(Editor's note: This story has been updated to include comments from the Air Force and Blue Origin.)
The Government Accountability Office has sustained Blue Origin's protest of Phase 2 of the Air Force's Launch Services Procurement effort and is recommending the service amend the solicitation.
According to a statement from GAO, the watchdog agency sided with Blue Origin's claim that the Air Force's decision to make a best-value award based on independently developed proposals was "unreasonable."
"GAO sustained the protest, finding that the RFP's basis for award is inconsistent with applicable procurement law and regulation, and otherwise unreasonable," GAO states, adding that the evaluation methodology "does not provide a reasonable, common basis on which offerors will be expected to compete and have their proposals evaluated."
The full decision was placed under a protective order.
Blue Origin filed its protest Aug. 12 -- the same day bids were due for LSP. Despite its concerns, the company submitted a proposal along with SpaceX, Northrop Grumman and United Launch Alliance. Two winners will split the Air Force's National Security Space Launch manifest between 2022 and 2026 -- one company would perform 60% of the launches and the other company 40%.
Blue Origin's protest centered on a number of concerns, including the service's approach of selecting only two companies to launch the five-year launch slate. The company also claimed that the RFP gave incumbent launch providers SpaceX and ULA an unfair advantage.
GAO did not agree with Blue Origin's other challenges, however, opting only to sustain its protest of the best-value language.
The service plans to award contracts in the spring, and officials have said any change to the launch strategy could delay the program up to two years. In a statement today, Air Force spokeswoman Ann Stefanek said the service remains confident in its acquisition strategy and its plan to award contracts in fiscal year 2020.
"We are pleased that GAO has validated the Air Force’s fundamental acquisition strategy and source selection approach for the National Security Space Launch Phase 2 Service Procurement," Stefanek said in the statement. "The Air Force is reviewing the single ground of protest sustained by the GAO and expects to resolve this issue definitively and expeditiously."
Blue Origin CEO Bob Smith said the company is grateful for GAO's "careful consideration of these serious issues."
"This is an important mission to Blue Origin, and we remain committed to our long-term partnership with the Air Force and to working with them as they address the GAO’s recommendations," Smith said in a statement. "We look forward to continuing our participation in this process and working with the Air Force as they incorporate the GAO’s feedback during the LSP source selection."