Network and Simulation Technologies, Inc. (B-423503; B-423503.3)

You should not care.

Categories: Affiliate contract holder, standing, small-business subcontracting

Date: 5 August 2025

URL: https://www.gao.gov/products/b-423503%2Cb-423503.3

Netsimco protested its exclusion from a Navy SeaPort‑NxG task order for IT support at NUWC Keyport, arguing the agency miscalculated small‑business participation and ignored proposal details. GAO first found Netsimco an interested party under SeaPort‑NxG affiliate rules. On the merits, GAO held the Navy reasonably read Netsimco’s cost spreadsheet to assign all “surge” hours to the prime where the surge tab listed only prime labor and no subcontractor, and the narrative lacked a concrete allocation. Because the RFP required 30 percent small‑business participation across the total estimated amount (including surge), the Navy’s calculation and exclusion were reasonable.⁠ Key issues:

• Affiliate standing under SeaPort‑NxG: Saalex, the incumbent, bid through its affiliate, the protester Netsimco, which holds the SeaPort-NxG contract.. Saalex could bid through Saalex’s contract, so standing to protest exists.
• Counting surge hours: Absent specific surge workshare, the agency could treat surge as prime‑performed.

Protest denied.

Digest

1. Protester who is not an indefinite-delivery, indefinite-quantity contract holder is an interested party to protest where a company affiliated with the protester holds a contract and the terms of the contract specifically permit the submission of a proposal through the contract of an affiliated company.
2. Protest challenging agency’s evaluation of the protester’s small business participation is denied where the agency’s evaluation was reasonable and consistent with the terms of the solicitation.