U.S. AGENCY DENIES GUAM CONTRACT CHALLENGE

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GAO finds no fault in Navy housing award

HAGÅTÑA, Guam (Marianas Business Journal, March 29, 2010) – The U.S. Government Accountability Office (GAO) has denied the motion to reconsider its decision on the protest by the Global Food Services (GFS) Group LLC of the awarding of the Navy's housing maintenance contract. The contract, for housing operations and maintenance, and change-of-occupancy maintenance services for Navy Region Marianas was awarded to Chugach World Services on June 22, 2009. Protests were filed by GFS Group, which had previously held the contract, and two other bidders - Bering Straits Technical Services LLC and AMI-ACEPEX JV. All protests were denied, GFS Group's on Sept. 14, 2009, AMI-ACE-PEX's on Sept. 30, 2009, and Bering Straits' on Oct. 7, 2009. GFS Group filed for reconsideration on Sept. 24, 2009; the decision to deny the reconsideration is dated March 3.

"We were disappointed [about the denial]," said David A. Alcorn, vice president of business development for GFS. "We feel that the GAO didn't really respond to our complaint." It is GFS' contention that Naval Facilities Engineering Command Marianas, the contracting entity, did not evaluate the past performance of the bidders using the procedure indicated in the request for proposal. Had the company known which evaluation procedure was actually to be used, it would have structured its bid proposal differently. "We could have gone to federal court, but we decided to just move on," Alcorn said.

The contract is for a base period and four one-year option periods. On Jan. 29, the first option period on the contract was exercised when Chugach was awarded a US$23.54 million contract modification.

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