The Lioce Group, Inc. (SP7000-25-Q-0005)

B-423797 Dec 22, 2025 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Lioce Group, Inc. (TLG), a small business of Huntsville, Alabama, protests the award of a contract to Cartridge Technologies, LLC (CTI), of Rockville, Maryland under request for quotations (RFQ) No. SP7000-25-Q-0005 issued by the Defense Logistics Agency for up to a 60-month lease of 152 multi-functional devices (MFDs), accessories and services in support of the Headquarters Army Materiel Command. The protester contends that the agency failed to adhere to reverse auction instructions when it selected CTI for award. 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: The Lioce Group, Inc. File: B-423797 Date: December 22, 2025 Christopher L. Lockwood, Esq., Richard J.R. Raleigh, Jr., Esq., Jon D. Levin, Esq., and Virginia L. Gibson, Esq., Womble Bond Dickinson (US), LLP, for the protester. Bruce T. McCarty, Esq., Defense Logistics Agency, for the agency. Janis R. Millete, Esq., and John Sorrenti, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that award is improper because the agency failed to adhere to reverse auction instructions is denied where the agency's evaluation was reasonable and consistent with the reverse auction procedures. DECISION The Lioce Group, Inc. (TLG), a small business of Huntsville, Alabama, protests the award of a contract to Cartridge Technologies, LLC (CTI), of Rockville, Maryland under request for quotations (RFQ) No. SP7000-25-Q-0005 issued by the Defense Logistics Agency for up to a 60-month lease of 152 multi-functional devices (MFDs), accessories and services in support of the Headquarters Army Materiel Command. The protester contends that the agency failed to adhere to reverse auction instructions when it selected CTI for award. We deny the protest. BACKGROUND The agency issued the combined synopsis/solicitation on June 11, 2025, and sought quotations for the lease of MFDs and related services that included delivery, installation, end-user training, full-service maintenance, technical refresh, and network security. Agency Report (AR), Tab B, RFQ at 2; Contracting Officer's Statement and Memorandum of Law (COS/MOL) at 2.[1] The agency anticipated award of one fixed-price contract for up to 60 months. RFQ at 2. The award was to be made to the lowest-priced, technically acceptable (LPTA) vendor.[2] Id. at 2, 4. Vendors had to submit quotations in four different parts, including one part for each of the evaluation factors, technical, past performance, and price.[3] Id. at 4. After quotations were evaluated, vendors deemed technically acceptable would receive an invitation with additional instructions for participation in the reverse auction price competition. See AR, Tab C, RFQ attach. 8, Reverse Auction Instructions at 2-3.[4] In response to the RFQ, DLA received six quotations and after evaluation, four of the quotations were determined technically acceptable. COS/MOL at 2. On July 22, 2025, the contracting officer invited the four vendors to participate in the agency's reverse auction.[5] Id. at 3; See AR, Tab D, Reverse Auction Notices Email. The agency issued the reverse auction instructions via email with details for a mock auction and the final auction. AR, Tab D, Reverse Auction Notices Email at 2-4. As relevant here, the notice stated, in part: Vendor submitted quot[ation] pricing will be entered into Procurex as initial bids (Reverse Auction Only). * * * * * During the final blind bid period, bidders will not be able to see the leading low final bid until the auction has completed. Once the final blind bid period begins, offerors only have one opportunity to enter a final blind bid. AR, Tab D, Reverse Auction Notices Email at 2. Additional auction instructions provided that the reverse auction would take place on July 29, 2025, from 1:00 p.m. to 2:00 p.m. Eastern Time with the first 45 minutes as “regulation bidding,” where the “leading low bid” would be visible and where bidders could enter multiple bids. Id. at 4-5. The remaining 15 minutes of the reverse auction was the “blind bid period” where, as previously noted, vendors could not view the “leading low bid” until after completion of the auction. Id. Relevant here, bidders were advised that “[a]ny items that you bid on in regulation you can bid one more time during Final Blind mode. If you do not bid on an item in regulation, you cannot bid on that item in Final Blind [m]ode.” Id. at 2. Furthermore, the instructions advised that “[a]ll vendor quot[ation] pricing will be entered into Procurex to establish initial pricing. The lowest quot[ation] price total for the requirement will be used as the initial low of the reverse auction.” Id.