TITLE:  Northrop Grumman Corporation, B-285386, August 1, 2000
BNUMBER:  B-285386
DATE:  August 1, 2000
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Northrop Grumman Corporation, B-285386, August 1, 2000

Decision

Matter of: Northrop Grumman Corporation

File: B-285386

Date: August 1, 2000

Richard P. Rector, Esq., Sheila C. Stark, Esq., William J. Crowley, Esq.,
and Karen E. Gray, Esq., Piper Marbury Rudnick & Wolfe, for the protester.

Marcia G. Madsen, Esq., and Michael J. Farley, Esq., Miller & Chevalier, for
Lockheed Martin Corporation Naval Electronics & Surveillance
Systems--Syracuse, an intervenor.

John E. Lariccia, Esq., Gregory H. Petkoff, Esq., M. Steele Kenyon, Esq.,
and Roger J. McAvoy, Esq., Department of the Air Force, for the agency.

Linda S. Lebowitz, Esq., and Michael R. Golden, Esq., Office of the General
Counsel, GAO, participated in the preparation of the decision.

DIGEST

Solicitation requirement that an offeror's mobile radar air traffic control
units interface with a particular, previously procured data automation
system, which will be provided to the awardee as government-furnished
equipment, does not overstate the agency's needs or unduly restrict
competition where this automation system is necessary for achieving
interoperability and commonality in the civil and military air traffic
control environments.

DECISION

Northrop Grumman Corporation (NG) protests the terms of request for
proposals (RFP) No. F19628-00-R-0014, issued by the Department of the Air
Force for the acquisition of 18 rapidly deployable and highly mobile radar
air traffic control systems, known as the Mobile Approach Control Systems
(MACS). NG complains that the RFP requirement that MACS interface with a
government-furnished data automation system, known as the Standard Terminal
Automation Replacement System (STARS), which was previously procured from
Raytheon Corporation under a contract awarded by the Federal Aviation
Administration (FAA) in 1996, overstates the agency's needs, thereby unduly
restricting competition and precluding NG from submitting a competitive
proposal.

We deny the protest. [1]

BACKGROUND

The Federal Aviation Act of 1958 calls for a common civil/military air
traffic control (ATC) system and places the responsibility on the FAA for
oversight and control of the common system. See 49 U.S.C.A. sect. 40101 et seq.
(West Supp. 1999). In addition, a 1988 Memorandum of Agreement between the
Department of Defense (DoD) and the FAA on the future of radar approach
controls in the national airspace system (NAS) states that the FAA
"determines the standard for NAS equipment and ATC facilities," and that DoD
"will equip facilities providing services to civil users so that the ATC
service is transparent to the user." Agency Report, Tab 6(c), MACS
Operational Requirements Document I, Mar. 16, 1999, para. 3.2, at 4-5. The Air
Force, as a provider of air traffic control services within the national
airspace system, is required to have its air traffic control facilities
equipped to provide the same services as the FAA. MACS must provide air
traffic control services, day and night, in all weather conditions, to
military and civil aircraft, and must be "interoperable" with the civil
system in order to conduct force training and to respond to crises such as
domestic disaster relief. Id. para.para. 1.1.1, 1.1.2, at 1.

On March 1, 2000, the Air Force issued the current solicitation for the
acquisition of MACS, which will be comprised of three subsystems--a
surveillance subsystem consisting of an airport surveillance radar; an
operations subsystem consisting of, among other items, STARS; and a
precision subsystem consisting of a precision approach radar. RFP Statement
of Objectives (SOO) for MACS, Feb. 11, 2000, para. 1.0; see also Tr. at 12.

As relevant here, STARS was one part of a joint program between the FAA
(which took the lead) and DoD to upgrade and modernize the current terminal
air traffic control system. Tr. at 10. As stated above, the STARS effort was
awarded by the

FAA to Raytheon in 1996. [2] STARS is a data automation system that will
provide the interface for controller display of aircraft and for routing
centers for flight-plan processing. Id. STARS will provide safety
enhancements not currently available, such as conflict alert, which affords
controllers an automated way to prevent two aircraft from hitting each
other, as well as "minimum safe altitude warning," which is an
aircraft-to-ground proximity check to make sure aircraft do not fly too low
and into the ground. Id. at 10-11. Under the terms of the RFP, STARS will be
provided as government-furnished software and associated hardware;
contractor changes to the software will not be permitted. RFP SOO para.para. 3.0,
3.8; Tr. at 15, 39. Further, if a firm other than Raytheon is awarded the
MACS contract, Raytheon and the MACS awardee will enter into an "associate
contractor agreement," whereby Raytheon will share information regarding
STARS with the MACS awardee. RFP para. 5.3.3.3, at L-9; Tr. at 23-24.

