Navy $790M Deficient Deal Tossed by GAO After Cost Workbook Omission

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Navy $790M Deficient Deal

The U.S. Government Accountability Office has upheld the Navy’s decision to reject a Virginia contractor’s $790 million IT services bid, ruling that a missing subcontractor cost workbook was enough to sink the deal.

C4CJV LLC, the protesting firm, claimed the Navy had enough information within its submission to evaluate the proposal. But GAO said the omission was fatal—like a pilot forgetting the flight plan—making the bid “deficient” under the solicitation’s rules.

What Sparked the Fight

The Navy had set aside the $869 million contract for small businesses, seeking IT support for the Naval Air Systems Command. Proposals required both prime contractors and subcontractors to submit detailed cost workbooks showing fees, rates, compensation plans, and explanatory narratives.

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C4CJV admitted its subcontractor skipped the workbook, but argued the details were still spelled out in narrative form. The Navy disagreed, and GAO sided with the agency.

“Because the protester’s subcontractor failed to submit its cost workbook, the protester failed to comply with a material term of the solicitation,” GAO wrote in its July 31 ruling.