Among a family of 2-parameter left invariant metrics on Sp(2), we determine which have nonnegative sectional curvatures and which are Einstein. On the quotiente $widetilde{N}^{11}=(Sp(2)times S^4)/S^3$, we construct a homogeneous isoparametric foliation with isoparametric hypersurfaces diffeomorphic to Sp(2). Furthermore, on the quotiente $widetilde{N}^{11}/S^3$, we construct a transnormal system with transnormal hypersurfaces diffeomorphic to the Gromoll-Meyer sphere $Sigma^7$. Moreover, the induced metric on each hypersurface has positive Ricci curvature and quasi-positive sectional curvature simultaneously.