Ho-olaulima Government Solutions, LLC ()

B-421958,B-421958.2 Dec 19, 2023 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Ho'olaulima Government Solutions, LLC (HGS), of San Antonio, Texas, protests the Department of the Navy's notice of intent to award a sole-source contract to Epsilon, Inc. to provide classified information technology (IT) services, a classified data center, and office space to support the F-35 Lightning II Joint Program Office (JPO). HGS asserts that the agency unreasonably concluded that only Epsilon is able to meet the agency's requirements. Protest at 12-22. 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: Ho-olaulima Government Solutions, LLC File: B-421958; B-421958.2 Date: December 19, 2023 John C. Dulske, Esq., Alyssa Isenberg, Esq., and Evan Janc, Esq., Steptoe & Johnson, PLLC, for the protester. James W. Norment, Esq., and Hugh R. Overholt, Esq., Ward and Smith, PA, for Epsilon, Inc., the intervenor. Tricia A. Nicewicz, Esq., Brooke N. Didier, Esq., and Caroline H. Cobb, Esq., Department of the Navy, for the agency. Glenn G. Wolcott, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging agency’s intent to award on a sole-source basis is denied where the agency reasonably concluded, based on its market research, that only one potential offeror was capable of meeting the agency’s stated requirements, and similarly reasonably determined that the protester failed to demonstrate such capability. 2. Protester is not an interested party to protest the agency’s notice of intent to award a sole-source contract where the agency reasonably concluded that protester failed to demonstrate its ability to meet the agency’s needs. DECISION Ho’olaulima Government Solutions, LLC (HGS), of San Antonio, Texas, protests the Department of the Navy’s notice of intent to award a sole-source contract to Epsilon, Inc. to provide classified information technology (IT) services, a classified data center, and office space to support the F-35 Lightning II Joint Program Office (JPO).[1] HGS asserts that the agency unreasonably concluded that only Epsilon is able to meet the agency’s requirements. Protest at 12-22.[2] We deny the protest. BACKGROUND The agency states that the F-35 program is currently supported by a classified data center housed in a building in Arlington, Virginia, which is leased by the Department of Defense, Washington Headquarters Services (WHS), on behalf of JPO and other government agencies. COS/MOL at 3. In May 2022, WHS advised JPO that this lease will expire in September 2025 and will not be renewed. Id.; see Agency Report (AR) Exh. 13, Memorandum Regarding Lease Termination Plan at 1-2. Accordingly, the agency began to review alternative facilities that might meet its requirements to support the F‑35 program.[3] At the outset of this review, WHS identified a privately-owned classified data center in [DELETED][4] that appeared to meet the F-35 program requirements. COS/MOL at 4; AR, Exh. 6, Market Research Report at 1-3. In March 2023, consistent with the requirements of FAR part 10, Market Research, the agency published two requests for information (RFIs), along with draft statements of work, to determine if there were other facilities that could meet the F-35 program requirements. Among other things, the RFIs stated: “The contractor shall provide and lease [a] classified data center and classified office space on behalf of the government within 45 miles of the Pentagon,” and further provided that the data center must: “meet or exceed ICD [Intelligence Community Directive] 705 standards”;[5] require no “construction cost[s] or modifications”; and be “move-in . . . ready.”[6] AR, Exh. 4, Second RFI at 43. In response to the RFIs, the agency received several submissions, including those of Epsilon and HGS. AR, Exh. 10, Epsilon RFI Response (March 6, 2023); Exh. 11, HGS RFI Response (March 28, 2023). In its response, Epsilon identified the location of its facility;[7] provided specific information demonstrating that the existing data center was ICD 705 compliant, SAP (special access program) accredited, and immediately available. AR, Exh. 10, Epsilon RFI Response at 1-9. More specifically, Epsilon’s response provided detailed descriptions and schematics of its data center, noting its compliance with both ICD 705 and “ANSI/TIA-942 standard for data centers.”[8] Id. Finally, Epsilon provided a letter from [DELETED] stating that [DELETED] and Epsilon [DELETED] in responding to the agency’s requirements. Id.