Government contractors are learning the hard way that agencies need to be kept apprised of major changes within the company during the entire period of bid evaluations. Most recently, the Government Accountability Office (GAO) made an example of Lockheed Martin Integrated Systems, Inc. (LMIS), which was excluded from awards for failure to disclose its spin-off agreement with Leidos.
Earlier this year, the National Nuclear Security Administration (NNSA) rescinded a contract to Nevada Site Science Support and Technologies Corporation, LLC (NVS3T) upon learning that NVS3T had been acquired by Leidos Innovations Corporation prior to award. The proposal NNSA relied on to make the award decision identified NVS3T as a wholly-owned subsidiary of LMIS; although the highly publicized deal closed 10 days prior to contract award, NVS3T failed to timely notify NNSA of the change in ownership and control.
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