Importance of a proper NAICS code and product or service code- revisited

I wrote earlier about the importance of using proper codes in FedBizOpps (especially). Recently, the GAO sustained the protest of TMI Management Systems, Inc., (file number B-401530, dated September 28, 2009) when the contracting officer used a product code rather than a service code in the FedBizOpps solicitation.

The GAO stated that Competition in Contracting Act (CICA) requires full and open competition, publicizing requirements and allowing contractors an opportunity to make informed decisions about whether or not to provide a proposal. Similarly, the GAO notes that the FAR says to use FedBizOpps and to use the "most appropriate procurement classification category."

The GAO also found that there were probably other service codes that may have been closer matches to these services needed. The way they tested it out was to see what cods were used by other solicitations that listed the same NAICS code. None were listed with the product classisfication code.

As part of its claim, the protestor claimed they could locate the requirement as they searched using the codes they could perform and the GAO found that that was a reasonable practice and that searching for others codes, assuming the agencies would use the wrong codes, is an unreasonable assumption contractors shold have to make.

In summary, GAO declared that "misclassification of this procurement deprived [the contractor] of an opportunity to respond to the RFP and that [the agency] therefore did not use reasonable methods to obtain full and open competition as required by CICA.

Government, pay the contractor costs and resolicit the requirement.

What to take away? When in doubt, search through FedBizOpps to determine what codes were used for the same NAICS code. Choose a better fit for your requirement.

Comments? Let me know.