Hopes dashed for those eliminated from $2.6B DHS competition

Several disappointed bidders including an incumbent have been rebuffed in their attempt to get back into the competition for a $2.6 billion Homeland Security Department medical services contract.

Four companies were eliminated during a down select process, which DHS is using to hire a company for medical staffing services at Immigration and Customs Enforcement detention centers.

Arlington, Virginia-headquartered STG International is the incumbent on the current contract worth at least $400 million, according to GovTribe data.

DHS is awarding the new contract on a multiple-award basis.

When STG was eliminated, it and several other companies that had the same outcome filed protests with the Government Accountability Office.

Other protestors included Medical Staffing Services Inc., Spectrum Healthcare Resources, Loyal Source Government Services and Jackson Healthcare.

GAO denied three protests with only Jackson Healthcare's challenge outstanding. That decision is due next week.

In most cases, GAO bundles protests involving the same contract into a single decision but did not in this instance. Only the Loyal Source protest decision has been released.

Phase one of the competition focused on three three evaluation factors -- corporate experience, scenarios and capabilities. The highest-rated proposals would then move to phase two evaluations that looked at plans, past performance and price.

Loyal was given a “some confidence” score for its plans for contract management, extended absence and backfill coverage, quality control and transition plan. The company received “high confidence” in everything else.

But the "some confidence" score led DHS to judge Loyal as not being one of the highest-rated and eliminate the company from the competition.

Loyal claims it was treated differently from the other competitors because it was evaluated as having weaknesses that should have been deemed the same for its competitors.

The company also claims discussions with DHS could have resolved the weaknesses.

GAO rejected Loyal’s challenge because DHS documented its findings that supported the elimination decision. There was also no requirement to hold discussions with bidders, GAO said.

From GAO's position: it didn’t have the grounds to rule in favor of Loyal.

“The decision to exclude an offeror from a competitive range is a matter within the discretion of the contracting agency,” GAO wrote.

We’ll watch for when the other GAO decisions are released, likely on different grounds.