SIGMA Interalbanian Vienna Insurance Group (19KV4222R0001)

B-420850 Oct 03, 2022 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Sigma Interalbanian Vienna Insurance Group, of Pristina, Kosovo, protests the exclusion of its proposal from the competitive range under request for proposals (RFP) No. 19KV4222R0001, issued by the Department of State to provide employee health insurance at the U.S. Embassy in Pristina, Kosovo. Sigma asserts that the agency's decision to eliminate Sigma's proposal on the basis of its high price was unreasonable because Sigma is the incumbent contractor; the other offerors' prices are unrealistic; the agency did not consider the financial status of offerors by requiring submission of financial statements; and the agency did not provide Sigma with a "negotiation letter" prior to excluding it from the competitive range. Protest at 2-5. We deny the protest. View Decision Decision Matter of: Sigma Interalbanian Vienna Insurance Group File: B-420850 Date: October 3, 2022 Genond Mesareja for the protester. Kathleen D. Martin, Esq., Department of State, for the agency. Glenn G. Wolcott, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency reasonably excluded protester’s proposal from the competitive range where the agency determined that, due to its high price, the proposal had no reasonable chance of being selected for award. DECISION Sigma Interalbanian Vienna Insurance Group, of Pristina, Kosovo, protests the exclusion of its proposal from the competitive range under request for proposals (RFP) No. 19KV4222R0001, issued by the Department of State to provide employee health insurance at the U.S. Embassy in Pristina, Kosovo. Sigma asserts that the agency’s decision to eliminate Sigma’s proposal on the basis of its high price was unreasonable because Sigma is the incumbent contractor; the other offerors’ prices are unrealistic; the agency did not consider the financial status of offerors by requiring submission of financial statements; and the agency did not provide Sigma with a “negotiation letter” prior to excluding it from the competitive range. Protest at 2‑5. We deny the protest. BACKGROUND On March 2, 2022, the agency issued RFP No. 19KV4222R0001, seeking proposals to provide health insurance for locally employed staff and their eligible dependents at the U.S. Embassy in Pristina, Kosovo. Agency Report (AR), Tab 1, RFP at 1-3. The solicitation stated that award would be made on the basis of the lowest-priced, technically acceptable (LPTA) proposal. Id. at 58. With regard to evaluation of technical acceptability, the solicitation provided that the agency would consider whether a proposal: offered to meet the minimum mandatory requirements; contained an acceptable management approach; demonstrated an acceptable understanding of the solicitation requirements; demonstrated the offeror was “licensed/certified/accredited” by the government of Kosovo; and demonstrated relevant and acceptable experience/past performance. Id. at 58-59. With regard to evaluation of price, the solicitation required offerors to propose fixed-price premiums for the type and estimated quantities of services identified in section B of the solicitation; stated that total evaluated price would be calculated as “the cumulative total of the base year insurance plus all option years” for the estimated quantities; and did not provide for a price realism analysis. Id. at 3-11, 58-59. Offerors were also advised that the agency “intend[s] to award a contract based on initial proposals, without holding discussions.”[1] RFP Cover Letter, Mar. 2, 2022, at 1; see also RFP at 58, 59. Finally, the solicitation provided that, “[i]f asked by the Contracting Officer, the offeror shall provide a current statement of its financial condition,” and explained that the agency would consider this information in making a responsibility determination for the apparent successful offeror. RFP at 56‑58. On or before the March 21 closing date, proposals were submitted by five offerors, including Sigma. In evaluating the proposals, the agency determined that Sigma’s proposal was technically acceptable; however, the agency also determined that Sigma had proposed an “extremely high price” that was considerably higher than the agency’s independent government cost estimate (IGCE) and the prices proposed by the other offerors.[2] Debriefing Letter to Sigma, June 30, 2022 at 1; Contracting Officer’s Statement (COS) at 4. Based on its evaluation of initial proposals, the agency established a competitive range consisting of the most highly rated offerors and, in light of Sigma’s high price, concluded that Sigma’s proposal did not have a reasonable chance of being selected for award and excluded it from further consideration; thereafter, Sigma was notified of its elimination. Id.