[Request for Reconsideration of Sustained Protests Against Navy Contract Award for Radar System]

Two firms and the Navy requested reconsideration of a sustained protest against a Navy contract award to one of the firms for radar equipment. GAO had held that the Navy improperly relaxed the specification requirements for the awardee but not for the other offerers, and had recommended that the Navy resolicit the procurement. In its request for reconsideration, the Navy contended that GAO had improperly conducted its own technical evaluation and based its decision on the findings. The awardee contended that the Navy should not reopen negotiations, since its prices and proprietary data were revealed during the award and bid protest procedures. The other firm contended that GAO should recommend termination of the awardee's contract and award to the low, technically acceptable bidder under the original solicitation. GAO held that: (1) its original decision was based on the Navy's improper relaxation of requirements for the awardee, rather than on its own technical evaluation; (2) the correction of an improper award was more important than disclosure of a firm's proprietary data; and (3) resolicitation of the procurement would best allow the Navy to adequately fulfill its requirements. Accordingly, the original decision was affirmed.