In describing the logistics objective, the RFP states as follows:

The Government logistics management objective is to continually refine
readiness, deployability, and sustainment to provide the most cost-effective
support and to ensure MACS assets are provided to the user to achieve
peacetime and wartime requirements. A key element of the MACS program is to
be compatible and interoperable with existing systems. Training, logistics,
technical manuals, operations, and maintenance considerations are
fundamental to the issue of compatibility with fixed-base systems.

The Government support objective is to maximize hardware and software
commonality with the various existing air traffic control and landing
systems to minimize life cycle cost. By utilizing common systems, or
variances thereof, with support infrastructures, training, and technical
data, already in place and developed, the MACS program is expected to
realize significant cost savings over its expected 20-year life.

RFP SOO para. 3.4.

The RFP states that the award will be made to the offeror submitting the
best overall proposal, based on an integrated assessment of (1) mission
capability/proposal risk (logistics/training, risk management, systems
integration, and airport surveillance radar (ASR) performance); (2) past
performance; and (3) cost/price. RFP sect. M002.a, at M-2. (Technical evaluation
factors 1 and 2 are of equal importance and each of these factors is more
important than factor 3. Under factor 1, the four subfactors are listed in
descending order of importance. Id.)

ISSUES AND ANALYSES

NG complains that the RFP overstates the Air Force's needs for
interoperability and commonality by requiring the use of Raytheon's STARS as
the data automation system interface for MACS. NG believes that this unduly
restricts competition and unfairly favors Raytheon, thereby precluding NG
from competing for the MACS requirement. NG argues that the Air Force is
legally required to relax the RFP interface requirement to allow the use of
a data automation system "functionally equivalent" to Raytheon's STARS, that
is, according to NG, "the same functionality is there, but the ways of
accomplishing that functionality may be different." Tr. at 42.

The Competition in Contracting Act of 1984 requires that agencies specify
their needs and solicit offers in a manner designed to achieve full and open
competition, so that all responsible sources are permitted to compete. 10
U.S.C. sect. 2305(a)(1)(A)(i) (1994). The determination of a contracting
agency's needs and the best method for accommodating them are matters
primarily within the agency's discretion. Caswell Int'l Corp., B-278103,
Dec. 29, 1997, 98-1 CPD para. 6 at 3. In seeking full and open competition, an
agency is not required to construct its procurements in a manner that
neutralizes the competitive advantages some potential offerors may have over
others by virtue of their own particular circumstances where the advantages
do not result from government action. Mortara Instrument, Inc., B-272461,
Oct. 18, 1996, 96-2 CPD para. 212 at 6.

Since DoD and the FAA "follow exactly the same policies, procedures, and
regulations for the separation and sequencing of aircraft," the Air Force
believes that "it is a major safety benefit for both [DoD and the FAA] to
have a common and interoperable system." Tr. at 14. As described above, the
Air Force believes that an interoperable and common air traffic control
system yields safety enhancements in areas involving conflict alerts and
minimum safe altitude warnings. Id. at 10-11. The Air Force's concern with
safety is also evident during "interfacility handoff," that is, when an FAA
airspace control center transfers control of an aircraft to a DoD airspace
control center and vice-versa. During such transfer, the Air Force explains
that it is important that air traffic control personnel have a seamless
system where information is seen and processed in the same manner in order
to ensure that aircraft can be properly identified. Id. at 16-17. The Air
Force notes that if dissimilar automation systems are used, separate and
unique training of personnel will be required, which could slow down
"operational momentum" and "operational capability," thereby affecting
mission safety and operations. See id. at 49-52.

On this record, we conclude that the Air Force has reasonably justified its
decision to require STARS as the data automation system interface for MACS.
We have no basis to object to the Air Force's decision, consistent with the
Congressional policy that there be a common civil/military air traffic
control system, to require that STARS be the interface for MACS in order to
achieve interoperability and commonality between existing radar systems in
the civil and military air traffic control environments. Notwithstanding
NG's position, we do not believe that the Air Force is legally required to
relax its specifications and accept what NG characterizes as a functionally
equivalent interface where the Air Force reasonably believes that STARS is
necessary to minimize mission safety and operational risks. In any event, we
point out that although afforded an opportunity to do so, NG has never
meaningfully explained in its written submissions or at the hearing how its
functionally equivalent system would satisfy the Air Force's needs for
interoperability and commonality. [3]

