Fusion Technology, LLC (B-421560.13; B-421560.15)

You should care.

Category: Technical evaluation, price realism

Date: 7 April 2025

URL: https://www.gao.gov/assets/b-421560.13.pdf

Fusion Technology, LLC, protested FBI’s issuance of a task order under an RFQ for agile IT services, arguing the agency erred in deeming its price unrealistic under the solicitation’s three-part price realism test. The RFQ, issued under FAR 8.4, required quoting vendors to meet price realism thresholds using GSA CALC+, historical, and IGCE labor rates. Fusion claimed its pricing strategy—aimed at surpassing just one benchmark per labor category—was compliant and that the agency applied unstated criteria by evaluating its rates against all three benchmarks. The protest also alleged errors in the evaluation of corporate experience.

Price realism evaluation based on three benchmarks: GAO found that the RFQ unambiguously required labor rates to be evaluated against all three data points, and nowhere suggested that surpassing only one would suffice. Fusion’s assumption that quoting above a single benchmark met the requirement was therefore unreasonable. GAO held the agency’s method—flagging rates below two of three benchmarks as potentially unrealistic—was consistent with the stated evaluation scheme and within its discretion to mitigate performance risk.

Performance risk and impact analysis: The agency concluded Fusion's quotation included thirteen unrealistic labor categories, affecting 25 of 66 full-time equivalents and eight of nine agile teams. GAO agreed with the agency’s judgment that these shortfalls posed unmitigable risk to staffing, velocity, and capability under the SAFe framework, especially because Fusion paired junior roles with other underpriced senior positions. The agency's tradeoff favored Trilogy, whose $93 million bid was realistic and technically strong, over Fusion's $73 million quote.

Corporate experience challenge lacked prejudice: GAO declined to sustain Fusion’s corporate experience challenge because, even if meritorious, it would not overcome Fusion’s disqualification on price realism grounds. Without a realistic price, Fusion could not have received the award.

Protest denied. The FBI’s price realism evaluation was reasonable and within the RFQ’s stated terms.

Digest

Protest challenging the agency’s price realism evaluation and determination that the protester’s price was unrealistic is denied where the evaluation was reasonable and consistent with the terms of the solicitation and applicable law and regulation.