In Lockheed Martin Corporation, B-423294, May 2, 2025, Lockheed Martin protested the Air Force’s handling of potential organizational conflicts of interest (OCIs) in a procurement for Tactical Operations Center – Light prototype systems. Lockheed alleged that Science Applications International Corp., a competitor, had unmitigated OCIs due to its work as a software integrator on a separate Air Force program and its role in a software consortium. Lockheed also challenged the adequacy of the solicitation and a last-minute OCI waiver issued by the agency.
The Decision
GAO denied the protest, ruling that:
- Agency Mitigation Efforts Were Sufficient: GAO found that the Air Force reasonably assessed and mitigated potential OCIs, including alleged impaired objectivity and unequal access to information. The Air Force’s controls, including design reviews, government oversight, firewalls, and public release of information, were found sufficient to neutralize risks.
- No “Hard Facts” to Support OCI Challenges: GAO emphasized that mere suspicion or hypothetical conflicts are not enough. Rather, GAO explained that a protester must point to concrete, factual evidence of unfair influence or improper access. Lockheed’s allegations in this case were simply too speculative.
- OCI Waiver Challenge Dismissed: Days before GAO’s 100-day deadline, the Air Force issued an OCI waiver under FAR 9.503. GAO declined to rule on the waiver’s adequacy, noting it was ready to deny the OCI protest on the merits, making the waiver dispute moot.
- Solicitation Provided Sufficient Detail: Lockheed claimed the solicitation lacked enough information to allow intelligent pricing. GAO disagreed, noting that the agency provided detailed integration plans and gap analysis, and that risk and uncertainty are normal parts of pricing under government contracts.
Key Takeaways for Contractors
- Speculation Isn’t Enough for an OCI Protest: To sustain an OCI challenge, a protester must provide “hard facts”—not assumptions or hypotheticals—about how a competitor gained an unfair advantage.
- Unequal Access Can Be Cured with Disclosure: When all offerors are given access to the same information, such as via a Bidder’s Library, any potential advantage from prior access is typically neutralized.
- OCI Waivers Are Rare, But Can Be Used Strategically by Agencies: Agencies can invoke OCI waivers late in the protest cycle to get around OCI concerns.
- Solicitation Challenges Require More Than “We’d Like More Info”: Unless a solicitation is truly ambiguous or misleading, GAO will defer to agency judgment on how much technical detail to provide.
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