“Educating the Government Contracting Community”

GAO Decision Limits Affiliate Corporate Experience and Past Performance Credit in Agency Proposal Evaluation

In a recent decision, the Government Accountability Office (GAO) has clarified the extent that an offeror may be credited for the experience or past performance of its parent or affiliated company in agency proposal evaluation.

In IAP World Services, Inc., EMCOR Government Services, two unsuccessful offerors filed protests against the Department of the Navy in part because the agency had “unreasonably credited [awardee] with the corporate experience and past performance” of awardee’s affiliates. The Navy argued that the agency reasonably attributed the awardee’s affiliates’ corporate experience and past performance because the “[awardee]’s proposal demonstrated a sufficient nexus between the affiliate and the awardee.

GAO, however, sided with the protesters. In sustaining the protest, GAO concluded that the agency should not have attributed the experience and past performance of the affiliates to the awardee because as GAO found the affiliates “were not proposed to perform any work or otherwise provide resources under the contract” or that the affiliates would be “meaningfully involved in the performance of the contract.”

(http://www.gao.gov/assets/660/656164.pdf)

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