Lynchval Systems Worldwide, Inc. (16PBGC21R0010)

B-420295.4 Apr 26, 2022 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Lynchval Systems Worldwide, Inc. (Lynchval), a small business of Herndon, Virginia, protests the award of a contract to Deloitte Consulting, LLP (Deloitte), of Arlington, Virginia, under request for proposals (RFP) No. 16PBGC21R0010, issued by the Pension Benefit Guaranty Corporation (PBGC) for services developing and supporting the single-employer Transformational Pension Insurance Modeling System (T-PIMS) technology modernization effort. The protester contends that the award to Deloitte was improper because Deloitte has organizational conflicts of interest (OCIs). 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: Lynchval Systems Worldwide, Inc. File: B-420295.4 Date: April 26, 2022 Antonio R. Franco, Esq., Jacqueline K. Unger, Esq., Eric A. Valle, Esq., and Anna G. Sullivan, Esq., Piliero Mazza PLLC, for the protester. David S. Cohen, Esq., John J. O’Brien, Esq., and Rhina Cardenal, Esq., Cordatis LLP, for Deloitte Consulting, LLP, the intervenor. Corey Garlick, Esq., Kristen Zearfoss, Esq., and Dawn M. Velarde, Esq., Pension Benefit Guaranty Corporation, 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 Protest that award was tainted by organizational conflicts of interest is denied where the record does not support allegations that the awardee drafted specifications or had access to non-public information that would have provided a competitive advantage, and where the protester’s assertions do not present the hard facts necessary to refute the agency’s conclusion that the awardee’s participation in this procurement was not barred by an impermissible conflict of interest. DECISION Lynchval Systems Worldwide, Inc. (Lynchval), a small business of Herndon, Virginia, protests the award of a contract to Deloitte Consulting, LLP (Deloitte), of Arlington, Virginia, under request for proposals (RFP) No. 16PBGC21R0010, issued by the Pension Benefit Guaranty Corporation (PBGC) for services developing and supporting the single-employer Transformational Pension Insurance Modeling System (T‑PIMS) technology modernization effort. The protester contends that the award to Deloitte was improper because Deloitte has organizational conflicts of interest (OCIs). We deny the protest. BACKGROUND The Employee Retirement Income Security Act of 1974 established the PBGC to encourage the growth of defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum.[1] Agency Report (AR), Tab 4, RFP at 9.[2] PBGC protects the pensions of nearly 40 million workers and retirees in more than 24,000 private defined benefit pension plans and administers two insurance programs: the single employer (SE) and multi‑employer (ME) insurance programs.[3] Id. The Pension Insurance Modeling System is the primary tool used to analyze the impact of proposed or enacted legislation on pension plans and the SE and ME insurance programs. Id. Procurement History PBGC requires a new system architecture to support PIMS SE and ME models and plans to acquire it in two phases. Contracting Officer’s Statement (COS) at 1. In Phase 1, PIMS Modernization, the contractor, in collaboration with the agency’s Policy, Research and Analysis Department (PRAD), is to develop the “blueprint” for the new modeling system. Id.; AR, Tab 2, PIMS Modernization RFP at 11‑12. In Phase 2, T‑PIMS, which will be solicited as a new requirement, the contractor is to implement and deploy the new modeling system and provide ongoing systems operations and maintenance. COS at 1; AR, Tab 2, PIMS Modernization RFP at 11‑12. PIMS Modernization Contract On July 23, 2019, PBGC issued RFP No. 16PBGC19R0028 for Phase 1, PIMS modernization. AR, Tab 2, PIMS Modernization RFP at 1. The solicitation provided that the contract was “for system design services only” and did not “include any implementation effort.” Id. at 16. The solicitation also provided that the system architecture should be considered a new system and should include all documents and work product pertaining to architecture, logical, and physical design. Id. The solicitation indicated that the contractor would develop the new system blueprint in close collaboration with the PRAD, which would provide “federal oversight, review, and modification of the deliverables submitted under this contract.” Id. at 17. The solicitation specified that PBGC wanted to own the system and would not consider migrating the PIMS to the contractor’s proprietary system, and therefore a proprietary system would not be suitable for the agency’s new system architecture.