Doore Tour Company, Ltd. (W91QVN21R0003)

B-420326 Feb 01, 2022 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Doore Tour Company, Ltd., of the Republic of Korea, protests the award of a contract to Kumkang Express Tour Company, Ltd., also of the Republic of Korea, under request for proposals (RFP) No. W91QVN-21-R-0003, issued by the Department of the Army for shuttle bus services. The protester primarily challenges the evaluation of its price. We deny the protest. View Decision Decision  Matter of:  Doore Tour Company, Ltd. File:  B-420326 Date:  February 1, 2022 Jang Suk Suh, Esq., for the protester. Major Weston E. Borkenhagen and Captain Timothy M. McLister, Department of the Army, for the agency. April Y. Shields, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that the agency improperly evaluated the protester’s price is denied where the record shows that the agency’s evaluation was reasonable and consistent with the terms of the solicitation. DECISION Doore Tour Company, Ltd., of the Republic of Korea, protests the award of a contract to Kumkang Express Tour Company, Ltd., also of the Republic of Korea, under request for proposals (RFP) No. W91QVN-21-R-0003, issued by the Department of the Army for shuttle bus services.  The protester primarily challenges the evaluation of its price. We deny the protest. BACKGROUND On December 9, 2020, the agency issued the RFP pursuant to Federal Acquisition Regulation (FAR) part 12, acquisition of commercial items, and part 15, contracting by negotiation.  Agency Report (AR), Tab 3, RFP.[1]  The RFP seeks a contractor to provide fare-free mass transit shuttle bus services for U.S. military personnel and family members traveling to and from military installations throughout the Korean Peninsula.  Id. at 68‑69. The RFP contemplates the award of a single fixed-price indefinite-delivery, indefinite-quantity contract for a base period of nine months and four 1-year option periods.  RFP at 3, 103.  The RFP provides for award on a lowest-price, technically acceptable (LPTA) basis, considering technical, past performance, and price.  Id. at 112-118.  Under the price evaluation factor, the RFP requires offerors to propose prices in Korean Won (W) and provides that proposals would be evaluated to determine fair, complete, reasonable, and realistic pricing.  Id. at 110‑111, 117-118.  The RFP notes that “[a]ny underlying assumptions including proposed escalation rates between base and subsequent option periods shall be clearly explained,” and cautions that the agency “may determine that an offer is unacceptable if the option prices are significantly unbalanced.”  Id. at 117-118. On or before January 26, 2021, the amended closing date for receipt of proposals, the agency received proposals from 12 offerors, including Doore and Kumkang.  The agency established a competitive range and opened discussions on April 21.  The discussions letter sent to Doore identified the proposal as technically acceptable and noted concerns with some of Doore’s prices for base period contract line item numbers that were “lower than the [government objective] which is based on the current market prices.”  AR, Tab 25, Competitive Range Notification and Discussions Letter for Doore at 1.  The agency also contacted Doore by telephone.  AR, Tab 2, Contracting Officer’s Statement (COS) at 3; Protest at 4. On or before April 29, the agency received revised proposals.  Of note, Doore revised and further lowered its prices, particularly for the base period.  Compare AR, Tab 18, Doore Original Price Proposal with AR, Tab 21, Doore Revised Price Proposal; Protest, encl. B, Doore Revised Price Proposal.  On May 4, the agency asked Doore to clarify its revised base period price; specifically, after the agency asked, “Did you propose 9 months of base year with total price of W1,248,677,820?”  Doore responded affirmatively.  Protest, encl. C, Emails Between Agency and Doore at 1. The agency completed its evaluation and selected Kumkang for award.  Doore requested and received a debriefing.  In the debriefing letter, the agency informed Doore that, while Doore’s total proposed price of W14,781,813,300 was lower than Kumkang’s total proposed price of W14,901,302,566, Doore’s proposal was rejected due to unbalanced pricing.  Protest, encl. F, Doore Debriefing Letter at 1-2; AR, Tab 34, Doore Debriefing Letter at 1-2.  This protest followed. DISCUSSION The protester primarily challenges the agency’s evaluation of its price proposal.  Specifically, Doore argues that its price “should not [have been] evaluated as ‘unbalanced’” and that it “fully explained the reason [for] lower[ing its] pric[e] for the base year period.”  Protest at 1.  The protester also challenges various other aspects of the agency’s award decision, including the eligibility of the awardee.  Id.