BNUMBER: B-272380
DATE: September 16, 1996
TITLE: Network Engineering, Inc.
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Matter of:Network Engineering, Inc.
File: B-272380
Date:September 16, 1996
Milton C. Harper for the protester.
Larry Loughrey for Imaging Technology Corporation, an intervenor.
Susan Bernstein, Esq., and Robert S. Brock, Esq., Federal Emergency
Management Agency, for the agency.
Christine Davis, Esq., and James A. Spangenberg, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST
1. In a procurement for computerized photographic identification card
systems, the awardee's proposed card printer reasonably satisfied a
requirement for upgradeable printer memory since it is possible to
upgrade the printer's memory by replacing the printer's programmable
read-only memory module.
2. An agency reasonably accepted the awardee's general statement of
compliance with a solicitation requirement, notwithstanding that the
solicitation called for descriptive literature, since the agency also
accepted a similar statement of compliance from the protester and thus
treated both offerors equally.
DECISION
Network Engineering, Inc. (NEI) protests the award of a contract for
computerized photographic identification card systems to Imaging
Technology Corporation (ITC) under request for proposals (RFP) No.
EMW-96-RP-0019, issued by the Federal Emergency Management Agency
(FEMA). The protester contends that the awardee's proposal was
technically unacceptable because its proposed printer did not comply
with the specifications.
We deny the protest.
The RFP, which was issued on April 22, 1996, sought proposals for 15
computerized photographic identification card systems, including
training, maintenance and warranty services, on a firm, fixed-price
basis. The card systems were to produce identification cards
featuring, among other things, the employee's photograph, personal
information, signature, and the FEMA seal. Each card system was to
include an image-capturing device such as a video camera; an
IBM-compatible computer, 486 series or better; a DOS operating system,
6.0 series or higher; a commercially available data base; all
necessary cables, wiring, and equipment accessories; and a printer.
The RFP provided for award based upon the low-priced, technically
acceptable proposal. The statement of work (SOW) included 38
requirements that the offered system must meet in order to be
considered technically acceptable; the requirements included both
design and performance specifications. The RFP required offerors to
submit descriptive literature demonstrating their system's compliance
with the SOW requirements.
The RFP was issued after FEMA terminated a contract awarded to NEI
after ITC successfully protested the award to our Office. See Imaging
Technology Corp., B-270124, Feb. 12, 1996, 96-1 CPD para. 68.
NEI, ITC, and three other firms submitted proposals in response to the
RFP by the May 10, 1996, receipt date. NEI's proposed card system
included the ImageCard II Plus printer manufactured by DataCard
Corporation. ITC's proposed card system included the Persona II
printer manufactured by Fargo Electronics, Inc. FEMA included NEI's
and ITC's proposals in the competitive range, conducted two rounds of
discussions, and received best and final offers (BAFO). Both NEI and
ITC were found to have submitted technically acceptable BAFOs. As
NEI's price was $326,233.10 and ITC's price was $292,697.67, FEMA
awarded the contract to ITC.
NEI contends that ITC's proposed printer does not meet three SOW
requirements, and that FEMA therefore should have rejected ITC's
proposal as technically unacceptable and awarded the contract to NEI.
NEI first protests that the printer proposed by ITC does not meet the
SOW requirement that "[p]rinter memory must be field upgradeable." In
its proposal, ITC stated that,
"The printer supplied with the system uses very little memory
installed in the printer, therefore there is no need or advantage
to adding any additional memory to the printer. ITC has
configured the printers that will be supplied with the systems
with the maximum memory. All card preparation is performed by
the host computer."
NEI interprets ITC's response as a concession that the memory in its
printer is fixed and cannot be upgraded, either in the field or
elsewhere.
The record, including testimony received at a hearing conducted by our
Office, reflects that the Fargo Persona II printer proposed by ITC
contains 512 kilobytes of random access memory (RAM). ITC's
representative testified that the printer's memory can be upgraded by
replacing the printer's programmable read-only memory (PROM) module.
Videotape transcript (V. Tr.) 10:40:45; 11:41:20. This individual
also testified that the new PROM could be installed "in the field" at
the desired FEMA facility. V. Tr. 10:40:45. A Fargo representative
confirmed in an affidavit that a new PROM would enhance the memory of
the Persona II printer to 2 megabytes (MB) overall and that this
memory upgrade could be accomplished in the field, although he did not
state whether the net additional memory would be in the form of RAM,
read-only memory (ROM), or some combination thereof.[1] Although
ITC's proposal did not mention the PROM upgrade ability and FEMA
therefore lacked this information during the proposal evaluation,
FEMA's Technical Evaluation Panel (TEP) chairman testified that such
an upgrade would satisfy the requirement that "[p]rinter memory must
be field upgradeable." V. Tr. 10:34:40.
The protester argues that the specification does not contemplate a
PROM upgrade, as in ITC's proposed printer, but rather a single
in-line memory module (SIMM) upgrade, as in NEI's proposed printer.
According to testimony received from NEI's president, a SIMM is a
standard commercial item containing RAM, which one can purchase
off-the-shelf and install in any printer containing a SIMM socket. V.
Tr. 11:37:57. One can upgrade the memory of NEI's proposed printer
from 8 MB up to 32 MB of RAM by installing SIMMs into the printer's
SIMM sockets. V. Tr. 9:52:07. In contrast, a PROM must be programmed
to perform within a particular printer, inasmuch as a PROM replaces
the printer's firmware or operating system. V. Tr. 11:37:57. Whether
space can be set aside for RAM in a PROM depends upon how efficiently
the PROM's code is written. V. Tr. 11:40:06. The protester presumes
that the specification precludes a PROM approach because PROMs are not
readily available commercial items, are manufactured through a
complicated reprogramming process, and will not necessarily expand the
printer's RAM, thus defeating the specification's alleged purpose of
enhancing the printer's processing capability.
