B-294974.6, Logan, LLC, December 1, 2006
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.
1. Statutory requirement to obtain maximum practicable competition in simplified acquisitions is met where agency uses competitive procedures in establishing blanket purchase agreements (BPA) with multiple vendors; under those circumstances, there is no requirement that the agency conduct a further competition among the BPA holders in connection with each individual purchase order subsequently issued under the BPAs.
2. Challenge to agency’s decisions made after competitive establishment of BPAs regarding whether and how to place orders with specific BPA holders concerns administration of the BPAs, an issue not for review in a bid protest before the Government Accountability Office.
DEA’s mission of enforcing federal narcotics laws
routinely results in the seizure of illegal clandestine drug laboratories, and
the subsequent destruction of both illegal drugs and the facilities in which
they are manufactured. The destruction
of clandestine drug laboratories often entails the disposal of environmentally
hazardous chemicals. The cost of
hazardous waste cleanup for a single clandestine laboratory can range from
under $1,000 to over $100,000; the cost for a single hazardous waste cleanup
action, however, cannot be predicted or established in advance of the seizure
of the individual clandestine drug laboratory.
DEA’s disposal of clandestine laboratory hazardous waste
products is governed by federal, state, and local environmental laws and
regulations. As the agency operates
The history of the contractual relationship between DEA
and Envirosolve is a long and difficult one (see Envirosolve LLC,
On November 4, DEA issued RFQ No. DEA-06-R-0002 for
hazardous waste cleanup services for 24 contract areas. This RFQ contemplated the competitive establishment
of one or more BPAs with various vendors for each contract area for a period up
to 24 months. As with the previous RFQ, this RFQ stated
that BPAs would be established with those responsible vendors whose quotations
were determined to be technically acceptable and whose prices were found to be
fair and reasonable. AR, Tab 3, RFQ No.
DEA-06-R-0002, at 6. The RFQ (and
subsequent BPAs) here likewise informed vendors that the issuance of the actual
purchase orders would be rotated among BPA holders for the particular contract
On or about
Envirosolve raises a number of issues regarding the agency’s decision to temporarily discontinue issuing it purchase orders during the pendency of the DEA investigation into the possible mishandling of hazardous waste. The protester generally contends that the agency’s decision to exclude it from the rotation of BPA purchase orders is not justified by the ongoing investigation, nor were the agency actions done in accordance with applicable procurement statutes and regulations. We have fully considered all of Envirosolve’s grounds of protest and find no basis to sustain the protest.
Envirosolve first argues that the DEA decision to cease issuing it purchase orders under the established BPAs violates applicable competition requirements. Specifically, the protester alleges that the agency decision to exclude it from the rotation of purchase orders violates the Competition in Contracting Act of 1984 (CICA). We disagree.
The overarching goal of CICA is the promotion of
competition in procurements by federal agencies and, in furtherance thereof,
CICA generally requires contracting agencies to conduct procurements using full
and open competition through the use of competitive procedures, except in the
case where a different procurement procedure is expressly authorized by
statute. 41 U.S.C. sect. 253(a)(1)(A)
(2000). As relevant here, under the
Federal Acquisition Streamlining Act of 1994 (FASA) simplified
acquisitions--used to purchase supplies and services, the aggregate amount of
which does not exceed the simplified acquisition threshold (in most instances,
$100,000) (FAR sections 2.101, 13.000, 13.003(a))--are excepted from CICA’s full and
open competition requirement.
41 U.S.C. sect. 253(g). Part 13
of the FAR establishes procedures for simplified acquisitions, which are
designed to promote efficiency and economy in contracting and to avoid
unnecessary burdens for agencies and contractors. To facilitate these objectives, FASA requires
only that contracting agencies obtain competition to the “maximum extent
practicable.”  41 U.S.C. sections 253(g)(4), 427(c); FAR
sect. 13.104; Information Ventures, Inc., B-293541,
In this case, DEA complied with the statutory requirement to obtain maximum practicable competition when it established the BPAs for these small purchases. Under these circumstances, there is no requirement that DEA compete among the BPA holders each individual purchase order subsequently issued under the BPAs.
Envirosolve also protests that DEA’s decision to temporarily suspend issuing purchase orders under its BPAs violates the terms of the BPAs themselves, and constitutes a nonresponsibility determination that, for a small business concern such as itself, must be referred to the Small Business Administration. In our view, any decisions made by DEA after establishment of the BPAs regarding whether and how to place orders with specific BPA holders, and any challenge to the agency’s actions, concern administration of the terms of the BPAs, an issue that is not for our review. See 4 C.F.R. sect. 21.5(a); East West Research, Inc.--Recon., B-233623.2, Apr. 14, 1989, 89-1 CPD para. 379 at 2.
Envirosolve next asserts that DEA’s decision to discontinue issuing it purchase orders violates the terms of the promised corrective action, in which DEA agreed to competitively award BPAs, rotate orders among BPA holders, and not exclude Envirosolve from competing for DEA work. We disagree.
