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B-281631 1 (1999-03-15)

handle is hein.gao/gaocrptajhm0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision Matter of: Smelkinson Sysco Food Services File: B-281631 Date: March 15, 1999 John A. Burkholder, Esq., McKenna & Cuneo, for the protester. Lynne Georges, Esq., Defense Supply Center Philadelphia, Defense Logistics Agency, for the agency. Susan K McAuliffe, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of terms of solicitation for commercial food distribution services is sustained where agency failed to conduct adequate market research to support its determination that the challenged terms (requiring, among other things, that profit associated with interorganizational transfers of food items be disclosed) are consistent with customary commercial practice, or, alternatively, failed to obtain waiver necessary to tailor standard commercial item provision in a manner inconsistent with customary commercial practice. DECISION Smelkinson Sysco Food Services protests the terms of request for proposals (RFP) No. SP0300-99-R-D008, issued by the Defense Supply Center Philadelphia (DSCP), Defense Logistics Agency, for full service food distribution support for a number of federal installations in the Washington D.C. area. Smelkinson protests the RFP requirement that offerors disclose, among other things, profit associated with interorganizational transfers of food items. We sustain the protest. The RFP, issued on October 23, 1998, contemplates the award of a fixed-price contract with weekly economic price adjustments, for a base year and 4 option years, for full line food distribution, where the prime vendor contractor serves as the customer's primary source for food items. The procurement is being conducted pursuant to the commercial-item acquisition procedures of Part 12 of the Federal Acquisition Regulation (FAR). The RFP's pricing schedule lists commercial food items to be supplied, with their estimated quantities, for offerors to price. Offerors are to provide the following prices by item: delivered price per unit, distribution price per unit, total unit price, and total extended price. The RFP's price changes clause, included in the solicitation as an addendum to FAR § 52.212-4, provides the

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