In our view, the specification is not nearly as precise as the
protester would suggest. The specification merely states that
"[p]rinter memory must be field upgradeable." The specification does
not differentiate between RAM and ROM; does not state how much or what
kind of memory the printer must initially possess or an upgrade must
produce; does not state whether an upgrade must be accomplished via a
SIMM or PROM module; and does not state any functional purpose for the
upgrade requirement. In the absence of a clearly stated requirement
for a particular type of printer memory upgrade, we cannot object to
FEMA's acceptance of the awardee's system with a printer that in fact
had PROM upgrade ability. See ECCO Corp., GSBCA No. 8202-P, 86-1 BCA
18683, 1986 BPD para. 2; see also SAIC Computer Sys., B-258431.2, Mar. 13,
1995, 95-1 CPD para. 156. While ITC's proposal does not reasonably
suggest that its printer possessed a memory upgrade ability, the
protester suffered no prejudice as a result of FEMA's acceptance of
ITC's proposal despite this deficiency because the proposed printer in
fact satisfied this requirement, something that FEMA could and should
have ascertained during proposal evaluation and discussions.
NEI also contends that ITC's proposed printer does not meet the SOW
requirement that "[t]he printer must be upgradeable in the field to
accommodate the addition of a magnetic stripe or smart card
technology."[2]
ITC's product literature for the Persona II printer listed the
magnetic stripe and the smart card chip encoding modules as options.
ITC stated in its proposal that either option could be installed in
the field.
The protester questions the accuracy of the awardee's product
literature and proposal representations. The protester has submitted
Persona II descriptive literature, which describes the magnetic stripe
and smart card encoding modules as "factory installed options." Two
Fargo sales representatives allegedly advised the protester that only
factory installation was available.
ITC did not include in its proposal the descriptive literature relied
upon by the protester, which characterizes the magnetic stripe and
smart card encoding modules as "factory installed options." Although
the descriptive literature submitted with ITC's proposal is silent as
to where these options could be installed, ITC stated in its proposal
that installation in the field was available. Considering the
information available to it, FEMA reasonably concluded that the
printer could be upgraded in the field. While ITC's product
literature was deficient in addressing the field-upgrade requirement,
FEMA overlooked the same deficiency in NEI's product literature and
allowed both offerors to meet the requirement through general
statements of compliance. Because FEMA treated both offerors equally,
we cannot object to the acceptance of ITC's proposal in this respect.
See Bridgeport Machs., Inc., B-265616, Dec. 6, 1995, 95-2 CPD para. 249.
Moreover, the record reflects that ITC's statement of compliance was,
in fact, accurate because Fargo has authorized and trained ITC to
upgrade its printers in the field. The fact that Fargo's sales
representatives and product literature did not disclose Fargo's
relationship with ITC does not alter our conclusion in this regard.[3]
NEI claims that the Persona II printer does not satisfy the
requirement that "[t]he printer must be capable of printing at least
1,000 cards before any cleaning or maintenance is required." NEI's
proposed ImageCard II Plus printer satisfies this requirement through
an automatic cleaning mechanism, which spares the user from having to
clean or maintain the printer before 1,000 cards are printed. Because
the Persona II printer lacks an automatic cleaning mechanism, NEI
alleges that the printer will require cleaning or maintenance well
before 1,000 cards are printed.
The record reflects that the TEP chairman sought confirmation from a
Department of Defense agency using a Fargo Persona-series printer that
the printer could satisfy the "1,000-card" requirement without an
automatic cleaning mechanism. V. Tr. 10:26:56. Through this source,
the TEP chairman learned that, while Fargo Persona printers do not use
automatic cleaning mechanisms, they can nevertheless print more than
1,000 cards without cleaning or maintenance. V. Tr. 10:25:10;
10:26:56.[4] Here too, we cannot object to FEMA's conclusion that
ITC's proposed printer met the RFP cleaning and maintenance
requirement.
The protest is denied.
Comptroller General
of the United States
1. RAM is a type of memory into which the user can enter information
and instructions ("write") and from which the user can call up data
("read"). RAM is the computer's working memory, into which
applications programs can be loaded and then executed. ROM is a type
of memory which is permanently programmed with frequently used
instructions. ROM does not allow the user to "write" or change the
program. Donald D. Spencer, Computer Dictionary at 321, 323, 336 (3rd
ed. 1992).
2. Encoding an identification card with either a magnetic stripe or
smart card data allows the card to be used for gaining access into a
secured building.
3. The protester also claims that smart card technology does not exist
for the Persona II printer, which allegedly should have rendered ITC's
proposal technically unacceptable. ITC's product literature stated
that the smart card technology would be "available mid 1996 -- call
for details." Whether the smart card encoding module was commercially
available when ITC submitted its proposal is irrelevant, since the
printer could be found technically acceptable if it accommodated
either smart card or magnetic stripe technology, and no dispute exists
that the magnetic stripe encoding module was available.
4. ITC's vice president confirmed at the hearing that, based upon his
experience, Fargo Persona printers can print up to 15,000 cards
without cleaning or maintenance, assuming a clean office environment
such as FEMA's facilities. V. Tr. 11:31:08.