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B-401063 1 (2009-05-04)

handle is hein.gao/gaobadoot0001 and id is 1 raw text is: G A O Comptroller General Accountability * Integrity * Reliability of the United States U n ite d S tates G o v ern m en t A cco u n tab ility O ffice ----------------------------------------------------------------------------------------------------------------------- Washington, DC 20548 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. D e c i s i o n -----------------------------------------------------------------------------------------------------------------------.. Matter of: Wisconsin Physicians Service Insurance Corp. File: B-401063 Date: May 4, 2009 Steven S. Diamond, Esq., Ronald A. Schechter, Esq., Stuart W. Turner, Esq., Cameron Fogle, Esq., Jill N. Chung, Esq., Emma V. Broomfield, Esq., and Scott M. Swafford, Esq., Arnold & Porter LLP, for the protester. Barbara A. Duncombe, Esq., Suzanne Sumner, Esq., G. Drew Fuller, Esq., Thomas J. Menza, Esq., and Casie E. Hollis, Esq., Taft Stettinius & Hollister, LLP, for National Government Services, Inc., an intervenor. Anthony E. Marrone, Esq., Department of Health and Human Services, Centers for Medicare and Medicaid Services, for the agency. Jonathan L. Kang, Esq., and Ralph 0. White, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging agency's cost realism evaluation is sustained where the agency concedes an error in accepting awardee's proposed labor rates for its existing staff based on market surveys, rather than the actual labor rates for its staff, and where the agency unreasonably ignored assumptions made in awardee's proposal regarding indirect costs. 2. Protest challenging agency's technical and past performance evaluations is sustained where the record does not demonstrate that the agency reasonably evaluated offerors' proposals. 3. Protest is sustained where agency failed to conduct discussions regarding adverse past performance that the protester had not previously had an opportunity to address. DECISION Wisconsin Physicians Service Insurance Corp. (WPS), of Madison, Wisconsin, protests the award of a contract to National Government Services, Inc. (NGS) under request for proposals (RFP) No. CMS-2007-0018 (jurisdiction 8), issued by the Department of Health and Human Services, Centers for Medicare and Medicaid

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