Link: GAO Opinion
Agencies: Department of Veterans Affairs
Disposition: Protest dismissed.
Keywords: Interested party; firm fixed-price proposal
Philips Healthcare Informatics (PHI) protested the award of a commercial item contract to AGFA HealthCare Corporation (AGFA) by the Department of Veterans Affairs (VA) under a request for proposals for picture archiving and communication system (PACS) services for Veterans Integrated Service Network 20 (VISN 20). PHI challenged the agency’s evaluation of its own proposal, AGFA’s proposal, and the agency’s price/technical tradeoff.
In the procurement, the VA evaluated eligible proposals from PHI, AGFA, and FujiFilm Medical Systems USA, Inc. Proposals for the firm fixed-price contract were to contain pricing for 58 contract line item numbers (CLIN). PHI’s proposal priced seven CLINs for data migration at zero dollars. When the contract was awarded to AGFA as best value PHI protested and AGFA intervened in the protest. In its comments to the Agency Report, the intervenor asserted that PHI’s proposed price, including its $0 CLINs, was not a fixed-price proposal. The Agency agreed and both the intervenor and the Agency argued that PHI lacked standing because its proposal was not in line for award and therefore PHI was not an interested party under the GAO rules. GAO agreed that PHI’s price proposal was defective and thus PHI failed to offer a firm fixed-price proposal.
GAO further concluded that, because, PHI’s proposal was ineligible for the award, PHI was not an interested party and its protest was therefore dismissed.