ASRC Federal Data Network Technologies, LLC ()

B-418765 Aug 28, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights ASRC Federal Data Network Technologies, LLC (AFDNT), a small business of McLean, Virginia, protests the issuance of a small business innovation research (SBIR) phase III sole-source task order to American Systems Corporation, of Chantilly, Virginia, by the Defense Health Agency (DHA) for the modernization of an existing military healthcare delivery system. AFDNT contends that the agency's phase III order was improper because it did not derive from, extend, or complete a prior SBIR phase I or II agreement performed by American Systems. 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:  ASRC Federal Data Network Technologies, LLC File:  B-418765 Date:  August 28, 2020 Damien C. Specht, Esq., James A. Tucker, Esq., and Caitlin A. Crujido, Esq., Morrison & Foerster LLP, for the protester. Katherine B. Burrows, Esq., and Nathanael D. Hartland, Esq., Nelson Mullins Riley & Scarborough LLP, for American Systems Corporation, the intervenor. Morgan Hilgendorf, Esq., and Timothy J. Haight, Esq., Defense Health Agency, for the agency. John Sorrenti, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency’s issuance of a small business innovation research (SBIR) phase III sole-source task order was improper because the work required by the order did not derive from, extend, or complete a prior SBIR phase I or II agreement is denied where protester fails to show that the order’s requirements do not incorporate any original concepts, findings, ideas, or research results generated through performance of a prior SBIR phase I or II contract. DECISION ASRC Federal Data Network Technologies, LLC (AFDNT), a small business of McLean, Virginia, protests the issuance of a small business innovation research (SBIR) phase III sole-source task order to American Systems Corporation, of Chantilly, Virginia, by the Defense Health Agency (DHA) for the modernization of an existing military healthcare delivery system.  AFDNT contends that the agency’s phase III order was improper because it did not derive from, extend, or complete a prior SBIR phase I or II agreement performed by American Systems. We deny the protest. BACKGROUND The SBIR program was established under the Small Business Innovation Development Act of 1982, and is codified in section 98 of the Small Business Act.  15 U.S.C. § 638.  The program is designed to increase the participation of small business concerns in federally funded research or research and development (R/R&D). See id.  Pursuant to this authority, certain federal agencies are required to provide a program under which a portion of the agency’s R/R&D effort is reserved for award to small business concerns.  See id. § 638(e)(4).  The SBIR program has three phases.  Under phase I, firms competitively apply for an award to test the scientific, technical, and commercial merit and feasibility of a certain concept.  15 U.S.C. § 638(e)(4)(A).  Under phase II, a firm may submit a proposal to further develop the concept that it first conceived in phase I.  Id. § 638(e)(4)(B).  For phase III, the Small Business Act provides that “where appropriate,” there may be a “third phase for work that derives from, extends, or completes efforts made under prior funding agreements under the SBIR program.”  Id. § 638(e)(4)(C).  Under phase III, firms obtain funding from non-SBIR government sources or the private sector to develop concepts from a phase I or II award into commercial products or products or services for use by the federal government.  Id. This protest involves the Theater Medical Information Program - Joint (TMIP-J) healthcare delivery system, which comprises at least 11 different software systems and products that collect a variety of data related to the healthcare of service members.  See Contracting Officer’s Statement (COS) at 2-3.  According to the agency, the TMIP-J “enhances the clinical care and information capture at all levels of care in [t]heater, transmits critical information to the [t]heater [c]ommander, [identifies] the evacuation chain for combat and non-combat casualties and forges the theater links of the longitudinal health record to the [military healthcare system] and the Department of Veterans Affairs.”  Id. at 3.  TMIP-J also supports healthcare delivery, including “the application of routine and emergency medical practices such as preventive, routine, emergency, surgical, enroute care, and diagnostic care in complex dynamic environments.”  Id.  The TMIP-J software suite is used by all branches of the Armed Forces to provide healthcare data and logistics for service members deployed around the world.  See id.