BNUMBER: B-277208; B-277208.2
DATE: September 15, 1997
TITLE: Matrix International Logistics, Inc., B-277208; B-277208.2,
September 15, 1997
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DOCUMENT FOR PUBLIC RELEASE
A protected decision was issued on the date below and was subject to a
GAO Protective Order. This version has been redacted or approved by
the parties involved for public release.
Matter of:Matrix International Logistics, Inc.
File: B-277208; B-277208.2
Date:September 15, 1997
Timothy Sullivan, Esq., Katherine S. Nucci, Esq., and Martin R.
Fischer, Esq., Adduci, Mastriani & Schaumberg, for the protester.
Raymond S.E. Pushkar, Esq., and Michael A. Hopkins, Esq., McKenna &
Cuneo, for Sea-Land Logistics, Inc., an intervenor.
Charna J. Swedarsky, Esq., Department of the Navy, for the agency.
John L. Formica, Esq., Guy R. Pietrovito, Esq., and James A.
Spangenberg, Esq., Office of the General Counsel, GAO, participated in
the preparation of the decision.
DIGEST
Protest that the contracting agency unreasonably evaluated the
protester's and awardee's competing proposals under certain of the
technical evaluation factors is denied where the record shows that the
evaluation was reasonable; the protester's mere disagreement does not
render the agency's judgment unreasonable.
DECISION
Matrix International Logistics, Inc. protests the award of a contract
to Sea-Land Logistics, Inc. under request for proposals (RFP) No.
N62387-96-R-9602, issued by the Military Sealift Command (MSC),
Department of the Navy, for transportation services in support of the
Cooperative Threat Reduction (CTR) program. Matrix contends that the
agency's evaluation of its and Sea-Land's technical proposals, and the
selection of Sea-Land's higher-priced proposal for award, were
unreasonable.
We deny the protest.
The CTR program assists the former Soviet Union (FSU) countries of
Russia, Belarus, Ukraine, and Kazakhstan in the elimination of their
nuclear and chemical weapons of mass destruction and of other weapons.
CTR program support includes, to the extent feasible, the use of
United States technology and technicians, and has resulted in the
provision of equipment and services to the FSU. The successful
contractor under the RFP will be required to provide multifaceted
transportation and shipping support services to the CTR program,
including shipment planning, material handling, shipment, reporting,
and security. Essentially, the objective of the contract is to
provide the CTR program with door-to-door intermodal services for the
transportation of containerized and breakbulk cargoes between the
United States, Europe, and certain points within the FSU.
The RFP provided for the award of a fixed-price, indefinite delivery,
indefinite quantity contract, for a base and 1 option year. The RFP
stated that award would be made to the offeror submitting the proposal
representing the best overall value to the government, price and other
factors considered, and listed the following technical evaluation
factors and subfactors:
1. Proposed Services for CTR Shipments
A. Procedures and Method for Shipment Planning
B. Shipment Execution
C. Reporting and In-Transit Visibility (ITV)
D. Security
E. Sample Problem Solution
2. Experience and Past Performance
A. Corporate Performance
(i) Resources
(ii) Program Management
(iii)ITV
(iv) Security
B. Government Assessment of Performance
3. Corporate Capabilities
A. Personnel experience/resumes
B. Program management
C. Facilities, transportation assets
D. Computer systems, databases, etc.
E. Financial Capability
4. Material Handling
A. Container and less-than-trailerload shipments
B. Breakbulk and Rolling Stock
C. Oversize Breakbulk
The RFP informed offerors that the evaluation factors and subfactors
were listed in descending order of importance, with certain
exceptions; within evaluation factor one, subfactors A, B and C were
of equal importance, and subfactors D and E were of equal importance,
but were less important than subfactors A, B and C; the subfactors of
evaluation factor four were of equal importance. The RFP also
provided detailed instructions for the preparation of proposals and
requested that offerors organize their technical proposals to respond
to the evaluation factors and subfactors.
