Oracle America, Inc.

B-416061 May 31, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Oracle America, Inc., of Reston, Virginia, challenges the Department of the Army's entry into an other transaction agreement (OTA) with REAN Cloud LLC (REAN), of Herndon, Virginia, which was awarded as a follow-on production OTA (P-OTA) under 10 U.S.C. 2371b(f) for cloud migration and cloud operation services. Oracle contends that, in entering into the P-OTA, the Army did not properly exercise the authority granted to it under the statute. We sustain the protest. We sustain the protest. 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:  Oracle America, Inc. File:  B-416061 Date:  May 31, 2018 Marcia G. Madsen, Esq., David F. Dowd, Esq., Luke Levasseur, Esq., Roger V. Abbott, Esq., and Michael J. Word, Esq., Mayer Brown LLP, for the protester. A. Jeff Ifrah, Esq., and Whitney A. Fore, Ifrah Law, for REAN Cloud LLC, the intervenor. Rachel E. Woods, Esq., and Wade L. Brown, Esq., Department of the Army, for the agency. Stephanie B. Magnell, Esq., and Amy B. Pereira, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protester is an interested party to protest that the agency improperly used its other transaction authority to enter into a follow-on production transaction, where the protester’s interest in a competed solution if the protest is sustained is sufficient for it to be considered an interested party.  2.  Protest of the agency’s entry into a follow-on production transaction under the agency’s other transaction authority is sustained, where the agency did not comply with the requirements of the statute. DECISION Oracle America, Inc., of Reston, Virginia, challenges the Department of the Army’s entry into an other transaction agreement[1] (OTA) with REAN Cloud LLC (REAN), of Herndon, Virginia,  which was awarded as a follow-on production OTA (P-OTA) under 10 U.S.C. § 2371b(f) for cloud migration and cloud operation services.  Oracle contends that, in entering into the P‑OTA, the Army did not properly exercise the authority granted to it under the statute.  We sustain the protest.  BACKGROUND Statutory Background Section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. No. 103-160), as amended by section 804 of the National Defense Authorization Act for Fiscal Year 1997, Pub. L. No. 104-201, granted the Department of Defense (DoD) the authority to enter into OTAs for prototype projects.  Section 815 of the National Defense Authorization Act for Fiscal Year 2016, Pub. L. No. 114-92, repealed section 845 and codified at 10 U.S.C. § 2371b DoD’s authority to use OTAs for prototype projects.[2]  Transactions for these prototype projects may be entered into if they are “directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the Department of Defense, or to improvement of platforms, systems, components, or materials in use by the armed forces.”  10 U.S.C. § 2371b(a)(1).  Section 867 of the National Defense Authorization Act for Fiscal Year 2018, Pub. L. No. 115-91, established a preference for use of other transaction authority in circumstances determined appropriate by the Secretary of Defense.  In their current form, the provisions of 10 U.S.C.