GAO Sustains Protests of $1.9B Air Force Florida O&M Award

The Government Accountability Office (GAO) sustained protests challenging the U.S. Air Force’s Elgin Operations and Maintenance Services II procurement, valued at approximately $1.87 billion to $1.9 billion. The contract covers operations and maintenance, as well as research, development, testing, and training support services at an Air Force base in Florida. The dispute centers on the Air Force’s inadvertent disclosure of pricing information to one bidder during the competition and whether that information compromised the integrity of the procurement.

After the initial disclosure, the Air Force took corrective action that included distributing the pricing information to all offerors in an effort to level the competitive landscape. The agency later concluded that the disclosure did not affect the award to Strategic Test Solutions (STS) LLC’s joint venture. GAO rejected the agency’s reasoning, finding that it had no reliable way to determine whether the leaked information influenced STS’s proposal. GAO also criticized the use of a later disclosure to all bidders as a means of mitigating the earlier disclosure to one bidder, stating that this approach was “unavailing.”

The pricing change intensified the concern. Following disclosure of the information, STS reduced its proposed price by $72 million, bringing it below Fluor Corp.’s proposed price. STS told GAO it could not determine how the disclosed information affected its pricing because it had already been considering a price reduction. The Air Force relied in part on that statement to conclude there was no impact. GAO found that conclusion unreasonable: if STS itself could not quantify the effect, the agency lacked a basis to conclude the effect was zero. GAO said the agency’s conclusion “strains credulity.”

For contractors, the decision puts the award outcome and schedule back in play. The Air Force must either reassess the impact of the disclosure, reevaluate the proposals as appropriate, and make a new award decision, or cancel the solicitation and start over to restore the “integrity of the procurement.” Reliance Test & Technology, which demonstrated the disclosure issue in its protest, and Fluor, which filed a subsequent protest, are among the competitors affected by the next steps. Incumbents and other offerors should monitor the agency’s response, preserve proposal and pricing records, and consider how a reassessment or new solicitation could alter their pursuit plans.

• The procurement is the Air Force’s Elgin Operations and Maintenance Services II requirement, valued at approximately $1.87 billion to $1.9 billion.
• GAO sustained protests after the Air Force inadvertently disclosed one bidder’s pricing information during the competition.
• The Air Force later shared the pricing data with all offerors, but GAO said that step did not adequately mitigate the original disclosure.
• Strategic Test Solutions’ joint venture received the award and reduced its price by $72 million after the disclosure.
• STS said it could not determine whether the disclosed information influenced its price; GAO found the Air Force could not reasonably infer that there was no impact.
• Reliance Test & Technology raised the disclosure issue in its protest; Fluor Corp. filed a subsequent protest.
• GAO directed the Air Force to reassess the disclosure’s impact and make a new award decision, or cancel the solicitation and resolicit.
• Offerors should retain pricing models, proposal versions, communications, and other records that could help establish whether disclosed information affected their competitive positions.
• Contractors should plan for possible evaluation changes, a delayed award, or a new competition when budgeting pursuit costs and assigning proposal resources.