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B-401652.3,B-401652.5 1 (2009-11-04)

handle is hein.gao/gaobadbbe0001 and id is 1 raw text is: ,G A O Comptroller General LXn , Accountability * Integrity * Reliability of the United States United States Government Accountability Office DOCUMENT FOR PUBLIC RELEASE Washington, DC 20548 The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Health Net Federal Services, LLC File: B-401652.3; B-401652.5 Date: November 4, 2009 Thomas P. Humphrey, Esq., Marc F. Efron, Esq., David Z. Bodenheimer, Esq., Shauna E. Alonge, Esq., J. Catherine Kunz, Esq., John E. McCarthy, Jr., Esq., Peter J. Eyre, Esq., Puja Satiani, Esq., James G. Peyster, Esq., Andrew Dockham, Esq., and Sujata Sidhu, Esq., Crowell & Moring LLP, for the protester. David R. Hazelton, Esq., Roger S. Goldman, Esq., Eric J. McCarthy, Esq., Kyle R. Jefcoat, Esq., Benjamin Wei, Esq., and Anne W. Robinson, Esq., Latham & Watkins LLP, for Aetna Government Health Plans, the intervenor. Gerald A. Wesley, Esq., Hattie Russell DuBois, Esq., Michael E. Jonasson, Esq., Rhonda L. Bershok, Esq., and Dennis Dyke, Esq., Office of TRICARE Management Activity, for the agency. Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest is sustained where the agency credited the awardee with past performance of its parent and corporate affiliates, yet record did not establish which entities were involved with performing the prior contracts submitted by the awardee, nor did it establish the roles that the various entities would have in awardee's performance of the contract. 2. Agency's past performance evaluation of the awardee was flawed where the record shows that, although it gave awardee the highest past performance rating, agency failed, as contemplated by the solicitation, to consider the fact that awardee's past performance references were very small in relation to the size of the contract to be awarded. 3. Price realism evaluation was flawed where it did not reasonably consider whether the awardee's staffing, as related to its price/cost proposal, reflected a lack of understanding of the agency's technical requirements or presented technical risk. 4. Agency failed to consider risk associated with awardee's proposed plan to hire large percentages of the incumbent workforce, which the agency considered to be a

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