Leidos withstands GDIT’s protest over $11.5B contract

The U.S. Government Accountability Office issued a decision earlier this month denying a protest filed by Falls Church-based General Dynamics Information Technology Inc. over an $11.5 billion defense contract won by another Fortune 500 contractor, Reston-based Leidos Inc.

The Defense Information Systems Agency for Defense Enclave Services awarded Leidos the single-award, indefinite-delivery, indefinite-quantity contract with a four-year base period followed by three two-year option periods in February, the largest contract in the company’s history. Leidos will consolidate enterprise IT services for more than 370,000 users spanning 22 Department of Defense agencies and field activities with more than 500 sites in the U.S. and abroad.

GDIT, which had competed for the contract, protested the decision on March 10, and the GAO issued its denial June 15. On Monday the body posted a more detailed explanation of the protest and denial.

Among the challenges raised by GDIT were that the DISA failed to consider benefits of GDIT’s proposal and overlooked its strengths, and that because the contract did not detail staffing levels, Leidos’ approach cost less than GDIT’s estimate. GDIT also claimed that the agency’s questioning of the company over its proposal was not conducted fairly. Seven contractors submitted proposals, and Leidos and GDIT were the two finalists.

This month’s decision does not necessarily bring an end to the matter; GDIT could choose to file the case with the U.S. Court of Federal Claims.

GDIT’s protest raised a variety of challenges of the agency’s evaluation of proposals, conduct of discussions and resulting source selection decision.

The company did not return a request for comment.

Once the protest was filed, GAO had 100 days to issue a decision, and in this case, did so after about 95 days, which is not unusual for one this large. Last year, GAO reviewed between 1,800 and 2,000 protests, and the U.S. Court of Federal Claims sees about 130 of these kinds of cases each year.

“We are pleased the Government Accountability Office has affirmed the Defense Information Systems Agency’s award,” Leidos Defense Group President Gerry Fasano said in a statement. “Leidos is deeply committed to DISA’s critical mission, and never stopped preparing for the program’s success. Our robust and continuous preparation has positioned us to start delivering benefits to the user base on or ahead of the current planned schedule, and we look forward to leveraging our decades of technological expertise to support mission success.”