Federal Manager's Daily Report

The Department of Energy has upheld a bid protest and

suspended a contract award to a private company for

facility and transportation maintenance and management,

motor vehicle maintenance and logistics operations in

Washington D.C. and suburban Maryland, functions currently

performed by DoE employees, the National Treasury Employees

Union has announced.

The union represented the employees in the bid protest

after DoE awarded a $26.8 million contract to Logistics

Applications, Inc., of Alexandria Va. in March, and said

DoE’s decision is the first of its kind under the 2003

revision of A-76 rules.

NTEU said Kelly, acting as a legal representative, joined

the agency tender official that developed the employees’

bid in protesting the award on the grounds that the

employee bid was lower by $2.6 million, and that the

decision was based on a previously undisclosed factor —

workers’ hourly wages.

A senior DoE procurement official sustained those claims,

agreeing that no additional benefit for the higher cost

was apparent and that it was unfair to base the award on

hourly rates because that had not been identified in the

bid solicitation as a relevant factor.

DoE employees–reportedly about 90 of them–will continue

to perform those functions while DoE reconsiders the

competition, but the union criticized the contract protest

process which is different for private sector bidders that

can seek review from the Government Accountability Office

or federal claims court, whereas federal employees may

only protest internally.