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B-289605.2 1 (2002-07-05)

handle is hein.gao/gaocrptaodk0001 and id is 1 raw text is: GAO ~mAccountability * Integrity * Reliability Decision Matter of: Sodexho Management, Inc. File: B-289605.2 Date: July 5, 2002 Lars E. Anderson, Esq., Thomas J. Madden, Esq., David R. Lasso, Esq., and Paul N. Wengert, Esq., Venable, Baetjer & Howard, for the protester. David H. Turner, Esq., Department of the Navy, for the agency. Tania Calhoun, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that contracting agency improperly used nonappropriated funds instrumentality (NAFI) employees to constitute the overwhelming majority--more than 80 percent--of the labor force in its most efficient organization (MEO) as part of an Office of Management and Budget Circular A-76 cost study is sustained; while the A-76 guidance does not explicitly prohibit the use of NAFI employees in an MEO and may, in fact, be read to permit at least limited use of NAFI employees, where, as here, the level playing field promised by the A-76 guidance is tilted toward the in- house plan in a way that could not be reasonably anticipated by a commercial offeror based upon the A-76 guidance and the solicitation, the agency deprived the commercial offeror of the ability to make an intelligent business judgment concerning whether, and how, to compete. DECISION Sodexho Management, Inc. protests the Department of the Navy's determination, pursuant to Office of Management and Budget (OMB) Circular A-76, that it would be more economical to perform various community support services in-house at the Pensacola Naval Regional Complex (PNRC)' in Pensacola, Florida, rather than contract for these services with Sodexho under request for proposals (RFP) 'The PNRC encompasses the Naval Air Station Pensacola (NASP); Naval Air Station Whiting Field (NASWF); Navy Technical Training Center, Corry Station (NTTC); Naval Education and Training Professional Development Command, Saufley Field; (continued...)

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