On March 28, the US Government Accountability Office accepted a protest from contractor Pernix Group Inc. over the US State Department’s decision that it was ineligible to bid on a design-build contract for a new $247 million consulate complex in Adana, Turkey.
Lombard, Ill.-based Pernix submitted a technical and cost proposal for the project last September, after the department’s Office of Overseas Building Operations, which manages the design, construction and ‘operation of all diplomatic properties of the United States, would have deemed him eligible under the first two of the application. phases The Pernix Federal company unit was awarded the contract.
A month later, GAO said that contractor BL Harbert International, which it described as “a disappointed bidder,” protested the award, claiming that Permix should not have been prequalified to submit a proposal.
That protest was dismissed after the department said it was taking corrective action to confirm Pernix’s eligibility.
On December 8, 2023, the department notified Pernix Group that its federal unit as an autonomous entity was not the bidder that was prequalified and said that it was not eligible to submit a technical and price proposal.
Work was due to start on November 30 and end on February 1, 2028. The Adana complex project includes the design and construction of an office building, a support annex, pavilions of ‘access, mail control facilities, service building and residential space for the consul general. , personnel and security, as well as exterior construction. The total construction program is about 14,432 square meters, according to the State’s tender documents.
The department said a In fact The joint venture between Pernix Federal and BE&K Building Group, a wholly owned subsidiary of the parent acquired in 2015, was not eligible for an award because it was not registered to submit a proposal for an overseas construction project. Design firm HOK was also part of the tender team.
Pernix Federal’s protest of that decision was upheld by the GAO, which called the department’s ineligibility determination “unreasonable,” ruling that the strong tie to BE&K “can reasonably be considered a In fact joint venture and eligible to bid for the contract” under the prequalification requirements of the Federal Security Act
“A In fact joint venture where a formal agreement has not been reached, but the offering entity relies on the experience of a US-related company that guarantees performance” may participate and submit a proposal in response to the RFP, GAO said.
It was unreasonable for State to conclude that Pernix was no longer eligible to compete because its Phase 2 submission and Phase 3 proposal were from Pernix Federal, and not the Pernix Group, GAO said, ruling that Pernix Federal should be considered as an autonomous entity. and be reinstated in the competition.
GAO also advised the department to “amend the RFP to remove or revise the impossible requirement that a In fact that the joint venture be registered” with the System for Award Management, a federal registry for all vendors doing business with the government, to clarify registration requirements. Pernix may also claim bid protest costs.
Herbert is allowed to appeal the ruling in federal court, but the company could not be reached for word on whether it will do so. The State Department could not be reached for comment either.
