Large Prime Hit For “Consistent Failure” To Meet Subcontracting Goals

A large prime contractor’s “consistent failure” to meet its small business and socioeconomic subcontracting goals on prior projects resulted in a lower past performance score–and led to the prime’s elimination from the competition.

In a recent bid protest decision, the GAO held that the agency properly eliminated a prospective prime contractor from the competition in part because the large business had not met its subcontracting goals on three recent contracts.

The GAO’s decision in Graybar, B-410866 (Mar. 4, 2015) involved a DLA solicitation for maintenance, repair and operations supply items and services.  The contract was to be awarded on a “best value” basis, considering technical merit, past performance, and price.

The technical factor included consideration of socio-economic objectives, that is, the offeror’s goals for subcontracting with small business and socioeconomic subcategories of small businesses.  Under the past performance factor, the solicitation provided that the DLA would consider, among other things, the offeror’s performance with respect to its small business and socioeconomic goals under previous contracts.

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