Link: GAO Opinion
Agency: Department of the Navy
Disposition: Protest denied.
Keywords: Multiple Awards
General Counsel P.C. Highlight: Where the RFP provides for multiple awards under certain circumstances, there is no basis for objection to an Agency’s decision to split an award among to multiple offerors.
Glenn Defense Marine-Asia PTE, Ltd. (Glenn) protests the award of a contract under a request for proposals (RFP), issued by the Department of the Navy (Navy), for husbanding services for four lots in the Philippines. The RFP provided that award would be made to the responsible offeror who submitted the lowest-priced, technically acceptable offer with acceptable or neutral past performance.
The RFP contemplated the award of a fixed-price indefinite-delivery/indefinite-quantity (ID/IQ) contract for a 12-month period with an option period of six months. The RFP also included two required clauses. The first stated that, “the Government reserves the right to make a single award to the offeror whose offer is considered in the best interest of the Government, price and other factors considered.” The second stated that, “the Government reserves the right to make an award on any item for a quantity less than the quantity offered, at the unit prices offered, unless the offeror specifies otherwise in the offer.”
Although Glenn’s proposal was the lowest overall priced, the agency considered the cost savings of making a split award and determined that it was in the government’s best interest to award two contracts. Glenn argues that the solicitation expresses a clear intent to make a single award for all lots and does not provide for split awards.
The RFP clearly incorporated the multiple awards provision mentioned above. GAO has held that this language is sufficient to indicate that multiple awards may be made where the award clause does not specifically require an aggregate award. Additionally, GAO has consistently required award on the basis of the most favorable overall cost to the government where multiple awards are permitted. Therefore, GAO has no reason to question the agency’s award of multiple contracts where the RFP permitted multiple awards. The protest is denied.