Opinion ID: 6661188
Heading Depth: 2
Heading Rank: 2

Heading: Eva litatio'i i and Coi iti -act A-wai -d

Text: The Ar Force received twenty-eight responses to the RFP, ultimately awarding ID/IQ contracts to five entities: American Hospital Service Group, AR Tab 8; RLM Services, AR Tab 11; TerraHealth, AR Tab 12; Healing Staff, AR Tab 13; and Luke, AR Tab 9. Athough the Government reviewed the prices contained in the upper and lower portions of Table 1, along with the escalation rates, the total evaluated price of the contracts took into account only the upper half of Table 1 (that is, the 28 common positions). 2 Def.’s Reply at 6; AR Tab 1 at 196. The total evaluated price did not represent the minimum order or actual requirements of the contract. Def.’s Reply at 6. In evaluating the proposals for award, the Government included the option periods. See AR Tab 1 at 196. Magnum Medical Personnel (“Magnum Medical”), a joint venture consisting of protege Magnum Opus and mentor Sterling Medical Associates, Inc., protested the award twice. The joint venture first protested the Air Force’s finding that it was not responsible due to the low prices offered. Magnum Medical Personnel, A Joint Venture, B-297687.2, 2006 CPD ¶ 99, 2006 WL 1843465, at  n. 2 (Comp.Gen. June 20, 2006). The Air Force referred the responsibility issue to the Small Business Administration (“SBA”), which issued a certificate of competency finding Magnum Medical to be responsible. Id. The Air Force nonetheless declined to award Magnum Medical a contract. Id. Magnum Medical filed a second protest alleging that its offer was not properly evaluated, particularly when comparing the security portion of its proposal to that of awardee Luke. Id. at . The GAO concluded that the proposals were roughly equivalent on the security requirement, and the Air Force had not supported its conclusion that Magnum Medical’s proposal alone ought to be downgraded on that factor. Id. at . After the GAO decision recommending award to Magnum Medical, Magnum Medical received an ID/IQ contract. AR Tab 10. Magnum’s ID/IQ contract was for a minimum order value of $500,000, and a maximum order value of $800,000,000 on the base contract period, $600,000,000 on the first option period, and $526,000,000 on the second option period. AR Tab 10 at 3389-90. Magnum Medical’s ID/IQ contract was potentially worth, therefore, somewhere between a minimum of $500,000 and a maximum of $1,926 billion. Id. Healing Staff’s ID/IQ contract contained similar terms. AR 3888-89.