TITLE:  REEP, Inc.--Costs, B-290665.2, July 29, 2003
BNUMBER:  B-290665.2
DATE:  July 29, 2003
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REEP, Inc.--Costs, B-290665.2, July 29, 2003

   Decision
    
    
Matter of:   REEP, Inc.--Costs
    
File:            B-290665.2
    
Date:              July 29, 2003
    
Gilbert J. Ginsburg, Esq., for the protester.
Lt. Col. Daniel K. Poling, Department of the Army, for the agency.
Scott H. Riback, Esq., and John M. Melody, Esq., Office of the General
Counsel, GAO, participated in the preparation of the decision.
DIGEST
    
Request for recommendation that protester be paid a particular amount in
protest costs is denied where claim was presented to agency in an
untimely, piecemeal fashion and aggregated allowable and unallowable
costs.
DECISION
    
REEP, Inc. requests that we recommend the amount it should be reimbursed
by the Department of the Army for filing and pursuing its protest in REEP,
Inc., B-290665, Sept. 17, 2002, 2002 CPD P:156. 
    

   We deny the request.
    
In REEP, Inc., supra, we held that the Army improperly awarded delivery
orders under the awardee's Federal Supply Schedule (FSS) contract (for
language training services), despite having actual knowledge that the same
services were available from numerous other vendors--including the
protester--under a different schedule covering the same services,
apparently at lower prices.  We recommended as corrective action that the
agency reimburse REEP its costs of filing and pursuing the protest,
including reasonable attorneys' fees.
    
By letter dated November 7, 2002, the protester submitted an uncertified
claim for bid protest costs in the amount of $72,961.25, and by facsimile
dated November 8, it submitted a certification for the claim.  The
November 7 letter included a three-page spreadsheet that purported to
tally costs incurred by certain of the protester's employees, as well as
the legal fees and associated costs incurred by the protester's outside
counsel for the months of November 2001 through October 2002.  It also
included invoices purportedly tendered by the protester's outside counsel
for legal fees incurred during the months of November 2001, and March,
April, June, July, September and October 2002.  Finally, the letter
included a 2-page listing of activities performed by the protester's
outside counsel for several days during September 2002.  By and large,
this listing did not describe the purpose of the activities but, rather,
was limited to a  description of the activity performed.  (For example,
the listing includes an entry for a  1/2-hour telephone call between the
protester's outside counsel and one of its employees on September 10, but
does not indicate the purpose or subject matter of the call.)  In other
instances, the listing included a generic description of the activity
performed (such as drafting and revising a letter to our Office), but no
indication of the subject matter of the activity or its relationship to
the protest. 
    
By letter dated November 15, the Army advised REEP that it did not
consider the claimed costs properly for payment.  The Army advanced
numerous reasons for its position, including inadequate documentation, the
apparent inclusion of costs that were not allowable for one reason or
another, and the reasonableness of certain of the claimed costs. 
    
By letter dated November 19, the protester's outside counsel advised the
Army that REEP was reviewing the agency's November 15 letter and would
comment on the agency's position *later.*  REEP's outside counsel also
acknowledged that REEP had failed to furnish the Army with supporting
materials for the claimed expenses for its outside counsel.  Accordingly,
the protester's  outside counsel forwarded additional invoices that
purportedly were tendered to the protester during the period of November
2001 to October 2002, as well as listings of the activities for which the
costs were incurred.  These listings, like the September 2002 listing
discussed above, were principally limited to a description of the activity
performed, with no description of the purpose of the activity or its
relationship to the protest.
    
Thereafter, by letter dated December 10, the protester's outside counsel
furnished the Army with information included in five exhibits.  The first
exhibit was a 3-page spreadsheet similar to the one previously submitted
that purported to tally costs incurred by certain of the protester's
employees, as well as the legal fees and associated costs incurred by the
protester's outside counsel for the period of November 2001 through
October 2002.  In this exhibit, the total amount claimed was reduced to
$68,914.33, apparently because the protester had excluded an amount for
the *cost of money* that had been included in its earlier spreadsheet. 
The second exhibit was a listing of staff hours purportedly expended by
the protester's employees in pursuit of the protest; again, this included
a description of the activities in which the employees engaged, but, as
with the listings provided by REEP's outside counsel, the descriptions
were limited to the activities themselves, and did not explain the purpose
of the activity or its relationship to the protest. 
    