The agency received five proposals by the RFP's closing date. The
proposals were evaluated by the agency, and three proposals, including
Sea-Land's and Matrix's, were included in the competitive range.
Discussions were held, and best and final offers (BAFO) were requested
and received. Sea-Land's and Matrix's proposals were evaluated as
technically "excellent" overall, at evaluated prices of $6,016,179 and
$7,086,280, respectively.[1] The agency determined that the proposals
of Sea-Land and Matrix were essentially equal in technical merit and
awarded the contract to Sea-Land because of its lower price.
After requesting and receiving a debriefing, Matrix filed protests
with our Office on June 24 and August 7, 1996.[2] In Matrix Int'l
Logistics, Inc., B-272388.2, Dec. 9, 1996, 97-2 CPD para. ___, we
sustained Matrix's protests. Specifically, we concluded that the
reasonableness of the agency's evaluation of Sea-Land's BAFO and the
source selection decision could not be determined because they were
unsupported by either the contemporaneous evaluation and source
selection documentation, or the arguments, explanations, and hearing
testimony in the protest record. We also found that the agency had
failed to conduct meaningful discussions with Matrix, and had engaged
in improper post-BAFO discussions with Sea-Land. We recommended that
the agency reopen discussions, request new BAFOs, document its
evaluation and source selection decision, and if it concluded that
Sea-Land was no longer in line for award, terminate the contract
awarded to Sea-Land and award the contract to the appropriate offeror.
In response to our recommendations, the agency reopened discussions,
and requested and received revised proposals from each of the three
offerors whose proposals had been included in the previous competitive
range, including Sea-Land and Matrix.[3] The proposals were forwarded
to the cognizant source selection evaluation board (SSEB) for
evaluation, with the SSEB rating each of the proposals as technically
"marginal."[4] The three proposals were included in the competitive
range, discussions were held, and BAFOs were requested and received.
Sea-Land's BAFO was rated as "excellent" overall at an evaluated price
of $6,191,705, and Matrix's BAFO was rated as "good" overall at an
evaluated price of $5,578,626. A memorandum, which recommended that
the contract be awarded to Sea-Land as the offeror submitting the
proposal representing the best value to the government, was forwarded
by the chairman of the SSEB and the contracting officer to the source
selection authority (SSA).[5] The SSA signed the memorandum as
"concur[ring]" with the recommendation.
After being informed by the agency of its determination that
Sea-Land's proposal represented the best value to the government, and
requesting and receiving a debriefing, Matrix filed these protests.
Matrix protests that the agency's evaluation of its and Sea-Land's
technical proposals was unreasonable. The evaluation of technical
proposals is a matter within the discretion of the contracting agency
since the agency is responsible for defining its needs and the best
method of accommodating them. Marine Animal Prods. Int'l, Inc.,
B-247150.2, July 13, 1992, 92-2 CPD para. 16 at 5. In reviewing an
agency's evaluation, we will not reevaluate technical proposals, but
instead will examine the agency's evaluation to ensure that it was
reasonable and consistent with the solicitation's stated evaluation
criteria. MAR, Inc., B-246889, Apr. 14, 1992, 92-1 CPD para. 367 at 4.
An offeror's mere disagreement with the agency does not render the
evaluation unreasonable. McDonnell Douglas Corp., B-259624.2,
B-259624.3, June 16, 1995, 95-2 CPD para. 51 at 18.
Matrix first challenges the agency's evaluation of its and Sea-Land's
proposals as "good" and "excellent," respectively, under the
procedures and method for shipment planning subfactor to the proposed
services for CTR shipments evaluation factor.
