Protest challenging conduct of discussions is denied. The protester alleged the agency did not hold meaningful discussions, contending that the agency effectively coerced the company into raising its price. GAO disagreed. The agency had advised the protester that its staffing was too low and gave the protester the choice of explaining its staffing levels or revising. These discussions did not coerce the protester.
Background
The Navy posted an RFP seeking facility management services. The Ginn Group submitted a proposal. During discussions, the Navy notified Ginn of a significant weakness and deficiency in its proposal due to lower than anticipated staffing. The Navy advised Ginn to either (1) explain how the proposed staffing could effectively perform, or (2) revise the staffing levels. In response, Ginn further explained its staffing and increased staffing for some tasks.
After reviewing final proposals, the Navy awarded the contract to Government Contract Resources. Ginn protested.
Legal Analysis
- Navy Did Not Coerce Ginn Into Increasing Its Staffing - Ginn complained the Navy did not conduct meaningful discussions because the Navy encouraged it to raise its staffing levels, which increased its price, and caused it to lose the contract. GAO rejected the argument. The Navy gave the Ginn the opportunity to explain its staffing levels or revise. Ginn did both. GAO found that the increase in Ginn’s price was not the result of coercion.
- Ginn Didn’t Deserve a Strength for Its Recycling Services – Ginn claimed it had proposed significant improvements relative to the incumbent recycling services and thus should have received a strength. GAO found that while Ginn proposed to add new services, Ginn had not provided enough detail for the Navy to assess whether the company’s approach exceeded the requirement in a way that would be advantageous to the government.
Ginn is represented by Nathan Hartland and Nelson Mullins of Riley & Scarborough LLP. The intervenor, GCR, is represented by Peter B. Ford, Katherine B. Burrows, Meghan F. Leemon, and Anna Wright of PilieroMazza PLLC. The agency is represented by Robert G. Palmer and Like F. Killam of the Navy. GAO attorneys Sarah T. Zaffina and Jennifer D. Westfall-McGrail participated in the preparation of the decision.
GAO - The Ginn Group