LunaTek, LLC (B-422882.3)

You should not care.

Category: Corrective actions, price realism, security clearances, evaluation factors

Date: 26 March 2025

URL: GAO B-422882.3 decision PDF

LunaTek, LLC, protested the Defense Intelligence Agency’s (DIA’s) corrective action following a sustained protest by a competitor in a solicitation for support services at the NATO Intelligence Fusion Center in the United Kingdom. LunaTek had initially won the contract, but after OCH-Sawdey JV protested, DIA opted to amend the RFP, reopen discussions, and request revised proposals. LunaTek challenged this move, arguing that the agency’s corrective action exceeded the scope of its own notice, and claimed the agency should have simply reevaluated original proposals for price realism without amending the solicitation.

Corrective action scope: LunaTek argued the corrective action should have been limited to reevaluation rather than a full solicitation amendment. GAO disagreed, noting the agency’s notice explicitly permitted “any other form of corrective action” it deemed appropriate. DIA’s actions included addressing previously overlooked price realism concerns, new security clearance requirements, and adjustments to evaluation factors. GAO ruled these changes were reasonable and material, justifying the reopening of the competition.

Objections to revised proposals: LunaTek claimed allowing revised pricing violated FAR 15.306(e)(1) by giving competitors an unfair advantage. GAO dismissed this, reiterating agencies have broad discretion in corrective actions—particularly when prior awards were based on flawed evaluations.

Supplemental protest dismissed: LunaTek’s argument that DIA should have delayed its request for revised proposals due to the pending GAO protest was dismissed as noncognizable under GAO’s bid protest jurisdiction.

Protest denied. GAO found the agency acted within its discretion and that its corrective action appropriately addressed material flaws.

Digest

Protest of corrective action taken in response to a prior post-award protest is denied where the corrective action was within the agency’s discretion and appropriate to remedy the concerns raised in the prior protest.