Protest Spotlight

(This regular feature highlights protests decided by the Government Accountability Office.)

Agency: Defense Human Resource Activity

Awardee: Interactive Government Holdings

Protester: Task Source/Military Personnel Services Corp.

What GAO found: Task Source protested the award to IGH of a Defense Human Resource Activity contract for support staff services for its Family Employer Programs and Policy Office. The GAO notes DHRA originally awarded the deal to Task Source, but learned that one of the principals of Military Personnel Services Corp. -- with which Task Source had formed a joint venture -- had pleaded guilty to federal bribery charges and that another individual associated with MPSC had previously pleaded guilty to federal bribery charges. The agency terminated the contract and awarded it to IGH, according to GAO.

"Task Source argues that the agency’s actions were improper because it was unreasonable for the agency to have considered the two individuals that had pleaded guilty to federal bribery charges as 'principals' of MPSC," GAO writes. "Task Source also alleges that the agency’s actions were improper because MPSC had withdrawn from the joint venture."

However, GAO denied the protest.

The decision: http://www.gao.gov/assets/680/671403.pdf