Oready LLC (140L3725R0012)
Case: B-423934
Agency: Department of the Interior : Bureau of Land Management
Date: 2026-01-09
Denied
B-423934
Jan 09, 2026
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Highlights
Oready, LLC, a small business of Las Vegas, Nevada, protests the exclusion of its proposal from consideration for award under request for proposals (RFP) No. 140L3725R0012, issued by the Department of the Interior, Bureau of Land Management, for warehouse services. Oready argues that the agency unreasonably determined that its proposal failed to conform to the terms of the RFP, or, alternatively, that the RFP contains a latent ambiguity.
We deny the protest.
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Decision
Matter of: Oready, LLC
File: B-423934
Date: January 9, 2026
Mike Farro for the protester.
William B. Blake, Esq., Department of the Interior, for the agency.
Christine Martin, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Protest that the agency unreasonably determined that the protester's proposal failed to conform to the terms of the solicitation is denied where the record shows that the agency evaluated the proposal in accordance with the terms of the solicitation and applicable procurement regulations.
DECISION
Oready, LLC, a small business of Las Vegas, Nevada, protests the exclusion of its proposal from consideration for award under request for proposals (RFP) No. 140L3725R0012, issued by the Department of the Interior, Bureau of Land Management, for warehouse services. Oready argues that the agency unreasonably determined that its proposal failed to conform to the terms of the RFP, or, alternatively, that the RFP contains a latent ambiguity.
We deny the protest.
BACKGROUND
The agency issued the RFP on August 18, 2025, as a total small business set-aside pursuant to Federal Acquisition Regulation (FAR) parts 12 and 15, for warehouse services to support the Ely Regional Seed Warehouse in Ely, Nevada. Agency Report (AR), Tab 2, RFP at 1; RFP, Performance Work Statement (PWS) at 7. The contractor is to provide up to six employees to work up to 40 hours a week to support federal employees with seed mixing, storage, general warehousing work, and other duties as assigned. Id. The contractor is to pay its employees consistent with one of two Service Contract Act (SCA) labor categories: material handling laborer or warehouse specialist, and provide all payrolling services for these employees. PWS at 7-8.[1] The contractor is to provide four or five material laborers and one or two warehouse specialists. Id. at §§ 3.A, B at 9.
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. RFP at 1; PWS at 7. Award would be made to the offeror presenting the best value to the government considering price and three non-price factors that are not at issue here. RFP at 15. The RFP stated that proposals were to include firm-fixed-prices. RFP at 1; PWS at 7. The schedule of services included five contract line item numbers (CLIN), and each CLIN included both labor categories identified above. Each CLIN stated that “Quoted Contract Hourly Rate shall be in accordance with the Service Contract Act.” RFP at 2-6. The RFP reiterated several times that the proposed hourly rate for each labor category was to include such costs as “[p]ersonnel recruitment costs” and “[h]iring and payroll services costs.” Id. at 2-6; PWS at §§ 1 at 9, 2 at 9. The RFP included a bid schedule sheet[2] offerors were to submit with their proposals. This sheet explains how offerors were to submit their price proposals. PWS at 8. The bid schedule sheet stated:
Quoted Contract Hourly Rate shall be in accordance with the Service Contract Act covering paid Federal holidays and withholding all required payroll taxes. Bid rate must include the minimum wage rate, health and welfare benefits, contractor's overhead costs and all associated fees and charges, costs associated with recruitment, hiring, and on-boarding, and contractor profit.
AR, Tab 3, RFP, Bid Schedule Sheet at 1.
The bid schedule sheet included the heading “Contract Hourly Rate,” and a table with two rows for each labor category and five columns for the base year and option year prices. The bid schedule sheet listed the minimum wage rates and health and welfare benefits for the two labor categories. Id. In evaluating price, the RFP provided that the government would add the total price for the basic requirement to the total price for all options. RFP at 29.
The agency received seven proposals by the submission due date, including Oready's. Contracting Officer's Statement at 4. The agency noted that Oready submitted its prices as total annual costs for each labor category rather than providing hourly rates. Id.; AR, Tab 4, Oready Bid Schedule Sheet. The contracting officer emailed Oready to notify it that its proposal would not be considered further because it did not submit hourly-rate pricing for each labor category.
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