Compotech, Inc. ()

B-423368 Jun 12, 2025 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Compotech, Inc., of Brewer, Maine, protests the terms of small business innovation research (SBIR) phase II solicitation, topic AFX24.5, innovative defense-related dual purpose technologies/solutions with a clear Air Force stakeholder need, issued by the Air Force under broad agency announcement (BAA) Department of Defense (DOD) X25.5 commercial solutions opening. Compotech asserts that the solicitation is unduly restrictive of competition and that the agency is improperly treating a non-material requirement as mandatory. We deny the protest. View Decision Decision Matter of: Compotech, Inc. File: B-423368 Date: June 12, 2025 Jason A. Blindauer, Blindauer Law, PLLC, for the protester. Hector Rivera-Hernandez, Esq., and Erika Whelan Retta, Esq., Department of the Air Force, for the agency. Mary G. Curcio, Esq., and John Sorrenti, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protester is not an interested party to challenge solicitation requirements as unduly restrictive of competition where protester can meet the requirements. 2. Requirement in Small Business Innovation Research solicitation that proposal be signed by both a unique customer and a unique end-user is reasonable since it supports agency’s obligation to ensure that there is a customer who will support procurement of the item and an end-user that needs the item. DECISION Compotech, Inc., of Brewer, Maine, protests the terms of small business innovation research (SBIR) phase II solicitation, topic AFX24.5, innovative defense-related dual purpose technologies/solutions with a clear Air Force stakeholder need, issued by the Air Force under broad agency announcement (BAA) Department of Defense (DOD) X25.5 commercial solutions opening. Compotech asserts that the solicitation is unduly restrictive of competition and that the agency is improperly treating a non-material requirement as mandatory. We deny the protest. BACKGROUND The SBIR program is conducted pursuant to the Small Business Innovation Development Act, 15 U.S.C. § 638, which requires certain federal agencies to reserve a portion of their research and development funds for awards to small businesses. The Small Business Administration (SBA) has the statutory obligation to issue policy directives for the general conduct of the government's SBIR programs. See 15 U.S.C. § 638(j); Agency Report (AR), Tab 3, SBIR Program Policy Directive at 3. The SBIR program has three phases: phase I, to determine the scientific, technical, and commercial merit of ideas; phase II, to perform the principal research and development effort resulting in a well-defined, deliverable prototype for particular program needs; and phase III, during which the small business must obtain private or non-SBIR designated public funding to develop the prototype into a viable commercial product for sale to military and/or private sector markets. AR, Tab 3, SBIR Program Policy Directive at 18-25; See Photonics Optics Tech, Inc., B-402967, July 28, 2010, 2010 CPD ¶ 173 at 1-2. The end items that the agency acquires in the first two phases of the SBIR program are typically limited to prototypes or equipment that are incidental to demonstrating the feasibility of technical solutions. Air Force open topics are primarily focused on non-defense commercial solutions to be adapted to meet Air Force stakeholders’ needs. See AR Tab 14, Phase II Solicitation, amend. 1 at 3, 4. Air Force open topics do not state defined technological parameters, as the topics are agnostic of industry, technology, and a specific area that the agency wants to see addressed. Id. at 4. However, offerors are expected to demonstrate a clear understanding of how their existing mature non-defense technical solution can be adapted to meet a specific need of a Department of the Air Force customer. Id. On February 5, 2025, the agency issued the phase II topic release instructions to businesses that had received phase I awards. AR, Tab 12, Phase II Solicitation. The objective of phase II included exploring innovative technologies applicable to both defense and non-defense markets, scaling capability, and growing the industrial base for defense. Id. at 3. Offerors that submitted phase II proposals were expected to demonstrate a “high probability of identifying a product-mission fit between a[n] [Air Force] stakeholder and the proposed adaptation of the non-defense commercial solution.” Id. The topic release instructions explained that this was best accomplished “through a proposal with a mature non-defense technical solution and a clear understanding of its adaptation to meet a[n] [Air Force] customer’s specific need, supported by documentation from a specific motivated, empowered [Air Force] end-user, customer, and technical point of contact . . .