Bid protest decision
| Outcome | Denied — The protest is denied. |
|---|---|
| Protester | — |
| Agency | General Services Administration |
| Docket | b-420045, b-420045.2 |
| Solicitation | 47QSCC |
| Decision date | Nov 4, 2021 |
The GAO's summary
1. Protest that the agency failed to consider awardee’s past performance information in its evaluation under the technical approach and corporate experience factors is denied where the solicitation did not require the agency to consider such information.
The full decision
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.
Decision
Matter of: W.W. Grainger, Inc.
File: B-420045; B-420045.2
Date: November 4, 2021
Jonathan S. Aronie, Esq., Katie A. Calogero, Esq., and Daniel J. Alvarado, Esq.,
Sheppard Mullin Richter & Hampton LLP, for the protester.
Michael D. McGill, Esq., and Thomas A. Pettit, Esq., Arnold & Porter LLP, for MSC
Industrical Direct Co., Inc., the intervenor.
Nathan C. Guerrero, Esq., and Nathan Bangsil, Esq., General Services Administration,
for the agency.
Uri R. Yoo, Esq., and Evan C. Williams, Esq., Office of the General Counsel, GAO,
participated in the preparation of the decision.
DIGEST
1. Protest that the agency failed to consider awardee’s past performance
information in its evaluation under the technical approach and corporate experience factors
is denied where the solicitation did not require the agency to consider such
information.
2. Protest alleging that the agency engaged in disparate treatment and evaluated
quotations unequally by failing to assess strengths equally for similar aspects of the
vendors’ quotations are denied, where the agency assessed strengths to similar aspects of
the protester’s quotation and difference in the evaluation narratives resulted from
differences between the quotations.
3. Protest challenging the agency’s source selection decision is denied where the
record reflects that the source selection authority reasonably found the quotations of the
awardee and the protester to be technically equal and selected the lower-priced quotation
for award.
DECISION
W.W. Grainger, Inc., of Lake Forest, Illinois, protests the establishment of a blanket
purchase agreement (BPA) with the contractor team led by MSC Industrial Direct Company,
Inc., of Davidson, North Carolina, under request for quotations (RFQ)
No. 47QSCC‑20‑Q-5015, issued by the General Services Administration (GSA), Federal
Acquisition Service, to provide 4th Party Logistics (4PL) supplies and services for the
United States Marine Corps. The protester asserts that the agency unreasonably
evaluated the awardee’s quotation and treated the vendors unequally. The protester
also challenges the agency’s best-value determination.
We deny the protest.
BACKGROUND
The RFQ was issued on February 10, 2021, to holders of GSA’s Multiple Award Schedule
(MAS) contracts with the special item number (SIN) for 4PL supplies and services under the
Federal Supply Schedule (FSS) procedures of Federal Acquisition Regulation (FAR) subpart
8.4. Contracting Officer’s Statement (COS) at 1-2; Agency Report (AR), Tab 2, RFQ
at 1. The solicitation noted that it was open to all contractor teaming
arrangements (CTA) comprised of MAS vendors who have the 4PL SIN in their MAS
contracts. Id.
The solicitation sought to provide 4PL products and services, including a comprehensive
products and related in-store services for retail storefronts and virtual markets, at
various Marine Corps locations.[1] RFQ at 3. The RFQ anticipated
the establishment of a fixed-price BPA under the vendor’s GSA schedule contract with
a 5‑year performance period consisting of a 1‑year base period and four 1‑year
options. Id. at 22.
The RFQ advised that a BPA would be established with the vendor whose quotation is
determined to present the best value for the government, price and other factors
considered. Id. at 46. Quotations would be evaluated under five factors,
listed in descending order of importance: (1) technical approach; (2) breadth of
product; (3) corporate experience and references; (4) small business participation
plan; and (5) price. Id. at 46-47. The RFQ informed vendors
that, when combined, the four technical factors were significantly more important than
price and, as technical ratings become equal, price may be a determining factor for the
basis of award. Id. at 46.
