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B-292141 1 (2003-06-02)

handle is hein.gao/gaobacyii0001 and id is 1 raw text is: I G A 0 Comptroller General - -Accountability * Integrity * Reliability of the United States United States General Accounting Office Washington, DC 20548 Decision Matter of: Sunshine Kids Service Supply Company File: B-292141 Date: June 2, 2003 Justin Sulzner for the protester. Janet N. Repka, Esq., Washington Headquarters Services, Department of Defense, and Kevin R. Harber, Esq., Small Business Administration, for the agencies. Paul E. Jordan, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Where agency rejected proposal submitted by sole HUBZone offeror in HUBZone set-aside based on finding of unreasonable price, and subsequently determined that proposal also was technically unacceptable, agency decision to cancel solicitation was unobjectionable, even if original basis for rejection--unreasonable price--was not supported by the record. DECISION Sunshine Kids Service Supply Company (SKSS) protests the agency's decision to cancel request for proposals (RFP) No. MDA946-03-R-0014, a HUBZone (historically underutilized business zone) small business set-aside issued by the Department of Defense for custodial services. SKSS asserts that the cancellation was improper, and that the agency instead should have made award to SKSS. We deny the protest. The RFP sought proposals to provide all services, supplies, equipment, and supervision necessary to perform interior and exterior custodial work in the Hybla Valley Federal Building in Alexandria, Virginia. The RFP contemplated award of a fixed-price contract for a 6-month base period, with 4 option years, to the offeror whose proposal was considered the best value. Proposals were to be evaluated under three factors--performance, management approach, and price--with the two technical factors of equal importance and, combined, of significantly more importance than price. Price was to be evaluated for reasonableness and realism, as a reflection of offerors' understanding of the RFP's requirements. The RFP advised

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