GAO Rejects Protest Over $513M Missile Defense Radar Contract
The U.S. Government Accountability Office (GAO) denied a bid protest challenging the award of a U.S. Missile Defense Agency contract for radar testing services valued at up to $513 million. The protest, brought by deciBel Research Inc., alleged that the agency improperly evaluated its proposal and applied an unreasonable cost adjustment. The GAO rejected these arguments, finding the agency’s evaluation reasonable and well supported, and emphasizing that its role was not to reevaluate proposals de novo, but to assess whether the agency’s judgments were rational, consistent with the solicitation, and adequately documented in the record.
The solicitation, issued as a small business set-aside, sought a contractor to perform flight and ground testing for radar systems, along with related analytical services. The procurement followed a best-value framework, evaluating offerors based on technical and management approaches, corporate experience, regulatory compliance, and cost, which allowed the agency to make qualitative distinctions and select a higher-rated, higher-cost offeror if justified.
DeciBel argued that the agency improperly assessed weaknesses in its management proposal by failing to fully consider its use of cross-trained personnel and automation to improve efficiency. The GAO disagreed, concluding the agency reasonably found the proposed staffing created a risk of insufficient effort during overlapping test events, because the proposal did not demonstrate that the approach could meet peak workload demands.
A key issue was the disconnect between proposal sections. While deciBel referenced automation in its technical proposal, it did not clearly incorporate that approach into its management submission. The GAO emphasized that offerors had to present complete proposals, and agencies were not required to search across sections to fill gaps, or infer connections that were not clearly stated.
The GAO also upheld the agency’s cost realism analysis, including a $133 million upward adjustment to deciBel’s proposed cost. The agency found the original estimate understated the level of effort required, and the GAO concluded this determination was reasonable, noting that the agency relied on staffing assumptions and proposal risk to justify the adjustment.
The contract was awarded to IERUS Technologies Inc., which received higher ratings in both technical and management evaluations, and was viewed as presenting lower performance risk.
Legal Perspective: Why It Matters
This decision reinforced that offerors bore the burden of submitting clear, consistent proposals. Key elements such as staffing models and automation strategies had to be fully explained in the relevant sections, and tied to how the work would be performed under realistic conditions.
It also highlighted the deference given to agency cost realism determinations. Where proposed costs appeared understated, agencies could adjust them, and those adjustments were likely to be upheld if supported by the record, particularly where the agency linked proposal risk to cost increases.
For contractors, the takeaway was straightforward. Strong technical ideas had to be clearly tied to execution and cost. Gaps between proposal sections or failure to address agency concerns could undermine both evaluation outcomes and protest viability, because GAO would not substitute its judgment where the agency reasonably explained its conclusions.
For more information, see: Matter of: deciBel Research Inc.
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Michael is a business attorney focused on delivering efficient and effective results to his clients. His experience includes both litigation and transactional representation for companies and governmental entities in aerospace, defense, securities, real estate, and general business matters. A former F-15 fighter pilot with over 1,500 flight hours, Michael served as an instructor pilot in the U.S. Air Force before joining the Air Force Reserve with the 701st Combat Operations Squadron in California. He dedicates pro bono efforts to helping veterans with compensation claims and startup guidance.
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