[Protest of USIA Rejection of Bid After Best and Final Offers]

Two firms protested the U.S. Information Agency's (USIA) rejection of their bids for a multilingual word and data processing system after best and final offers. Both protesters contended that USIA failed to conduct meaningful discussions. Following system demonstrations and discussions with each bidder, USIA requested best and final offers and informed the protesters that their proposals were not in the competitive range and would not be considered for award. The first protester contended that USIA failed to: (1) set forth proper evaluation criteria in its solicitation; (2) inform bidders that a competitive range would be established; or (3) define the term "technically acceptable competitive range." Procurement regulations require agencies to conduct written or oral discussions with all responsible bidders whose bids are acceptable under the terms of a solicitation's evaluation criteria or are susceptible to being made acceptable through discussions. GAO found that the solicitation adequately advised bidders of the evaluation criteria and that the agency properly determined that the first protester's proposal failed to meet the mandatory solicitation requirements. Technically unacceptable proposals may not be considered for award after best and final offers irrespective of their proposed prices. The degree of specificity required in conducting meaningful discussions is primarily a matter for the determination of the procuring agency, and GAO found that the discussions concerning the defects in this protester's proposal were meaningful. The other protester also contended that USIA failed to conduct meaningful discussions after its initial proposal was included in the competitive range. It contended that the defects shown in its system during demonstration were minor and were repaired quickly. GAO found that this protester's knowledge of its system's failures during the demonstration was sufficient to satisfy the requirements for meaningful discussions. Accordingly, both protests were denied.