JW Mills Management, LLC (N0024422R0008)

B-420416 Mar 24, 2022 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights JW Mills Management, LLC, a Historically Underutilized Business Zone (HUBZone) small business of Moorpark, California, protests the terms of request for quotations (RFQ) No. N0024422R0008, issued by the Department of the Navy, for food service attendant services. The protester challenges the agency's decision to issue the solicitation with a preference pursuant to the Randolph-Sheppard Act (RSA). The protester argues that the agency acted contrary to applicable law and regulation when it applied the preference because the work contemplated by the solicitation is not for the operation of a cafeteria. We sustain 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:  JW Mills Management, LLC File:  B-420416 Date:  March 24, 2022 Matthew E. Feinberg, Esq., Katherine B. Burrows, Esq., and Anna G. Sullivan, Esq., Piliero Mazza PLLC, for the protester. Robert McCall, Esq., and Avetana Lovato, Esq., Department of the Navy, for the agency. Michael P. Grogan, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging solicitation’s inclusion of Randolph-Sheppard Act preference is sustained because the statutory preference applies to the “operation” of a cafeteria and the solicitation’s requirements do not contemplate the types of activities and level of control to constitute the operation of a cafeteria. DECISION JW Mills Management, LLC, a Historically Underutilized Business Zone (HUBZone) small business of Moorpark, California, protests the terms of request for quotations (RFQ) No. N0024422R0008, issued by the Department of the Navy, for food service attendant services.  The protester challenges the agency’s decision to issue the solicitation with a preference pursuant to the Randolph-Sheppard Act (RSA).  The protester argues that the agency acted contrary to applicable law and regulation when it applied the preference because the work contemplated by the solicitation is not for the operation of a cafeteria.  We sustain the protest. BACKGROUND The Navy issued the solicitation on December 3, 2021, pursuant to the procedures in Federal Acquisition Regulation (FAR) parts 12 and 15, as a set-aside for HUBZone small business concerns, seeking food service attendant (FSA) services for dining facilities located at Naval Base Ventura County, California.  Agency Report (AR) Tab 2, RFQ at 3.[1]  The contractor would provide personnel, supervision of those personnel, and any items and services necessary to perform the services outlined in the performance work statement (PWS), to include cashier, food service attendant,[2] scullery, and housekeeping services.  Id.  The solicitation further stated the two dining facilities (or galleys) staffed through the contract would remain under the operational control of a food service officer (FSO)--a military service member.  Id.  The FSO would be responsible for inventory, maintaining the facilities’ equipment, ordering and supplying food, establishing the menus, and food preparation and storage.  Id.  The solicitation advised, “In form and fact [the] FSO operate[s] the galleys.”  Id.  The RFQ anticipated the award of a single fixed-price contract with a 16-month base period and four 1-year option periods.  Id. at 4. The solicitation provided for award on a best-value tradeoff basis, considering three factors:  (1) technical; (2) past performance; and (3) price.[3]  Id. at 76-77.  The solicitation also included a provision that gave priority to state licensing agencies (SLAs) pursuant to the RSA:[4] The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered, unless preempted by application of the State Licensing Authority (SLA) priority under the Randolph-Sheppard Act.  If the SLA is within the competitive range, is found to be technically acceptable, has a neutral or better past performance rating, offers a price determined to be fair and reasonable, and is deemed a responsible contractor, the SLA priority will pre-empt award to the Best Value Offeror.  If an SLA submits an offer that is in the competitive range, the Contracting Officer may initiate discussions solely with the SLA for the purpose of facilitating an award to the SLA without further consideration of the other offers. The SLA may be included in the competitive range even if it is not the lowest priced. Id.