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After $8 billion award, DOD to re-evaluate DEOS cloud buy

After a protest, the General Services Administration and the Defense Information Systems Agency are planning to take another look at their $7.6 billion award in the Defense Enterprise Office Systems cloud procurement.

This August, General Dynamics won the contract to supply DOD with cloud-based Microsoft 365 email, business software and productivity tools.

Perspecta, the only other bidder, protested with the Government Accountability Office and evidently they had some valid complaints.

Now the General Services Administration and Defense Information Systems Agency, who partnered on the contract, have pulled the award back and will do the competition over again.

In other words, Perspecta’s protest pointed out real issues with how GSA and DISA evaluated proposals for the Defense Enterprise Office Solutions contract.

The news was first reported by NextGov.

The protest documents are under a protective order, but in general Perspecta made two allegations. First, that the evaluation wasn't done properly. They also alleged that GD had a conflict of interest. But one source told me that apparently there was a problem with how each company interpreted the pricing requirements. So GSA and DISA will have to clarify that section of the solicitation.

Another source indicated that GSA will revise its requirements and let the bidders revise their proposals. GSA and DISA will then reevaluate proposals and make a new award. The government also is going to review the allegation of organizational conflict of interest and make a decision about it.

While this is a victory for Perspecta, there is no guarantee that they’ll ultimately win the contract. The landscape is littered with examples of companies that won a corrective action via a protest and still lost the contract.

If GSA and DISA were to award the contract to Perspecta the second time around, it's almost a guarantee that GD would file its own protest.

A version of this article first appeared in Defense System's sibling publication Washington Technology.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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