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“Incumbent-itis” Costs TYD the Contract: GAO Denies Protest Over Incomplete Proposal

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In TYD Services, B-423648, July 30, 2025, TYD Services, the incumbent contractor, protested the Army Corps of Engineers’ decision to award a vehicle leasing contract in Qatar to a competitor, Rahman Group, Inc. TYD was excluded from award because its proposal was found technically unacceptable. TYD argued that its past performance as the incumbent should have sufficed, and that the agency should have either overlooked or clarified its missing proposal content. GAO disagreed, providing a harsh reminder that even incumbents must fully comply with all proposal instructions—no matter how minor they may seem.

The Decision
GAO denied the protest, ruling that:

  1. TYD Failed to Follow Basic Instructions: The RFP required offerors to provide vehicle type, make, model and specs, and a written confirmation that the offeror “understood and would comply” with the PWS. TYD did neither. It submitted only a one-page statement referring to its base access, SAM registration and ability to supply 12 vehicles, but failed to include any technical detail or required compliance statements.
  2. Incumbency Doesn’t Excuse Noncompliance: TYD argued that as the incumbent, its performance record should have been enough. GAO firmly rejected this argument, reiterating that technical evaluations are based on the four corners of the proposal, not external knowledge or past work.
  3. Clarifications Are Discretionary, Not a Right: TYD suggested that the agency should have allowed it to clarify or correct its missing information. GAO emphasized that the solicitation expressly reserved the right to make award without discussions, and reaffirmed that agencies are not required to seek clarifications—especially when the omissions are material.

Key Takeaways for Contractors

  1. Avoid “Incumbent-itis”: Being the incumbent does not earn you a pass. GAO will not assume the agency “knows your work.” You must spell it out in the proposal, just like any other competitor.
  2. Always Say the Magic Words: If the RFP asks for a statement that you “understand and will comply” with the PWS, say exactly that. Leaving it out—even if you’ve performed the work before—can make your proposal ineligible.
  3. Proposal Compliance Is a Yes-or-No Question: Even seemingly minor failures—like omitting specs or skipping a form—can make your proposal technically unacceptable. There is no partial credit.
  4. Clarification Is Not a Safety Net: Agencies may allow clarification for minor errors, but they don’t have to.  And, as demonstrated here, an agency can’t use clarifications to fix material omissions like TYD’s missing technical content.
  5. Double-Check Every Instruction: Don’t just assume your proposal is complete. Carefully review the RFP and ensure every required element is included, labeled and stated clearly.