Red River Science & Technology, LLC (B-422253.3; B-422253.4; B-422253.5; B-422253.6)

Category: Indirect rate caps, amendments, and discussions

Date: 26 November 2024

URL: https://www.gao.gov/products/b-422253.3%2Cb-422253.4%2Cb-422253.5%2Cb-422253.6

You should not care.

Red River Science & Technology, LLC, protested a task order under the Enhanced Army Global Logistics Enterprise (EAGLE) program for logistics support services at Fort Campbell, Kentucky. The solicitation, issued in June 2023, capped indirect rates under certain circumstances. After an evaluation of revised proposals, the Army notified Red River of its intent to award on July 22, 2024. However, no award was finalized, as a senior Army official verbally ordered on July 25 that indirect rate caps no longer apply to EAGLE task orders. This policy change was formalized in a memo on August 19.

On August 15, before issuing a formal task order, the Army reopened discussions and began drafting an amendment to the solicitation to remove capped rates. The amendment, issued September 4, updated solicitation terms and invited revised proposals, which Red River and others submitted by September 10. Discussions were ongoing when Red River protested, alleging improper amendment, reopened discussions, and unequal treatment of offerors.

GAO addressed three key issues:

1. Improper amendment: GAO found the Army had a reasonable basis to amend the solicitation due to the policy change, emphasizing that agencies must ensure solicitations reflect current requirements.
2. Improper discussions: GAO ruled that reopening discussions to address the amendment was within the Army’s discretion and necessary to provide offerors a fair opportunity to revise proposals.
3. Unequal discussions: GAO dismissed the claim as premature, as discussions were ongoing and no award had been made.

The protest was denied in part and dismissed in part, affirming the Army's discretion and adherence to procurement fairness.

Digest

1. Protest that the agency improperly amended the solicitation is denied where the record shows that the agency had a reasonable basis to amend the solicitation.
2. Protest that the agency improperly reopened discussions is denied where the record shows that the agency had a reasonable basis to reopen discussions.
3. Protest that the agency is conducting unequal discussions is dismissed as premature.