GAO Denies $53M CMS Eligibility Appeals Operations Support (EAOS) protest

Update: After initially listing this protest as being “Sustained”, the government updated the protest decision to indicate it was actually Denied. Late last week, GAO posted details about a number of issues relating to the agency’s evaluation of quotations, as well as the rationale for the Denial.

“DIGEST  1.  Protest challenging agency’s evaluation of quotations is denied where record shows that agency’s evaluation was reasonable and consistent with the terms of the solicitation and applicable statutes and regulations.  2.  Protest arguing that agency conducted unequal discussions is denied where the agency engaged in exchanges with the awardee to resolve a minor omission in the firm’s pricing of travel expenses in its quotation pursuant to a solicitation provision permitting the agency to conduct exchanges with the “best-valued” vendor to address any remaining issues.
DISCUSSION  Global raises a number of issues relating to the agency’s evaluation of quotations.  Global also argues that the agency impermissibly engaged in discussions with only Sparksoft.  We have reviewed all of Global’s allegations and find no basis to object to the agency’s actions.  We discuss our conclusions in detail below.    As a preliminary matter, the agency argues that Global is not an interested party because one of its key employees left the firm and Global did not advise the agency of the individual’s departure.  The agency therefore takes the position that because the individual in question left Global, but Global did not advise the agency of their departure before the task order was issued, its quotation is unacceptable and cannot form the basis for the issuance of a task order.  We disagree.    While a firm generally is required to advise an agency where it knows that one or more key employees have become unavailable after the submission of proposals (or in this case quotations) but before the award of a contract, there is no such obligation where there is not clear evidence showing that the employee actually is unavailable.  See DZSP 21, LLC, B410486.10, Jan. 10, 2018, 2018 CPD ¶ 155 at 10-12.    The record here shows that the individual in question was employed by Global’s subcontractor (Deloitte) at the time Global submitted its phase two quotation (June 5, 2023) and remained employed by Deloitte and available to perform on the contract through the date when the agency issued the task order to Sparksoft.  It was not until after the agency issued the task order to Sparksoft on July 25, that the individual left Deloitte to work for Sparksoft starting on July 31.  AR, Exh. 22, Declaration of Sparksoft’s chief executive officer, at paragraph 5…
DECISION  Global Alliant, Inc., of Columbia, Maryland, protests the issuance of a task order to Sparksoft Corporation, of Catonsville, Maryland, under request for quotations (RFQ) No. RFQ-CMS-2023-230867, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services, for digital services support.  Global argues that the agency misevaluated quotations and made an unreasonable source selection decision.  Global also argues that the agency impermissibly engaged in discussions with only Sparksoft during the competition.  We deny the protest.”

Protestor – Global Alliant, Inc.
Solicitation Number – RFQ-CMS-2023-230867
Agency – Department of Health and Human Services: Centers for Medicare & Medicaid Services
File number – B-421859.1
Outcome: Denied
Decision Date: Nov 7, 2023
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