In assessing Sea-Land's proposal as "excellent" under the procedures
and method for shipment planning subfactor, the agency found that the
proposal reflected "comprehensive and detailed planning for every
action in every shipment." The agency noted, for example, that
Sea-Land, in planning for the movement of cargo, would involve the
original equipment manufacturers (OEM) of the cargo being transported,
Sea-Land's subcontractors in the FSU, FSU officials, and other
professional associates in the shipment planning process, at a
relatively early point in time. The agency found that Sea-Land's
proposed planning process included, among other things, the
identification of specific requirements for containers, breakbulk, and
oversized or hazardous cargo, the identification of origins and
destinations, the determination of possible modes of transportation,
the selection of ports, and the selection of subcontractors to work
the cargo. The agency also found that Sea-Land's proposed planning
process included a description of certain specific actions to be taken
if the cargo were hazardous cargo, including the transmission of
detailed hazardous cargo information to the FSU to prevent potential
problems. Furthermore, Sea-Land proposed [DELETED]. The agency
concluded that Sea-Land's active approach to planning, whereby it
proposed to involve OEMs, its subcontractors, and FSU officials in the
planning process at a relatively early point in the process, as well
as, in certain circumstances, its proposed planning process for the
transportation of hazardous cargo, and [DELETED], merited a rating of
"excellent" under the procedures and method for shipment planning
evaluation subfactor.
Matrix's planning process was determined to meet the requirements of
the RFP and reflected a "good understanding" of the agency's needs
under the procedures and method for shipment planning subfactor. The
agency noted that with regard to the shipment of oversized and
hazardous cargo, Matrix proposed to rely on suppliers, truck drivers,
and stevedores to identify weight and dimension discrepancies and
hazardous cargo documentation problems, rather than ensuring that the
shipping documentation is complete and accurate prior to cargo
receipt.
The protester contests much of the agency's evaluation of its and
Sea-Land's proposals under the procedures and method for shipment
planning subfactor. For example, with regard to Sea-Land's proposal,
the protester contends that, contrary to the requirements of the RFP
and determinations of the agency, Sea-Land's proposal does not "even
mention transportation plans, much less what they are, or what they
include, or how they are developed." The protester argues that, in
its view, Sea-Land's proposal is unclear as to [DELETED]. The
protester adds that, contrary to the agency's evaluation, Matrix does
not "blindly rely on others . . . to verify oversized cargo
dimensions," but rather "checks and double-checks the dimensions
provided against each other and dimension data already in Matrix's
possession, and . . . resolves any discrepancies through
communications with the OEMs." The protester also notes that its own
proposal is longer and more detailed with regard to its description of
its procedures and method for shipment planning than the section of
Sea-Land's proposal which addresses the same subfactor.
From our review of the record, we find reasonable the agency's
conclusion that Sea-Land's proposal "reflected a comprehensive and
detailed approach" to shipment planning. The RFP's proposal
preparation instructions requested that offerors describe in their
proposals how they would "develop transportation plans for all
shipment categories (container, general breakbulk, oversize breakbulk,
hazardous material)." The RFP added here that offerors should
describe how they intended to "gather information on impending
shipments," and to "manage uncertainty in OEM-provided equipment
dimensions and to minimize delays and cost." Offerors were further
requested to describe the resources by which they would "gain
awareness of and monitor potential risks (both loss and delay) to the
shipment." While we agree with the protester that the section of its
proposal addressing the procedures and method for shipment planning
subfactor is longer and more detailed than Sea-Land's, the information
set forth in Sea-Land's proposal, as determined by the agency,
addresses the concerns of the agency as reflected in the RFP's
proposal preparation instructions. The RFP simply did not require, as
Matrix infers, that offerors provide specific transportation plans,
but rather requested that offerors detail the processes by which they
would develop such plans.
The major discriminator between the proposals of Sea-Land and Matrix,
and much of the reason why Sea-Land's proposal was rated by the agency
as "excellent" and Matrix's as "good" under the procedures and method
for shipment planning evaluation subfactor, was Sea-Land's proposed
[DELETED]. The agency explains that, in its experience, "paperwork
and the accuracy of that paperwork are critical" in the movement of
oversized cargo because "no mistakes are tolerated by local
authorities," and as a result "improper cargo or weight dimensions for
breakbulk or oversized cargo is a 'showstopper.'" In the agency's
view, the [DELETED] is preferable to Matrix's proposed approach, which
described the actions Matrix would take if problems were to occur
after transit of the cargo had begun, and [DELETED].[6] While Matrix
clearly disagrees with the agency's evaluation of the proposals under
this subfactor, and specifically the [DELETED], Matrix's disagreement
with the agency's technical judgment does not render the agency's
evaluation unreasonable. McDonnell Douglas Corp., supra, at 19.
