If noncompetitive
procedures are used pursuant to 10 U.S.C. sect. 2304(c)(2), such
as here, the agency is required to execute a written J&A with
sufficient facts and rationale to support the use of the
specific authority. See 10 U.S.C. sect. 2304(f)(1)(A), (B); FAR
sections 6.302-1(d)(1), 6.302-2(c)(1), 6.303, 6.304. Our review
of the agency's decision to conduct a noncompetitive procurement
focuses on the adequacy of the rationale and conclusions set
forth in the J&A. Signals & Sys, Inc., B-288107, Sept. 21, 2001,
2001 CPD para. 168 at 9. However, noncompetitive procedures may
not properly be used where the agency created the urgent need
through a lack of advanced planning. 10 U.S.C. sect.
2304(f)(5)(A); Worldwide Language Resources, Inc.; SOS Int'l
Ltd., B-296984 et al., Nov. 14, 2005, 2005 CPD para. 206 at 12.
In addition, the urgency justification cannot support the
procurement of more than the minimum quantity needed to satisfy
the immediate urgent requirement. See Immunalysis/Diagnostixx of
Calif. Corp., B‑254386, Dec. 8, 1993, 93-2 CPD para. 309 at 5.
Military mission readiness and personal safety are important
considerations in judging the reasonableness of an agency's
determination that unusual and compelling urgency prevents the
agency from conducting a procurement on the basis of full and
open competition, as provided for by CICA. See McGregor Mfg.
Corp., B-285341, Aug. 18, 2000, 2000 CPD para. 151 at 7; Logics,
Inc., B‑256171, May 19, 1994, 94-1 CPD para. 314 at 2. It is
beyond cavil that an agency need not risk injury to personnel or
property in order to conduct a competitive acquisition. Signals
& Sys, Inc., supra, at 10.
Here, from our review of the agency's J&A and the record, we
find reasonable the agency's determination that only SRCTec
could meet the agency's urgent requirements within the time
required. The record specifically supports the Army's arguments
that it has a continuing and urgent need to address the use of
more sophisticated IEDs on other frequency bands to protect its
personnel and property. See Improvised Explosive Devices (IEDS)
in Iraq and Afghanistan: Effects and Countermeasures, CRS Report
for Congress, supra, at 1; Declaration of CREW Product Manager,
Jan. 8, 2009, at 1. In this regard, SRCTec's contract here and
the Navy's Spiral 3.2 contract reflect the need to continually
evolve and upgrade CREW systems to counter the threat of
radio-controlled IEDs in other frequencies. Moreover, as the GAO
attorney noted to the parties in the ADR conference in Pegasus's
earlier protest, upgrading SRCTec's Duke ECM system was within
the scope of SRCTec's contract, but for the fact that the
upgrade was accomplished by a contract modification that
exceeded the contract's maximum ceiling value.
Pegasus argues, however, that the lack of competition to satisfy
these requirements was caused by the agency's lack of advance
procurement planning. Pegasus advances a variety of arguments in
support of this assertion, including that the Army improperly
modified SRCTec's contract to obtain the upgraded systems rather
than seeking to test other firms' products, such as Pegasus's
Jukebox Alpha and Jukebox Alpha Upgrade systems. In this regard,
Pegasus continues to complain that SRCTec had an unfair "headstart"
because of the agency's earlier modification of that firm's
contract to obtain SRCTec's upgraded system.
Although, as we note above, an agency may not justify a
noncompetitive award on the basis of urgency where the agency's
urgent requirements are the result of a lack of advance
planning, see 10 U.S.C. sect. 2304(f)(4)(A), such planning need
not be entirely error-free or successful. See Sprint Commc'ns
Co., L.P., B-262003.2, Jan. 25, 1996, 96-1 CPD sect. 24 at 8-9.
Here, the record shows that the Army's procurement planning was
not error-free, given the agency's improper modification of
SRCTec's contract that exceeded the maximum contract value.
