TITLE: B-311143, Harris Enterprises, Inc., March 27, 2008
BNUMBER: B-311143
DATE: March 27, 2008
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B-311143, Harris Enterprises, Inc., March 27, 2008

   Decision

   Matter of: Harris Enterprises, Inc.

   File: B-311143

   Date: March 27, 2008

   George Sigler for the protester.

   Mark S. Ledford, Esq., and Uri Ko, Esq., Social Security Administration,
   for the agency.

   Peter D. Verchinski, Esq., and John M. Melody, Esq., Office of the General
   Counsel, GAO, participated in the preparation of the decision.

   DIGEST

   In solicitation for warehouse support services, requirement that awardee
   be registered as ISO-9001:2000 compliant is unobjectionable where agency
   reasonably determined that contractor meeting strict quality assurance
   standards will best be able to meet agency's need for handling of security
   sensitive items, including personally identifiable information.

   DECISION

   Harris Enterprises, Inc. protests the terms of request for proposals (RFP)
   No. SSA-RFP-08-1028, issued by the Social Security Administration (SSA)
   for warehouse support services. Harris, the incumbent contractor, asserts
   that the solicitation is unduly restrictive of competition because it
   requires offerors to have current certification under International
   Standards Organization (ISO) 9001:2000.[1]

   We deny the protest.

   SSA issued the RFP on January 11, 2008 as a competitive section 8(a)
   set-aside for management, labor, supplies, equipment, materials, and
   transportation necessary to perform warehouse support services in
   Maryland. The RFP included a requirement that the successful offeror be
   ISO 9001:2000 certified by the date specified for receipt of offers,
   February 1. RFP at 7, 67. Prior to the February 1 closing time, Harris
   filed this protest, asserting that the ISO 9001 requirement is restrictive
   of competition and exceeds the agency's actual needs.

   The determination of a contracting agency's needs and the best method of
   accommodating them are matters primarily within the agency's discretion.
   Systems Application & Techs., Inc., B-270672, Apr. 8, 1996, 96-1 CPD para.
   182 at 3. However, where a protester challenges a specification as unduly
   restrictive of competition, we will review the record to determine whether
   the restrictions imposed are reasonably related to the agency's needs.
   Id.; LBM Inc., B-286271, Dec. 1, 2000, 2000 CPD para. 194 at 3. The ISO
   9001 requirement here is unobjectionable.

   The agency explains that the warehouses here handle materials containing
   security related information, including personally identifiable
   information (PII) such as names, addresses, and social security numbers.
   In this regard, the warehouses receive all of SSA's excess computers,
   which contain PII, and ships out SSA's new laptop computers, which are
   loaded with SSA's encryption software. The warehouses also store and ship
   other security sensitive items, such as the equipment used to create
   personnel credentials that allow SSA employees to enter secure buildings
   and to log on to secure computers. Finally, the warehouses store precious
   metals and handle hazardous materials that require adherence to a strict
   set of procedures. The agency explains that protecting these materials and
   maintaining a high standard for their handling has become one of SSA's
   primary concerns, and that the business process improvements offered by an
   ISO 9001 certified contractor would provide the "best possible assurance
   that the contractor is protecting the integrity of SSA's PII, PII-related
   equipment, precious metals, and hazardous materials." Legal Memorandum at
   6.

   We see no reason why the agency should not be permitted to adopt a
   requirement aimed at ensuring the highest level of quality assurance,
   particularly in light of the sensitive nature of the materials involved
   here. Since ISO 9001 is intended to ensure quality management systems--by
   requiring, among other things, that firms monitor processes to ensure that
   they are effective, keep adequate records, check for defects, and
   regularly review the quality system itself--we think the agency could
   reasonably conclude that a requirement for ISO 9001 certification will
   help ensure that the contractor will provide the highest level of quality
   control in providing the required warehousing services.[2] AR, Tab7.

   Harris asserts that the need to protect PII and other security sensitive
   items, and the need for quality control in handling hazardous materials
   were already contained in Harris's previous contract, and that the
   agency's claim that ISO 9001 is necessary here therefore is unfounded.
   However, the fact that a requirement may not have been included in a prior
   solicitation or contract does not provide a basis for finding the
   requirement unduly restrictive when included in a subsequent solicitation
   for similar items. See USA Fabrics, Inc., B-295737, B-295737.2, Apr. 19,
   2005, 2005 CPD para. 82 at 5. In this regard, each procurement action is a
   separate transaction and an action taken under one procurement is not
   relevant to the propriety of the action taken under another for the
   purposes of a bid protest. Komatsu Dresser Co., B-251944, May 5, 1993,
   93-1 CPD para. 369 at 4.[3]

   Harris asserts that the agency has required ISO 9001 certification as part
   of a bad faith effort to favor a particular 8(a) firm that allegedly
   received advanced notice of the requirement, and thus was able to timely
   obtain the certification. Government officials are presumed to act in good
   faith, and a protester's claim that contracting officials were motivated
   by bias or bad faith must be supported by convincing proof; we will not
   attribute unfair or prejudicial motives to procurement officials on the
   basis of inference or supposition. Shinwha Elecs., B-290603 et al., Sept.
   3, 2002, 2002 CPD para. 154 at 5 n.6. Here, the protester offers no
   evidence supporting its claim; rather, it draws an inference based on its
   belief that the ISO 9001 certification is not necessary to perform the
   current work. This constitutes speculation and is insufficient to support
   a finding of bad faith.

   The protest is denied.

   Gary L. Kepplinger
   General Counsel

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

   [1] ISO-9000 standards (including ISO 9001) are a series of
   internationally recognized quality assurance standards. See LBM Inc.,
   B-286271, Dec. 1, 2000, 2000 CPD para. 194 at 2 n.2.

   [2] Harris asserts that, based on its experience as the incumbent
   contractor, employees do not generally handle all of the types of
   materials identified by the agency, and that the sensitive nature of the
   warehoused materials therefore cannot be a proper justification for
   requiring ISO 9001. Protester's Comments at 5. Its general assertion
   notwithstanding, however, Harris does not deny that certain PPI and other
   sensitive information is handled and, in fact, concedes that it has been
   involved in shipping laptop computers in the past, and has handled other
   security sensitive items. Id. at 4-5. In any case, the protester has not
   shown why--even if sensitive materials were not involved--the agency would
   not be permitted to impose standards designed to ensure the highest-level
   quality assurance under the contract.

   [3] Harris challenges the agency's explanation that ISO 9001 also is
   justified because it will result in cost savings. We need not consider
   this argument since, as discussed, we find that the agency has otherwise
   justified the ISO 9001 certification requirement.