Matrix challenges the agency's evaluation of its and Sea-Land's
proposals as "good" and "excellent," respectively, under the shipment
execution subfactor to the proposed services for CTR shipments
evaluation factor. According to Matrix, the record demonstrates that
the evaluated difference between the proposals "boils down to one
point, namely, that the ratings were justified because [Sea-Land]
allegedly sends (overnight or by courier) the necessary paperwork for
obtaining permits and clearances well before the shipment execution
stages." The protester contends that this assessment is incorrect,
because "[w]hile perhaps not stating as explicitly as [Sea-Land] that
information and documentation is forwarded to the FSU during the
shipment planning stages, Matrix's proposal is most reasonably
interpreted as making that representation."
The RFP requested that offerors address the shipment execution
evaluation by describing how they would provide transportation
services for the CTR program, including discussions of their
respective approaches to transportation services, entry/customs,
receipting, quality control, origin to final destination, and origin
to marshaling point, for certain shipment types and destinations
"which present unique challenges." The SSEB noted that the key
strengths of Sea-Land's proposal under the shipment execution
evaluation subfactor included:
excellent detail for locations, transportation modes, equipment
types and directions. Virginia and European Continental
warehousing and consolidation activities, [hazardous material]
control, entry/custom and quality control are extensively
detailed. Procedures for storing, consolidating and processing
Inter/Intra FSU and backhaul requirements exceed government
requirements providing routings, plans and risk
assessment/abatement details.
In contrast, the SSEB noted the key strengths of Matrix's proposal
under the same evaluation subfactor as providing:
for some back-up checks in the process by subcontractors and port
personnel which will assist determining shipment problems. The
proposal does recognize risks associated with performance.
As indicated by the foregoing quotes, the record simply does not
support the protester's assertion that the discriminator between the
proposals of Matrix and Sea-Land under the shipment execution
evaluation subfactor was that Sea-Land proposed to send the necessary
paperwork for obtaining permits and clearances "to the FSU" well
before the shipment execution stages, whereas Matrix did not.
Instead, the record evidences that the agency determined that
Sea-Land's proposal provided greater understanding and detail
regarding the agency's requirements as considered under the shipment
execution evaluation subfactor than did Matrix's. Because Matrix has
not otherwise substantively challenged the agency's evaluation of
Sea-Land's proposal under the shipment execution evaluation subfactor,
we see no basis to object to this aspect of the evaluation.
Matrix also challenges the evaluation of its and Sea-Land's proposals
under the reporting and ITV subfactor to the proposed services for CTR
shipments evaluation factor, under which the proposals were rated as
"good" and "excellent," respectively. Matrix contends that its and
Sea-Land's proposals offer the same or similar features with regard to
reporting and ITV services, and that the proposals should therefore
have received the same rating.
The agency reports that in evaluating the proposals, it found that
Matrix and Sea-Land proposed many of the same reporting and ITV
capabilities. For example, the agency found that both offerors
proposed to keep track of the status of shipments through the use of
electronic data interchange, customized data systems, electronic mail,
satellite telephones, reports filed by their security teams, and
customs and port official reports. The agency found, however, that
Sea-Land's proposal included two features regarding reporting and ITV
capabilities that were not offered by Matrix. Specifically, Sea-Land
[DELETED].[7] Also, Sea-Land offered [DELETED]. The agency concluded
that these added reporting and ITV capabilities "provided [Sea-Land's]
proposal with a distinct edge over Matrix through a redundant system
designed to leave 'no stone unturned' to provide ITV," and thus
justified the different ratings received by the two proposals under
this subfactor.