As set forth above, in its January 5, 2005, notice of
corrective action, DEA agreed to rotate orders fairly among holders of the
(including Envirosolve) until it was able to achieve compliance with
applicable competition requirements (e.g., by competitively establishing
one or more BPAs for each contract area).
By means of RFQs subsequently issued by DEA on
Envirosolve essentially contends that DEA’s promised corrective action extends in perpetuity, and precludes the agency from excluding Envirosolve from DEA work under any circumstances. We disagree. The corrective action that DEA agreed to in January 2005 could not anticipate all future events. Just as the corrective action did not guarantee that Envirosolve would receive a competitively-established BPA from the agency, so too it did not guarantee that Envirosolve would continue to receive orders under its BPAs even if, as the agency contends is the case here, circumstances arose that warrant further investigation into possible wrongdoing in connection with Envirosolve’s performance of purchase orders issued to it.
Finally, Envirosolve argues that DEA has improperly
suspended and/or debarred it without due process. Specifically, Envirosolve argues that the
agency suspended it on or about
Our Office no longer reviews protests that an agency improperly suspended or debarred a contractor from receiving government contracts. 4 C.F.R. sect. 21.5(i). We have instead determined that suspension and debarment matters (including, as Envirosolve claims here, procedural deficiencies) are properly for review by the contracting agency in accordance with the applicable provisions of the FAR. Id.; Triton Elec. Enters., Inc., B-294221 et al., July 9, 2004, 2004 CPD para. 139 at 2; Shinwha Elecs., B-290603 et al., Sept. 3, 2002, 2002 CPD para. 154 at 5.
The protest is denied.
Gary L. Kepplinger
Although Envirosolve, LLC changed its name to Logan LLC, Protest,
A BPA is a simplified method of filling anticipated repetitive needs for
supplies or services by establishing “charge accounts” with qualified sources
of supply. Federal Acquisition
Regulation (FAR) sect. 13.303-1(a); see Envirosolve LLC, supra,
at 3 n.3. A BPA includes a description
of the service(s) to be provided, and methods for pricing, issuing, and
delivering future orders. FAR
sect. 13.303-3. BPAs, like basic
ordering agreements, are often used when the specific items and quantities to
be covered by a contract are not known at the time the agreement is
executed. FAR sections 13.303-2, 16.703. Agencies may establish BPAs with more than
one supplier for supplies or services of the same type, or a single vendor from
which numerous individual purchases will likely be made in a given period. FAR sect. 13.303-2(c). A BPA is generally not itself a contract, and
does not obligate the agency to enter into future contracts with the
vendor. FAR sections 13.303-1(a),
16.703(a)(3); Faye Zhengxing v.
 DEA agreed that, as an interim measure, the issuance of noncompetitive purchase orders would be done in accordance with the requirements of the FAR, would not exceed a 2-month period, and would be rotated fairly among BPA holders.
 The RFQ also included a “minimum guaranteed amount” of work for each BPA holder for each contract area. AR, Tab 3, RFQ No. DEA-06-R-0002, at 4-6.
 In order to obtain competition to the maximum extent practicable, agencies must make reasonable efforts, consistent with efficiency and economy, to give responsible sources the opportunity to compete. Gateway Cable Co., B-223157 et al., Sept. 22, 1986, 86-2 CPD para. 333 at 5. In contrast, full and open competition is defined as meaning that all responsible sources are permitted to submit bids or proposals on the procurement. 41 U.S.C. sect. 403(6).
To the extent Envirosolve argues that DEA did not achieve competition to the
maximum extent practicable by competing the establishment of the BPAs (and thus
must compete issuance of the purchase orders under the BPAs), this argument is
untimely. Our Bid Protest Regulations
require that protests based upon alleged improprieties which do not exist in
the initial solicitation, but which are subsequently incorporated into the
solicitation, must be filed no later than the next closing time for receipt of
proposals following the incorporation.
Bid Protest Regulations, 4 C.F.R. sect. 21.2(a)(1) (2006). Envirosolve was aware from at least
 Suspensions are imposed for a temporary period before suspected misconduct is proven or disproven, and while an investigation and any ensuing legal proceedings are taking place. FAR sect. 9.407-4(a). An agency may, upon adequate evidence, suspend a contractor suspected of, among other things, commission of a criminal offense in connection with performing a public contract, or other misconduct indicating a lack of business integrity. FAR sect. 9.407-2(a).
Debarments are imposed where contractor misconduct has been established (in
contrast to suspensions, which serve as protective measures). Where an agency proposes a contractor for
debarment and, after proceedings where the contractor is afforded the
opportunity to dispute material facts, the agency concludes that the cause of
debarment has been established by a preponderance of the evidence, the agency may
then debar the contractor for a period commensurate with the seriousness of the
cause. FAR sections 9.406-3, 9.406-4. A de facto debarment occurs when an
agency excludes a contractor from competing for government contracts without
following applicable debarment regulations and procedures. See Quality Trust, Inc.,