GAO Denies Protest by BAE Systems Over USS Russell Contract Award
The Government Accountability Office (GAO) has denied a protest filed by BAE Systems San Diego Ship Repair, Inc., challenging the Navy’s award of a contract to Continental Maritime of San Diego, LLC (CMSD) for maintenance and modernization services on the USS Russell. The protest, centered around the evaluation of BAE's private dry dock capacity and manpower, was rejected in a comprehensive April 2025 decision authored by the Comptroller General.
At the heart of BAE’s protest was the contention that its proposal to use a private dry dock should have been favored under Section 126 of the FY 2024 National Defense Authorization Act (NDAA), which limits the use of government-operated dry docks when private capacity exists. BAE submitted both Volume A (private facility) and Volume B (government dock) proposals. However, the Navy determined that BAE's proposed dry dock—the Pride of California (POCA)—was encumbered by a pending project on the USS Green Bay during the same period as the USS Russell work, leading the agency to consider Volume B proposals instead.
The GAO upheld the Navy’s evaluation, emphasizing that agencies are not required to infer explanations from inadequately written proposals. BAE’s Volume A materials did not sufficiently address the docking conflict or propose a specific alternative such as its second dry dock, the Pride of San Diego (POSD), which was shown to be occupied by another project. As a result, the Navy concluded that POCA was "utilized" and thus not eligible for preferential award consideration.
BAE also challenged the Navy’s manpower assessment, arguing that the Navy unreasonably evaluated its staffing levels by excluding workforce data from affiliate locations in other cities. GAO sided with the agency, noting that the solicitation required project-specific data for work conducted at the offeror’s own shipyard, and that affiliate data lacking this granularity was rightly excluded. The GAO further supported the Navy’s conclusion that BAE’s projected workforce presented a significant shortfall of full-time equivalents (FTEs), and that BAE’s mitigation strategies—such as general hiring plans—were insufficient to overcome this deficit.
The protest also alleged unequal treatment, asserting that CMSD omitted substantial aircraft carrier subcontract work from its proposal that, if considered, would have created a comparable FTE shortfall. However, the GAO found that the omitted work did not meet the solicitation’s 30% threshold for mandatory reporting, and that CMSD had disclosed its staffing for those projects in a manner consistent with the solicitation requirements.
In its final analysis, the GAO concluded that the Navy’s evaluation was reasonable, consistent with the solicitation criteria, and free of unequal treatment. Consequently, the protest was denied in its entirety.
Disclaimer: This blog post is a summary for informational purposes only. It is not guaranteed to be accurate and does not constitute legal advice. Readers should consult the full GAO decision or a qualified attorney for legal guidance.
