The protester challenged the agency’s evaluation of its proposal under the small business participation requirement. It argued that the agency's inclusion of surge hours in the participation calculation was unreasonable. This allegedly led the agency to assess the protester as non-compliant with the 30 percent threshold required by the solicitation. However, GAO upheld the agency's position. It concluded that the agency's interpretation of the solicitation was reasonable and consistent with the specified requirements.
Resource Management Concepts, Inc., GAO, B-423503.2; B-423503.4
- Background - The Department of the Navy issued RFP No. N00253-24-R-3000, seeking information technology support services for the Naval Undersea Warfare Center. The solicitation required that contractors provide a minimum of 30 percent of the total task order to small businesses. The protester argued that its proposal met this requirement, but the agency found it fell short. It found that only 27 percent of the total cost was for small business participation. After an agency-level protest was denied, the protester escalated the matter to the GAO.
- Surge Hours Inclusion - The protester claimed that the agency's decision to include surge hours in calculating small business participation was improper. It maintained that these hours were indefinite and could not be allocated among contractors. However, GAO found that the solicitation explicitly required total estimated task order costs, including surge hours, to be accounted for in the small business participation calculation. GAO deemed the agency's rationale reasonable and that it aligned with the RFP’s instructions.
The protester is represented by Edward J. Tolchin, Esq. of Offit Kurman, P.A. The government is represented by Laura A. Whitten, Esq., Chris Lybeck, Esq., and Trent Bowen, Esq. The GAO attorneys who participated in the decision include Michael Willems, Esq., and Evan D. Wesser, Esq.
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