As relevant here, the solicitation provided that quotations would be evaluated under the
technical approach factor to determine the degree to which the submitted quotation meets
the RFQ’s requirements and demonstrates the vendor’s capability to deliver performance at
the 4PL locations specified in the RFQ. Id. at 47. The solicitation
further provided that the vendor’s corporate experience and references would be evaluated
on the degree of relevancy to the requirements being solicited. Id. at
51.
The agency received timely quotations from two teams of vendors: team 1, comprised
of W.W. Grainger, Inc. (team lead) and Office Depot, Inc. (together, “Team Grainger”); and
team 2, comprised of MSC Industrial Direct Co., Inc. (team lead), LC Industries, Inc., and
OSC Solutions, Inc. (together, “Team MSC”). AR, Tab 15, Award Determination
Memorandum at 2. The agency evaluated the quotations from Team Grainger and Team MSC
as follows:[2]
TEAM GRAINGER
TEAM MSC
Technical Approach
Outstanding
Outstanding
Breadth of Product
Excellent-High
Excellent-High
Corporate Experience and References
Highly Relevant
Highly Relevant
Small Business Participation Plan
Satisfactory
Satisfactory
Total Evaluated Price
$45,095,682
$39,442,169
Id. at 13.
The source selection authority (SSA) reviewed the composite evaluations of the technical
evaluation board (TEB) and performed a best-value analysis, considering each team’s
quotation in the process. Id. at 13-14. Finding that there were “no
discernible differences in terms of technical benefit to the government,” the SSA concluded
that Team MSC’s quotation, with its significantly lower price, represented the best value
for the government. Id. at 15, 16.
The agency notified Team Grainger of its selection decision on July 26, 2021, and, after
the agency provided its brief explanation of award decision on July 28, this protest
followed.
DISCUSSION
The protester alleges that the agency improperly evaluated the awardee’s quotation under
the technical approach and corporate experience factors by failing to consider past
performance problems and other known information about MSC. The protester also
contends that the agency treated vendors unequally under the technical approach
factor. Finally, the protester argues that the agency made a flawed best-value source
selection decision that ignored the underlying merits of quotations.[3] In response, the agency contends that
its evaluation was reasonable and consistent with the solicitation. For the reasons
discussed below, we deny Grainger’s protest.[4]
Technical Approach
In its challenge to the agency’s evaluation of quotations under the technical approach
factor, Grainger first argues that the agency improperly failed to consider the awardee’s
alleged past performance deficiencies and public announcement of office closures in finding
the awardee’s technical approach to be outstanding. Protest at 12-15; Protester’s
Comments and Supp. Protest (Supp. Protest) at 29-31. The protester also contends that
the agency treated the vendors unequally by identifying strengths in the awardee’s
quotation without identifying strengths for similar aspects of the protester’s
quotations. Supp. Protest at 12-17.
As an initial matter, where, as here, an agency issues an RFQ to FSS vendors under FAR
subpart 8.4 and conducts a competition for the issuance of an order or establishment of a
BPA, we will review the record to ensure that the agency’s evaluation was reasonable and
consistent with the terms of the solicitation and applicable procurement laws and
regulations. Digital Solutions, Inc., B-402067, Jan. 12, 2010, 2010 CPD ¶ 26
at 3-4; DEI Consulting, B-401258, July 13, 2009, 2009 CPD ¶ 151 at 2. In
reviewing a protest challenging an agency’s technical evaluation, our Office will not
reevaluate the quotations; rather, we will examine the record to determine whether the
agency’s evaluation conclusions were reasonable and consistent with the terms of the
solicitation and applicable procurement laws and regulations. OPTIMUS Corp.,
B‑400777, Jan. 26, 2009, 2009 CPD ¶ 33 at 4. A protester’s disagreement with the
agency’s judgment, without more, does not establish that an evaluation was unreasonable.
DEI Consulting, supra.
Consideration of Information Outside of Awardee’s Quotation
The protester argues that the agency should have considered certain relevant information
about MSC’s past performance and its public announcement about office closures to identify
weaknesses or performance risks in the awardee’s technical approach. Protest
at 12‑15; Supp. Protest at 29-31. The agency responds that the solicitation did
not require the agency to consider any information outside of the four corners of the
vendor’s quotation in its evaluation under the technical approach factor. MOL at
13-16.
