The U.S. Government Accountability Office (GAO) has recommended that the U.S. Navy reevaluate its $214 million contract award for the management and operation of its emergency ship salvage material system and global hazardous spill response program. The decision follows the partial sustenance of a bid protest filed by Owl International Inc.
In its April 25, 2025 ruling, the GAO concluded that the Navy failed to assess the realism of professional employee compensation proposals when awarding the contract to PCCI Inc. The protest, filed by Owl International Inc., was partly sustained as the GAO found the Navy’s evaluation process did not comply with Federal Acquisition Regulation (FAR) requirements.
The Navy argued that its September 2023 request for proposals (RFP) did not require an evaluation of professional compensation proposals. However, the GAO disagreed, pointing out that the RFP incorporated a FAR provision (52.222-46) that mandates such an evaluation. The GAO emphasized that this analysis is critical to ensuring that contractors can attract and retain the necessary skilled professionals to deliver quality services under the contract.
GAO’s Findings:
