1st SBC Solutions, LLC (B-423172.4; B-423172.5)

You should not care.

Category: Discussions, compliance, price realism, past performance

Date: 1 August 2025

URL: https://www.gao.gov/products/b-423172.4%2Cb-423172.5

1st SBC Solutions, LLC, an 8(a) small business, protested the issuance of a task order to Agovx LLC under an IRS RFQ for IT services support off the GSA 8(a) STARS III GWAC. 1st SBC alleged the agency failed to conduct meaningful discussions during corrective action, unreasonably accepted Agovx's quote despite alleged noncompliance with naming personnel in cost submissions, failed to conduct a proper price realism analysis, and wrongly evaluated a past performance reference from Agovx's subcontractor. GAO denied each ground, finding either that the agency followed the solicitation’s stated evaluation method, the protester was not competitively prejudiced, or that the protested matters were procedural preferences not required by solicitation terms. Particularly, GAO found no requirement for broader quote revisions during corrective action because 1st SBC's proposal had no material weaknesses or deficiencies:

• Meaningful discussions: IRS did not unfairly limit exchanges during corrective action; no evidence protester was prejudiced because its quote was already rated highly with no weaknesses.
• Proposal compliance: Instructions regarding matching names in cost and technical volumes were not material to evaluation, and Treasury had latitude to accept ‘TBD’.
• Price realism: The solicitation required a realism review, which the agency performed within its discretion, chiefly finding that Agovx’s lower price derived from steeper GSA discounts, not inadequate resources.
• Past performance: Although one Agovx reference was technically ineligible due to a minor percentage shortfall, adequate other references rendered any error harmless.

Protest denied. Agencies have wide latitude in subpart 16.5 evaluations, and mere technical or procedural preferences—without showing prejudice or impact—will not prevail at GAO.

Digest

Protest that the agency failed to conduct meaningful discussions during corrective action is denied where the protester has not demonstrated a reasonable possibility of competitive prejudice.

Protest that the agency relaxed a material solicitation requirement for the awardee is denied where the solicitation did not advise that noncompliance with instructions could result in rejection of a proposal and the protester has not otherwise demonstrated how it would have altered its proposal to its competitive advantage had it known that the agency would waive a requirement for strict compliance with the solicitation's instructions.

Protest that the agency failed to conduct a reasonable price realism analysis is denied where the record demonstrates that the agency evaluated proposals for price realism reasonably and in accordance with the solicitation's terms.

Protest that the agency departed from the solicitation's terms in evaluating a past performance reference is denied where the protester cannot demonstrate a reasonable possibility of competitive prejudice.