What Counts as “Relevant”
The Navy determined that contracts cited by GKG as evidence of adverse performance were not relevant to the current procurement. According to the decision, Chugach did not include the alleged projects in its proposal, and the Navy independently concluded they did not meet the criteria set out in the Aug. 14, 2024, solicitation.
Under that request for proposals, a “relevant” prior contract had to involve work exceeding $10 million at a base complex.
“The record shows that the [evaluator] reviewed these contracts, and determined that they were of no value to her assessment because they were valued at less than $10 million and were therefore not relevant,” the GAO wrote.
Price vs. Performance
The competition centered on support services at Naval Air Station Fallon. Puerto Rico-based GKG submitted a proposal priced at $172.7 million. Alaska-based Chugach proposed $195.8 million — roughly 13% higher.
But evaluators found that price alone did not tell the whole story.
The GAO decision notes that the evaluator emphasized the “sheer volume” of advantageous features in Chugach’s proposal, describing them as delivering clear long-term value and operational benefits that justified the price gap.
Although GKG held a slightly stronger past performance record, the Navy credited Chugach with longer-tenured key personnel and broader corporate experience. Chugach also demonstrated experience with airfield facilities, wastewater maintenance and projects closely aligned in scope and complexity with the Fallon contract.
Ultimately, evaluators concluded that Chugach’s technical approach and operational strengths outweighed GKG’s lower bid and marginally better performance history.
