Recently, the Government Accountability Office (“GAO”) released a bid protest decision concerning deciBel Research, Inc. (“deciBel”) protesting the Missile Defense Agency’s (“MDA”) award of a contract to IERUS. deciBel protested the agency’s cost realism evaluation of their own contract. In their evaluation, the MDA evaluated deciBel’s proposed cost to be unrealistic. The agency found that deciBel’s proposed labor hours were too low to support overlapping test events, phases, and the required level of radar analysis and that deciBel relied on outdated historical data.
The GAO found the agency’s cost realism adjustments reasonable and consistent with the solicitation and FAR 15.404‑1(d). The record showed that MDA tailored its adjustments to deciBel’s unique proposed approach rather than mechanically applying historical staffing levels. Adjustments were supported by detailed rationales tied to identified weaknesses in deciBel’s management and staffing plans, and additional hours were allocated across labor categories in a manner consistent with deciBel’s own cross‑training strategy.
GAO also rejected deciBel’s objection that its adjusted hours exceeded those of the awardee, noting that cost realism must reflect each offeror’s specific method of performance. As a result, GAO upheld the agency’s determination that deciBel’s proposed costs were unrealistic and that the evaluated cost, rather than the proposed cost, appropriately informed the best‑value decision.
When submitting a bid protest to the GAO, it is crucial to have the proper accounting support for your legal team to make the best supportable argument possible. Chess Consulting’s team of experts provides invaluable guidance in navigating the bid protest process and is well equipped to assist contractors and their legal counsel with bid protest support.