Resource Management Systems, Inc. (36C24724R0057)

B-422779 Sep 20, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Excelsior Ambulance Service, Inc., a service-disabled veteran-owned small business (SDVOSB) of Ludowici, Georgia, challenges the terms of request for proposals (RFP) No. 36C24724R0057, issued by the Department of Veterans Affairs (VA) for the provision of ambulance and stretcher van services to the Carl Vinson VA Medical Center (CVVAMC) in Dublin, Georgia. Excelsior asserts that the VA should have issued the RFP as a SDVOSB set-aside rather than as a small business set-aside. We deny the protest. View Decision Decision Matter of: Excelsior Ambulance Service, Inc. File: B-422779 Date: September 20, 2024 William M. Weisberg, Esq., Law Offices of William Weisberg, for the protester. Natica Chapman Neely, Esq., and Donald C. Mobly, Esq., Department of Veterans Affairs, for the agency. Suresh S. Boodram, Esq., and Evan D. Wesser, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging an agency's decision to not set aside a procurement for service-disabled veteran-owned small businesses (SDVOSB) is denied where the agency concluded from its market research that it did not have a reasonable expectation of receiving proposals from two or more SDVOSBs capable of performing the required services. DECISION Excelsior Ambulance Service, Inc., a service-disabled veteran-owned small business (SDVOSB) of Ludowici, Georgia, challenges the terms of request for proposals (RFP) No. 36C24724R0057, issued by the Department of Veterans Affairs (VA) for the provision of ambulance and stretcher van services to the Carl Vinson VA Medical Center (CVVAMC) in Dublin, Georgia. Excelsior asserts that the VA should have issued the RFP as a SDVOSB set-aside rather than as a small business set-aside. We deny the protest. BACKGROUND The VA issued the RFP on July 18, 2024, as a small business set-aside pursuant to the procedures of Federal Acquisition Regulation (FAR) parts 12 and 15. Agency Report (AR), Exh. 2, RFP at 1, 82; Memorandum of Law (MOL) at 1-2. The RFP sought proposals for emergent and non-emergent ambulance and stretcher van services to CVVAMC and its associated healthcare facilities.[1] AR, Exh. 2, RFP at 5. The RFP contemplated the award of a single indefinite-delivery, indefinite-quantity fixed-price contract. Id. at 80. Offerors were informed that North American Industry Classification System (NAICS) code 621910 (ambulance services) applied to each item of the procurement. Id. at 1. Prior to issuing the RFP, the agency conducted market research. On February 1, 2024, the VA posted a sources sought notice on the SAM.gov website to determine the availability of potential offerors.[2] AR, Exh. 3a, Market Research at 2. The notice invited interested firms to provide their qualifications to demonstrate their ability to perform the work. AR, Exh. 3b, Sources Sought Notice at 2. The notice requested firms to submit a statement of capability to perform the work specified in the notice, a description of the firm's business size and socio-economic status, and the firm's price estimate. Id. at 2-3. In addition to the sources sought notice, the VA conducted searches for capable contractors through the Veterans Small Business Certification (VetCert) database and reviewed the procurement history for ambulance services within VISN 7. AR, Exh. 3a, Market Research at 1-2. The agency searched the VetCert database for SDVOSB/VOSB (veteran-owned small business) firms registered under NAICS code 621910. Id. at 2. The search identified 148 SDVOSB/VOSB firms that could potentially meet the standards of performing non-emergent ambulance services to CVVAMC. Id. For the past performance review, the contracting officer reviewed the procurement history for ambulance services at VA facilities within VISN 7. Id. Of the four identified small business contractors performing ambulance services in VISN 7, only one contractor (the protester) was a certified SDVOSB.[3] Id. The agency received two responses to the sources sought notice. Id. The responses were from Excelsior and a non-SDVOSB small business. Id. The contracting officer concluded, based on the sources sought notice and other market research, that at least two small businesses could potentially fulfill the government's requirements, with only one being an SDVOSB. Id. at 3. The contracting officer then considered the market research to decide whether the requirement should be set aside for VOSB or SDVOSBs under the “VA Rule of Two.” Id. The VA Rule of Two requires the agency to set aside acquisitions for VOSB or SDVOSB concerns where the agency's market research leads it to conclude that there is a reasonable expectation that two or more such concerns are likely to submit offers, and that award can be made at a fair and reasonable price.[4] 38 U.S.C. § 8127(d).