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B-293070 1 (2004-01-28)

handle is hein.gao/gaocrptapjs0001 and id is 1 raw text is: G A 0 Comptroller General SIntegrity Reliability of the United States ~ccountabthty Inert Rea iy United States General Accounting 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: BAE Systems Technical Services, Inc. File: B-293070 Date: January 28, 2004 Kenneth M. Bruntel, Esq., Amy E. Laderberg, Esq., and Heather N. Hormel, Esq., Crowell & Moring, for the protester. Philip Adams, Esq., and Kevin A. Storey, Esq., Department of the Navy, for the agency. Glenn G. Wolcott, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST In competition conducted pursuant to Office of Management and Budget Circular A-76, where in-house cost estimate (IHCE) for performance by the government's most efficient organization (MEO) fails to include costs for various performance work statement (PWS) requirements, and the additional costs required for the MEO to meet all PWS requirements are greater than the marginal difference between the protester's evaluated cost and the IHCE, General Accounting Office recommends that agency award a contract to the protester based on its lower-cost proposal. DECISION BAE Systems Technical Services, Inc. protests the Department of the Navy's decision, pursuant to Office of Management and Budget (OMB) Circular A-76, that it would be more economical to perform retail supply operations for the Fleet Industrial Supply Center (FISC) at Jacksonville, Florida, in-house, rather than to contract for these services with BAE under request for proposals (RFP) No. N68836-03-R-0001.' BAE challenges the agency's decision on the basis that, in its 1 The procedures applicable here for determining whether the government should perform an activity in-house, or have the activity performed by a contractor, are set forth in OMB Circular A-76, and that Circular's Revised Supplemental Handbook (RSH) (March 1996), which have been made applicable to the Department of Defense and its military departments and agencies. 32 C.F.R. § 169a.15(d)(2003). Although the Circular and RSH were revised in May 2003, those revisions were not applicable to this competition.

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