Ktech Corporation

A firm protested a Defense Threat Reduction Agency (DTRA) contract award for the operation of a magnetic flyer plate facility, and the performance of certain tests within the facility. The firm contends that the awardee has an impermissible organizational conflict of interest, that the DTRA made its award decision on a basis other than that announced during the acquisition, and that the DTRA failed to conduct meaningful discussions with it. GAO held that the DTRA did not consider the possibility that the subcontractor may have improperly obtained, through performance of earlier government contract, information confidential to protester and used it to enhance capabilities made available to awardee, and DTRA did not analyze possible conflicting roles that the subcontractor may be required to perform under protested contract and subcontractor's other government work. Accordingly, the protest was sustained, and GAO recommended that the DTRA reopen discussions with both offerors to clarify its position with respect to price and scheduling. In the course of its discussions with Maxwell, the DTRA should solicit any and all information that it deems relevant to evaluating ITT's apparent OCI, and the DTRA should then address the OCI in accordance with FAR subpart 9.5. After resolution of the OCI, and review of final proposal revisions, the DTRA should proceed with determining which firm offers the best overall value of the government. DTRA should terminate Maxwell's contract for the convenience of the government and make award to the firm. Finally, DTRA should reimburse the firm the reasonable costs associated with filing and pursuing its bid protest, including reasonable attorneys fees. The firm certified claim for costs, detailing the time spent and the costs incurred must be submitted to DTRA within 60 days of receiving this decision.