Axxeum, Inc. (W58RGZ-21-Q-0002)

B-420013,B-420013.2 Oct 29, 2021 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Axxeum, Inc., a small business of Huntsville, Alabama, protests the issuance of a purchase order to Mereo 4 Holdings, LLC (Mereo), a small business of Chicago, Illinois, under request for quotations (RFQ) No. W58RGZ-21-Q-0002, issued by the Department of the Army, Army Contracting Command-Redstone Arsenal (Army), for Bell Huey II spare parts in support of Lebanon. Axxeum alleges that the agency unreasonably evaluated its lower-priced quotation as technically unacceptable and impermissibly issued the order to a higher-priced vendor. 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:  Axxeum, Inc. File:  B-420013; B-420013.2 Date:  October 29, 2021 Jerome S. Gabig, Esq., Richard J.R. Raleigh, Esq., and Christopher L. Lockwood, Esq., Wilmer & Lee, PA, for the protester. Christian N. Curran, Esq., and Adelicia R. Cliffe, Esq., Crowell & Moring LLP, for Mereo 4 Holdings, LLC, the intervenor. Jonathan A. Hardage, Esq., Department of the Army, for the agency. Sarah T. Zaffina, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency reasonably rejected protester’s quotation as technically unacceptable where the quotation did not clearly show that the vendor’s proposed parts met the solicitation’s requirements. DECISION Axxeum, Inc., a small business of Huntsville, Alabama, protests the issuance of a purchase order to Mereo 4 Holdings, LLC (Mereo), a small business of Chicago, Illinois, under request for quotations (RFQ) No. W58RGZ-21-Q-0002, issued by the Department of the Army, Army Contracting Command‑Redstone Arsenal (Army), for Bell Huey II spare parts in support of Lebanon.  Axxeum alleges that the agency unreasonably evaluated its lower-priced quotation as technically unacceptable and impermissibly issued the order to a higher-priced vendor. We deny the protest. BACKGROUND On April 22, 2021, the Army issued the RFQ as a combined synopsis/solicitation under commercial item acquisition and simplified acquisition procedures of Federal Acquisition Regulation (FAR) subparts 12.6 and 13.5.  The solicitation contemplated the issuance of a fixed-price purchase order for Bell Huey II spare parts.[1]  Agency Report (AR), Tab 4, RFQ at 3.[2]  The RFQ was 100 percent set aside for small businesses and provided for a 1-year period of performance.  Id. at 1, 3. The RFQ informed vendors that the purchase order would be issued on a lowest-price, technically acceptable basis, considering the following factors:  technical, schedule, and price.  Id. at 46-47.  For the technical factor, the RFQ instructed vendors to propose “the Spare Part by Part Number, specific Material Condition, and Quantity” offered in accordance with the statement of work (SOW) and the spare parts list.  Id.  Vendors were warned that quotations that failed to meet minimum criteria would be technically unacceptable and rejected.  Id. at 47.  The RFQ also provided that the agency intended to issue the order without discussions and that quotations “shall be complete, self‑sufficient and directly responsive” to the RFQ’s requirements.  Id. at 45.  As relevant here, the SOW required the contractor to provide the spare parts in the material condition specified in the spare parts list.  AR, Tab 5, RFQ attach. 0001, SOW at 4; AR, Tab 7, RFQ attach. 0003, Spare Parts List at 1.  The SOW defined three material conditions:  new (NE), overhauled (OH), and new surplus (NS).  AR, Tab 5, RFQ attach. 0001, SOW at 4.   The spare parts list identified 16 Bell Huey II helicopter spare parts.  AR, Tab 7, RFQ attach. 0003, Spare Parts List at 1.  For fourteen of the parts, the spare parts list identified one acceptable material condition code‑‑either NE or OH.  Id.  For the other two parts, part 15, gearbox assembly (T/R), and part 16, gearbox assembly (IGB), the list identified two acceptable material condition codes, OH or NS.  Id.  The RFQ also permitted vendors to propose alternate spare parts so long as vendors provided original equipment manufacturer documentation for the alternate part and clearly stated the part number for which the alternate part was proposed.  RFQ at 47. The Army received timely quotations from five vendors, including Axxeum and Mereo. AR, Tab 11, Unsuccessful Vendor Letter at 1.