BNUMBER:  B-274272; B-274342; and B-274343.
DATE:  August 29, 1996
TITLE:  Total Procurement Services, Inc.

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Matter of:Total Procurement Services, Inc.
File:     B-272343.2 et al.[1]

Date:August 29, 1996

Richard Snyder for the protester.
Rowena H. Conkling, Esq., Department of Transportation, and Michael 
Colvin, Department of Health and Human Services, for the agencies.
Charles W. Morrow, Esq., and James A. Spangenberg, Esq., Office of the 
General Counsel, GAO, participated in the preparation of the decision.

DIGEST

Value-Added Network (VAN) is not an interested party under the Bid 
Protest Regulations eligible to protest the purchase item descriptions 
contained in request for quotations (RFQ) issued through the Federal 
Acquisition Computer Network where there is no evidence that the VAN 
does or intends to do anything other than provide communication 
services, and the remote possibility that it might or could submit 
quotes does not make it an actual or prospective offeror with a 
sufficiently direct interest in the RFQs to be considered an 
interested party.

DECISION

Total Procurement Services, Inc. (TPS) protests a number of requests 
for quotations (RFQ) issued by the John A. Volpe National 
Transportation Systems Center, United States Department of 
Transportation (DOT), and the National Institutes of Health (NIH) of 
the Department of Health and Human Services (HHS).  The HHS RFQs are 
for various medical and other equipment for use at NIH and the DOT 
RFQs are for a variety of computer equipment and supplies.  TPS 
alleges that the RFQs contain inadequate and/or defective purchase 
item descriptions.

We dismiss the protests because the protester is not an interested 
party.

These RFQs were issued through the Federal Acquisition Computer 
Network (FACNET).  FACNET is a government-wide electronic data 
interchange systems architecture that provides for electronic data 
interchange of acquisition information between the government and the 
private sector, employs nationally and internationally recognized data 
formats, and provides universal user access.  41 U.S.C.  sec.  426(a), 
(b)(3) (1994); Federal Acquisition Regulation (FAR)  sec.  4.501.  It 
creates an electronic market place for procuring supplies and services 
in which agencies can post notices of and receive responses to 
solicitations, post notices of contract awards, and issue orders where 
practicable; and private sector users can access notice of 
solicitations, receive orders, and access information on contract 
awards.  41 U.S.C.  sec.  426(b)(1), (2).

A contracting agency enters solicitation data into FACNET through a 
business application program on its computer.  The data is then 
electronically transmitted to a government gateway, which is a 
computer/communications system performing a variety of data management 
functions, such as converting business application program data into 
the proper data format for subsequent transmission.  After processing 
by the gateway, the information is transmitted to a network entry 
point, which is also government operated, and relayed to Value-Add 
Networks (VAN).[2]  VANs, which are private sector entities, then 
provide information obtained from  FACNET to their customers, who have 
registered to do business with the government and are known as trading 
partners.  Trading partners can submit quotations through FACNET to 
the contracting agency in reverse order to that described above.

Both DOT and HHS contend that TPS does not qualify as an interested 
party eligible to maintain these protests because it is not an actual 
or prospective supplier or trading partner that could or would submit 
quotes on its own behalf in response to the RFQs, but rather is a VAN 
used to submit quotes by trading partners via FACNET.  In this regard, 
DOT notes that TPS has not previously submitted quotes on its own 
behalf to the Volpe Center for computer equipment or supplies and 
there is no suggestion that TPS intends to do so here.  HHS also notes 
that TPS has not registered as a trading partner to submit quotes via 
FACNET, as required by FAR  sec.  4.503(a), which suggests that TPS does 
not intend to submit quotes on its own behalf via FACNET.  DOT further 
asserts, and has provided documentation that evidences, that TPS is 
not a manufacturer or vendor of computer equipment or supplies, and 
that it lacks the capacity and experience to bid and supply the 
computer equipment to be acquired under the RFQs.  Pursuant to section 
21.3(c) of our Bid Protest Regulations, 4 C.F.R.  sec.  21.3(c) (1996), DOT 
requested that the protester furnish documentation, such as a 
description of its capabilities as a responsible vendor of computer 
equipment and the names of references that can provide past 
performance information on similar procurements, establishing that it 
is an interested party with capability to provide the solicited items.  
We found the request appropriate and requested TPS to comply.

Under the bid protest provisions of the Competition in Contracting Act 
of 1984, 31 U.S.C.  sec.  3551-3556 (1994), only an "interested party" may 
protest a federal procurement.  That is, a protester must be an actual 
or prospective supplier whose direct economic interest would be 
affected by the award of a contract or the failure to award a 
contract.  4 C.F.R.  sec.  21.0 (a).  Our Regulations therefore require 
that a protest set forth all information establishing that the 
protester is an interested party for the purpose of filing a protest.  
4 C.F.R.  sec.  21.1(c)(5).  Whether a party is interested involves 
consideration of a variety of factors, including the nature of issues 
raised, the benefit of relief sought by the protester, and the party's 
status in relation to the procurement.  Black Hills Refuse Serv., 67 
Comp. Gen. 261 (1988), 88-1 CPD  para.  151.