The RFQ stated that the agency’s evaluation under the technical approach factor would
“review TAB C submitted in Part I of the quotation,” the technical approach portion of the
vendor’s technical quotation, “to determine the degree to which the [quotation] meets the
requirements listed in Section L.4.3” of the RFQ and “how well the [quotation]
demonstrate[s] the vendor’s capability to deliver performance at the 4PL locations.”
RFQ at 38, 47. Section L.4.3 of the RFQ, in turn, instructed vendors to provide a
narrative that addresses the vendor’s capacity to simultaneously manage all 4PL locations
identified in the solicitation, with emphasis on three specific elements:
(1) supply chain capacity; (2) proposed staffing and resources plan; and
(3) quality control and risk management plan. Id. at 38-39.
The protester claims that MSC has a history of failing to fulfill orders under its
incumbent 4PL BPA and, as a result, cannot demonstrate its ability to meet the requirement
for “product sourcing capabilities and supplier relationships” or “surge and sustainment”
under the supply chain capacity element. Protest at 13-14; RFQ at 38. The
protester also points to MSC’s recent public announcement of permanent closure of 73 branch
offices to argue that the awardee cannot demonstrate an adequate “current and planned
capacity of warehouses and/or distribution centers,” another requirement under the supply
chain capacity element.[5]
Id.
The protester further contends that the alleged performance problems and branch offices
closures are also evidence that the awardee cannot demonstrate an adequate staffing and
resource plan. Protest at 14. Finally, the protester argues that the awardee
cannot demonstrate an adequate quality control and risk management plan because the FAPIIS
report for MSC shows a termination for cause for delivered parts that were rejected by the
customer under an unrelated task order. Id. at 15.
Our review of the record, however, shows that the agency’s findings were reasonable and
consistent with the solicitation. That is, contrary to the protester’s contentions,
the agency reasonably found that the awardee’s technical approach “demonstrated their
capability to deliver exceptional performance at the 4PL locations” and its quotation
demonstrated corporate experience “that involved essentially the same magnitude of effort
and complexity in all five of the relevant areas.” AR, Tab 15, Award Determination
Memorandum at 5, 10. Therefore, as discussed below, we have no basis to sustain the
protester’s allegations.
The record contains a detailed explanation of the agency’s evaluation of the awardee’s
quotation. The evaluators assigned several strengths to the awardee’s technical
approach under the supply chain capacity element, specifically finding that Team MSC’s
narrative described a dedicated product sourcing team, demonstrating “a practical approach
to sourcing the variety of product lines required by the variety of locations included in
this RFQ.” AR, Tab 9, Team MSC Composite Evaluation Report at 3. The
evaluators also noted a strength for Team MSC’s “expansive supplier relationships and large
catalog.” Id. Moreover, the evaluators assigned a strength to Team MSC’s
quotation for its “well‑defined [surge and sustainment] plan with dedicated resources and
personnel” and found that this capability “has been validated through prior [surge and
sustainment] supported events.” Id. at 4.The evaluators further assigned a
strength for Team MSC’s “distribution network [that] includes seven regional customer
fulfillment centers/distribution centers [] totaling more than 3 million square feet and
housing more than 1.7 [million] products and $561 [million] in inventory,” finding
that Team MSC demonstrated “redundant and effective capabilities to support required
locations within their current distribution center operations.” Id.
Moreover, the agency assigned several strengths to Team MSC’s quotation under the
staffing and resource plan element, finding that Team MSC’s organizational structure of
specialized teams support effective implementation and its employee screening process
minimize risk associated with the implementation timeline. AR, Tab 9, Team MSC
Composite Evaluation Report at 5. The evaluators also assigned several strengths to
Team MSC’s quality control and risk management plans, finding that Team MSC’s quality
control was “built into the process, reducing errors in purchase sales and warehousing
activities.” Id. at 6. The agency also noted that Team MSC’s narrative
described a “detailed risk management plan with associated mitigation strategies,
capabilities and alternatives” that increases the likelihood for a successful
implementation upon contract award. Id.
