B-400554; B-400554.2; B-400554.3, New Breed, Inc., December 5, 2008
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.
2. Protest that agency failed to hold meaningful discussions with protester is denied where record shows that discussions either were adequate to lead protester into areas of its proposal with which agency was concerned, or allegations concern minor weaknesses that agency was not required to discuss.
New Breed, Inc., of High Point, North Carolina, protests the award of a contract to Taos Industries, Inc., of
The RFP called for a contractor to provide a consolidated storage program under which it would create and implement an enterprise-wide system to manage five equipment families of infantry combat equipment (ICE); chemical biological, radiological and nuclear defense equipment (CBRNDE); special training allowance pool (STAP); soft walled shelters and camouflage netting; and other class II items for marines, sailors and designated civilians.
The RFP provided for the award of a fixed-price contract on
a “best value” evaluation under the following factors: performance work statement (PWS) (with
subfactors for facilities operation and program management support);
performance capabilities (asset visibility, integration, and start up);
corporate program management (management plan, quality control plan/risk
mitigation plan, and corporate experience); past performance; small business
participation; and price.
Price was to be evaluated for reasonableness, realism and balance. Initial offers were evaluated
and the results were presented to the SSAB, which established a competitive
range of four that included the proposals of New Breed and
Following evaluation of the FPRs,
New Breed raises
numerous challenges to the evaluation of its proposal under the non-price
factors, and the evaluation of
New Breed asserts that the agency unreasonably assigned its proposal a weakness under the transportation plan subfactor (under the PWS factor) for offering [DELETED] for day-to-day operations. New Breed claims that the agency ignored its plan to [DELETED] to transport assets, and overlooked its proposal to [DELETED]. Protest at 22-23.
The evaluation in this area was reasonable. The agency reports that it did not require offerors to propose a specific number or
type of vehicles to perform the contract but, rather, expected offerors to
propose the number required to perform the contract based on their particular approach. Supplemental Agency Report (SAR) at 3. The agency found that New Breed’s proposal [DELETED]
to transport gear. While the agency
concedes that this is acceptable in some circumstance--for example, when the
agency directs inventory movement--it does not consider this reliance
acceptable for the majority of the work to be performed--for example, where the
contractor (not the agency) must decide to move inventory, or where the
contractor centralizes repair and laundry services in a region and, as a result,
must move inventory.
Under the start-up subfactor (under the performance capabilities factor) offerors were required to provide a transition plan to ensure a seamless provision of services from the incumbent to the awardee. RFP at 86, 94. The RFP further provided as follows:
...Based on the Government’s preliminary planning, the transition period is anticipated to be approximately 150 calendar days. The successful offeror, in collaboration with the outgoing incumbents, is encouraged to accelerate the timeline to the greatest extent practical....
RFP, Statement of Operating Objectives (SOO), at 27.
New Breed’s initial proposal was rated unacceptable under
start-up because it offered a transition plan longer than 150 days. During discussions, the agency advised New
Breed by e-mail that this was a significant weakness that should be addressed
in the firm’s FPR. AR at 19, E-mail to
New Breed maintains that the unacceptable rating resulted from an ambiguous solicitation, and therefore was unwarranted. In this regard, New Breed explains that, while the SOO requested a transition of approximately 150 days, it also included a timeline showing the complete transition taking place in 180 days. New Breed states that it thus interpreted the SOO to require full transition of the work within [DELETED]. New Breed asserts that its proposal met this target.
Regardless of whether the solicitation suggested that the overall transition could be completed within [DELETED], during discussions the agency specifically informed New Breed that its proposed schedule, which was [DELETED], was a significant weakness that needed to be addressed. It thus is disingenuous for New Breed to assert that it only included a proposal with a transition timeline [DELETED] because the RFP was confusing. Since New Breed’s technical proposal [DELETED] a transition plan that would be completed in 150 days, there is no basis to conclude that the agency unreasonably evaluated the plan as unacceptable.
CORPORATE PROGRAM MANAGEMENT--MANAGEMENT PLAN
The RFP instructed
offerors to identify key positions essential to the success of the contract,
including their qualifications and other management positions deemed
necessary. RFP at 87. New Breed’s proposal named [DELETED]and [DELETED],
and noted that the [DELETED] for the facilities within their regions. Proposal at 1-7. The agency assigned New Breed’s proposal a
significant weakness under the management plan subfactor (under the corporate
program management factor) based on its proposal to have [DELETED]. The agency was concerned that since region I
was in California and region III was in Okinawa, the geographic distance would
create a significant risk that proper management oversight would not be
provided. Similarly, the agency found
management risk in the fact that the manager for [DELETED] MARFORRES equipment
would be located in
New Breed maintains that the evaluation was unreasonable because, while its proposed [DELETED], it also proposed to provide a [DELETED] for each geographic location.
