DCR Development, LLC (8TX3328)

B-419608,B-419608.2 May 28, 2021 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DCR Development, LLC, of Conroe, Texas, protests the award of a lease for office and hangar space to KH Aviation, LLC, also of Conroe, Texas, by the General Services Administration (GSA), under request for lease proposals (RLP) No. 8TX3328. The protester challenges the award decision, arguing that it was based on erroneous market research, which misled the protester and reflects bad faith. The protester also contends that the agency conducted misleading discussions and failed to adequately document whether the awardee's proposal met a checklist of minimum technical requirements. 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:  DCR Development, LLC File:  B-419608; B-419608.2 Date:  May 28, 2021 Shane J. McCall, Esq., Nicole D. Pottroff, Esq., and Christopher S. Coleman, Esq., Koprince Law, LLC, for the protester. Helen Y. Kearns, Esq., and Dixon Merkt, Esq., General Services Administration, for the agency. Heather Weiner, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest that agency acted in bad faith by misleading protester as to the award of a lease contract is denied where there is no indication in the record that the government’s actions constituted bad faith. 2.  Protest alleging that discussions with the protester were misleading with regard to price is denied where the discussions were consistent with applicable procurement law and regulation. DECISION   DCR Development, LLC, of Conroe, Texas, protests the award of a lease for office and hangar space to KH Aviation, LLC, also of Conroe, Texas, by the General Services Administration (GSA), under request for lease proposals (RLP) No. 8TX3328.  The protester challenges the award decision, arguing that it was based on erroneous market research, which misled the protester and reflects bad faith.  The protester also contends that the agency conducted misleading discussions and failed to adequately document whether the awardee’s proposal met a checklist of minimum technical requirements. We deny the protest. BACKGROUND GSA is conducting the procurement on behalf of the United States Marshals Service (USMS), which provides rapid response support for aerial surveillance missions and must house four new aircraft in the Houston, Texas, metropolitan area.  Contracting Officer’s Statement (COS) at 1.  GSA posted an advertisement on the Federal Business Opportunities (FedBizOpps) website on April 19, 2019.[1]  The posting advised that the government was seeking to lease approximately 17,100 American National Standards Institute/Building Owners and Managers Association Office Area square feet (ABOA SF) of office and hangar space in Tomball, Texas.  Agency Report (AR), exh. 1, Lease Ad.  It also specified additional requirements for the leased space, such as, the space had to be located in a warehouse or hangar park within an airport that provided aircraft access to a minimum runway of at least 5,000 linear feet, and the building had to be capable of meeting the government’s security requirements.  Id.   GSA issued the initial RLP on December 18, 2019.  COS at 2.  The RLP provided for the award of a 15-year lease of office and hangar space in Conroe/Tomball, Texas.[2]  The due date for proposals was January 20, 2020.  AR, exh. 4, RLP.  GSA received an offer from one firm, DCR, on January 15, 2020.  AR, exh. 5, DCR Initial Offer.  The agency conducted multiple rounds of discussions with DCR, resulting in DCR submitting a second revised offer on March 18, 2020, and final proposal revisions (FPR) on April 27, 2020, and June 26, 2020.[3]  AR, exh. 6, Req. for Revised Offer; exh. 8, FRP Req.; exh. 10, DCR FPR.  After receipt and review of DCR’s June 26 FPR, GSA conducted an internal review.  Memorandum of Law (MOL) at 2.  On October 1, as part of the standard procedure in GSA’s Leasing Division for the Greater Southwest Region, the lease contracting officer (LCO) presented the negotiated lease file for review and approval prior to lease award.  AR, exh. 16, GSA Emails; COS at 2.  While the lease file was still being reviewed by GSA, the LCO mistakenly sent a copy of the proposed lease to DCR through DocuSign, GSA’s electronic document management platform.  AR, exh. 13, Lease DocuSign. During the review, GSA recognized that the LCO had compared DCR’s proposed rates with rates for office buildings, rather than for hangar space, when she conducted negotiations with DCR.  COS at 2; AR, exh.