The evaluation of a vendor’s quotation is a matter within the agency’s discretion.
See SOURCECORP BPS Inc., B‑406792, Aug. 24, 2012, 2012 CPD ¶ 250
at 3. As noted, in reviewing protests challenging an agency’s evaluation, our
Office does not reevaluate quotations; rather, we review the agency’s evaluation to
determine whether it was reasonable and consistent with the solicitation, as well as
applicable statutes and regulations. Ascella Techs. Inc., B‑412679,
B‑412679.2, Apr. 27, 2016, 2016 CPD ¶ 123 at 3.
Here, we find that the agency’s evaluation was reasonable and consistent with the
solicitation. First, we note that the protester does not allege any error with the
agency’s evaluation of Team MSC’s technical approach quotation as actually submitted by
Team MSC. Rather, the protester’s challenges here boil down to an allegation that the
agency should have considered information outside of the awardee’s quotation--i.e.,
awardee’s past performance and public announcement--in assessing the awardee’s technical
approach. Nothing in the solicitation, however, required the agency to consider such
information in its evaluation under the technical approach factor. The RFQ plainly
stated that, for the purpose of evaluating the vendor’s technical approach, the agency
would review and consider the information in the technical approach section of the vendors’
quotation. See RFQ at 47. The record here shows that the agency
evaluated the awardee’s quotation under the technical approach factor reasonably and in
conformance with the stated evaluation criteria. Therefore, we find nothing improper
in the agency’s refusal to consider the past performance and office closure information
presented by the protester in its evaluation of the awardee’s quotation under the technical
approach factor.
In addition, while the protester argues that the solicitation contains language that
permits the agency to consider past performance, the protester refers only to the
solicitation provision addressing the determination of responsibility of the presumptive
awardee. Supp. Protest at 29; see RFQ at 46. Setting aside the
permissive--not mandatory--language of the cited solicitation provision, that provision
expressly states that the agency reserves the right to review performance reports included
in FAPIIS and CPARS and consider such information “in the process of conducting . . .
vendor responsibility reviews” for the presumptive awardee. RFQ at 46. Our
Office generally will not consider a protest challenging an agency’s affirmative
determination of a vendor’s responsibility, except where the protester presents specific
evidence that the contracting officer unreasonably failed to consider information that, by
its nature, would be expected to have a strong bearing on whether the awardee should be
found responsible. 4 C.F.R. § 21.5(c); FCi Fed., Inc., B‑408558.4 et
al., Oct. 20, 2014, 2014 CPD ¶ 308 at 7. The allegations that our Office has
reviewed in the context of an affirmative determination of responsibility generally pertain
to very serious matters, such as potential criminal activity. Great Lakes Dredge &
Dock Co., LLC, B-416073, May 24, 2018, 2018 CPD ¶ 194 at 7.
Here, in contrast, the information presented by the protester does not rise to the level
of seriousness that the contracting officer would reasonably be expected to consider in
determining the responsibility of the prospective awardee. Thus, we conclude that the
protester has not proffered sufficient evidence as to present an exception to our rules
regarding challenges to an agency’s affirmative determination of responsibility.
Disparate Treatment
The protester next contends that the agency’s evaluation of vendors’ quotations was
unequal and disparate. Specifically, the protester argues that, in various instances
under the technical approach factor, the agency’s evaluation was not even-handed.
In this context, the protester alleges the agency assigned strengths to Team MSC’s
quotation but not to Team Grainger’s quotation, even though Team Grainger’s approach was
“substantively indistinguishable” from Team MSC’s approach. Supp. Protest
at 12‑17. We have fully considered all of the protester’s arguments and conclude
that none provide a basis to sustain the protest. We discuss a representative example
below.