Matrix's disagreement with the agency's evaluation of Sea-Land's and
Matrix's proposals under the reporting and ITV evaluation subfactor
does not render the evaluation unreasonable. For example, Matrix
maintains that "it is difficult to see how [DELETED] database . . .
will enable [Sea-Land] to provide more accurate or current ITV
information than Matrix would provide with daily status and location
reports via satellite phone from the security teams accompanying each
shipment." Although Matrix may believe that daily status and location
reports from its security guards provides ample ITV capability, we
cannot find unreasonable the agency's determination that Sea-Land's
access to additional sources of information (e.g., [DELETED]) to
verify the ITV reports it receives from its security guards would be
beneficial.
Matrix also speculates that the statement in Sea-Land's proposal that
[DELETED]. We find that the agency reasonably interpreted Sea-Land's
proposal as providing, in certain circumstances, for [DELETED]. In
addition to the relative clarity of the proposal's statement, set
forth above, concerning [DELETED], the proposal states elsewhere that
for certain shipments [DELETED]. Additionally, the proposal states
that Sea-Land's ITV capabilities include "[a]ccess to portable
satellite phones." It thus appears clear that Sea-Land was not
[DELETED], as speculated by Matrix.
Matrix protests the agency's evaluation of Sea-Land's proposal as
"good" under the security subfactor to the proposed services for CTR
shipments evaluation factor.[8]
The RFP's statement of work informed offerors that:
[s]ecurity is required to ensure that cargo is safe from theft,
damage, vandalism, and pilfering. Security shall be provided for
. . . each shipment from origin to final destination. The
contractor shall provide armed security upon commencement of
ground transportation in the FSU countries, to include the
countries of final destination and former satellite countries of
the FSU. Armed security shall include trained army security
personnel during transport. Personnel shall be trained in the
use of arms and proper security procedures. Security shall
include 24 hours command and control coverage, licensed armed
guards, blocktrain use when feasible, and staging security at all
FSU transportation points and final destination.
The RFP's proposal preparation instructions stated in pertinent part
that offerors
must demonstrate an ability to provide physical security during
transit into and through FSU countries, including an
understanding of the importance of security in the FSU and
including an adequate plan for providing security during transit.
The SSEB found in evaluating Sea-Land's initial proposal that,
although the proposal stated that Sea-Land would "provide security for
all shipments and provide[d] extensive detail," the proposal, which
indicated that some items may be transported by barge, included "no
detail to specifically address barge movement security procedures."
The SSEB rated Sea-Land's initial proposal under the security
subfactor as "marginal."
During discussions, the agency informed Sea-Land that, among other
things, its proposal "didn't address physical security procedures
during transit into and through all FSU countries by all modes," and
that it needed to clarify its "procedures to make sure all modes [of
transportation] are covered." Although Sea-Land's BAFO provided
additional detail concerning truck and rail security, and the security
firms it would use, it omitted any discussion of security procedures
to be followed should items be transported by barge. The SSEB
evaluated Sea-Land's BAFO as "good" under the security subfactor to
the proposed services for CTR shipments evaluation factor.
Matrix argues that because Sea-Land did not expressly address security
for the transport of cargo by barge (as opposed to the two other modes
of transportation contemplated by the RFP of rail and truck), its
proposal should have been evaluated as "marginal" rather than "good"
under the security subfactor. Matrix points out that "all parties
agree that cargo will need to be delivered in the FSU via rail, truck,
and barge transportation modes," and contends that each of these modes
of transportation "present unique problems in terms of protecting the
cargo against theft and pilferage." In Matrix's view, the agency
failed to provide any "plausible or defensible explanation" for
evaluating Sea-Land's BAFO as "good," even though it failed to
specifically address barge security, and speculates that the SSEB
"chose to ignore the omission in [Sea-Land's] proposal and gave
[Sea-Land] an overall 'Good' rating for [security]," because to do
otherwise would, according to Matrix, "preclude an award to
[Sea-Land]." Matrix concedes, however, that "the RFP does not
specifically state that the proposals must address adequate plans for
security with respect to each mode of transportation."
