Pacific Shipyards International, LLC (N32253-22-F-0025)

B-420587.3,B-420587.4 Jul 25, 2022 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Pacific Shipyards International, LLC, of Honolulu, Hawaii, protests the corrective action taken by the Department of the Navy, Naval Sea Systems Command, in response to a prior protest under fair opportunity proposal request (FOPR) No. N32253-22-F-0025, issued for ship repair, maintenance, and upgrading services. The protester contends that the agency has unreasonably permitted offerors to revise their price proposals. 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: Pacific Shipyards International, LLC File: B-420587.3; B-420587.4 Date: July 25, 2022 Anthony H. Anikeeff, Esq., and Yongjoo Kwon, Esq., Williams Mullen, for the protester. Mark G. Jackson, Esq., and Stowell B. Holcomb, Esq., Jackson Holcomb LLP, for Vigor Marine, LLC, the intervenor. Tami Yamada, Esq., Department of the Navy, for the agency. David A. Edelstein, Esq., and Alexander O. Levine, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency unreasonably permitted offerors to submit revised price proposals when taking corrective action in response to a prior protest is denied where the protester has not demonstrated that the agency’s corrective action was unreasonable. DECISION Pacific Shipyards International, LLC, of Honolulu, Hawaii, protests the corrective action taken by the Department of the Navy, Naval Sea Systems Command, in response to a prior protest under fair opportunity proposal request (FOPR) No. N32253-22-F-0025, issued for ship repair, maintenance, and upgrading services. The protester contends that the agency has unreasonably permitted offerors to revise their price proposals. We deny the protest. BACKGROUND On September 2, 2021, the Navy issued the FOPR to holders of a multiple award, indefinite-delivery, indefinite-quantity (IDIQ) contract for repair, maintenance, and modernization of surface ships located in Pearl Harbor, Hawaii. Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 2. The FOPR sought to issue a delivery order for work to be performed on the USS Michael Murphy, referred to as a docking selected restricted availability. Id. See Agency Report (AR), Tab 2, FOPR at 1. The FOPR provided that award would be made on a best-value tradeoff basis, considering price, resource capability and schedule, and past performance. FOPR at 65‑66. The non-price factors, when combined, were approximately equal in importance to price. Id. at 66. The agency received proposals from Pacific and Vigor Marine, LLC, and issued a delivery order to Pacific on February 18, 2022. COS/MOL at 7. Vigor requested a debriefing. Id. See AR, Tab 4, Vigor Debriefing. As part of Vigor’s debriefing, and in accordance with Federal Acquisition Regulation section 15.506(d)(2), the agency disclosed Pacific’s total evaluated price to Vigor, including Pacific’s price for base work items, its price for additional “growth” work items, and its price for option work items. See AR, Tab 5, Responses to Vigor Enhanced Debriefing Questions at 2. On March 9, Vigor protested the award to Pacific with our Office. Prior Protest Pleading, B‑420587, March 9, 2022. Vigor argued that the agency had unreasonably evaluated Pacific under the past performance factor. Id. at 4‑6. In a supplemental protest, Vigor further argued that the agency had improperly evaluated both offerors under the resource capability and schedule factor, and that the agency’s best-value tradeoff was unreasonable. Prior Supp. Protest, B‑420587.2, March 14, 2022 at 3‑11. In response to Vigor’s protest, the agency informed our Office that it would take corrective action by “reexamin[ing] its evaluation of the non-price factors based on the allegations raised by the protester and [by making] a new award decision.” Revised Notice of Corrective Action, B‑420587, B-420587.2, March 28, 2022 at 1. The agency also “reserve[d] the right to take any other corrective action as deemed appropriate including, but not limited to, conducting exchanges.” Id. Pacific objected to the agency’s proposed corrective action. Obj. to Notice of Corrective Action, B‑420587, B‑420587.2, Mar. 24, 2022 at 1-2. Specifically, Pacific objected to the agency’s reservation of rights, and argued that the scope of the corrective action should be limited to the reevaluation of proposals with respect to the specific, non-price issues raised in Vigor’s protest. Id. The protester objected to any attempt by the agency to permit price revisions. Id. Because the agency’s corrective action rendered Vigor’s protest academic, we dismissed the protest. Vigor Marine, LLC, B‑420587, B‑420587.2, March 31, 2022 (unpublished decision).