Courts, Boards, & GAO

Trending Now
Supreme Court Holds that Federal Law Does Not Preempt State Tort Claims When the Contractor’s Own Negligence Causes Injuries • You Can’t Blame the Government for Weather You Could Have Predicted • COFC Holds that USAID Contractors Properly Pleaded Breach of Contract by Improper Mass Termination in Bad Faith/Abuse of Discretion • Bid Protests in Maine • Army Awards $2.7B Contract for Dark Eagle Hypersonic Weapon

The Agency Consolidated Two Contracts into a Single Solicitation. Should the Agency Have Considered Incumbent’s Work on Predecessor Contracts as One or Two Past Performance References?

Pasuwan | Shutterstock

The agency consolidated two predecessor contracts into a single solicitation. The protester had been the incumbent on the predecessor contracts and had submitted them as past performance references. The agency evaluated each contract separately, finding them merely relevant. The protester argued they should have been evaluated together and found to be very relevant. But GAO found that under the terms of the soliciaton, the agency was not required to consider the separate contracts together.

Integrated Finance & Accounting Solutions, LLC, GAO B-420526, B-420526.2

Background

The Defense Information Systems Agency (DISA) posted an RFQ seeking financial analyst support services. The agency received quotations from Integrated Finance & Accounting Solutions (IFAS) and enGenuis Consulting Group. DISA awarded the contract to enGenuis. While IFAS had a superior past performance, DISA found the higher rating did not justify the IFAS’s price premium. IFAS protested.

Legal Analysis

Past Performance References

The RFQ consolidated two predecessor contracts. IFAS was the incumbent on those contracts and had submitted each as a past performance reference. DISA had found that each contract was merely relevant because they were smaller and lacked the total scope of the RFQ. IFAS argued that the agency erred in considering each contract separately. IFAS contended DISA should have considered the two efforts together in which case it would have found them very relevant.

But GAO noted that the RFQ stated that the agency could only combine past performance references if they were multiple orders under the same IDIQ contract. Here, IFAS’s incumbent contracts had not been issued under the same IDIQ. Accordingly, the agency’s evaluation had adhered to the terms of the solicitation.

enGenuis’s Past Performance

DISA assessed enGenuis a neutral past performance rating finding that it did not have much relevant experience. IFAS argued that enGenuis’s past performance was so minimally related to the requirement that it should not even have received a neutral rating. But GAO found the neutral rating reasonable. A neutral rating is appropriate when a vendor, like enGenuis, has a positive past performance record but a limited record of relevant past performance.

Best-Value Determination

IFAS alleged that DISA had “flattened” the evaluation criteria and turned what should have been a best-value tradeoff into a lowest-price technically acceptable procurement. GAO didn't agree, noting the record showed the agency had carefully considered strengths and weaknesses and performed a best-value tradeoff.

IFAS is represented by Thomas A. Coulter or Norton Rose Fulbright US, LLP. The intervenor, enGenuis, is represented by Jon D. Levin, Emily J. Chancey, and Nicholas P. Greer of Maynard Cooper Gale, P.C. The agency is represented by Kara Hong, Andriani Buck, LaTonya McFadden, and Susan Chagrin of the Defense Information Systems Agency. GAO attorneys Michael Willems and Edward Goldstein participated in the preparation of the decision.

Get daily insights on bid protests, CDA claims, and contract litigation that shape the GovCon landscape with our Protests & Claims newsletter, delivering up-to-the-minute intelligence Monday–Saturday — Subscribe here.