Maersk Logistics and Services USA, Inc. (B-421982.3; B-421982.5)

Category: Discussions, past performance, price evaluation

Date: October 30, 2024

URL: GAO Protest Decision

You should care.

Maersk protested the Department of Defense’s $2.3 billion freight transportation services contract award to Crowley Government Services, alleging flaws in price evaluation, past performance assessment, and competitive fairness. Key arguments included claims that USTRANSCOM unfairly determined Maersk’s price as reasonable, failed to provide sufficient historical data, and overlooked Crowley’s allegedly unequal access to information:

• Price evaluation: GAO upheld USTRANSCOM’s methodology, which applied statistical benchmarks to deem Maersk’s price reasonable despite a significant gap with Crowley’s lower bid. GAO found the approach compliant with FAR standards.
• Discussions: GAO rejected claims of misleading discussions, emphasizing that the agency repeatedly identified areas where Maersk’s pricing was high, enabling Maersk to adjust its offer.
• Past performance: The protest highlighted Crowley’s alleged overcharges on the incumbent contract, yet GAO found the agency reasonably weighed this against Crowley’s overall strong performance ratings.
• Procedural timeliness: Maersk’s challenge regarding incomplete historical data and alleged organizational conflicts of interest (OCI) was dismissed as untimely.

The protest was denied, with GAO affirming the agency’s adherence to evaluation criteria and proper conduct of the procurement process. This reenforces GAO's deference to agencies' significant discretion in price reasonableness determinations, provided they align with stated evaluation methods. Protests hinging on timeliness, particularly solicitation data or perceived OCI, must be filed promptly to be considered. Finally, even in complex procurements, meaningful discussions and adherence to FAR standards safeguard decisions from legal challenges.

Digest

Protest arguing the agency performed an unreasonable price reasonableness evaluation is denied where the price reasonableness evaluation was consistent with the solicitation and applicable procurement law and regulations.