C3.ai, Inc. (832015495)

B-418676 Jul 28, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights C3.ai, Inc., of Redwood City, California, protests the terms of request for task order proposals (RFTOP) No. 832015495, which was issued by the Defense Information Systems Agency (DISA), Joint Artificial Intelligence Center (JAIC), for the creation and operation of a cloud-based platform where artificial intelligence and machine learning (AI/ML) software and data will be integrated and housed for the Department of Defense. The protester asserts that DISA should obtain the products and services as a commercial item acquisition under Federal Acquisition Regulation (FAR) part 12. The protester also contends the RFTOP is outside the scope of the underlying indefinite-delivery, indefinite-quantity (IDIQ) contract, and that the RFTOP impermissibly increases the maximum value of the underlying contract. We deny 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:  C3.ai, Inc. File:  B-418676 Date:  July 28, 2020 Joseph D. West, Esq., Lindsay M. Paulin, Esq., and Crystal L. Weeks, Esq., Gibson, Dunn & Crutcher LLP, for the protester. Colleen A. Eagan, Esq., and Vera A. Strebel, Esq., Defense Information Systems Agency, for the agency. Stephanie B. Magnell, Esq., and Evan C. Williams, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.  Protest that the agency improperly consolidated commercial and non-commercial items in a single task order procurement, and should instead have obtained the commercial items in separate procurements using the commercial items procedures of Federal Acquisition Regulation part 12, is denied, where the agency had a reasonable basis for the selected procurement structure.  2.  Protest that task order proposal request exceeds the scope of the underlying multiple-award indefinite-delivery, indefinite-quantity contract is denied where the record shows the services sought were reasonably encompassed within the contract’s scope of work. DECISION   C3.ai, Inc., of Redwood City, California, protests the terms of request for task order proposals (RFTOP) No. 832015495,[1] which was issued by the Defense Information Systems Agency (DISA), Joint Artificial Intelligence Center (JAIC), for the creation and operation of a cloud-based platform where artificial intelligence and machine learning (AI/ML) software and data will be integrated and housed for the Department of Defense.  The protester asserts that DISA should obtain the products and services as a commercial item acquisition under Federal Acquisition Regulation (FAR) part 12.[2]  The protester also contends the RFTOP is outside the scope of the underlying indefinite-delivery, indefinite-quantity (IDIQ) contract, and that the RFTOP impermissibly increases the maximum value of the underlying contract. We deny the protest.  BACKGROUND Underlying IDIQ Contract In 2018, DISA concluded its procurement for the Systems, Engineering, Technology and Innovation (SETI) IDIQ contract, making award to 15 large businesses.[3]  COS/MOL at 10.  The SETI contract has eight task areas:  (1) systems engineering; (2) design analysis engineering; (3) systems architecture; (4) software systems design and development; (5) systems integration; (6) systems test and evaluation; (7) systems deployment and life-cycle engineering; and (8) special systems engineering requirements.  SETI Contract at 21.  The total period of performance of the SETI contract is 10 years, consisting of one 5-year base period and one 5‑year option period.  Id. at 3-6. The maximum value of the SETI contract is $7.5 billion, divided into contract line item numbers (CLINs) with different types of payment structures, such as fixed-price, and cost-reimbursement.  Id. at 2-10.  As relevant here, under the SETI contract the total value of all cost-reimbursement CLINs was capped at $75 million per contract period.  Id. at 3, 6.  At award, the total contract value was distributed equally among awardees, but the agency was permitted to later “reallocate the capacity amongst the contract holders, if necessary.”  Id. at 2.  Contested Task Order On November 22, 2019, the agency finalized its JAIC Mission Product Requirements, with the goal of obtaining “a prime product and services integrator to carry the bulk of coordinating activities . . . .”  AR, Tab 4, JAIC Mission Product Requirement at 18.