GAO posts denial details for VA Supply Chain Modernization protest

International Business Machines Corporation (IBM), of Bethesda, Maryland, protests the terms of request for proposals (RFP) No. 36C10B23R0006, issued by the Department of Veterans Affairs (VA) for supply chain modernization services. IBM argues that evaluation criteria assessing offerors’ financial liquidity and solvency are unduly restrictive of competition.

“DIGEST

Protest that the solicitation contains unduly restrictive terms is denied where the record shows that the evaluation criteria are reasonably related to the agency’s needs and withstand logical scrutiny.

DECISION

International Business Machines Corporation (IBM), of Bethesda, Maryland, protests the terms of request for proposals (RFP) No. 36C10B23R0006, issued by the Department of Veterans Affairs (VA) for supply chain modernization services. IBM argues that evaluation criteria assessing offerors’ financial liquidity and solvency are unduly restrictive of competition.

We deny the protest.

BACKGROUND

On June 29, 2023, the VA issued the RFP to procure supply chain modernization services. Agency Report (AR), Tab 5, RFP at 1, 12. The selected contractor would provide an easy-to-use cloud-based platform to manage the flow of goods, services, and information internally between agency personnel, and externally between agency personnel and customers. Id. at 12, 17.

The RFP contemplates the award of a single indefinite-delivery, indefinite-quantity contract to be performed over a 10-year ordering period. RFP at 41. Delivery and task orders would be placed on fixed-price, time-and-materials, or labor-hours bases. Id. at 78. Award would be made on a best‑value tradeoff basis considering eight factors: corporate expertise; written technical approach; technical demonstration; past performance; small business participation commitment; veterans involvement; veterans employment; and, price. Id. at 79-80.

The RFP provides for a multi-step evaluation approach. During step one, offerors will submit their corporate expertise proposals. RFP at 86. Offerors will demonstrate experience under multiple elements, including inventory management, order management, asset management, supply chain risk management, system integration, data management, and general “overarching” categories. Id. at 82-83. Additionally, and as particularly relevant to the protester’s challenge, under the corporate experience factor, offerors also need to demonstrate that their companies are financially liquid and solvent. Id. at 83. Offerors would be assigned points under each element and could achieve a maximum of 10,000 points. Id. Offerors would self-score their proposals and include relevant supporting and substantiating information. Id. at 81. The five offerors receiving the most points would advance to the second step of the evaluation. Id.

For step two, offerors would submit their written technical approach, past performance, small business participation commitment, veterans involvement, veterans employment, and price proposals. RFP at 86, 101. Offerors selected for step three will provide the live technical demonstration of their proposed products. Id. at 101.

Prior to the July 28 close of the solicitation period, IBM filed this protest with our Office.

DISCUSSION

IBM asserts that the RFP contains unduly restrictive tests for financial liquidity and solvency under the corporate expertise factor.[1] Protest at 6. First, IBM argues that the liquidity and solvency tests produce meaningless results, and…” More here. 

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