UNDERSTANDING ARMY ACQUISITION
For example, GAO sustained the protest by Triad Isotopes Inc. (B-411360) in July 2015 because the U.S. Department of Veterans Affairs’ market research could not have reasonably identified sources capable of responding to the request for quotations, because it was too broad and didn’t align with the requirement.
Te agency’s stated objective in its market research was to award a contract to a contractor that could provide radioiso- topes. That research included online searches for the North American Indus- try Classification System (NAICS) code 325412 (companies that perform phar- maceutical preparation manufacturing of
“in-vivo diagnostic substances and pharma- ceutical preparations”), which located 676 concerns. Tat number of apparently capa- ble businesses led the agency to conclude that it was likely to receive viable quota- tions from at least two responsible small businesses.
Triad Isotopes protested the decision by the agency to issue a request for quotations for the acquisition of radio- pharmaceuticals as a small business set-aside. Triad argued that the agen- cy’s market research was flawed because the NAICS code includes a large array of pharmaceuticals, including cold medicines and lip balms. In short, Triad asserted that the agency had not demon- strated that there was “even one small business” that would meet both the requirement and the delivery require- ments in the request for quotations.
GAO agreed, and the protest was sustained.
The market research unnecessarily
restricted its scope of capable offerors because it didn’t align properly to the requirement and effective competition was unachievable.
The Army’s solicitation required the contractor to collect and dispose of solid waste in designated areas in and around Fort Polk, Louisiana, requiring
WRIGHTS IN THE AIR
Wilbur Wright flies a Wright No. 1 glider at Kill Devil Hills, near Kitty Hawk, North Carolina. In the early 1900s, Wilbur and his brother Orville were the first to invent aircraft controls—specifically, a three-axis system enabling the pilot to steer the aircraft and to maintain its equilibrium—that made fixed-wing flight possible. (Photo by Hulton Archive/Getty Images)
2. You must know your market.
Just as it’s important to know your require- ment, an understanding of what’s out there to satisfy your requirement is essen- tial for obtaining the most efficient and cost-effective solution.
In a case involving Red River Waste Solu- tions LP (B-411760.2), GAO sustained a protest because the Army’s market research focused on Army contract history rather than customary commercial prac- tices. In short, the market research failed to support the Army’s conclusion that its pricing terms were consistent with customary commercial practice.
price proposals to be submitted on a per- ton basis. Red River protested that the commercial practice for refuse collection contracts was to price such contracts on a monthly or per-container basis, not on a per-ton basis.
The Army explained that its market research supporting the pricing determi- nation was customary commercial practice because other Army contracts were priced on a per-ton basis and responses solicited from industry and a local refuse company both indicated that this was customary commercial practice.
In January 2016, GAO rejected the Army’s claim and sustained the protest. It found that the Army’s conclusions about pricing drawn from its market research restricted competition because commercial sources were unwilling to engage in a practice that
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