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B-298478 1 (2006-10-13)

handle is hein.gao/gaocrptasqs0001 and id is 1 raw text is: A G A O Comptroller General . Accountability * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 Decision Matter of: Eagle Home Medical Corporation File: B-298478 Date: October 13, 2006 Gerald H. Werfel, Esq., Pompan, Murray & Werfel, PLC, for the protester. Merilee Rosenberg, Esq., Department of Veterans Affairs, for the agency. Peter D. Verchinski, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Contracting agency reasonably rejected protester's proposal based on determination that its low price was unreasonably high where price was 39 percent higher than government estimate, which was primarily based on price of recently negotiated contract extension with incumbent contractor. DECISION Eagle Home Medical Corporation (EHMC) protests the rejection of its proposal as unreasonably high-priced under request for proposals (RFP) No. 247-0260-06, issued by the Department of Veterans Affairs (VA) to provide home oxygen services and supplies at the William Jennings Bryan Dorn Veterans Affairs Medical Center in Columbia, South Carolina. We deny the protest. On May 22, 2006, VA issued the RFP as a HUBZone (historically underutilized business zone) small business set-aside. Offerors were requested to propose fixed prices for 20 different contract line items (CLIN), covering various oxygen cylinders, liquid oxygen, and compressed air items, for a 1-year base period, with 4 option years. Award was to be made to the offeror submitting the lowest-priced, technically acceptable proposal. VA had been receiving these services and supplies from Medical Comfort Systems, Inc. (MCS), under a contract awarded on January 1, 2001. In October 2005, near the end of the last option year of that contract, the agency negotiated a 6-month

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