Digital Force Technologies, Inc. (FA2381-25-R-B004)

B-423319 May 19, 2025 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Digital Force Technologies, Inc. (Digital Force), of San Diego, California, protests the issuance of Small Business Innovation Research program (SBIR) phase III sole-source solicitation No. FA2381-25-R-B004, to Clear Align, LLC, of Nashua, New Hampshire, by the Department of the Air Force. Digital Force contends that the SBIR phase III solicitation was improperly issued to Clear Align and that the agency is required to issue a competitive solicitation for its requirement. We deny the protest. View Decision Decision Matter of: Digital Force Technologies, Inc. File: B-423319 Date: May 19, 2025 Michael D. McGill, Esq., and Kyung Liu-Katz, Esq., Arnold & Porter Kaye Scholar LLP, for the protester. Colonel Nina R. Padalino, Lawrence M. Anderson, Esq., Hector Rivera‑Hernandez, Esq., Katy A. Schwab, Esq., and Maxim V. Kidalov, Esq., Department of the Air Force, for the agency. Raymond Richards, Esq., and John Sorrenti, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the issuance of a Small Business Innovation Research (SBIR) program phase III solicitation for a sole-source contract is denied where the record demonstrates that the agency is procuring work from a successor‑in‑interest entity that derives from, extends, or completes efforts of an acquired entity performed under prior SBIR contracts. DECISION Digital Force Technologies, Inc. (Digital Force), of San Diego, California, protests the issuance of Small Business Innovation Research program (SBIR) phase III sole‑source solicitation No. FA2381‑25‑R‑B004, to Clear Align, LLC, of Nashua, New Hampshire, by the Department of the Air Force. Digital Force contends that the SBIR phase III solicitation was improperly issued to Clear Align and that the agency is required to issue a competitive solicitation for its requirement. We deny the protest. Background The SBIR program is designed to increase the participation of small business concerns in federally funded research or research and development (R/R&D). See SBIR Program Act of 1982, 15 U.S.C. § 638 (the “SBIR statute”). 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 generally id. 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 concept. 15 U.S.C. § 638(e)(4)(A). If this is successful, a firm may be invited to apply for a phase II award to further develop the concept. Id. § 638(e)(4)(B). A phase III award is defined as work that “derives from, extends, or completes efforts made under prior funding agreements under the SBIR program.” Id. § 638(e)(4)(C). Under this phase, firms are expected to obtain funding from non-SBIR government sources or the private sector to develop the concept into a product for sale in private sector or military markets. This protest involves the agency’s requirement for a tactical security system (TSS). Contracting Officer’s Statement (COS) at 2. Put simply, a TSS is a security and surveillance system. See Agency Report (AR), Tab 3, July 2023 Requirements Document at 2. Specifically, the agency’s requirement is for an “increment 1” TSS which is described as a “modular, scalable, tailorable, lightweight, rapidly deployable, ground‑based security and surveillance system.” Id.; AR, Tab 34, Solicitation at 39. The contemplated TSS will provide ground-based tactical security and surveillance capability to assist security forces defenders in protecting personnel and mission assets at remote deployment locations. AR, Tab 34, Solicitation at 39. The TSS will provide “site situational awareness” through a network including motion detection, video assessment, and other sensing technologies integrated with command and control capability and connectivity to patrolling defenders. Id. Key requirements for the increment 1 TSS involve minimum coverage range, radar coverage, image assessment sensors, ability to operate in high winds, and a maximum weight. COS at 2. By way of background, in September of 2023, the agency sought to procure a different TSS, called increment 0. COS at 3. Based on its market research, the agency determined that Digital Force offered an “increment 0” TSS, and on September 29, 2023, the agency awarded Digital Force a sole‑source contract for the increment 0 TSS. Id. at 3-4. Also in September of 2023, the agency published a request for information (RFI) for the instant requirement, the increment 1 TSS. Id. at 4. Fourteen vendors responded, including Digital Force and Anduril Industries (Anduril).[1] Id. at 5. Clear Align did not respond to this RFI.