[Protest of Air Force Contract Award for Training Systems]

A firm protested an Air Force contract award for training systems, contending that the Air Force: (1) improperly evaluated bids and awarded the contract based on the awardee's misrepresentation that it would perform the contract; and (2) improperly rated the protester's proposal as unsatisfactory based on financial condition without first obtaining a responsibility determination from the Small Business Administration. GAO held that: (1) the Air Force's evaluation was flawed, since the awardee's proposal was based on its representation that it would perform much of the contract with its own employees; and (2) the Air Force properly evaluated the protester's proposal and performance risk in accordance with the solicitation's evaluation criteria. Accordingly, the protest was sustained, and GAO recommended that the Navy: (1) recompete its requirement for a second small business contract, if there was a continuing need for such a contract; (2) terminate the awardee's contract and make award to another bidder, if otherwise appropriate; and (3) reimburse the protester for its protest costs.