The evaluation in this area was reasonable. While New Breed’s proposal indeed provided
that each site would be staffed by a [DELETED] who would, in essence, [DELETED],
it also provided that those [DELETED], and that the [DELETED] for the
activities at the facilities. Proposal
at 1-7, 1-12. Specifically, the proposal
explained that the [DELETED] were [DELETED] activities of the regional staff in,
among other things, warehousing and storage, laundry and repair, and inventory
management, and in directing warehouses and storage sites, and coordinating
The RFP required offerors to submit a list of relevant prior contracts and provided that the agency would evaluate past performance for demonstrated success in meeting project objectives of similar size and complexity. RFP at 96. New Breed, the incumbent contractor for one class of equipment (CBRNDE) that will be managed under the contract to be awarded, asserts that the Corps unreasonably rated its past performance only acceptable, rather than exceptional. According to New Breed, the agency was pleased with its performance under its current contract, and since the RFP indicated that past performance in similar contexts would be most relevant, it should have received an exceptional rating.
This argument is without merit. The agency reports that the work required
under the current solicitation is significantly more extensive than that under New
Breed’s incumbent contract--it covers three additional families of equipment, and
requires more contact with individual users, and a significant laundry, repair
and disposal effort, different from the protester’s current contract. Other differences between New Breed’s
contract and the RFP include the cost structure, the greater number of
facilities under the RFP (34 vs. 17), and the annual cost ($24 million vs.
New Breed asserts that assigning Taos the same acceptable rating it assigned New Breed was unreasonable because it fails to account for Taos’s lack of experience with inventory maintenance and the difference in the relative experience levels of the two firms with respect to direct customer service.
We find the evaluation unobjectionable. In this regard, the agency did not compare
the offerors’ past performance on different aspects of the solicitation. Rather, the agency evaluated each offeror’s
past performance based on relevance to the solicitation. The agency explains that Taos was rated
acceptable based on its past performance of contracts of a type, scale, and dollar
value similar to the RFP, and contracts demonstrating its ability in the areas
of warehouse management, shelf life management, and operation of IT systems,
all of which are relevant to the solicitation.
While New Breed considers its own past performance more relevant, due to
New Breed argues that the agency failed to perform an adequate price realism analysis. More specifically, New Breed complains that the agency analyzed uncertified cost and pricing data, which resulted in an inadequate analysis because the offerors did not use a uniform pricing format.
Where a fixed-price
contract--including a fixed-rate contract such as the one here--is to be
awarded, a solicitation may provide for a price realism
analysis for such purposes as measuring an offeror’s understanding of the
solicitation requirements and assessing the risk inherent in an offeror’s
proposal. Star Mountain, Inc., B‑285883,
Here, the agency
compared offerors’ total prices and analyzed
New Breed asserts that the agency failed to provide it with
meaningful discussions regarding its technical proposal. In this regard, discussions,
when conducted, must be meaningful; that is, they may not mislead offerors and
must identify proposal deficiencies and significant weaknesses that could
reasonably be addressed in a manner to materially enhance the offeror’s
potential for receiving award. Lockheed Martin Corp., B-293679 et
We find no basis to question the adequacy of the discussions
provided to New Breed. For example, New
Breed argues that the agency did not adequately raise its concern that New
Breed’s proposed [DELETED] was too [DELETED]. As discussed above, however, the agency advised
New Breed by e-mail that its [DELETED], and was a significant weakness that
should be addressed in New Breed’s FPR.
E-mail to New Breed,
The protest is denied.
Gary L. Kepplinger
 The first three factors were approximately equal in weight, the fourth was more important than the fifth, and the fourth and fifth were significantly less important than the first three. Price was less important than the sum of the technical factors.
Technical proposals were evaluated by a technical evaluation board (TEB), price proposals were evaluated by a price advisory team (PAT), and past performance was evaluated by the source selection advisory board (SSAB).
 Proposals were to be assigned a rating of exceptional, acceptable, marginal, or unacceptable under each non-price factor, and could also receive the additional rating of neutral under the past performance factor.
Breed asserts that
In any case, New Breed’s assertion that the RFP was ambiguous is untimely,
since both the requirement for the transition to be completed within
approximately 150 days and the timeline allegedly indicating that the
transition could be completed within 180 days were clear from the face of the
RFP, but New Breed did not raise the issue until after the closing time for
receipt of proposals. See Singleton
 Prior to this procurement, each equipment family was managed separately by either the Corps or a contractor.