The Government Accountability Office has rejected Raytheon [RTN] and Kongsberg Defence & Aerospace’s protest of a sole-source award by the Defense Advanced Projects Research Agency (DARPA) to Lockheed Martin
[LMT] for the development of the airborne Long Range Anti-Ship Missile (LRASM).
The GAO decision released Wednesday said DARPA adequately demonstrated that a competition and award to a company other than Lockheed Martin would have created cost duplication that would not be recovered in competition. The GAO also ruled that the sole-source award did not violate laws that require competition, saying the LRASM program fell into an exception under congressional legislation.
“DARPA had a reasonable basis for concluding that only Lockheed could fulfill” the requirements outlined by DARPA for LRASM.
DARPA awarded the contract in 2009 to Lockheed Martin for the development of LRASM after holding a competition. Rather than re-compete the next phase, DARPA announced in December 2013 that it intended to issue a sole-source contract to Lockheed Martin, saying there were no other potential suitors based on the progress made on LRASM with Lockheed Martin.
“DARPA’s market research and review of the protester’s white papers support the agency’s conclusion that no other offeror can provide the highly specialized skills and equipment to complete the LRASM development effort, without substantial duplication of costs, or unacceptable delays,… ” the GAO said.
After issuing the sole-source notice, DARPA solicited white papers from both companies. Raytheon asserted it could meet the requirement with an upgraded Tomahawk, while Kongsberg said it could meet the mission’s needs with its Joint Strike Missile being developed for the Norwegian government.
DARPA proceeded with the sole source award. Raytheon and Kongsberg filed their joint protest on March 24 with the GAO.
The LRASMs are expected to reach early operational capability on B-1B aircraft in 2018 and on F/A-18 Super Hornets in 2019. DARPA anticipates transitioning to the program to the Navy in 2016.