Protest of Search Fee Limitation in RFP as Unduly Restrictive of Competition

The Downtown Copy Center, the incumbent contractor, protested against amendments to a request for proposals (RFP) issued by the Federal Communications Commission (FCC), concerning the prospective contractor's "search fee" rate. The contract was for the provision of supplies and services for research, duplication, and public sale of FCC documents which are statutorily available for inspection. Four days before the announced closing date for bids, the RFP was amended to incorporate a Department of Labor (DOL) wage determination for photocopy machine operators, to limit the search fee charged to customers to $5 per hour, and to extend the closing date another 3 weeks. Another amendment indefinitely extending the closing date was issued 3 days before the bids were to be opened because of Downtown Copy Center's protest of the inclusion of the search fee limitation. The protester objected that the $5 fee did not reflect the present $10 hourly fee or current market costs, and that a fixed fee would preclude negotiation for services and restrict competition. The FCC agreed that the $5 amount should be regarded merely as a guideline. Further protest regarding the fee became moot when FCC relaxed its strict reliance on that figure. The protester also questioned the effect a price ceiling might have on the contractor's latitude in negotiations, but FCC has promised to guarantee a reasonable profit margin, so negotiations should not be inhibited. Also, contrary to Downtown Copy Center's contention, wage determinations do not constitute a maximum wage, but merely prescribe the minimum wage and fringe benefits which must be provided to a specified class of employee. Accordingly, the protest was denied.