Oracle protested the Army’s roughly $950 million follow-on production other transaction awarded to REAN Cloud LLC. The full decision is available at the source link below.
Oracle America, Inc. (REAN Cloud) — GAO B-416061
B-416061, 2018 CPD ¶ 180 · U.S. Government Accountability Office (bid protest) · 2018-05-31
Summary
The leading GAO decision on other-transactions protest jurisdiction. GAO held it could review whether the Army improperly used a non-procurement OT to acquire goods and services, and sustained Oracle's protest — the Army lacked authority under (then) 10 U.S.C. § 2371b to award a roughly $950M follow-on production OT to REAN Cloud because follow-on production was not provided for in the original prototype OT and the prototype had not been successfully completed.
Holding / Key points
GAO held that it had jurisdiction over the narrow question whether the Army improperly used an other transaction — a non-procurement instrument — to acquire goods and services. On the merits, GAO sustained the protest, finding the Army exceeded its statutory authority under then-10 U.S.C. § 2371b: the follow-on production OT to REAN Cloud (valued around $950 million) was not provided for in the original prototype transaction, and the prototype project had not been successfully completed. GAO recommended DoD terminate the agreement.
The decision remains a central authority on the statutory prerequisites for OT follow-on production under § 4022(f).
Related resources
10 U.S.C. § 4022 — Prototype Projects (Prototype OT Authority)
10 U.S.C. § 4022 · 2022-01-01
Space Exploration Technologies Corp. v. United States
144 Fed. Cl. 433 (2019) · U.S. Court of Federal Claims · 2019-08-28