SMS Data Products Group, Inc. (B-423197; B-423197.4)

You should care.

Category: Professional compensation evaluation, price risk analysis, technical evaluation

Date: 4 March 2025

URL: https://www.gao.gov/products/b-423197%2Cb-423197.4

SMS Data Products Group, Inc., 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. SMS challenged the agency’s evaluation of professional employee compensation plans, its failure to conduct a price risk analysis as required under DFARS 252.204-7024, and the evaluation of technical proposals:

• Professional compensation evaluation: GAO sustained the protest, finding that Air Force arbitrarily applied an eight percent threshold when assessing realism and failed to conduct the required comparison of professional compensation levels with the incumbent contractor.
• Price risk analysis: GAO sustained SMS’s claim that Air Force failed to conduct the required price risk analysis under DFARS 252.204-7024, instead performing only a supplier risk assessment.
• Technical evaluation: GAO denied SMS’s challenge, ruling that the Air Force’s assessment of strengths in technical proposals was reasonable and that there was no disparate treatment.
• Low price performance risk: GAO rejected SMS’s argument that Air Force should have considered Trace’s low price as a performance risk, as the solicitation did not require a price realism analysis of total price.

GAO sustained and denied in part, recommending a reevaluation of proposals, a new best value tradeoff decision, and a possible termination of Trace’s task order. SMS was awarded protest costs.

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 that the agency unreasonably evaluated technical proposals is denied where the record demonstrates that the evaluation was consistent with the solicitation and procurement law.
3. Protest 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 agency failed to analyze the performance risk posed by the awardee’s low price is denied where the solicitation did not put offerors on notice that the agency would conduct a price realism analysis of total price.