The agency explains that, after conducting its evaluation of initial
proposals, the SSEB determined that it had placed too much emphasis on
barge security. In this regard and as conceded by the protester, the
RFP did not require specific information regarding every potential
mode of transport such as by barge. Further, the record reflects that
Sea-Land proposed to transport goods by barge only to a single
destination and then only during the months of May, June or July, and
that the goods estimated to be transported by barge constituted
approximately 3/10 of 1 percent of the total estimated requirement.
The agency, while considering Sea-Land's failure to address barge
security, concluded that Sea-Land's proposal merited a rating of
"good" under the security subfactor to the proposed services for CTR
shipments evaluation factor because the proposal "clearly demonstrated
Sea-Land's capability to meet the security requirements for all
shipments using truck and rail."
We find, contrary to the protester's arguments, that the agency acted
reasonably in evaluating Sea-Land's proposal as "good" under the
security subfactor. The record demonstrates (and the protester does
not argue otherwise) that Sea-Land's description of its security
procedures and plans for the transport of cargo by truck and rail was
detailed and well explained. Moreover, the protester does not
demonstrate that the agency, in its evaluation of the offerors' BAFOs,
failed to place the proper emphasis on Sea-Land's omission of any
discussion of barge security, given the relatively minor amount of
cargo to be transported by barge.
Matrix protests the evaluation of its and Sea-Land's proposals as
"acceptable" and "excellent," respectively, under the corporate
performance subfactor to the experience and past performance
evaluation factor.
The RFP's proposal preparation instructions stated that "[o]fferors
should describe the transportation services they and their
subcontractors have provided into the FSU, including at least their
value and scope." Offerors were requested to describe how they and
their subcontractors have provided such services with regard to the
following: resources employed (people, facilities, equipment, etc.);
program management; ITV; and security. As set forth previously,
resources employed, program management, ITV, and security, were listed
as elements of the corporate performance evaluation subfactor.
Matrix contends that Sea-Land's proposal was unreasonably evaluated as
"excellent" under the corporate performance subfactor to the
experience and past performance factor because, in Matrix's view,
Sea-Land's proposal does not include the information requested by the
RFP for evaluation. For example, Matrix asserts that Sea-Land's
proposal fails to "describe any projects for transportation services
that Sea-Land and its subcontractors have provided into the FSU," and
in describing its resources only briefly addresses the people,
facilities, and equipment used in connection with certain projects.
Matrix also contends that Sea-Land's proposal fails to discuss a
number of items requested by the RFP under the program management
element to the corporate performance subfactor, including, as set
forth in the RFP, a description "of the resources that they had access
to in the planning and shipment processes," and examples
"demonstrating their ability to manage programs, to identify and avoid
problems in the first place, and to deal with problems encountered in
transit." Matrix also complains that Sea-Land's proposal fails to
adequately describe, as requested by the RFP, "the processes used for
obtaining in-transit shipment status and the ADP [automatic data
processing] systems used to manage, communicate and use this
information," and, for the security subelement of the corporate
performance subfactor, "how shipments were protected from theft and
pilferage." The protester concludes that, given these "substantial
omissions," Sea-Land's proposal warranted, at best, a rating of
"acceptable."
We disagree. Sea-Land's proposal provides, as reflected in the SSEB
report, information on nine major projects involving the
transportation of cargo to the FSU. These projects include Sea-Land's
performance of two previous contracts awarded by MSC for
transportation and shipping services to the FSU in support of the CTR
program, as well as Sea-Land's continued performance of the contract
awarded under the RFP here, during which Sea-Land has successfully
delivered more than 7,577 metric tons of cargo since August 1, 1996.
Although, as recognized by the agency during its evaluation of
Sea-Land's proposal, the descriptions varied with regard to the degree
to which they provided the information requested by the RFP, each
description provides, as the agency asserts, information "regarding
the nature of the project, the type of cargo, value of the proposal,
the actions of [Sea-Land] personnel and its contractors,
subcontractors, and related companies to accomplish the movements."