In conducting procurements, agencies may not generally engage in conduct that amounts to
unfair or disparate treatment of competing vendors. Arc Aspicio, LLC et al.,
B-412612 et al., Apr. 11, 2016, 2016 CPD ¶ 117 at 13. When a protester alleges
disparate treatment in a technical evaluation, it must show that the differences in the
evaluation did not stem from differences between the vendors’ quotations. Id.;
INDUS Tech., Inc., B-411702 et al., Sept. 29, 2015, 2015 CPD ¶ 304 at 6.
Accordingly, to prevail on an allegation of disparate treatment, a protester must
show that the agency unreasonably failed to assess strengths for aspects of its quotation
that were substantively indistinguishable from, or nearly identical to, those contained in
other quotations. See Battelle Memorial Inst., B-418047.3, B-418047.4, May 18, 2020,
2020 CPD ¶ 176 at 5. Based on our review of the record here, we find that the
protester has not made such a showing.
The protester contends, for example, that the agency assessed a strength to Team MSC’s
quotation for the description of its existing electronic data interface (EDI) capabilities,
but failed to assess a strength to the same aspect in Team Grainger’s quotation.
Supp. Protest at 13-15. The agency responds that it did assess a strength to the
aspect of Team Grainger’s quotation that discusses its EDI capabilities. Supp. MOL at
5-6.
The record shows that the agency assessed a strength to Team MSC’s technical approach
for its “existing EDI capabilities and integration with GSA,” finding that it “demonstrates
MSC’s current ability to use existing EDI integration processes with GSA to reduce
implementation risk and lead time to start up operations.” AR, Tab 9, Team MSC
Composite Evaluation Report at 3. We find that the agency’s conclusions are
reasonably supported by Team MSC’s quotation, which discusses the integration of EDI with
GSA’s systems multiple times throughout its description under the supply chain capacity
element. See AR, Tab 3.3, Team MSC Technical Approach at 1-5.
The protester contends that it too described similar EDI capabilities in its quotation,
citing to the portion of its quotation that states, “Grainger has integrated its U.S.
supply chain network with GSAs [Enhanced Check-Out (GECO)] EDI process to meet product
needs and stock rate requirements for each 4PL location.” Supp. Protest at 14
citing AR, Tab 5.3, Team Grainger Technical Approach at 4 (emphasis
added). As the cited language shows, this portion of Team Grainger’s quotation
mentions EDI mainly in the context of describing its internal electronic supply chain
management system, [DELETED], and how it is integrated with GSA’s EDI. See AR,
Tab 5.3, Team Grainger Technical Approach at 4‑5.
In its evaluation of the protester’s quotation, the agency did not specifically mention
EDI, but assessed a strength for the protester’s use of [DELETED] as its internal
electronic supply chain management system. AR, Tab 10, Team Grainger Composite
Evaluation Report at 3. In fact, in describing this strength, the agency specifically
noted that Team Grainger “has integrated its U.S. supply chain network to meet product
needs and stock rate requirements, minimizing risk associated with supporting the
number of locations included in this requirement,” echoing the language from the portion of
Team Grainger’s quotation discussing the integration of its supply chain management system
with GSA’s EDI. Id. at 4 (emphasis added).
On this record, we find no merit to the protester’s argument that the agency should have
assessed a separate and additional strength for the protester’s mention of EDI in its
technical approach. Although the protester complains that the strength the agency
assigned to its proposal was for its supply chain network and not specifically for EDI, we
find that the evaluators clearly considered the portion of Team Grainger’s quotation
discussing the integration of its electronic supply chain management system with EDI and
assessed a strength for that aspect. The difference in the evaluation narrative was
reflective of the difference in the quotations’ narratives, where Team Grainger’s
quotation, unlike the awardee’s, only mentioned EDI in the context of its [DELETED] as an
integrated supply chain management system without otherwise describing its use in the
context of Team Grainger’s technical approach. Therefore, the record here shows that
the agency reasonably evaluated each vendor’s strengths under the technical approach
factor, and the difference in the documentation of evaluations resulted from differences in
the vendors’ quotations. See INDUS Tech., Inc., supra.
