Cost Realism Analysis

In Markon LLC, B-423767, et al. (Dec. 12, 2025), Markon protested the Central Intelligence Agency’s award to Arcfield for business operations, IT engineering and business enterprise modernization support. Markon challenged the CIA’s cost realism evaluation, arguing that the agency improperly relied on oral instructions given during pre-solicitation industry one-on-one sessions, instructions that were never incorporated into the final RFP. According to Markon, the CIA used those oral statements to reject Markon’s proposed efficiencies and imposed a significant upward cost adjustment instead of evaluating whether Markon’s proposed costs were realistic for its unique technical approach. GAO sustained the protest, finding that the CIA evaluated proposals using unstated criteria and failed to conduct the cost realism analysis required by the solicitation and procurement regulations.

In Warrior Focused Solutions, LLC v. United States, U.S. Court of Federal Claims, No. 24-1695 (March 4, 2025), Warrior Focused Solutions (WFS) protested the U.S. Army’s award of a contract for Mission Support Services (MSS) at the Joint Readiness Training Center (JRTC) to Valiant Global Defense Services, Inc. (Valiant). WFS argued that the Army’s evaluation was flawed due to: (1) the Army’s failure to hold discussions despite the Army’s acquisition plan stating they would be conducted; (2) the Army’s unreasonable evaluation of WFS’s technical and small business participation proposals that led to a lower rating; (3) the Agency’s improper cost realism analysis, which allegedly adjusted WFS’s proposed costs unfairly; and (4) multiple errors in the Army’s best-value tradeoff decision, which WFS claimed was based on flawed evaluations.

Articles Posted in Cost Realism Analysis

No Covert Amendments or Secret Criteria: GAO Sustains Protest Against CIA

Timing Is Everything: COFC Denies Protest Over Late Challenge About Discussions