SEMCOR, Inc.; HJ Ford Associates, Inc., B-279794; B-279794.2;

SEMCOR, Inc.; HJ Ford Associates, Inc., B-279794; B-279794.2; BNUMBER: B-279794; B-279794.2; B-279794.3 DATE: July 23, 1998 TITLE: SEMCOR, Inc.; HJ Ford Associates, Inc., B-279794; B-279794.2; B-279794.3, July 23, 1998 ********************************************************************** DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Matter of:SEMCOR, Inc.; HJ Ford Associates, Inc. File: B-279794; B-279794.2; B-279794.3 Date:July 23, 1998 Claire E. Kresse, Esq., Eun K. Chung, Esq., Jonathan D. Shaffer, Esq., and John S. Pachter, Esq., Smith, Pachter, McWhorter & D'Ambrosio, for SEMCOR, Inc., and Richard A. Maresca, Esq., Porter, Wright, Morris & Arthur, for HJ Ford Associates, Inc., protesters. Ronald G. Schumann, Esq., and Marian E. Sullivan, Esq., Department of the Air Force, for the agency. Tania Calhoun, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST While contracting agency improperly relied upon the "expert" exception to full and open competition to justify the award of a sole-source contract to an incumbent contractor for litigation support services, protests that the agency's sole-source award based upon that exception are denied where the record reasonably supports the conclusion that the agency's action more properly should be viewed as a procurement under the exception to full and open competition where there is only one source capable of meeting the agency's needs. DECISION SEMCOR, Inc. and HJ Ford Associates, Inc. protest the decision by the Department of the Air Force to award a sole-source contract to Innovative Technologies Corporation (ITC) for litigation support services associated with the C-130 Gunship Program. SEMCOR and HJ Ford contend that the Air Force improperly relied upon the "expert" exception to full and open competition to justify this sole-source acquisition. We deny the protests. BACKGROUND Gunship Program Litigation Support Rockwell International was awarded an Air Force contract in 1987 to modify C-130 aircraft to a gunship configuration. Three years later, Rockwell submitted a request for equitable adjustment (REA), which was followed by an updated REA in 1991 and a second updated REA in 1995. This last updated REA, valued at $547.45 million plus interest, ultimately formed the basis for a complaint in the Court of Federal Claims. Rockwell Int'l Corp. v. United States, No. 95-425C (Fed. Cl. filed June 26, 1995). Trial is scheduled to commence on October 1, 1999. The Air Force is assisting with trial preparation and is conducting a parallel alternative dispute resolution (ADR) effort as well. The services at issue here support both activities. In late 1994, the Air Force formed a Contract Issues Resolution Team (CIRT) to analyze the REA. The CIRT's government personnel were soon supported by employees of two firms at issue here--ITC and The Analytical System Corporation (TASC). ITC was issued task orders under an existing contract to provide technical and cost/price analysis support to the CIRT. Contract No. F33657-90-D-2248, Task Order Nos. 0014 and 0016, Statement of Work (SOW) para. 3.0. In May 1995, coincidental with the expiration of its should-cost contract, ITC was awarded a contract to provide integrated engineering and technical management support. After Rockwell filed its complaint, ITC was issued a task order to provide engineering, manufacturing, and specialized cost/price analysis support to the CIRT.[1] Contract No. F33657-95-D-2050, Task Order No. 0001 sec. B. The court's June 1996 scheduling order required the parties to image most documents related to the litigation onto electronic media for exchange and to produce various databases associated with the documentation. The period for document production was to end on September 30, 1997; the discovery period was to end on December 1, 1998; and final depositions were to be taken by March 31, 1999. Comprehensive Stipulated Scheduling Order at 12-18, 25-29. ITC was issued a task order to help the government meet these requirements for imaging, databasing, and exchange of documentation. ITC was asked to identify, collect, document, and file all program-related documentation; perform in-depth technical analysis of the issues and detailed cost/price analysis of the claimed damages; support the development and establishment of the database systems; and support Department of Justice (DOJ) attorneys in litigation activities such as depositions, interrogatories, interviews, production of documents, and pre-trial activities. Contract No. F33657-95-D-2050, Task Order No. 0013, SOW para. 2.0. Various modifications extended ITC's performance of this task order to May 26, 1998, the expiration date of its contract.