proposals (RFP) No. 36C10X20R0019, for offsite student lodging for the VA law enforcement training center in Little Rock, Arkansas. Bluewater alleges that the VA improperly deviated from the solicitation's tiered evaluation method, and that entering into discussions only with Brian Hall amounted to conducting a sole-source procurement. We dismiss the protest because Bluewater is not an interested party. 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:  Bluewater Management Group, LLC File:  B-418831 Date:  September 2, 2020 Daniel Strouse, Esq., John J. O’Brien, Esq., and Laurel Hockey, Esq., Cordatis Law LLP, for the protester. Jason A.M. Fragoso, Esq., Department of Veterans Affairs, for the agency. Kasia Dourney, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest filed by a small business concern, contending that an agency improperly entered into discussions only with a service-disabled veteran-owned small business is dismissed where the solicitation clearly provided for a tiered evaluation of offers, and where the protester is not an interested party to challenge the conduct of the procurement with regard to first-tier offerors. DECISION   Bluewater Management Group, LLC, a small business of Norfolk, Virginia, protests the Department of Veterans Affairs’s (VA) decision to enter into discussions only with Brian Hall Properties, a service-disabled veteran-owned small business (SDVOSB), under request for proposals (RFP) No. 36C10X20R0019, for offsite student lodging for the VA law enforcement training center in Little Rock, Arkansas.  Bluewater alleges that the VA improperly deviated from the solicitation’s tiered evaluation method, and that entering into discussions only with Brian Hall amounted to conducting a sole-source procurement.  We dismiss the protest because Bluewater is not an interested party.  BACKGROUND The RFP, issued on April 16, 2020, sought proposals to provide a facility, labor, materials, insurance, licenses and equipment required to offer lodgingfor students within a 7-mile radius of the training center.  Req. for Dismissal, exh.1, RFP, amend. 1 at 8.  The solicitation anticipated award of a fixed-price contract for a 1-year base and one 1-year option period, on a best-value basis, considering technical approach, performance risk, and price.  Id. at 42.  As relevant to this protest, the RFP provided for a total set-side award based on a tiered evaluation method, modeled after the order of priority set forth in 38 U.S.C. § 8127.  Id. at 1, 48.  The tiers were as follows: Tier 1--Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Tier 2--Veteran-Owned Small Business (VOSB) Concerns Tier 3--Small Business Concerns, with HUBZone [Historically Underutilized Business Zone] Small Business Concerns and 8(a) Participants Having Priority. Id. at 48.[1] The solicitation advised that “[e]ach tier represents a distinct set‐aside and will be evaluated in isolation.”  Id. at 49.  The tiered evaluation method was described as follows: I.  Tier 1 proposals will be evaluated first.  After review of Tier 1 proposals, if awardcan be made at a fair and reasonable price that offers best value to the United States, no additional tiers will be reviewed.  If no offers are submitted at Tier 1 or if none of the Tier 1 proposals would result in award at a fair and reasonable price that offers best value to the United States, the Government will evaluate Tier 2 proposals for award. II.  After review of Tier 2 proposals (if needed), if award can be made at a fair and reasonable price that offers best value to the United States, no additional tiers will be reviewed.  If no offers are submitted at Tier 2 or if none of the Tier 2 proposals would result in award at a fair and reasonable price that offers best value to the United States, the Government will evaluate Tier 3 proposals foraward. III.  If no offers are submitted at Tier 3 or if none of the Tier 3 proposals would result in award at a fair and reasonable price that offers best value to the United States, solicitation will be cancelled, and the requirementresolicited. Id. at 48. The RFP also included the Federal Acquisition Regulation (FAR) clause 52.212-1, Instructions to Offerors--Commercial Items, which provides in section (f): the Government reserves the right to conduct discussions if . .