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The Navy did not assess the professional compensation proposals submitted by PCCI and Owl International, nor did it evaluate whether these proposals were lower than the incumbent’s compensation.
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The failure to conduct this required analysis led the GAO to sustain Owl International’s protest.
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The GAO recommended that the Navy reassess the proposals in accordance with the FAR provision, with the possibility of rejecting any proposals found to be unrealistically low.
While the GAO denied other protest grounds, including Owl International’s concerns about PCCI’s financial condition and the Navy’s evaluation of various proposal aspects, the decision has major implications for the contract award process.
Recommendations:
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The GAO urged the Navy to make a new source selection determination after reassessing the proposals, considering the necessary professional compensation analysis.
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Should PCCI not be selected for the award, the GAO recommended that the Navy terminate the award to PCCI and issue a new award, if appropriate.
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The GAO also recommended that the Navy reimburse Owl International for its protest costs.
Representatives from the involved parties were not immediately available for comment.
