Management Solutions, L.C. d/b/a/ EssTech Engineering
Highlights
Management Solutions, L.C. d/b/a EssTech Engineering protests the cancellation of request for proposals (RFP) No. W52H09-06-R-0314, issued by the Department of the Army, U.S. Army Materiel Command, for 809 indicator control subassemblies. Management Solutions argues that the agency did not have a reasonable basis for canceling the solicitation and also challenges the agency's concurrent decision to obtain the requirement from Federal Prison Industries, Inc. (FPI), arguing that the RFP instead should have been set aside for Historically Underutilized Business Zone (HUBZone) small businesses.
B-298883; B-298883.2, Management Solutions, L.C. d/b/a EssTech Engineering, December 13, 2006
Decision
Matter of: Management Solutions, L.C. d/b/a EssTech Engineering
Donald A. Stadtler for the protester.
Brian E. Toland, Esq., U.S. Army Materiel Command, for the agency.
Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Cancellation of request for proposals (RFP) was reasonable where, after issuance of the RFP, the agency determined that it was required to satisfy its requirement from Federal Prison Industries under Federal Acquisition Regulation sect. 8.602.
DECISION
Management Solutions, L.C. d/b/a EssTech Engineering protests the cancellation of request for proposals (RFP) No. W52H09-06-R-0314, issued by the Department of the Army, U.S. Army Materiel Command, for 809 indicator control subassemblies. Management Solutions argues that the agency did not have a reasonable basis for canceling the solicitation and also challenges the agency's concurrent decision to obtain the requirement from Federal Prison Industries, Inc. (FPI), arguing that the RFP instead should have been set aside for Historically Underutilized Business Zone (HUBZone) small businesses.
On
A contracting agency need only establish a reasonable basis to support a decision to cancel an RFP. In this regard, so long as there is a reasonable basis for doing so, an agency may cancel a solicitation no matter when the information precipitating the cancellation first arises, even if it is not until proposals have been submitted and evaluated. Glen/Mar Constr., Inc., B-298355,
Agencies are required to purchase supplies manufactured by FPI where, after conducting market research, the agency determines that supplies produced by FPI are comparable to those of the private sector in terms of price, quality, and time of delivery. FAR sect. 8.602(a)(1), (3). While the record reflects that the agency did not consider FPI as a source for the indicator control subassemblies prior to issuance of the RFP, and thus did not conduct market research in advance of the RFP, upon realizing that FPI was a potential source for the indicator control subassemblies, the contracting officer properly took steps required by the FAR to determine whether FPI's item was comparable to that of the private sector in terms of price, quality, and time of delivery. Upon concluding that they were comparable, the contracting officer was required to purchase the subassemblies from FPI and cancel the RFP.
To the extent the protester argues that the RFP should have been issued as a HUBZone set-aside, the argument is without merit. FAR sect. 8.602(a)(3) specifically provides that where an FPI item is determined to be comparable, the agency shall . . . purchase the item from FPI. An agency may only acquire an item produced by FPI using competitive procedures, including the HUBZone set-aside procedures set forth under FAR Subpart 19.13, where the agency determines that the FPI item is not comparable in one or more of the areas of price, quality, and time of delivery. FAR sect. 8.602(a)(4); FAR sect. 19.1304(a)(1) (stating that the HUBZone provisions do not apply to requirements that can be satisfied through award to FPI). Since the contracting officer's market research indicated that FPI's subassemblies were comparable in all respects, setting aside the requirement for HUBZone small business concerns was not an option for procuring the items.
The protest is denied.
Gary L. Kepplinger
General Counsel
[1] The contracting officer extended the RFP closing date numerous times, ultimately extending the due date for proposals to September 22.
[2] In fact, the contracting officer found that as compared to the 12 responding firms, FPI's price was lower; as the incumbent supplier, FPI's quality was proven; and FPI's delivery schedule was more advantageous.