Corporate Experience and References
Next, the protester contends that the agency erred in its evaluation of the awardee’s
quotation under the corporate experience and references factor by not considering the
alleged past performance problems of MSC. Protest at 15-16; Supp. Protest
at 29‑31. The agency responds that, as with the evaluation scheme for the
technical approach factor, the stated evaluation scheme for the corporate experience and
reference factor did not contemplate or require evaluation of vendors’ past
performance. MOL at 16-17.
The RFQ stated that the agency would evaluate the submitted corporate experience
narratives “to assess the degree of relevancy to the requirements being solicited,” and
informed vendors that the “highest degree of relevancy will be reserved for vendors that
demonstrate their corporate experience in all five relevant areas as the prime vendor,
under one government contract (not collectively under multiple government
contracts).” Id. at 51. The RFQ also provided that the agency may
contact the provided government reference “in order to make a reasoned judgment regarding
the relevancy of the vendors’ corporate experience.” Id.
In evaluating the awardee’s quotation, the agency found Team MSC’s corporate experience
and reference to be highly relevant. AR, Tab 9, Team MSC Composite Evaluation Report
at 1. Specifically, the agency found that Team MSC’s narrative demonstrated highly
relevant experience under each of the five relevant areas, performed under one government
contract. Id. at 8-9.
A corporate experience evaluation is distinct from an evaluation of past
performance. Ausley Assocs., Inc., B-417509 et al., July 24, 2019, 2019
CPD ¶ 279 at 3. Specifically, a corporate experience evaluation focuses on
whether an offeror has actually performed similar work, while a past performance evaluation
concerns the quality of the work. IBM Corporation, B‑415798, Mar. 27,
2018, 2018 CPD ¶ 130 at 5.
Based on this record, we find no merit to Grainger’s challenge to the agency’s
evaluation of the awardee’s quotation under the corporate experience factor. Here,
the protester seeks to impose a requirement that the agency perform a qualitative
assessment of the awardee’s corporate experience, even though the solicitation does not
contemplate such an evaluation.
We note that, as with the protester’s challenge to the agency’s evaluation of the
awardee’s technical approach, the protester here does not argue that the awardee lacks
relevant experience or that the awardee’s corporate experience narrative does not warrant
the rating of highly relevant. Rather, the protester argues that the agency should
have considered the quality of the awardee’s performance under the referenced
contract. Supp. Protest at 29‑31. The solicitation, however, unambiguously
stated that the agency would evaluate the relevance of the vendors’ corporate experience to
the requirements being solicited under the corporate experience and reference factor.
See RFQ at 51. Nothing in the solicitation provided that the agency would
consider the quality of performance related to the vendor’s cited corporate
experience. Moreover, as noted, the solicitation’s only reference to consideration of
past performance information is in the context of the agency’s determination of
responsibility for the presumptive awardee. See RFQ at 46.
On this record, we find unobjectionable the agency’s conclusion that the solicitation
here did not anticipate, and thus the agency did not perform, a qualitative assessment of
the awardee’s past performance under the corporate experience and references factor.
See Amyx, Inc., B‑410623, B‑410623.2, Jan. 16, 2015, 2015 CPD ¶ 45 at
14‑15 (finding that the agency reasonably evaluated relevant experience as distinct from
the past performance evaluation where past performance relates to how well a contractor
performed, while relevant experience pertains to the type of work a contractor
performed). Accordingly, we deny this protest ground.
Source Selection Decision
Finally, Grainger challenges the agency’s best-value determination in its source
selection decision. The protester contends that the SSA failed to look beyond the
adjectival ratings in concluding that the vendors were technically equal and issuing the
BPA to the awardee for its lower-priced quotation. Protest at 21-22; Supp. Protest
at 17-29. The protester also argues that the contemporaneous record is devoid of
any comparative analysis of differences between quotations. Supp. Comments
at 18‑22.