The third exhibit was a resubmission of the materials relating to the
activities of the protester's outside counsel (which also included
additional materials for the months of November and December 2002).  The
fourth exhibit was a chronology prepared by the protester describing
various activities that REEP considered related to the protest.  This
chronology listed the dates of various occurrences that the protester
deemed relevant to its claim, but did not include a detailed listing of
the hours expended by the protester's employees and outside counsel.  The
fifth exhibit was a telephone log generated by the protester (as opposed
to a contemporaneous billing statement from the protester's telephone
service provider) listing calls purportedly made between November 2001 and
July 2002 in connection with the protest. 
    
By letter dated February 3, 2003 the Army advised REEP that it still did
not consider its claim properly for payment.  As in its previous letter,
the Army advanced several arguments in support of its position, including
inadequate documentation, the reasonableness and allowability of certain
claimed costs, and the inclusion of costs incurred in connection with a
different REEP protest, an agency-level protest and the preparation of
several proposals.  The agency also asserted in this letter that REEP had
failed to present its claim in a timely manner.
    
By letter dated February 20, REEP conceded that it had included attorneys'
fees in its claim that actually related to the filing and pursuit of
another protest at our Office.  REEP asserted that the amount in question
was $977.50.  Thereafter, by letter dated March 5, REEP conceded that it
had improperly included several other costs in its claim.  Specifically,
REEP presented revised materials that excluded the costs associated with
pursuing an agency-level protest ($4,131.02), preparing its claim
($7,921.33), and preparing quotations responding to two requests for
quotations ($23,295).  Its total claim after eliminating these amounts was
$34,681.03.  REEP presented these deductions from its original claim in a
lump-sum fashion and provided no documentation showing precisely which of
its originally-claimed costs it was withdrawing.  REEP also responded to
certain of the assertions raised in the agency's February 3 letter; for
example, REEP disagreed that it had improperly added general and
administrative overhead (G&A) to its outside counsel's cost.
    
By letter dated April 8, the agency responded to REEP, outlining its views
concerning the parties' continuing disagreement.  The Army reiterated its
timeliness objection, and continued to challenge the manner in which REEP
allocated its costs between the two protests discussed above, the
reasonableness and allowability of certain other costs, and REEP's
application of G&A to its outside counsel's fees.  REEP responded by
letter dated April 16, agreeing that certain legal fees had been
improperly included and reducing its claim by an additional $1,810. 
Shortly thereafter, the parties concluded that the appropriate course of
action would be to submit the matter to our Office for resolution.[1]
    
We deny REEP's claim in its entirety because we agree with the Army that
REEP did not present it in a timely manner.  Our Bid Protest Regulations,
4 C.F.R. S: 21.8(f)(1) (2003), require protesters to file claims for
protest costs within 60 days of receiving our recommendation that such
costs be paid.  This 60-day timeframe was specifically designed to avoid
the piecemeal presentation of claims (which necessarily results in unduly
delaying their resolution), while at the same time affording protesters an
ample opportunity to submit adequately substantiated, certified claims. 
HG Properties A, L.P.--Costs, B-277572.8, Sept. 9, 1998, 98-2 CPD P: 62 at
2.  A protester's failure to file an adequately documented claim within
this 60-day period results in forfeiture of its right to recover costs,
irrespective of whether the parties may have continued to negotiate after
the 60-day period expired.  Id. at 2-3.  In this latter connection, a
protester seeking to recover its protest costs must submit evidence
sufficient to support its claim that those costs were incurred and are
properly attributable to filing and pursuing the protest.  Stocker & Yale,
Inc.--Claim for Costs,               B-242568.3, May 18, 1993, 93-1 CPD P:
387 at 4.  Although we recognize that the requirement for documentation
may sometimes entail certain practical difficulties, we do not consider it
unreasonable to require a protester to document in some detail the amount
and purposes of its employees' and attorneys' efforts and to establish
that the claimed hourly rates reflect the employees' actual rates of
compensation plus reasonable overhead and fringe benefits.  W.S. Spotswood
& Sons, Inc.--Claim for Costs, B-236713.3, July 19, 1990, 90-2 CPD P: 50
at 3.  We do not believe that the 60-day timeframe should be applied in so
harsh a manner that a protester receives no reimbursement merely because
its initial, timely, claim required some supplementation or elaboration. 
Nonetheless, where the timely submission is of little or no value in
supporting the claim, we believe that the claim should be rejected as
untimely.
    
