Protest spotlight

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

Agency: Air Force

Awardee: Engility

Protester: Peraton

What GAO found: Peraton filed a protest of an award made to Engility by the Air Force for engineering, development, integration and sustainment services for Air Force Space Command satellite systems.

Though Engility had received better ratings on technical subfactors, its price was significantly higher. Peraton's evaluated price totaled nearly $54 million, while Engility's was almost $76 million.

"The [source selection authority] recognized that Engility’s proposal 'demonstrated significant technical merit' and 'clear technical advantages' . . . and concluded that the lower prices of the other acceptable proposals were outweighed by the technical advantages of Engility’s higher-priced proposal," GAO wrote in its decision.

But Peraton argued Engility did not meet the solicitation's requirement for small business participation, making it ineligible for award.

GAO backed Peraton's concerns, calling the Air Force's evaluation of the small business element "unreasonable, inconsistent with the terms of the solicitation and undocumented."

"[B]ased on the plain language of Engility's proposal and a reasonable application of the solicitation's methodology for calculating the small business participation percentage, Engility's proposal failed to meet the minimum requirement of 25% small business participation and, therefore, was technically unacceptable and ineligible for award," GAO writes. "[I]t is a fundamental principle in a negotiated procurement that a proposal that fails to conform to a material solicitation requirement is technically unacceptable and cannot form the basis for award."

GAO recommends the Air Force review the solicitation and its small business participation requirement. If it maintains the requirement, it should terminate the contract awarded to Engility and reevaluate the proposals or obtain revised proposals. Alternatively, the Air Force may revise the terms of the solicitation and accept revised proposals, GAO notes.

Read the decision.