While an agency is not obligated to extensively document every consideration made in its
tradeoff decision, it is required to adequately explain and document the basis for its
source selection determination. VariQ Corp., B‑414650.11, B‑414650.15,
May 30, 2018, 2018 CPD ¶ 199 at 11. Moreover, our Office has
consistently explained that evaluation ratings are merely guides for intelligent
decision-making in the procurement process; the evaluation of proposals or quotations and
consideration of their relative merit should be based upon a qualitative assessment
consistent with the solicitation’s evaluation scheme. Highmark Medicare Servs.,
Inc., et al., B‑401062.5 et al., Oct. 29, 2010, 2010 CPD ¶ 285
at 19.
Additionally, agencies may find that vendors’ quotations are technically equivalent;
however, the selection official must explain the basis for why quotations are considered
technically equivalent. See Arctic Slope Tech. Servs., Inc., B‑411776,
B‑411776.2, Oct. 20, 2015, 2017 CPD ¶ 6 at 5. In this regard, where
selection officials reasonably regard quotations as being essentially equal technically,
price properly may become the determining factor in making award, and it is not necessary
to perform a price/technical tradeoff. See Oracle America, Inc., B‑417046,
Jan. 31, 2019, 2019 CPD ¶ 74 at 15 citing Staff Tech, Inc.,
B‑403035.2, B-403035.3, Sept. 20, 2010, 2010 CPD ¶ 233 at 6; see also
Synergetics, Inc., B‑299904, Sept. 14, 2007, 2007 CPD ¶ 168 at 8 (“Since the
record shows that the agency determined that the quotations, although different in content,
relatively were equal under the non-price factors, its decision to make low price the
deciding factor was fully consistent with the RFQ award criteria, and we have no basis to
find any error in the source selection.”).
Here, although Grainger complains that the agency did not qualitatively analyze or
compare the underlying merits of the quotations, the agency’s award determination
memorandum demonstrates that the selection official reviewed the underlying evaluation
results under each non-price factor and considered the qualitative value of each technical
quotation. See AR, Tab 15, Award Determination Memorandum at 3‑11.
Based on this review and consideration, the SSA concluded that the vendors’ quotations
were technically equal, and reasonably determined that Team MSC’s lower‑priced quotation
represented the best value to the agency. Id. at 12-15.
For example, with regard to the technical approach factor, the SSA concluded as
follows:
[B]oth quotation submissions contained strengths across all
elements and neither contained any weaknesses. While the technical approaches were
not identical, I did not find any significant differences in the degree to which both CTAs
demonstrated a comprehensive, effective, and efficient approach/methodology for meeting,
integrating, and accomplishing the requirements listed in RFQ Section L.4.3. I also
did not find any significant differences in the degree to which both CTAs demonstrated an
effective and efficient approach for meeting or exceeding the requirements of the
RFQ[.]
Id. at 14. Similarly, for the corporate experience and references factor,
the SSA noted as follows:
[B]oth CTAs were found to have the highest degree of relevant
experience in all five areas identified in the solicitation. The CTA team
leaders - whose experience was used for their respective team’s submission - for both
quotation submissions are current 4PL BPA holders, as identified within each of the
respective submitted quotes. As such, there were no distinguishing components from
either submission in the evaluations that led to either CTA being “more” or “less”
experienced as required by the RFQ[.]
Id. Based on these reasoned findings, the SSA concluded that “(1) both CTAs
have highly relevant 4PL experience, and (2) both CTAs are able to fulfill this requirement
at the highest level.” Id. at 15.
After determining that the quotations were technically equal, the SSA considered price
as the determining factor, noting that “the government is compelled to award to Team MSC,
by virtue of the significant difference in total evaluated price with no discernable
difference in terms of technical benefit to the government.” Id. As
noted, the RFQ informed vendors that, while the four technical factors combined were
significantly more important than price, price may be a determining factor for the basis of
award as technical ratings become equal. RFQ at 46. Accordingly, based upon our
review of the record, we find that the SSA’s decision to make price the deciding factor
here was consistent with the solicitation, and we find no basis to find that the agency
failed to adequately document the source selection decision. See Oracle America,
Inc., supra.
The protest is denied.
