Alleged Service Contract Act Violations Reasonably Considered During Past Performance Evaluations; GAO B-415011, Veteran National Transportation LLC

Protest challenging the agency’s past performance evaluation is denied, where the agency reasonably considered the termination of the protester’s prior contract for the same services, in part due to alleged violations of the Service Contract Act; and protest challenging the agency’s price evaluation is denied, where the protester failed to respond to the agency’s requests for clarifications of certain line item prices.

Veteran National Transportation LLC protested the Department of Veterans Affairs’ award of a contract for ambulette transportation services to Owl Inc., alleging that the agency misevaluated offerors’ proposals and acted in bad faith.

First, VNT challenged the agency’s past performance evaluation, arguing that it was improper for the agency to consider the termination of its prior contract because the government caused the termination when it stopped paying VNT for performance.

In response, the agency explained that the Department of Labor found that VNT had not complied with the Service Contract Act on an earlier contract for ambulette services and therefore owed its drivers approximately $450,000. At DOL’s direction, VA withheld payment for work under this contract.

GAO found nothing improper in the agency’s evaluation. Although VNT denied that it violated the SCA and is currently litigating DOL’s findings, GAO found nothing unreasonable in the agency’s decision to consider this information. GAO also noted that VNT had received numerous letters from the agency indicating poor performance, including a cure notice and a show cause notice, prior to the termination.

Second, VNT argued that its proposed prices were improperly evaluated as not fair and reasonable. In response, the agency explained that it asked the protester for clarification on some line item prices, but received no response. VNT produced an email it purportedly sent to the agency explaining its pricing, but GAO found no evidence the email was actually sent.

Veteran National Transporation, LLC is represented by Daniel C. McAuliffe of Whitcomb, Selinsky, McAuliffe, PC. Owl Inc. is represented by Thomas L. Walker of Wimberly, Lawson, Steckel, Schneider & Stine, PC. The government is represented by Daniel McFeely, Department of Veterans Affairs. GAO attorneys Peter D. Verchinski and Amy B. Pereira participated in the preparation of the decision.