In response to the dismissal requests, TPS does not assert that it 
intends to submit responses on its own behalf to the RFQs or that it 
had the capability of fulfilling the agencies requirements.  Instead, 
TPS states that there is no requirement that it have previously 
submitted quotes to be considered an interested party.  For example, 
while TPS does not deny that it has not registered as a trading 
partner as contemplated by FAR  sec.  4.503(a), it claims that this would 
not preclude it from submitting a quote if it chose to do so.  TPS 
further explains that although it is a VAN, which develops and markets 
its own electronic data interchange software,[3] VANs are not 
prohibited from becoming trading partners that could submit quotes on 
their own behalf.  TPS also claims that it is an authorized 
distributor of PKZIP (compression software) for mid-range and 
mainframe computers, which it has marketed to the Defense Logistics 
Agency and other clients and has offered in response to several 
electronic data interchange and "regular" RFQs for computer hardware 
and software issued by agencies other than HHS and DOT.  However, TPS 
does not allege that it has previously offered or supplied the items 
solicited by these RFQs, or that it has the capability, desire, or 
intent of doing so.  Nor has TPS provided any documentation showing 
that its business includes supplying the items called for by these 
RFQs, despite being requested to respond to the agency request for 
such information to substantiate TPS' interested party status.[4]  

As indicated, a protester has the burden of setting forth all 
information establishing that it is an interested party for the 
purpose of filing a protest.  4 C.F.R.  sec.  21.1(c)(5).  Where, as here, 
a protester's interested party status is in question, the protester 
may not simply assert that it might take steps to become a party that 
would be considered interested; instead, the protester generally must 
show that it intends to compete under the solicitation, and, where 
appropriate, that it has the necessary capacity and experience to 
compete; that it has competed in the past on similar projects; or that 
it has performed similar projects in the past.  See PPG Indus., Inc., 
B-272126, June 24, 1996, 96-1 CPD  para.  285; Bulloch Int'l, B-265982, Dec. 
26, 1995, 96-1 CPD  para.  5.

Here, as indicated, TPS' response to the agency assertions that TPS 
has neither the intent or the capability to supply the solicited items 
is simply to state that it could submit a quote if it chose to do so, 
without any indication that TPS intends or intended to do so, or that 
it has the capability of satisfying the requirements of the RFQs if it 
did do so.  Nor does TPS assert that it is acting as an authorized 
agent of an actual or prospective bidder (trading partner).  Under 
such circumstances, we do not believe that TPS has established that it 
is a "prospective bidder or offeror" with a sufficiently "direct 
economic interest" in these RFQs to be considered an interested party.  

TPS also asserts that VANs have a direct economic interest in the 
government issuing clear and concise RFQs because VANs disseminate 
RFQs by federal supply class (FSC), and that when the government 
incorporates an erroneous FSC the wrong potential trading partners 
receive the RFQ and blame the VAN for providing useless quotes to them 
for a fee.  This economic interest, even if true, is not that of an 
actual or prospective bidder, but that of a VAN, and thus is not 
sufficient to qualify TPS as an interested party.  See Bulloch Int'l, 
supra.  While we have allowed VANs to protest the terms of their 
license agreement to provide VAN services,
TPS has not presented that case here.  See Total Procurement Servs., 
Inc., B-255934.3, Aug. 16, 1994, 94-2 CPD  para.  74.

The protest is dismissed.

Comptroller General
of the United States
    
1. B-272344.2; B-272345.2; B-272347.2; B-272348.2; B-272349.2; 
B-272453; B-272512;     B-272513; B-272514; B-272515; B-272516; 
B-272517; B-272566, B-272813; B-272814; B-272815; B-272890; B-272891; 
B-272892; B-272900; B-272901; B-272902; B-272903;     B-272904; 
B-272923; B-272941; B-274082; B-274174; B-274270; B-274271;
B-274272; B-274342; and B-274343.

2. A VAN, typically a commercial information service, provides access 
to FACNET as well as communications services, electronic mailboxes and 
other services for electronic data interchange transmissions.  See FAR  sec.  
4.501.

3. TPS states that it sells computers, modems, ancillary equipment, 
accessories and supplies to potential trading partners who are 
interested in conducting business with the government via electronic 
data interchange.  FACNET contemplates Value-Added Services, which can 
provide services beyond communications to customers, ranging from 
translation and segregation of data to complete turn-key business 
systems support for customers.  FAR  sec.  4.501.

4. The only documentary support submitted was in the form of a TPS 
invoice reflecting a transaction with an unidentified nongovernment 
customer for "insect repellant," "inspect repellant," TPS electronic 
data interchange software lease, electronic mail box rental, delivery 
charge and a fastract modem.