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B-401531,B-401531.2,B-401531.3 1 (2009-10-05)

handle is hein.gao/gaobadbbl0001 and id is 1 raw text is: 




         G    A     0Comptroller General
       Accountability * Integrity * Reliability                      of the United States
United States Government Accountability Office       DOCUMENT   FOR PUBLIC RELEASE
Washington, DC 20548 The decision issued on the date below was subject to a
                                                    GAO Protective Order. This redacted version has been
                                                    approved for public release.

         Decision

         Matter  of:  ACS Education Solutions, LLC

         File:        B-401531; B-401531.2; B-401531.3

         Date:        October 5, 2009

         James J. McCullough, Esq., and Steven A. Alerding, Esq., Fried, Frank, Harris,
         Shriver & Jacobson, for the protester.
         William L. Walsh, Esq., J. Scott Hommer, Esq., Patrick R. Quigley, Esq., and Jeffery
         M. Chiow, Esq., Venable, for SLM Corporation; John R. Tolle, Esq., and Bryan R.
         King, Esq., Barton, Baker, Thomas & Tolle, for Nelnet, Inc.; and Thomas A. Coulter,
         Esq., Nicole Hardin Brakstad, Esq., and Lawrence B. Cann, III, Esq., LeClairRyan, for
         Pennsylvania Higher Education Assistance Agency, the intervenors.
         Jeffrey C. Morhardt, Esq., and Antonier White, Esq., Department of Education.
         David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO,
         participated in the preparation of this proposal.
         DIGEST

         Protest of award of four indefinite-delivery/indefinite-quantity, performance-based
         contracts for servicing direct federal student loans is denied where agency
         reasonably determined that while incumbent protester's offer would mitigate risk
         during transition and benefit government in the short term, these advantages were
         not worth the increased overall cost to the government resulting from the refusal of
         the protester (unlike the awardees) to accept the agency's proposed common pricing
         terms, and protester's proposal to continue servicing loans transferred from its
         contract would frustrate contemplated performance-based approach under the
         acquisition and introduce uncertainty in contract administration.
         DECISION

         ACS  Education Solutions, LLC, of Germantown, Maryland, protests the Department
         of Education, Office of Financial Student Aid's (FSA) award of contracts to Great
         Lakes Educational Loan Services, Nelnet, Inc., Pennsylvania Higher Education
         Assistance Agency (PHEAA), and SLM Corporation (Sallie Mae), under Phase II of
         request for proposals (RFP) No. FSA-TitlelV-09, for student loan management and
         servicing. ACS challenges the evaluation of proposals and resulting source selection.


We deny the protest.