PURVIS Systems, Inc., B-293807.3; B-293807.4, August 16, 2004

PURVIS Systems, Inc., B-293807.3; B-293807.4, August 16, 2004 TITLE: PURVIS Systems, Inc., B-293807.3; B-293807.4, August 16, 2004 BNUMBER: B-293807.3; B-293807.4 DATE: August 16, 2004 ********************************************************************** Decision Matter of: PURVIS Systems, Inc. File: B-293807.3; B-293807.4 Date: August 16, 2004 William L. Walsh, Jr., Esq., J. Scott Hommer, III, Esq., Benjamin A. Winter, Esq., and Julia M. Kiraly, Esq., Venable, for the protester. Anne B. Perry, Esq., John W. Chierichella, Esq., and Aleksander Lamvol, Esq., Sheppard, Mullin, Richter & Hampton, for Northrop Grumman Mission Systems, Inc., an intervenor. John McC. Treanor, Esq., Department of the Navy, for the agency. Glenn G. Wolcott, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest is sustained where agency failed to reasonably consider or evaluate potential conflicts of interest that will be created by awardee*s involvement in evaluating the performance of undersea warfare systems that have been manufactured by the awardee or by the awardee*s competitors. DECISION PURVIS Systems, Inc. protests the Department of the Navy*s award of a contract to Northrop Grumman Defense Mission Systems, Inc. under request for proposals (RFP) No. N00189-03-R-0038 to provide analytical and technical support for two Navy programs--the Ship Anti-submarine Warfare Readiness Effectiveness Measuring (SHAREM) program and the Mine Readiness Effectiveness Measuring (MIREM) program. PURVIS protests that the agency failed to properly evaluate potential organizational conflicts of interest and conducted misleading discussions. We sustain the protest. BACKGROUND The SHAREM and MIREM programs are anti-submarine and anti-mine programs, sponsored by the Chief of Naval Operations (CNO), that assess the readiness and effectiveness of the Navy*s surface forces. RFP at 79. The SHAREM and MIREM programs involve at-sea exercises, during which one or more naval battle groups are tested and evaluated with regard to their effective employment of anti-submarine and anti-mine warfare techniques. The RFP states that the at-sea exercises are used *to evaluate the performance of surface, air, and subsurface USW [undersea warfare] systems and techniques to develop new tactics and improve existing fleet and unit USW tactics.* Id. at 79-80. The solicitation at issue here was issued in October 2003, seeking proposals to *provide analytical and technical support services* for the SHAREM and MIREM programs during a base period and four 1-year option periods. Id. at 79. The solicitation*s statement of work (SOW) identified *typical tasks or areas of work,* including: exercise planning and preparation,[2] conducting and observing an exercise,[3] exercise summary review and message preparation,[4] exercise reconstruction and analysis,[5] program analysis,[6] and program intermediary and longa**range planning.[7] Id. at 80a**83. Section M of the solicitation advised offerors that proposals would be evaluated against the following factors, listed in descending order of importance: technical performance plan,[8] past performance,[9] cost, and socioeconomic factors. Offerors were further advised that, in evaluating the non-cost evaluation factors, the agency would apply adjectival ratings of *outstanding,* *highly acceptable,* *acceptable,* *marginal,* and *unacceptable.*[10] Id. at 153-55.