Maersk Logistics and Services USA, Inc. (HTC711-23-R-R009)

B-421982.3,B-421982.5 Oct 30, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Maersk Logistics and Services USA, Inc. (Maersk), of Florham Park, New Jersey, protests the award of a contract to Crowley Government Services, Inc. (Crowley), of Jacksonville, Florida, under request for proposals (RFP) No. HTC711-23-R-R009, issued by the Department of Defense, United States Transportation Command (USTRANSCOM), for freight transportation services in the continental United States and Alaska, Puerto Rico, and Canada on occasion. Maersk challenges the agency's price and past performance evaluations and contends that the agency failed to conduct meaningful discussions. Maersk also argues that the agency failed to provide available historical data and ensure that offerors were competing on an equal basis. Maersk asserts further that the agency failed to consider and mitigate Crowley's unequal access to information organizational conflict of interest (OCI). 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: Maersk Logistics and Services USA, Inc. File: B-421982.3; B-421982.5 Date: October 30, 2024 Daniel P. Graham, Esq., Tara L. Ward, Esq., Elizabeth G. Hummel, Esq., and Peter M. Routh, Esq., McDermott Will & Emery LLP, for the protester. James Y. Boland, Esq., Christopher G. Griesedieck, Jr., Esq., Lindsay M. Reed, Esq., and Kelly M. Boppe, Esq., Venable LLP, and Kara M. Sacilotto, Esq., Brian G. Walsh, Esq., Gary S. Ward, Esq., and Cara L. Sizemore, Esq., Wiley Rein LLP, for Crowley Government Services, Inc., the intervenor. Colonel Nina R. Padalino, Siobhan K. Donahue, Esq., Nicholas T. Iliff, Esq., Kurt M. Vanbennekom, Esq., Todd P. Federici, Esq., and Robert J. Depke, Esq., Department of Defense, for the agency. Sarah T. Zaffina, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest arguing the agency performed an unreasonable price reasonableness evaluation is denied where the price reasonableness evaluation was consistent with the solicitation and applicable procurement law and regulations. 2. Where the agency did not consider the protester’s price unreasonable, agency had no obligation to advise the protester its price was high in comparison to competitors’ prices. 3. Protest asserting the agency’s past performance evaluation was unreasonable because the agency ignored adverse close at hand information is denied where the record demonstrates that the contracting officer considered the potentially adverse information about the awardee’s performance of the incumbent contract and determined the information was insufficient to override the agency’s high expectation of the awardee’s successful performance. 4. Protest asserting that the agency failed to provide historical data necessary for offerors to compete intelligently and equally is dismissed as untimely when filed after award. 5. Protest alleging the agency failed to mitigate the awardee’s unequal access to information organizational conflict of interest is dismissed as untimely where the protester failed to raise allegations within 10 days after it knew or should have known that the agency intended to award the contract to the incumbent firm. DECISION Maersk Logistics and Services USA, Inc. (Maersk), of Florham Park, New Jersey, protests the award of a contract to Crowley Government Services, Inc. (Crowley), of Jacksonville, Florida, under request for proposals (RFP) No. HTC711-23-R-R009, issued by the Department of Defense, United States Transportation Command (USTRANSCOM), for freight transportation services in the continental United States and Alaska, Puerto Rico, and Canada on occasion. Maersk challenges the agency’s price and past performance evaluations and contends that the agency failed to conduct meaningful discussions. Maersk also argues that the agency failed to provide available historical data and ensure that offerors were competing on an equal basis. Maersk asserts further that the agency failed to consider and mitigate Crowley’s unequal access to information organizational conflict of interest (OCI). We deny the protest. BACKGROUND USTRANSCOM provides transportation support to the Department of Defense. Agency Report (AR), Tab 4, Conformed RFP attach. 1, Performance Work Statement at 2. In support of this function, USTRANSCOM issued the defense freight transportation services (DFTS) II solicitation on July 27, 2023, in accordance Federal Acquisition Regulation (FAR) part 12, Acquisition of Commercial Items, and FAR part 15, Contracting by Negotiation. AR, Tab 3, Conformed RFP at 1, 36-37.[1] DFTS II is the “follow-on” contract to DFTS I, awarded to Crowley for $2.23 billion in 2017.