MicroTechnologies LLC (B-423197.2; B-423197.3; B-423197.5)

You should care.

Category: Professional compensation evaluation, nonprofessional labor rates, price risk analysis

Date: 4 March 2025

URL: https://www.gao.gov/products/b-423197.2%2Cb-423197.3%2Cb-423197.5

MicroTechnologies LLC protested the US Air Force’s issuance of a task order to Trace Systems Inc. under a fair opportunity proposal request (FOPR) for combined air and space center operations center communications support. MicroTech, the incumbent contractor, challenged the evaluation of professional employee compensation plans, the realism of nonprofessional labor rates, and the lack of a price risk analysis under DFARS 252.204-7024. MicroTech also alleged that Trace had unmitigable OCIs, the agency conducted misleading discussions, and the technical evaluation was unreasonable:

• Professional compensation evaluation: GAO found Air Force’s evaluation of professional compensation plans flawed. The agency failed to compare total compensation, including salaries and fringe benefits, to incumbent rates as required by FAR 52.222-46.
• Nonprofessional labor rates: GAO sustained the protest, ruling that Air Force unreasonably assessed realism by relying on market data rather than historical incumbent rates.
• Price risk analysis: Air Force failed to conduct a required price risk evaluation under DFARS 252.204-7024, providing no record of such an analysis.
• OCIs: GAO denied claims of unfair access to information, finding no evidence of improper disclosure from a former Air Force official or ex-employees of a MicroTech subcontractor.
• Discussions and technical evaluation: GAO rejected claims that Air Force misled MicroTech during discussions and found that the technical evaluation was reasonable.

GAO sustained parts of the protest and recommended a reevaluation of proposals, a new best value tradeoff, and potential termination of Trace’s task order.

Digest

1. Protest challenging the agency’s evaluation of proposed professional compensation plans is sustained where the record does not demonstrate that the agency conducted an evaluation in accordance with the requirements of Federal Acquisition Regulation provision 52.222-46.
2. Protest challenging the agency’s evaluation of the realism of non-professional direct labor rates is sustained where the evaluation does not conform to the solicitation and procurement law and regulation and lacks a reasonable basis.
3. Protest asserting that the agency failed to analyze price risk in accordance with Defense Federal Acquisition Regulation Supplement provision 252.204-7024 is sustained where the record does not contain the required price risk report.
4. Protest that the awardee had unmitigable unequal access to information organizational conflicts of interest is denied when the awardee had unremarkable, periodic social interactions with a former government official, and where the alleged improper sharing of confidential information by former employees of protester’s subcontractor was a private dispute between parties without agency involvement.
5. Protest that agency conducted misleading discussions is denied where the protester fails to allege improper conduct on the part of the agency and the allegation is, in essence, a challenge to the reasonableness of the price evaluation.
6. Protest that the agency unreasonably evaluated protester’s technical proposal is denied where the record demonstrates that the evaluation was consistent with the solicitation and procurement law.

Tags: GAO protest, Air Force procurement, IDIQ task order, technical evaluation, price realism,