RTD Middleburg Heights, LLC (7OH2414)

B-421477.4 Nov 29, 2023 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights RTD Middleburg Heights, LLC, of Oklahoma City, Oklahoma, protests the award of a lease to Michael Downing Realty Ltd, of Warrensville Heights, Ohio, by the General Services Administration (GSA) under request for lease proposals (RLP) No. 7OH2414, for the lease of general purpose office space in a circumscribed area of Ohio. The protester contends that the agency's price evaluation was unreasonable and inadequately documented. 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: RTD Middleburg Heights, LLC File: B-421477.4 Date: November 29, 2023 Gordon Griffin, Esq., Hillary J. Freund, Esq., and Richard Ariel, Esq., Holland & Knight LLP, for the protester. Robert W. Foltman, Esq., General Services Administration, for the agency. Katherine I. Riback, Esq., and Alexander O. Levine, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency performed improper price evaluation is denied where the record shows that the evaluation was reasonable and consistent with the solicitation, and protester’s contentions represent only its disagreement with the agency’s evaluation. DECISION RTD Middleburg Heights, LLC, of Oklahoma City, Oklahoma, protests the award of a lease to Michael Downing Realty Ltd, of Warrensville Heights, Ohio, by the General Services Administration (GSA) under request for lease proposals (RLP) No. 7OH2414, for the lease of general purpose office space in a circumscribed area of Ohio. The protester contends that the agency’s price evaluation was unreasonable and inadequately documented. We deny the protest. BACKGROUND On October 23, 2019, GSA issued the RLP for the award of a 15-year lease of office space in the Middleburg Heights, Parma, North Royalton and Strongsville, Ohio area.[1] Agency Report (AR), Tab 1, RLP at 4.[2] GSA was seeking to lease a minimum of 6,363, and a maximum of 6,681, of American National Standards Institute/Building Owners and Managers Association Office Area square feet (ABOA SF) of contiguous space.[3] AR, Tab 1, RLP at 4. The RLP informed offerors that the lease would be issued to the offeror that submitted the lowest-priced, technically acceptable lease proposal. Id. at 20. The solicitation advised offerors that the agency would determine the lowest price by conducting a present value price evaluation. As relevant here, the RLP provided that the agency would add certain costs to the offerors’ gross present value cost, including “[t]he cost of relocation of furniture, telecommunications, replications costs, and other move-related costs, if applicable,” and a tenant improvement allowance. Id. at 21. As we explained in our resolution of a prior protest of this procurement, this analysis, which is referred to as a present value analysis, provides a single cost representation of various inputs, such as variations in operating costs, amortizations, and tenant improvement overhead costs. RTD Middleburg Heights, LLC, B-421477, B‑421477.2, May 31, 2023, 2023 CPD ¶ 154 at 2. This analysis enables the agency to understand the “true price of all offers in today’s (present value) dollars.” Id. GSA received technically acceptable lease proposals from two offerors, Middleburg, the incumbent, and Michael Downing. The latter’s proposal was for new construction on land next to the incumbent protester’s property. B-421477, B-421477.2, AR, Tab 10, Contracting Officer’s Statement (COS) at 2. Final proposal revisions were requested and neither offeror revised its proposal. Id. After an initial evaluation, the agency provided both offerors an opportunity to update their proposals with any changes due by July 25, 2022. Revisions were made by the protester, but not by Michael Downing. B-421477, B-421477.2, AR, Tab 10, COS at 1. The adjusted present value analysis indicated that the latter’s proposal was the lowest‑priced, technically acceptable proposal. RTD Middleburg Heights, LLC, supra at 2. The Social Security Administration, the tenant agency, delayed signing the lease and, in response, GSA provided a copy of a “cost benefit analysis” as “added confirmation” to illustrate that Michael Downing’s offer was the lowest-priced technically acceptable proposal. Id. The tenant agency then allowed GSA to move forward with the proposed new lease. Id. On February 13, 2023, the agency notified Middleburg that it had awarded the lease to Michael Downing as the lowest-priced proposal with an evaluated present value price of $23.87 per ABOA SF. AR, Tab 9, Letter to Unsuccessful Offeror. The agency informed Middleburg that its evaluated present value analysis price was $32.50. Id.