OS-DB-JV-2, LLC (36C24825R0040)

Case: B-424382 Agency: Department of Veterans Affairs : Department of Veterans Affairs Date: 2026-06-16 Denied
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B-424382 Jun 16, 2026 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights OS-DB-JV-2, LLC, a service-disabled, veteran owned small business (SDVOSB) of Toa Baja, Puerto Rico, protests the exclusion of its proposal from the competitive range established under request for proposals (RFP) No. 36C24825R0040, issued by the Department of Veterans Affairs (VA) for janitorial services at the VA Caribbean Healthcare System in San Juan and the VA Mayaguez Out-Patient Clinic in Mayaguez, Puerto Rico. The protester primarily contends that the agency improperly excluded its proposal from the competitive range. We deny the protest. View Decision Decision Matter of: OS-DB-JV-2, LLC File: B-424382 Date: June 16, 2026 Jorge A. Fernandez-Reboredo, Esq., of ECIJA-SBGB, for the protester. Jared Levin, Esq., Department of Veterans Affairs, 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 eliminated the protester's proposal from competition is denied where the record shows the agency reasonably determined that the protester's proposal failed to conform to the terms of the solicitation. DECISION OS-DB-JV-2, LLC, a service-disabled, veteran owned small business (SDVOSB) of Toa Baja, Puerto Rico, protests the exclusion of its proposal from the competitive range established under request for proposals (RFP) No. 36C24825R0040, issued by the Department of Veterans Affairs (VA) for janitorial services at the VA Caribbean Healthcare System in San Juan and the VA Mayaguez Out-Patient Clinic in Mayaguez, Puerto Rico. The protester primarily contends that the agency improperly excluded its proposal from the competitive range. We deny the protest. BACKGROUND The RFP was issued on May 7, 2025, pursuant to Federal Acquisition Regulation (FAR) parts 12 and 15, as a SDVOSB set-aside for janitorial services at the VA Caribbean Healthcare System and the Mayaguez Out-Patient Clinic. Agency Report (AR), Exh. 2, RFP at 1, 70.[1] 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, amend. 0001, Revised Performance Work Statement (PWS) at ¶¶ 1, 1.4. Award would be made to the offeror submitting the proposal that represented the best value to the government considering price and two non-price factors: technical capability and past performance.[2] RFP at 80. As relevant here, the evaluation criteria stated that proposals “that failed to meet the minimum requirements – including a material failure to conform with the instructions . . . will be deemed unacceptable and will not be further considered.” Id. at 81. The VA received initial proposals on June 20. On November 13, the agency established a competitive range that included only two offerors, including OSDBJV2, the only joint venture offeror in the competitive range. Contracting Office's Statement (COS) at ¶¶ 7, 9. The VA proceeded to conduct discussions with these two offerors. On March 10, 2026, after discussions concluded, the agency issued amendment 0004[3] to the two offerors in the competitive range to request revised proposals and to inform joint venture offerors (in this case, OSDBJV2) of the requirements of Title 13 of the Code of Federal Regulations (C.F.R.) § 128.402. COS at ¶ 12. As relevant here, amendment 0004 stated that: [J]oint ventures [JV] may be eligible so long as the joint venture meets the requirements of 13 C.F.R. [§] 128.402. In order to comply with 13 C.F.R. [§] 128.402(e) JV offerors must include in their offer a certification, signed by an authorized official of each partner to the joint venture, stating that the parties have entered into a joint venture agreement that fully complies with 13 C.F.R. [§] 128.402(c), and that the parties will perform the contract in compliance with the joint venture agreement and with the limitations on subcontracting requirements set forth in 13 C.F.R. [§] 128.402(d). AR, Exh. 6, RFP, amend. 0004 at 19. Both offerors submitted FPRs. COS at ¶ 13. The VA reviewed the proposals and noted that OSDBJV2 did not provide a joint venture certification as required by 13 C.F.R. § 128.402(e). As a result, the VA determined that OSDBJV2 was ineligible for award. Id. On March 26, the VA notified OSDBJV2 that it was excluded from the competitive range for failing to submit its joint venture certification. AR, Exh. 8, Notice of Exclusion at 2. The following day, OSDBJV2 submitted a letter titled “Reconsideration Letter,” asking the agency to reconsider its exclusion and stating that if the agency did not reconsider, then OSDBJV2 requested a debriefing. AR, Exh. 9, Email from Protester to Agency, Mar. 27, 2026.

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