Hatalom Corporation (W900KK-23-R-0016)

B-421803.5 Dec 13, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Hatalom Corporation, a small business of Orlando, Florida, protests the Department of the Army, Army Materiel Command's (AMC) decision to cancel request for proposals (RFP) No. W900KK-23-R-0016, issued for medical instructor operator support. The Army decided to cancel the solicitation as part of corrective action taken in response to a protest filed by Advanced Computer Learning Company, LLC (ACLC), a small business of Orlando, Florida. The protester argues that the agency lacks a reasonable basis to cancel 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 version has been approved for public release. Decision Matter of: Hatalom Corporation File: B-421803.5 Date: December 13, 2024 David S. Black, Esq., and Gregory R. Hallmark, Esq., Holland & Knight LLP, for the protester. Jonathan A. Hardage, Esq., and Branden M. Smith, Esq., Department of the Army, 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 Protest challenging the agency’s corrective action, which included cancelling the solicitation, is denied where the agency had at least one reasonable basis to cancel the solicitation. DECISION Hatalom Corporation, a small business of Orlando, Florida, protests the Department of the Army, Army Materiel Command’s (AMC) decision to cancel request for proposals (RFP) No. W900KK-23-R-0016, issued for medical instructor operator support. The Army decided to cancel the solicitation as part of corrective action taken in response to a protest filed by Advanced Computer Learning Company, LLC (ACLC), a small business of Orlando, Florida. The protester argues that the agency lacks a reasonable basis to cancel the solicitation. We deny the protest. BACKGROUND The agency issued the solicitation on February 13, 2023, pursuant to the procedures of Federal Acquisition Regulation (FAR) part 15. Agency Report (AR), Tab 8, Conformed RFP at 1.[1] The solicitation contemplated the award of a contract, with fixed-price and cost‑reimbursement contract line items (CLINs), with a two-month phase-in period, a six-month base period of performance, and four, 1‑year option periods. Id. at 2, 70. Through this procurement, AMC sought contractor training and instruction services for AMC’s Medical Simulation Training Center combat medic training program. AR, Tab 10, Performance Work Statement (PWS) at 6. The solicitation advised that award would be made on a lowest-price, technically-acceptable (LPTA) basis, considering the following non-price factors: (1) qualified personnel; (2) phase-in; (3) corporate experience; and (4) past performance. AR, Tab 8, RFP at 81. Total evaluated price would be the sum of all fixed-price CLINs and would be evaluated for completeness, balance, and reasonableness. Id. at 85. On June 23, 2023, AMC made award to ACLC. Joint Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 8. On July 11, Hatalom filed a protest with our Office challenging the agency’s evaluation of Hatalom’s proposed pricing as unbalanced. Our Office dismissed Hatalom’s protest as academic on July 25, based on the agency’s proposed corrective action, which included reevaluating Hatalom’s proposal. Hatalom Corp., B-421803, Jul. 25, 2023 (unpublished decision). Following the implementation of its corrective action, AMC reaffirmed its award to ACLC. Hatalom filed a second protest with our Office, arguing AMC impermissibly conducted a price realism evaluation, and engaged in a flawed evaluation of proposals with respect to the Service Contract Act’s (SCA) applicable wage determinations. Again, our Office dismissed Hatalom’s protest as academic, based on the agency’s proposed corrective action, which included undertaking a reevaluation of Hatalom’s proposal and issuing a new award decision. Hatalom Corp., B-421803.2, Mar. 12, 2024 (unpublished decision). AMC, after completing its corrective action, selected Hatalom for award. On June 13, 2024, ACLC filed a size protest with the Small Business Administration (SBA), challenging Hatalom’s small business status under the relevant North American Industry Classification System (NAICS) code for this procurement. On July 18, the SBA determined that Hatalom’s size status was small under the applicable NAICS code. AMC subsequently awarded the contract to Hatalom. On August 26, ACLC filed a protest with our Office challenging the agency’s award decision.