TLS Joint Venture, LLC (N0016723R0014)

B-422275 Apr 01, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights TLS Joint Venture, LLC, of Grovetown, Georgia, protests the award of a contract to Silas Frazier Realty, LLC (SFR), of Atlanta, Georgia, under request for proposals (RFP) No. N0016723R0014, issued by the Department of the Navy, Naval Sea Systems Command, for custodial services. TLS argues that SFR was ineligible for award because its registration in the System for Award Management (SAM) lapsed prior to award. We sustain 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: TLS Joint Venture, LLC File: B-422275 Date: April 1, 2024 Adam K. Lasky, Esq., Erica L. Bakies, Esq., and Bret C. Marfut, Esq. Seyfarth Shaw LLP, for the protester. Justin V. Briones, Esq., Department of the Navy and Albert G. Courie, III, General Services Administration, for the agencies. Todd C. Culliton, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest is sustained where the solicitation incorporated Federal Acquisition Regulation provision 52.204-7 and required compliance with all applicable regulations for offerors to be eligible for award, and the record demonstrated that the awardee’s registration in the System for Award Management lapsed between the close of the solicitation period and award of the contract. DECISION TLS Joint Venture, LLC, of Grovetown, Georgia, protests the award of a contract to Silas Frazier Realty, LLC (SFR), of Atlanta, Georgia, under request for proposals (RFP) No. N0016723R0014, issued by the Department of the Navy, Naval Sea Systems Command, for custodial services. TLS argues that SFR was ineligible for award because its registration in the System for Award Management (SAM) lapsed prior to award. We sustain the protest. BACKGROUND On August 7, 2023, the Navy issued the RFP to procure custodial services at the Naval Surface Warfare Center, Carderock Division in West Bethesda, Maryland. Agency Report (AR) Tab C, RFP at 20. The RFP contemplated the award of a fixed-price contract to be performed over a 1-year base period and four 1-year option periods. Id. Award would be made on a lowest-priced, technically acceptable basis, considering technical, corporate experience, past performance, and price factors. Id. at 106. The RFP advised that the technical, corporate experience, and past performance factors would be evaluated on a pass or fail basis. RFP at 107. Proposed prices would be evaluated for balance and reasonableness. Id. at 108. The RFP also incorporated Federal Acquisition Regulation (FAR) provision 52.204-7, System for Award Management. RFP at 100. As part of the evaluation criteria, the RFP advised that offerors must comply with all material aspects of the solicitation, including regulatory requirements, to be considered eligible for award. Id. at 106. Prior to the September 15 close of the solicitation period, six offerors, including TLS and SFR, submitted proposals. Contracting Officer’s Statement (COS) at 2. On November 27, after conducting its preliminary evaluation of proposals, the Navy reviewed and noted that SFR’s SAM registration was “Active” through December 11, 2023. Id. On December 19, the Navy finalized its evaluation, and determined that SFR’s proposal was technically acceptable and proposed the lowest price. COS at 2. The Navy again reviewed SFR’s SAM registration and noted that the firm’s status was “Active” as of December 12, 2023. Id. On December 26, the Navy awarded the contract to SFR at a price of $4,991,620, and notified TLS, the second-low offeror, that its proposal was unsuccessful. COS at 2. On December 29, TLS filed this protest with our Office. Id. DISCUSSION TLS argues that the agency unreasonably selected SFR for award because SFR’s SAM registration had lapsed. Protest at 7. In making this argument, TLS first argues that FAR provision 52.204-7 requires an offeror to be continuously registered from the submission of its proposal, through contract award, and until final payment on any contract. Id. TLS contends that SFR did not maintain continuous registration in SAM between proposal submission and contract award because it did not successfully complete the renewal process prior to the expiration of its registration. Resp. to GAO Req. for Information at 11-12. In response, the Navy contends that FAR provision 52.204-7 does not impose a requirement that an offeror maintain its SAM registration between the close of the solicitation period and award of the contract. Memorandum of Law (MOL) at 4-6. Additionally, the Navy contends that SFR’s registration never lapsed because SFR submitted its renewal information before the expiration of its registration.[1] See Navy Resp. to GAO Req.