The solicitation stated the agency would assess offerors’ financial health. The protester said such an assessment was unduly restrictive. GAO wasn’t convinced. An offeror’s poor financial health could present performance risk.
International Business Machines Corporation, B-421841
- Financial Health Evaluation – The solicitation stated the agency would evaluate offerors’ financial liquidity and solvency. The protester argued this evaluation was unduly restrictive and that it would produce meaningless results. GAO disagreed. An evaluation of financial health was essential because poor financial health presented performance risk.
- All of Nothing Approach – The protester also complained the solicitation evaluated financial health using an inaccurate all or nothing approach that assigned points based on offerors’ ratios of assets and liabilities instead of a sliding scale. GAO rejected the argument. The ratio thresholds were consistent with common indicators of financial health.
The protester is represented by J. Andrew Jackson, Ryan P. McGovern, Robyn B. Celestino, and Zoe Lensing of Jones Day. The agency is represented by Colin L. Nash and Peter Kozlowski of the Department of Veterans Affairs. GAO attorneys Todd C. Culliton and Tania Calhoun participated in the decision.
–Case summary by Craig LaChance, Senior Editor