For example, Sea-Land's proposal includes a description of a program
it managed involving the shipment of $145 million worth of gold mining
equipment from the United States, Europe, and Asia to the FSU. Here,
Sea-Land discussed the value, scope, and nature of the cargo (which
included oversized and superoversized cargo, including tractors,
graders, and loaders), and the facilities, equipment, and other
Sea-Land resources employed to transport the cargo. The services
provided by Sea-Land to accomplish this project, including Sea-Land's
opening of offices in the FSU, were detailed, and a description of how
the cargo was actually transported (by ship, rail, and truck),
including the roles of certain contractors, was provided. Sea-Land
also described its provision of ITV reports (three times per week to
origin and destination locations, in part through the use of
electronic mail), and security (security teams were dispatched and met
the cargo at the FSU border).
The agency also points to Sea-Land's transportation of a $25 million
refinery from Houston, Texas, to Tomsk, Russia, detailed in its
proposal, as an example of the type of description which, in part,
resulted in the agency's evaluation of Sea-Land's proposal as
"excellent" under the corporate performance evaluation subfactor. In
this example, Sea-Land explained how some of the cargo had to be
transported by ship and barge (as opposed to rail) because of the
cargo's size. According to Sea-Land, the firm used an "'ice-class'
vessel with a 10,000 ton capacity to transport the cargo through the
North Sea to the Gulf of Ob," where the cargo was loaded onto four
barges while seven kilometers at sea using cranes on board the
Sea-Land vessel. The barges were then transported down the Ob River
to the port of Koltogorsk. In describing this project, Sea-Land
explained how it had to obtain special clearances and find and use
certain barge companies, because the route taken is not open to
western shipping, and how it had to make special arrangements to
ensure that other firms that had provided service were paid for their
services because of certain problems with the banking system. Based
on our review of this example and the record overall, we find no basis
to challenge the agency's assessment of Sea-Land's corporate
performance as "excellent."
The protester also asserts here that its proposal's "low rating [of
acceptable is] unwarranted," and that its proposal should have been
rated as "[g]ood or better" under the corporate performance evaluation
subfactor. The agency responds that it found that Matrix's proposal
only adequately addressed the overall requirements of the corporate
performance section of the RFP and was thus rated as "acceptable."
The agency explains that in its view the descriptions of Matrix's
performance on related contracts as set forth in its proposal only
"provided a general overview of the activities [Matrix] has
'coordinated,' but failed to outline the steps taken in the process of
coordinating that activity." In its report, the agency points to a
number of quotes from Matrix's proposal in support of this view,
including the following:
During 'Operation Winter Rescue' Matrix coordinated the shipment
of 864 containers from the US, Canada, England, and France to
destinations in Georgia and Armenia. The purpose of this 90 day
operation was to assist the poor, elderly, and orphans in these
severely depressed countries. Operation Winter Rescue was, at
the time, the highest profile relief effort in the FSU. The
success of this operation can be attributed to the cohesive
working relationship demonstrated among the following
organizations: Matrix, the Department of State, OSIA, and the
Fund for Democracy the predecessor to (MPRI).
Matrix, in responding to the agency report, does not substantively
respond to the agency's contention that its proposal received a rating
of "acceptable" under the corporate performance subfactor because its
descriptions of its past performance were general in nature. Because
of this and based upon our own review, we find reasonable the agency's
position regarding its evaluation of Matrix's proposal under the
corporate performance subfactor.
Matrix challenges the evaluation of its and Sea-Land's proposals as
"good" under the government assessment of performance subfactor of the
experience and past performance evaluation factor. Matrix argues that
the past performance evaluation surveys, which were used in the
evaluation of proposals under this subfactor, reflected "an overall
superior assessment of Matrix's past performance as compared to
[Sea-Land's] past performance."