Here, the record shows that, while REEP tendered a claim within the 60-day
period, that claim was eventually shown to be so riddled with errors and
gaps as to be essentially worthless.  As noted, the initial submission
included only a summary spreadsheed purporting to show REEP's overall
protest costs that did not include any information relating to the amount
of time spent by its employees and attorneys or the nature of their
activities; several summary invoices showing the amounts billed by REEP's
outside counsel (also lacking entirely in detail); and a two-page listing
of generic activities engaged in by the protester's outside counsel during
5 days in September immediately preceding the issuance of our decision. 
This documentation does not meet the standard set forth above.  Indeed, by
its November 19 letter to the agency (submitted after the 60-day period
had expired), REEP's outside counsel acknowledged as much, stating *with
some embarrassment* that he had omitted, among other things, the backup
materials to substantiate his outside counsel fees.  Moreover, REEP did
not even make an initial presentation of what it considered adequate
documentation of the entire claim until December 10.  Thereafter, in a
series of protracted correspondence spanning a period of approximately 5
months, the protester attempted first to document, and thereafter to
reduce, its claim in response to apparently legitimate concerns identified
by the agency.  This is precisely the piecemeal presentation of a claim
that our Regulations are designed to avoid.  Accordingly, we deny REEP's
claim on grounds that REEP failed to timely submit an adequately
documented claim.
    
We point out as well that, beyond its failure to submit a timely claim,
the record shows that REEP included both allowable and unallowable costs
in its claim.  In this regard, where a protester has aggregated allowable
and unallowable costs into a single claim, and we cannot determine from
the record what portion of the claim is allowable and what portion is
unallowable, the entire claim will be disallowed.  Maintenance and
Repair--Costs, B-251223.4, June 4, 1994, 94-1 CPD P: 381 at 4. 
    
Here, there is no basis on the record before us to determine what portion
of the claim is allowable and what portion is unallowable.  For example,
REEP's initial claim included costs associated with another protest that
it had been simultaneously pursuing in our Office.  REEP, Inc., B-290688,
Sept. 20, 2002, 2002 CPD P: 158.  By letter dated February 20, 2002, REEP
initially conceded that its claim included attorneys' fees associated with
that other protest in the amount of $977.50.  Thereafter, by letter dated
April 16, REEP conceded that its claim still included attorneys' fees for
the other protest, and offered to reduce its claim by an additional
$1,810.  There is no way to determine from the documentation in the record
whether REEP has completely eliminated the costs associated with the other
protest.[2]  
    
In addition, the claim includes costs associated with other protests filed
by REEP during 2001, long before the protester knew its basis for protest
and almost a year before we issued our decision.  There is no way to
determine from the record which of REEP's claimed costs relate to these
other protests.  REEP's claim also initially
    
    
    
included amounts associated with the preparation of several proposals;
while the firm represented that it had removed these costs by letter dated
March 5, there is no way, due to a lack of detail in the documentation, to
determine from the record whether all such costs have been removed. 
    
The request is denied.
    
Anthony H. Gamboa
General Counsel
    
    

   ------------------------

   [1] Since submitting the matter to our Office for resolution, REEP also
sent another letter dated July 11 requesting that it be further reimbursed
the costs associated with pursuing its claim.  This letter did not state
the amount of those costs or include documentation to support the claim. 
In any case, while we may recommend the payment of such costs as a means
of encouraging an agency's expeditious and reasonable consideration of a
protester's claim for costs, 4 C.F.R. S: 21.8(f)(2) (2003); Pulau Elec.
Corp.--Costs, B-280048.11, July 31, 2000, 2000 CPD P: 122 at 11, there is
no indication here that the agency unreasonably delayed consideration of
REEP's claim. 
[2] We note as well in this connection that REEP represented that its
employees' costs did not include costs associated with the other protest. 
However, exhibit 2 to REEP's December 10 letter includes an entry for July
22 that attributes 10 hours of its employees' time to submitting rebuttal
material on both protests to our Office.