BAE Systems Norfolk Ship Repair, Inc. (N00024-21-R-4490)

B-420065 Nov 19, 2021 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights BAE Systems Norfolk Ship Repair, Inc., of Norfolk, Virginia, protests the terms of request for proposals (RFP) No. N00024-21-R-4490, issued by the Department of the Navy for ship repair services for the USS IWO JIMA and the USS MITSCHER. The protester argues that the solicitation does not provide sufficient information regarding what the Navy terms "growth work" requirements, i.e., additional repair work that will be identified and defined during the course of contract performance. BAE argues that this information is needed to enable offerors to intelligently price the work, and also asserts that the growth work terms improperly deviate from mandatory contract clauses. 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: BAE Systems Norfolk Ship Repair, Inc. File: B-420065 Date: November 19, 2021 Mark D. Colley, Esq., Stuart W. Turner, Esq., and Anna L. Dykema, Esq., Arnold & Porter Kaye Scholer LLP, for the protester. Rhonda L. Russ, Esq., and Candace M. Shields, Esq., Department of the Navy, for the agency. Alexander O. Levine, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1.Protest alleging that solicitation fails to provide sufficient information for offerors to compete intelligently and on a common basis is denied where the solicitation provides sufficient information for offerors to price the risks inherent in the agency’s uncertain growth work requirements. 2.Protest alleging that solicitation improperly deviates from mandatory contract clauses is denied where the challenged term does not contravene the clauses. DECISION BAE Systems Norfolk Ship Repair, Inc., of Norfolk, Virginia, protests the terms of request for proposals (RFP) No. N00024-21-R-4490, issued by the Department of the Navy for ship repair services for the USS IWO JIMA and the USS MITSCHER.The protester argues that the solicitation does not provide sufficient information regarding what the Navy terms “growth work” requirements, i.e., additional repair work that will be identified and defined during the course of contract performance.BAE argues that this information is needed to enable offerors to intelligently price the work, and also asserts that the growth work terms improperly deviate from mandatory contract clauses. We deny the protest. BACKGROUND On June 8, 2021, the Department of the Navy issued the RFP, seeking proposals for the maintenance, repair and modernization of the USS MITSCHER (DDG 57) and the USS IWO JIMA (LHD 7) on a fixed-price basis.[1]The solicitation will result in two contracts, one for each ship, and no offeror will be awarded both ship contracts.Agency Report (AR), Tab 1, Conformed RFP at 245. The solicitation includes two base contract line item numbers (CLINs), one for availability preparation and one for advanced material procurement. In addition, the RFP includes several option CLINs with detailed work item specifications included in a defined work package.The RFP also includes multiple level-of-effort-to-completion (LOETC) CLINs, representing growth in the workload that is expected but has not yet been fully defined.Each LOETC CLIN relates expressly to one of the defined option CLINs, and consists of a certain number of pre-priced labor hours and material dollars. [2] Contracting Officer’s Statement/Memorandum of Law (COS/MOL) at 3. The solicitation directs offerors to propose a fully burdened labor rate and a material burden rate to be applied to the LOETC labor hours and material dollars, respectively.The number of labor hours and the material dollars for the LOETC CLINs are based on detailed historical data collected from past ship repair efforts.Id. The solicitation provides that during the performance of the contract, when growth work is identified, the contractor will provide an estimate of labor hours and material dollars to accomplish the effort. RFP at 139-140. If the contractor’s estimate is in line with the agency’s estimate, the agency will sign a growth management record authorizing the work with the hours and materials costs to be subtracted from the pool of pre-priced LOETC hours and materials agreed upon in the contract.COS/MOL at 3. If the contractor’s estimate differs from the agency’s estimate, the parties will negotiate an agreement.Id. If the parties cannot reach agreement, the government may unilaterally direct the contractor to perform using the contractor’s proposed contract labor and material rates, with any dispute regarding the hours and materials costs to be resolved via the Federal Acquisition Regulation (FAR) disputes clause, FAR 52.233-1 (Alt.