Leidos survives protest of $6.5B deal to manage DOD’s IT networks

Leidos will move forward with a contract to support the operation and defense of the Department of Defense Information Networks (DODIN) after a protest of the $6.5 billion deal was denied.

The Government Accountability Office this week denied General Dynamics IT’s protest of the Global Solutions Management – Operations II (GSM-O II) contract, which the Defense Information Systems Agency awarded to Leidos in December.

Through the 10-year contract, DISA selected Leidos to “provide global operations solutions … to support the Department of Defense (DoD) Information Network/ Defense Information System Network (DODIN/DISN),” per the description of the contract in original solicitation documents. It’s a follow-on to DISA’s Global Information Grid Services Management contract.

“These requirements involve the day-to-day delivery support for telecommunications capabilities, including operating and sustaining the network, defending the network, providing access to new customers, monitoring network health, restoring service (as necessary), and implementing minor adjustments and improvements to existing capabilities,” the contract document says. “Fundamentally, these activities are necessary to keep the DODIN/DISN operational 24/7.”

GDIT argued in its protest that DISA improperly evaluated and awarded the contract, and “engaged in misleading negotiations,” which the company said led it to raise its price under the contract.

Though the protest decision is currently under a protective order, GAO released a statement saying that it denied GDIT’s protest because the record did not support that allegation, and the company made its own independent determination to raise its price. Additionally, the GAO said DISA properly analyzed Leidos’ proposed price as legitimate.

GDIT issued a supplemental protest about a conflict of interest between Leidos and DISA, centered around a former DISA official who now works for the vendor. However, that protest was denied because it was filed after outside of the 10-day window losing bidders have to issue protests “when the protester knew or should have known of its basis of protest,” the GAO said.

Gerry Fasano. president of Leidos’ defense group, told FedScoop in an emailed statement: “We’re pleased the protest was quickly dismissed and are hitting the ground running. Leidos is thrilled to expand our work for DISA and provide next-generation network services for the warfighter.”