Matter of: Electronic Design, Inc.

B-279662.5 May 25, 1999 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST An offeror's access to ship configuration drawings under a solicitation for ship alterations is not an unfair competitive advantage where the solicitation sufficiently identifies requirements for preparing proposals for all offerors and the offeror's access to the drawings is not the result of unfair motives or actions on the part of the government. The protest is denied. Litton's proposed price was $129. 000 and EDI's was $150. It is necessary to first discuss the Navy's repair and modernization contracts. After a ship is built for the Navy. There generally are three types of contracts related to its repairs and modernization. An availability contract is generally to perform repairs and upgrades on a specific ship. View Decision Matter of: Electronic Design, Inc. File: B-279662.5 Date: May 25, 1999 DIGEST Attorneys DECISION Electronic Design, Inc. protests an award to Litton Integrated Systems Corporation, Guidance and Control Systems Division, under request for proposals (RFP) No. N00024-98-R-4013, issued by the Department of the Navy, Naval Sea Systems Command, for integrated ship control system upgrades for CG 47 Ticonderoga class ships. Electronic Design contends that Litton had an unfair competitive advantage. The protest is denied. The RFP, as amended, contemplated the award of a fixed-price contract, with options, for upgrades on 27 CG 47 class ships through fiscal year 2004. RFP amend. 011, at 2, 8-13; Agency Supplemental Report, Apr. 26, 1999, at 11. The Navy received four proposals, including EDI's and Litton's, by the closing date of February 27, 1998. Agency Supplemental Report at 14. After conducting discussions and evaluations, the Navy awarded a $138,624,300 contract to Litton on May 14. Id. at 17. On May 22, EDI protested that award and on May 27 the Navy issued a stop work order under Litton's contract. Id. On August 31, our Office sustained EDI's protest, finding that the agency had not considered price as a significant evaluation factor and had unequally applied a stated page limitation to the proposals. Electronic Design, Inc., B-279662.2 et al., Aug. 31, 1998, 98-2 CPD Para. 69. In response, the Navy reopened the competition to the four original offerors and amended the RFP. Agency Report at 4; Agency Supplemental Report at 17. The Navy received three revised proposals by the closing date of November 16, including Litton's and EDI's. /1/ Agency Report at 4. Following discussions, the Navy requested and received final proposal revisions by January 21, 1999. Id. Litton's proposed price was $129,875,000 and EDI's was $150,509,831. Id. The Navy again selected Litton's proposal for award and on February 4 lifted the stop work order. Id. The present protest followed. EDI's protest concerns an alleged unfair competitive advantage of Litton in the recompetition arising from Litton's access to detailed current configuration drawings of CG 47 class ships obtained from Ingalls Shipbuilding, Inc.--a corporate affiliate of Litton, a subcontractor under Litton's proposal, and the Navy's planning yard contractor for the CG 47 class ships. Protest at 8-10. In order to resolve this issue, it is necessary to first discuss the Navy's repair and modernization contracts, Ingalls' planning yard contract, and the CG 47 current configuration information that Ingalls provided to Litton after EDI's initial protest. After a ship is built for the Navy, there generally are three types of contracts related to its repairs and modernization. Agency Supplemental Report at 4. A planning yard contract provides for general engineering and technical support for a class or classes of ships. Id. An availability contract is generally to perform repairs and upgrades on a specific ship. Id. A ship alteration (SHIPALT) contract is for the design and installation of a new system and, though separate from the availability contract, installation of the new system on a specific ship is often performed during the same time as the availability contract for the ship. Id. The contract awarded under the present RFP is a SHIPALT contract. Id. at 4, 11. Planning yard functions are carried out in accordance with the Fleet Modernization Program (FMP) Management and Operation Manual, which designates the planning yard contractor as the "engineering design agent for assigned specific classes of ships" and states its corresponding responsibilities. Id. at 5; Agency Report, Tab 19. When the Navy undertakes a modernization project on its ships, the planning yard contractor is typically tasked with developing a ship alteration record (SAR) and ship installation drawings (SID), and with performing shipchecks. Agency Supplemental Report at 5. The SAR provides the basic criteria for the development of design, installation drawings, other documentation, and a record of the Navy's approval of the ship configuration change.