QBE LLC (RFP-PEO-EIS-AIT)

B-421737.2 Oct 26, 2023 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights QBE, LLC, a small business of Haymarket, Virginia, protests the cancellation of a request for proposals (RFP), issued by the Department of the Air Force, for all management, technical, and non-technical skills needed for modernizing and hardening allied digital infrastructure. The protester contends that the agency failed to provide a reasonable basis for the cancellation. 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: QBE LLC File: B-421737.2 Date: October 26, 2023 John R. Tolle, Esq., and H. Todd Whay, Esq., Baker, Cronogue, Tolle & Werfel, LLP, for the protester. Colonel Frank Yoon, Heather L. Thom, Esq., and Ashley R. Ruhe, Esq., Department of the Air Force, for the agency. Michelle Litteken, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly canceled solicitation is denied where the record demonstrates that the agency reasonably determined that the solicitation no longer reflected its requirements. DECISION QBE, LLC, a small business of Haymarket, Virginia, protests the cancellation of a request for proposals (RFP), issued by the Department of the Air Force, for all management, technical, and non-technical skills needed for modernizing and hardening allied digital infrastructure.[1] The protester contends that the agency failed to provide a reasonable basis for the cancellation. We deny the protest. BACKGROUND In the fall of 2021, the Department of the Army’s Program Executive Office Enterprise Information Systems asked the Air Force to provide foreign military sales acquisition and contracting assistance for the requirement at issue here, referred to as the program management office support acquisition. Contracting Officer’s Statement (COS) at 2. The scope of the acquisition included all management, technical, and non-technical skills adequate for modernizing and improving the security of digital infrastructure of countries allied with the United States. Id. The Air Force conducted the procurement under the Foreign Military Sales (FMS) program, which is authorized by the Arms Export Control Act, 22 U.S.C. § 2751. The FMS program was designed to promote the policy of the United States to facilitate the common defense by entering into international arrangements with friendly countries to achieve specific national defense requirements and objectives of mutual concern. 22 U.S.C. § 2751. Sales under the program are conducted using formal contracts, termed “letters of offer and acceptance” (LOAs) between the United States government and authorized foreign purchasers. Under the FMS program, if a foreign government provides written direction requesting a specific source for services it is procuring--including in the form of an LOA--the requirement may be procured on a non-competitive basis. 10 U.S.C. § 3204(e)(4)(E); Defense Federal Acquisition Supplement (DFARS) provision 206.302-4; see also Federal Acquisition Regulation (FAR) 6.302-4(b)(1). In March 2022, the Army provided the Air Force with a performance work statement (PWS) for the acquisition. COS at 2. The Air Force then posted a sources sought notice on the System for Award Management website to assess industry interest and capability for the requirement. Id. at 2-3. When the posting closed on April 1, 2022, the Air Force had received responses from four interested firms, including the protester.[2] Id. at 3. Subsequently, in January 2023, the Army informed the Air Force that it would provide LOAs to support the direct award of an indefinite-delivery, indefinite-quantity (IDIQ) contract to QBE. COS at 3. The Army expected to have LOAs from three countries requesting support from QBE.[3] Id. The Army requested that the Air Force issue an IDIQ contract because it could not determine the precise quantity of services that would be needed. Id. at 4. The Army intended to issue task orders under the IDIQ contract to QBE for additional countries when a foreign government executed an LOA and directed support from QBE. Id. Based on the executed and anticipated LOAs, the Air Force initiated a sole-source award to QBE. Id. at 4. The Air Force described the authority for the contract as follows: “There are multiple LOAs and [letters of request (LORs)] [] requesting the vendor/contractor by name or reference. Future LOAs/LORs are expected to include the same vendor and to that end this IDIQ is being generated.” AR, Tab 11, International Agreement Competition Restriction (ICAR) at 1. The Air Force then sent a solicitation to QBE. COS at 4-5; MOL at 2; AR, Tab 16, RFP.