Moreover, to the extent NG complains that the Air Force's decision to
require STARS as the MACS interface unfairly favors Raytheon and affords
that firm an unfair competitive advantage, we disagree. In this respect, any
competitive advantage held by Raytheon in the MACS procurement is as a
direct result of that firm being awarded two contracts in 1996--one by the
FAA for STARS and the other by DoD for DASR. Nevertheless, the record shows
that the Air Force took reasonable steps to mitigate any perceived
competitive advantage in favor of Raytheon. Most importantly, the Air Force
issued a competitive solicitation for the acquisition of MACS, instead of
modifying Raytheon's DASR contract, when other firms expressed an interest
in competing for the MACS requirement. Under the terms of the RFP, the Air
Force will provide STARS to the MACS awardee as government-furnished
equipment, and if a firm other than Raytheon is awarded the MACS contract,
the Air Force will require Raytheon to share information about STARS under
an associate contractor agreement. In our view, any remaining competitive
advantage held by Raytheon in this MACS procurement is no different from
that enjoyed by any

other incumbent offeror participating in a competition for an agency's
follow-on requirements, and NG has not shown otherwise. [4]

The protest is denied.

Robert P. Murphy

General Counsel

Notes

1. Our Office conducted a recorded telephone hearing in connection with this
protest. All transcript citations in this decision (Tr. at ___) refer to the
hearing transcript.

2. DoD participated in the drafting of the STARS specification, the conduct
of the market survey, the operational capabilities demonstration, and the
selection of Raytheon for the acquisition of STARS. Tr. at 21. In addition,
DoD took the lead in conducting the competitive procurement and in awarding
a contract in 1996 to Raytheon for the acquisition of fixed-base radar air
traffic control systems, known as the Digital Airport Surveillance Radars
(DASR).

In the current acquisition, the Air Force initially intended to procure the
MACS requirement by modifying Raytheon's DASR contract; however, after other
firms expressed an interest in competing for this requirement, the Air Force
issued this competitive solicitation. Memorandum of Law at 4-5.

While this protest was pending, the Air Force proceeded with the receipt and
evaluation of proposals. NG did not submit a proposal.

3. NG also complains that the Air Force unreasonably failed to analyze
projected life-cycle cost savings associated with the requirement for a
STARS interface versus a functionally equivalent interface. However, since
the Air Force has reasonably justified its requirement for STARS, as
discussed above, there is no requirement that the Air Force relax its
specifications and accept a functionally equivalent interface, even at a
possibly lower cost. See Bombardier, Inc., Canadair, Challenger Div.,
B-243977, B-244560, Aug. 30, 1991, 91-2 CPD para. 224 at 5-6.

4. NG also asserts that it is unable to compete for the MACS requirement
because the RFP's evaluation scheme emphasizes logistics/training, rather
than system performance. NG maintains that this evaluation scheme is another
example of the Air Force's bias in favor of Raytheon, despite that firm's
alleged problems in performing the STARS requirement. While we view the
weighting of evaluation factors and subfactors as largely within a
contracting agency's discretion, we briefly address NG's concern.

Under the logistics/training subfactor, the RFP states that an offeror's
proposed approach for incorporating the MACS equipment into existing
logistics infrastructures, which includes Raytheon's STARS, will be
evaluated. We believe this evaluation scheme reasonably reflects the
agency's requirement for interoperability and commonality, as described
above. While the subfactor at issue--logistics/training--is one of four
subfactors, albeit the most important subfactor, given the weight afforded
the three technical evaluation factors (mission capability/proposal risk,
past performance, and cost/price), the challenged subfactor does not appear
to be of sufficient weight to bias the procurement in favor of Raytheon.
Further, if, as alleged by NG, Raytheon has had problems with STARS
performance, under the terms of the RFP, its alleged deficient performance
should reasonably be considered under the past performance evaluation
factor, which is weighted equal to the mission capability/proposal risk
evaluation factor. Under these circumstances, we do not believe, and NG has
not established, that the evaluation scheme favored Raytheon.

In addition, in its initial protest, NG challenged the RFP requirement for
an ASR demonstration (the least important subfactor under the mission
capability/proposal risk evaluation factor). The agency addressed this
matter in its administrative report. In its comments on the report, NG did
not rebut the agency's position. Accordingly, we deem this matter to be
abandoned. See Heimann Sys. Co., B-238882, June 1, 1990, 90-1 CPD para. 520 at 4
n.2.