Size Appeal Denial Published: CMS Enterprise Salesforce Services (ESFS) Award

“Office of Hearings and Appeals

[Size Appeal]

SIZE APPEAL OF: RADIANT INFOTECH, LLC, APPELLANT

RE: Softrams, LLC”

“On February 7, 2024, the U.S. Small Business Administration (SBA) Office of Government Contracting – Area II (Area Office) issued Size Determination No. 02-2024-019, dismissing a size protest filed by Radiant Infotech, LLC (Appellant) against Softrams, LLC (Softrams). The Area Office found that Appellant lacked standing to protest. On appeal, Appellant contends that the Area Office improperly dismissed the protest, and requests that SBA’s Office of Hearings and Appeals (OHA) remand for a new size determination. For the reasons discussed infra, the appeal is denied and the size determination is affirmed.

OHA decides size determination appeals under the Small Business Act of 1958, 15 U.S.C. § 631 et seq., and 13 C.F.R. parts 121 and 134. Appellant received the size determination on February 9, 2024, and filed the instant appeal within 15 days thereafter, so the appeal is timely. 13 C.F.R. § 134.304(a). Accordingly, this matter is properly before OHA for decision.

Background

  1. Procurement and Protest

On November 8, 2023, the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) invited Softrams to submit a proposal for “a Firm Fixed Price sole-source contract under the SBA 8(a) program.” (Letter from Y. Kelly to A. Kanthamani (Nov. 8, 2023), at 1.) On December 20, 2023, CMS awarded Contact No. 75FCMC24C0008 to Softrams.

On January 16, 2024, Appellant filed a size protest against Softrams, alleging that Softrams is not small under a $34 million size standard. Appellant explained that it previously had been awarded a contract for similar services in March 2022. (Protest at 2.) In October 2023, however, CMS informed Appellant that CMS did not intend to exercise the options on Appellant’s contract. (Id.) Subsequently, “[o]n January 3, 2024, [Appellant] learned that the apparent reason [CMS] declined to exercise its option period was because [CMS] had instead sole-sourced that same work to another 8(a) company, Softrams.” (Id.)

Appellant acknowledged that “SBA’s regulations do not contemplate size protests by 8(a) small business concerns, like [Appellant], challenging the size of an awardee of an 8(a) sole source contract”. (Id. at 1.) Nevertheless, the Contracting Officer (CO) and certain …”

“Conclusion

Appellant has not demonstrated any error in the size determination. Accordingly, the appeal is DENIED and the size determination is AFFIRMED. This is the final decision of the Small Business Administration.”

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