Lockheed Martin Integrated Systems, Inc.

B-410189.7 Aug 10, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Lockheed Martin Integrated Systems, Inc. (LMIS), of Bethesda, Maryland, requests that we reconsider our decision in Lockheed Martin Integrated Sys., Inc., B-410189.5, B-410189.6, Sept. 27, 2016, 2016 CPD ¶ 273, in which we denied LMIS' protest challenging the Department of the Army, U.S. Army Corps of Engineers' (Corps), decision to exclude from award consideration the firm's proposal under solicitation No. W912DY-13-R-0004, which was issued for management and technical support services. LMIS argues that our decision contained errors of law that warrant reconsideration. We deny the request for reconsideration. We deny the request for reconsideration. View Decision 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. Decision Matter of:  Lockheed Martin Integrated Systems, Inc.--Reconsideration File:  B-410189.7 Date:  August 10, 2017 Michael F. Mason, Esq., Michael D. McGill, Esq., Brendan M. Lill, Esq., Stacy M. Hadeka, Esq., and Christine Reynolds, Esq., Hogan Lovells US LLP, for the protester. Ryan A. Black, Esq., and Steven W. Feldman, Esq., Department of the Army, U.S. Army Corps of Engineers, for the agency. Noah B. Bleicher, Esq., and Peter H. Tran, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Request for reconsideration is denied where the requesting party has not shown that our decision contains errors of fact or law that warrant reversal or modification of the decision. DECISION Lockheed Martin Integrated Systems, Inc. (LMIS), of Bethesda, Maryland, requests that we reconsider our decision in Lockheed Martin Integrated Sys., Inc., B‑410189.5, B-410189.6, Sept. 27, 2016, 2016 CPD ¶ 273, in which we denied LMIS’ protest challenging the Department of the Army, U.S. Army Corps of Engineers’ (Corps), decision to exclude from award consideration the firm’s proposal under solicitation No. W912DY-13-R-0004, which was issued for management and technical support services.  LMIS argues that our decision contained errors of law that warrant reconsideration. We deny the request for reconsideration. BACKGROUND The request for proposals (RFP), which was issued on December 5, 2013, and limited to offerors holding a General Services Administration (GSA) Alliant Government-Wide Acquisition Contract (GWAC), sought proposals for management and technical support services for the Department of Defense’s high performance computing modernization program.  RFP at 1, 8.  The solicitation contemplated the issuance of a hybrid task order with fixed-price, cost-reimbursable, and cost-plus-incentive-fee line items, for a base year and four option years.  Id. at 8, 156.  The estimated value of the task order was $600 million.  Contracting Officer’s Statement/Memorandum of Law (COS/MOL) at 1. Pursuant to the RFP, the task order was to be issued on a best-value basis, considering four evaluation factors:  technical capability, past performance, small business participation, and cost/price.  RFP at 176.  With respect to cost/price, the RFP advised that the Corps would evaluate “all aspects of the price proposal for fairness, reasonableness, and realism,” and would determine whether the proposed cost/price was realistic for the work to be performed, reflected a clear understanding of the requirements, and was consistent with the methods of performance described in the proposal.  Id. at 179.  The RFP further advised that the agency could reject an offer that reflected a “serious lack of cost/price realism.”  Id. Several firms, including LMIS and Science Applications International Corporation (SAIC), submitted proposals in response to the RFP.  LMIS proposed to use its Information Systems & Global Solutions (IS&GS) line of business as the organization to perform the order.  Agency Report (AR), Tab 1, Vol. II, LMIS Cost Proposal, at 119.  SAIC proposed to subcontract a portion of the work--13.85 percent of the labor hours--to Leidos, Inc.  AR, Tab 6, Vol. II, SAIC Cost Proposal, at 2; Tab 7, Source Selection Evaluation Board (SSEB) Report, at 13. Following an initial award to SAIC, a subsequent bid protest, and corrective action in response thereto, the agency conducted new rounds of discussions and performed a re‑evaluation of revised proposals from December 2015 through June 2016.  COS/MOL at 1-2.  During this period, as outlined in a January 26, 2016, press release, LMIS entered into a “definitive agreement” to separate its IS&GS business segment--the unit proposed for performance--and combine the business unit with a different corporation, Leidos Holdings, Inc., in a Reverse Morris Trust transaction.  AR, Tab 2, LMIS Press Release, Jan.