International Business Machines Corporation (RFQ-8098)

Case: B-420725 Agency: Department of the Treasury : Internal Revenue Service Protester: International Business Machines Corporation Date: 2023-08-18 Denied
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B-420725.4,B-420725.5 Aug 18, 2023 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights International Business Machines, Corporation (IBM), of Bethesda, Maryland, protests the issuance of a task order to MAXIMUS Federal Services, Inc. (MAXIMUS), of Falls Church, Virginia, under request for quotations (RFQ) No. 8098, issued by the Department of Treasury, Internal Revenue Service (IRS), for consultation and subject matter expertise to the IRS's data delivery services programs. The protester contends the agency's evaluation of its quotation concerning its proposed level of effort was unreasonable, and that the evaluation of MAXIMUS's technical quotation was flawed and inconsistent with the terms of the solicitation. 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: International Business Machines Corporation File: B-420725.4; B-420725.5 Date: August 18, 2023 Keith R. Szeliga, Esq., Shaunna Bailey, Esq., and Lillia J. Damalouji, Esq., Sheppard, Mullin, Richter, & Hampton LLP, for the protester. Brian A. Darst, Esq., Odin, Feldman, & Pittleman P.C., for MAXIMUS Federal Services, Inc., the intervenor. Seeta Rebbapragada, Esq., Timothy G. Kelly, Esq., and Richard L. Hatfield, Esq., Department of the Treasury, for the agency. Michael P. Grogan, Esq., and Evan D. Wesser, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest alleging the agency unreasonably evaluated the protester’s quotation under the management approach factor is denied where the record shows the evaluation and award decision were reasonable, and, to the extent there were any errors, the protester cannot establish any reasonable possibility of competitive prejudice. 2. Protest challenging the agency’s evaluation of the awardee’s quotation under the technical approach factor is denied where the evaluation was reasonable and consistent with the terms of the solicitation. DECISION International Business Machines, Corporation (IBM), of Bethesda, Maryland, protests the issuance of a task order to MAXIMUS Federal Services, Inc. (MAXIMUS), of Falls Church, Virginia, under request for quotations (RFQ) No. 8098, issued by the Department of Treasury, Internal Revenue Service (IRS), for consultation and subject matter expertise to the IRS’s data delivery services programs. The protester contends the agency’s evaluation of its quotation concerning its proposed level of effort was unreasonable, and that the evaluation of MAXIMUS’s technical quotation was flawed and inconsistent with the terms of the solicitation. We deny the protest. BACKGROUND The agency issued the RFQ on January 12, 2021, pursuant to the procedures of Federal Acquisition Regulation (FAR) subpart 16.5, to firms holding contracts under the General Services Administration’s (GSA) Alliant 2 multiple-award indefinite-delivery, indefinite-quantity (IDIQ) contract.[1] Agency Report (AR), Tab D.2.7.1, RFQ at 52, 98; Contracting Officer’s Statement (COS) at 2. The solicitation contemplated the issuance of a single task order, with fixed-price and labor-hour contract line items, with a 1‑year base period of performance and four 1‑year option periods. RFQ at 33, 39. The IRS sought consultation and subject matter expertise for the agency’s data delivery services programs, which included design, configuration, customization, development, integration, and implementation of data analytics and reporting capabilities. Id. at 9. The solicitation advised that award would be made on a best-value tradeoff basis, considering three non-price factors, listed in descending order of importance: (1) technical approach; (2) management approach; and (3) corporate experience.[2] Id. at 104-105. For each non-price factor, the IRS would assign one of three adjectival ratings: high confidence; some confidence; or low confidence. Id. at 103. The RFQ provided that the agency was “more concerned with obtaining superior technical performance or reduced risk than making an award at the lowest overall cost to the Government[,]” and that “[a]ll evaluation factors other than cost or price, when combined, are significantly more important than price.” Id. The agency initially made award to MAXIMUS on April 13, 2022. COS at 2. IBM filed a protest with our Office on May 2, challenging the agency’s evaluation of quotations. On July 14, our Office dismissed IBM’s protest as academic, based on the agency’s representation it would take corrective action. International Bus. Machines Corp., B‑420725 et al., July 14, 2022 (unpublished decision). As part of its corrective action, the IRS amended the solicitation and conducted discussions with vendors in the competitive range. COS at 2. The agency received final quotations from multiple vendors, to include IBM and MAXIMUS. Id.

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