Contract analysis

1. Purpose and Summary of Favorable Outcome The purpose of this letter is to formally confirm the favorable outcome of the bid protest filed on behalf of Whitmore Aerospace LLC ("Whitmore" or the "Company") before the U.S. Government Accountability Office ("GAO") and to outline in detail the recommended corrective action, the next steps your team should consider, and the action items that will require your attention

2. Summary of the GAO Decision The GAO decision addressed four protest grounds. GAO sustained the protest on two grounds, denied one ground, and did not reach the fourth ground. We summarize each below. 2.1 Ground 1 — Unreasonable Best-Value Tradeoff Analysis (Sustained) GAO found that the Source Selection Authority ("SSA"), Brigadier General Harlan T. Jeffcoat, failed to provide a substantive rationale in the Source

3. GAO's Recommended Corrective Action Pursuant to its sustain on Grounds 1 and 2, GAO recommended the following corrective action, to be completed within sixty (60) days of the date of the decision — that is, by approximately March 29, 2024:

1. Reevaluation of Proposals. The Air Force shall reevaluate proposals under Factor 1 (Technical Approach) and Factor 3 (Management Approach), including all subfactors, consistent with the findings and analysis set forth in the GAO decision.

2. New Best-Value Tradeoff Analysis. The Air Force shall conduct a new best-value tradeoff analysis with a documented rationale that identifies specific technical discriminators justifying any price premium paid for a higher-rated but higher-priced proposal. The new tradeoff analysis must comply with FAR § 15.308 and the evaluation methodology stated in Section M of the solicitation.

3. Potential Termination of Halcyon's Contract. If Whitmore is selected for award following the reevaluation, the Air Force shall terminate Halcyon's existing contract (Contract No. FA8222-23-D-0193) for the convenience of the Government and make award to Whitmore.

4. Reimbursement of Protest Costs. The Air Force shall reimburse Whitmore's reasonable protest costs, including attorneys' fees, in accordance with 31 U.S.C. § 3554(c)(1) and 4 C.F.R. § 21.8(d). We are pleased to report that the February 5, 2024, notification from the Contracting Officer, Colonel Diane W. Prescott, to GAO indicates that the Air Force intends to implement the recommended corrective action in full. Und

4. Next Steps and Action Items With the GAO decision now in hand and the Air Force's stated intent to implement corrective action, there are several important next steps and action items that require attention from both our team and the Company. 4.1 Monitoring the Air Force's Corrective Action Calderwood & Harkness will actively monitor the Air Force's implementation of the recommended corrective action within the si

5. Engagement Status and Fee Update As of January 31, 2024, our total fees incurred on this engagement remain within the $425,000 voluntary fee cap established in the engagement letter dated September 26, 2023. We are mindful of the fee cap and have managed our staffing and workflow throughout this engagement to ensure compliance. We will provide you with a detailed billing summary under separate cover, including a b

6. Request for Client Input As we transition from the protest phase to the corrective action and reevaluation phase, we want to ensure that we are fully aligned with Whitmore's strategic priorities and business objectives. Please let us know if there are any strategic considerations, internal developments, or changes in the Company's competitive posture that we should be aware of as we move into this next phase. For

7. Closing We are very pleased with this outcome, and we appreciate the trust and confidence you have placed in Calderwood & Harkness in connection with this important matter. The GAO sustain is a testament to the strength of Whitmore's competitive position and the quality of the factual record the team assembled over the past several months. Our full team — including Lt. Col. (Ret.) Nathan Yardley (Of Counsel), Mega