KPMG LLP (SP4704-21-Q-0004)

B-420388,B-420388.2 Feb 16, 2022 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights KPMG, LLP, a large business concern of McLean, Virginia, protests the terms of request for quotations (RFQ) No. SP4704-21-Q-0004, issued by the Defense Logistics Agency (DLA) for the establishment of multiple blanket purchase agreements (BPAs) for financial improvement and audit readiness services. KPMG, an incumbent BPA holder, argues that the agency's decision to set aside the solicitation for service-disabled veteran-owned small business (SDVOSB) concerns is unreasonable. 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:  KPMG LLP File:  B-420388; B-420388.2 Date:  February 16, 2022 Dominique L. Casimir, Esq., Michael J. Montalbano, Esq., and Samarth Barot, Esq., Blank Rome LLP, for the protester. David A. Evers, Esq., Defense Logistics Agency, for the agency. Young H. Cho, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging agency’s decision to set aside for service-disabled veteran-owned small business concerns a procurement conducted pursuant to the procedures of Federal Acquisition Regulation subpart 8.4 is denied; the decision to set aside such a procurement is within the discretion of the contracting agency and the protester does not show that the agency abused its discretion. DECISION KPMG, LLP, a large business concern of McLean, Virginia, protests the terms of request for quotations (RFQ) No. SP4704-21-Q-0004, issued by the Defense Logistics Agency (DLA) for the establishment of multiple blanket purchase agreements (BPAs) for financial improvement and audit readiness services.  KPMG, an incumbent BPA holder, argues that the agency’s decision to set aside the solicitation for service-disabled veteran-owned small business (SDVOSB) concerns is unreasonable. We deny the protest. BACKGROUND The RFQ was issued on November 3, 2021, to holders of the General Services Administration’s (GSA) Federal Supply Schedule (FSS) contracts for budget and financial management services, under the procedures of Federal Acquisition Regulation (FAR) subpart 8.4, seeking program management, subject matter expertise, and support for DLA-wide stewardship, business process improvement, and audit sustainment initiatives.  Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 5; Agency Report (AR), exh. 13, RFQ at 1, 3.[1]  The RFQ was set aside for SDVOSBs meeting the $22 million small business size standard under the North American Industry Classification System code 541219, other accounting services.  RFQ at 3.  The RFQ sought to establish multiple fixed-price BPAs with a 5-year ordering period, under which DLA would issue fixed-price task orders with a 1-year base period and up to four 1-year option periods.  Id.; AR, exh. 27, Performance Work Statement at 2.  Award would be made on a best-value tradeoff basis considering the following factors:  technical capabilities, management, past performance, and price.  RFQ at 73‑75.  Prior to issuing the RFQ, the agency conducted market research to inform its acquisition strategy.  COS/MOL at 2-5.  On March 15, 2021, a sources sought notice was issued on the GSA’s e-Buy system to 278 small business vendors with FSS contracts for budget and financial management services, to identify potential small business concerns capable of performing the required services.  Id. at 2‑3; AR, exh. 1, Sources Sought Notice.  Nine vendors submitted capability statements in response to the notice.  COS/MOL at 3; AR, exh. 29, Sources Sought Responses.  The agency reviewed the capability statements and considered past performance information for those firms.  See generally AR, exh. 6, Sources Sought Assessments.  The agency identified four SDVOSB concerns capable of providing the required services.  AR, exh. 8, Market Research Report at 5.  As a result, the contracting officer concluded that the market research supported a total SDVOSB set-aside.  Id. The contracting officer also prepared a memorandum addressing the decision to conduct the procurement under the Federal Supply Schedule, the benefits of utilizing BPAs, and the anticipated risks of an SDVOSB set-aside.  AR, exh. 10, Contracting Officer’s Memorandum for Record.  In this memorandum, the contracting officer noted that GSA had already determined fair and reasonable pricing at the contract level.  Id. at 1.  The contracting officer also stated that the agency intended to compete task orders among BPA holders.  Id. at 2.  Finally, the contracting officer observed that as of September 13, 2021, there were 320 small business vendors, 71 of which were classified as SDVOSB concerns on the schedule for budget and financial management services.  Id.