Diversified Maintenance Systems, Inc.

B-423054.4 Nov 19, 2025 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Diversified Maintenance Systems, Inc. (DMS), a woman-owned small business of Sandy, Utah, protests the cancellation of request for proposals (RFP) No. N62473-22-R-4003, issued by the Department of the Navy, Naval Facilities Engineering Systems Command, for commercial and institutional building alteration, repair, and construction services at Naval Base Ventura County (NBVC), California. DMS contends that the Navy's cancellation of the RFP was unreasonable and a pretext to avoid awarding a contract to DMS. 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: Diversified Maintenance Systems, Inc. File: B-423054.4 Date: November 19, 2025 John C. Dulske, Esq., and Alyssa Isenberg, Esq., Steptoe & Johnson, PLLC, for the protester. Deana Jaeger, Esq., and Erin Hernandez, Esq., Department of the Navy, for the agency. Sarah T. Zaffina, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of an agency's cancellation of a solicitation is denied where the record demonstrates that the agency had a reasonable basis to cancel the solicitation. DECISION Diversified Maintenance Systems, Inc. (DMS), a woman‑owned small business of Sandy, Utah, protests the cancellation of request for proposals (RFP) No. N62473-22-R-4003, issued by the Department of the Navy, Naval Facilities Engineering Systems Command, for commercial and institutional building alteration, repair, and construction services at Naval Base Ventura County (NBVC), California. DMS contends that the Navy's cancellation of the RFP was unreasonable and a pretext to avoid awarding a contract to DMS. We deny the protest. BACKGROUND On November 16, 2022, the Navy issued the RFP as a women-owned small business set‑aside, which contemplated the award of a single indefinite-delivery, indefinite‑quantity job order contract (JOC) for a total 8‑year ordering period for construction projects.[1] RFP at 3, 7. Firm-fixed-price task orders between $2,000 and $1,000,000 would be placed against the JOC and the contractor would “provide [commercial and institutional building construction] alteration, repairs, and construction services with minimal design requirements for new minor construction, facility repair, rehabilitation, and alterations for a broad range of renovation and construction work.” RFP at 3, 103. The JOC was intended to provide rapid response construction work “in a cost effective manner” and this JOC would be “one of many tools for contracting” that the Navy could use to acquire the required construction services in the NBVC area. Id. at 103. The solicitation contemplated award to the responsible offeror whose proposal conforms to the solicitation terms and represents the best value to the government, price and non-price factors considered. Id. at 17‑18. The four non-price factors were: (1) ability to manage multiple simultaneous projects; (2) experience; (3) past performance; and (4) safety. Id. at 17. The combined non-price factors were approximately equal in importance to price, with price becoming more important if the non-price proposals were essentially equal or if the price was either “so high, or low, as to significantly diminish the value of a non-price proposal's superiority to the Government.” Id. at 17-18. After receiving and evaluating proposals, the Navy selected MGS Construction Services, Inc.'s (MGS's) proposal for award. Contracting Officer's Statement and Memorandum of Law (COS/MOL) at 3. Following the award to MGS, DMS filed protests with our Office in October 2024, challenging the agency's evaluation of proposals and best-value determination. Id. The Navy subsequently informed our Office it intended to take corrective action by reevaluating proposals and making a new best-value tradeoff decision, whereupon we dismissed the protests as academic. Diversified Maint. Sys., Inc., B-423054, B-423054.2, Oct. 24, 2024 (unpublished decision). In May 2025, after reevaluating, the agency again determined that MGS's proposal provided the best value and selected it for award. COS/MOL at 4. DMS filed another protest with our Office. While DMS's protest was pending, the Navy reviewed the RFP and determined that the solicitation was outdated and did not represent the agency's current requirements. Diversified Maint. Sys., Inc., B 423054.3, July 2, 2025 (unpublished decision) at 1. Consequently, the Navy notified our Office that it intended to cancel the solicitation, and we dismissed the protest as academic. Id. at 1‑2. This timely protest followed. DISCUSSION DMS argues that the Navy lacks a reasonable basis to cancel the RFP.