The agency explains that, in evaluating the completed past performance
surveys, it "recognized that both offerors received numerous excellent
ratings and comments from those surveyed," and that "the substantive
comments accompanying the ratings pointed out differences to the SSEB
. . . which affected the rating of Matrix and Sea-Land." For example,
with regard to Matrix, one survey states that "rate negotiations have
not always gone smoothly," and that "some distrust exists, lack of
partnership." This survey narrative continues by providing an example
where Matrix's proposed method of shipping would have resulted in a
higher price to the agency than was necessary. The agency found that
the negative comments with regard to Sea-Land's performance were
relatively minor, including one shipment reporting problem which was
overcome when identified, and that Sea-Land "had to be reminded that
only government authorized representatives could make constructive
changes to the contract."
Based upon our review of the record, including each of the surveys
completed, the individual evaluator work sheets, the summary
evaluations, and the SSEB report, we cannot find the agency's
evaluation of Matrix's and Sea-Land's proposals under the government
assessment of performance subfactor to be unreasonable. The surveys,
in essence, speak for themselves, and although they include mostly
positive comments regarding the performance of both Matrix and
Sea-Land, they also set forth some negative comments. The record
reflects that the agency, in evaluating the proposals as "good" under
the government assessment of performance subfactor, did so in an
evenhanded and reasonable manner.[9]
Finally, Matrix challenges the agency's price/technical tradeoff
determination based upon its contentions that its and Sea-Land's
proposals were unreasonably evaluated. As explained in the analysis
above, we find that the agency's evaluation of Matrix's and Sea-Land's
proposals was reasonable.[10] Since the agency in its award selection
document reasonably explained why Sea-Land's higher-rated proposal was
worth its evaluated price premium, Matrix's contentions here provide
no basis for overturning the award determination. Hughes Georgia,
Inc., B-272526, Oct. 21, 1996, 96-2 CPD para. 151 at 8.
The protest is denied.
Comptroller General
of the United States
1. The adjectival ratings used by the agency in evaluating proposals
were excellent, good, acceptable, marginal, and unacceptable.
2. The agency authorized performance of Sea-Land's contract,
notwithstanding the protests. Sea-Land continues to perform under the
contract.
3. The agency also issued six additional amendments to the RFP
(amendments Nos. 0007-00012), which, among other things, modified the
solicitation by adding new requirements to move cargo between
countries of the FSU, within countries of the FSU, and between
continental Europe and the FSU. The amendments also added cargo
receiving and warehousing services in continental Europe, reduced the
firm period of the contract to four months, and reduced the projected
cargo volumes.
4. The membership of the SSEB was changed from four to three
evaluators, with one new member being added and two individuals who
had served on the predecessor SSEB being removed as they were no
longer available for this project.
5. A new SSA was appointed after our decision in Matrix Int'l
Logistics, Inc., supra.
6. Although Matrix's proposal describes the process by which it
manages OEM-supplied dimensions for oversized breakbulk cargo to
minimize delays and costs, including, among other things, the
confirmation of OEM-supplied dimensions through communications with
OEMs, and requiring drivers and stevedores to measure cargo, the
proposal does not appear to set forth a procedure to resolve
discrepancies or disputes should the "confirming" information differ.
7. Sea-Land Logistics and Sea-Land Services are subsidiaries of CSX
Corporation.
8. Matrix's proposal was evaluated as "excellent" under this
subfactor.
9. Matrix also protests here, as it has with regard to each aspect of
the agency's evaluation that it has challenged, that the evaluation
evidences an agency bias towards Sea-Land. We have reviewed the
record and find no credible evidence of bias or bad faith on the part
of the agency. Prejudicial motives will not be attributed to
contracting officials on the basis of unsupported allegations,
inference, or supposition. McDonnell Douglas Corp., supra, at 28. In
our view, as the above discussion demonstrates, the agency's
evaluation of Matrix's and Sea-Land's competing proposals was
reasonable and in accordance with the evaluation factors set forth in
the RFP.
10. Matrix has made a number of other related contentions during the
course of this
protest having to do with the agency's evaluation of its and
Sea-Land's technical proposals. Although not all these contentions
are specifically addressed in this decision, each was carefully
considered by our Office and found to be either insignificant in view
of our other findings, or invalid based upon the record as a whole.