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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.

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.

Why the Navy’s Decision Held

GAO said the omission wasn’t “harmless.” Without the workbook, evaluators couldn’t verify certain fees listed in the narrative. The watchdog rejected C4CJV’s assertion that the Navy could have pieced things together on its own.

“To the extent the protester argues that its omission of the cost workbook was harmless, the record directly contradicts that assertion,” GAO stated.

That deficiency alone barred C4CJV from being considered for award, regardless of its other protest claims.

The Awarded Winner

Instead, the Navy moved forward with Maryland-based PCG-SMX JV LLC, the rival bidder. The contract, structured as an indefinite-delivery, indefinite-quantity agreement, includes a five-year base period and factors in technical expertise, past performance, and cost.

The Legal Players

• C4CJV is represented by Edward J. Tolchin of Offit Kurman PA.

• The Navy is represented by Hillary A. H. Spadaccini, Jonathan M. Warren and Michael T. Patterson.

• PCG-SMX JV LLC is represented by Jonathan T. Williams and a team from Piliero Mazza PLLC.

GAO attorneys Jacob M. Talcott and Jennifer D. Westfall-McGrail prepared the decision. Representatives for the parties did not respond to comment requests Friday.