Edda Emmanuelli Perez
General Counsel
[1] According to the agency, under the 4PL
program, GSA serves as an integrator (i.e., fourth party) that assembles the
resources, capabilities and technology to design, build, and run a comprehensive supply
chain solution for other federal agencies as customers. COS at 1. Under the
program, the 4PL vendor would provide and deliver the actual products for the GSA-run
retail stores at specified customer locations, as well as the full range of logistical
support, transportation, inventory management, and all other support services necessary
to support GSA’s operation of the 4PL locations. RFQ at 5.
[2] The RFQ provided that, for the technical
approach factor, the agency would assign quotations a rating of outstanding,
satisfactory, or unsatisfactory. RFQ at 47-48. For the breadth of product
factor, the agency would assign quotations a rating of excellent‑high, excellent‑low,
good-high, good-low, marginal-high, marginal-low, or unsatisfactory. Id.
at 50. For the corporate experience and references factor, the agency would
assign quotations a rating of highly relevant, relevant, somewhat relevant, or not
relevant. Id. at 51. For the small business participation plan
factor, the agency would assign quotations a rating of satisfactory or
unsatisfactory. Id. at 52.
[3] In its initial protest, Grainger also
challenged the agency’s evaluation of the awardee’s quotation under the breadth of
product and price factors. Protest at 21-22. The agency substantively
responded to these challenges in its report, see Memorandum of Law (MOL)
at 17‑18, 20-22, but the protester did not address the agency’s response in its
comments. See generally, Protester’s Comments and Supp. Protest.
Grainger’s failure to comment on the agency’s response to its initial grounds renders
those arguments abandoned and we will not consider them further. Booz Allen
Hamilton, Inc., B‑414283, B‑414283.2, Apr. 27, 2017, 2017 CPD ¶ 159 at 5
n.9.
[4] Grainger also raises other collateral
arguments. Even though we do not specifically address every argument, we have
reviewed them all and find no basis to sustain the protest. For example, the
protester also alleges that the agency unreasonably waived for the awardee the
solicitation’s requirement for the written portion of quotations to be in 12-point type
size font. Supp. Protest at 4-12; see RFQ at 36. The record shows,
however, that both the protester’s and the awardee’s quotations used fonts smaller than
12-point type for texts within tables and charts. See generally,
AR, Tab 3.3, Team MSC Quotation, Technical Approach; Tab 3.4, Team MSC Quotation,
Corporate Experience; Tab 5.3, Team Grainger Quotation, Technical Approach;
Tab 5.4, Team Grainger Quotation, Corporate Experience.
The agency contends that, when it noticed that both vendors used smaller fonts for
their tables and charts, it reasonably waived the font size requirement for tables and
charts in both quotations. Supp. MOL at 3-4; Supp. COS at 1-2.
Although the protester argues that the use of noncompliant font size was more egregious
in Team MSC’s quotation than in Team Grainger’s quotation, the protester cannot show
that it was competitively prejudiced by the agency’s partial waiver of the font size
requirement when its own quotation also was not compliant with the requirement.
See Vencore, Inc., B-416994.2, B-416994.3, June 17, 2019, 2019 CPD ¶ 221 at
4-7 (finding that the protester was not prejudiced by the agency’s waiver of the font
type requirement for both offerors where both offerors’ proposals failed to comply with
the solicitation instructions). Accordingly, we find no basis to sustain this
aspect of the protest.
[5] While not pertinent to our analysis
here, we note that the agency and the intervenor strongly dispute the protester’s
allegations with respect to MSC’s performance under the incumbent contract, other past
performance information in the Federal Awardee Performance and Integrity Information
System (FAPIIS), and the effect of MSC’s branch office closures on the awardee’s
ability to meet the requirements of this procurement. See MOL
at 13-16; Intervenor Comments at 17-29 (stating, for example, that “MSC has never
experienced any material issues in fulfilling orders under its incumbent BPA due to any
factors within its control” and citing to the Contract Performance Assessment Reporting
System (CPARS) reports showing ratings of exceptional and very good for MSC’s work
under its incumbent BPA). Resolution of this factual dispute, however, is not
necessary to resolve this protest allegation for the reasons discussed below.
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