Nevertheless, we do not find unreasonable, as explained below,
the agency's conclusion that only SRCTec could satisfy the
agency's urgent requirement, nor do we find that Pegasus has
shown that it could have satisfied the agency's requirements,
even if the agency had conducted error-free advance planning,
given the agency's estimate of the time that would be required
for Pegasus to develop a device that would meets the agency's
requirements.
As a result of market research and testing of Pegasus's device
in December 2008, the Army found that Pegasus did not have a
device that would satisfy the agency's technical requirements.
In fact, the Army found that Pegasus's Jukebox Alpha Upgrade
device could not counter most of the threat bands that the Army
required and that Pegasus's device otherwise failed to satisfy
[deleted]. The agency concluded, given the time that would be
required to develop a system to satisfy these requirements and
the time needed to test an upgraded device, that the earliest
that Pegasus could field a system meeting the agency's current
requirements would be February 2010. In this regard, Pegasus has
not shown, even 3 months after the agency's testing of the
firm's device, that Pegasus has a product that would satisfy the
agency's current urgent requirements.
Pegasus disagrees with the Army's assessment of how long it
would take for Pegasus to develop a system, and states that
within 6 months it could meet the agency's needs. See 2nd
Declaration of Pegasus's Chief Operating Officer, at 2. Pegasus,
however, has offered no testing data, or any other evidence, to
support these assertions, and the chief operating officer's
declaration is at best an admission that the firm needs
additional time to provide these items. Pegasus's disagreement
does not show that the agency's technical judgment was
unreasonable. See Foster-Miller, Inc., B-296194.4, B-296194.5,
Aug. 31, 2005, 2005 CPD para. 171 at 9. Moreover, the
protester's admission that it would need 6 months to develop a
device that would meet the agency's needs establishes that
Pegasus cannot satisfy the agency's urgent requirements. Under
these circumstances, we find reasonable the agency's urgency J&A
supporting the modification of SRCTec's contract, and thus there
is no basis to sustain the protest. (Pegasus
Global Strategic Solutions, LLC, B-400422.3, March 24, 2009)
(pdf)
Although
the overriding mandate of the Competition in Contracting Act of
1984 (CICA), 10 U.S.C. sect. 2304(a)(1)(A) (2000), is for full
and open competition in government procurements, obtained
through the use of competitive procedures, it permits
noncompetitive acquisitions in certain circumstances. 10 U.S.C.
sect. 2304(c). The agency’s J&A cites one of the exceptions to
the mandate that competitive procedures be used, namely, that
there is only one responsible source and no other supplies or
services will satisfy the agency’s requirements. J&A, citing 10
U.S.C. sect. 2304(c)(1). The J&A must contain sufficient facts
and rationale to support the use of the chosen exception. See 10
U.S.C. sect. 2304(f)(1)(A), (B); Federal Acquisition Regulation
(FAR) sections 6.302-1(d)(1), 6.303, 6.304; Marconi Dynamics,
Inc., B-252318, June 21, 1993, 93-1 CPD para. 475 at 5. Our
review of the agency’s decision to conduct a sole-source
procurement focuses on the adequacy of the rationale and
conclusions set forth in the J&A. When the J&A sets forth a
reasonable justification for the agency’s actions, we will not
object to the award. Global Solutions Network, Inc., B‑290107,
June 11, 2002, 2002 CPD para. 98 at 6; Diversified Tech. and
Servs. of Virginia, Inc., B‑282497, July 19, 1999, 99-2 CPD para.
16 at 3.
We conclude that the rationale advanced by the agency in the
J&A--in essence, the critical benefits from weapon
standardization--is sufficient to support the decision to
procure the Glock pistol on a sole-source basis. Specifically,
the agency asserts that prior wide use of the Glock pistol by
the fighting forces mentioned above has created “a baseline of
standardization of operations and support that is critical to be
continued.” J&A at 1. Procuring more of the same pistol would
lessen the logistical burden on the Pakistan Army, the agency
states, in part by reducing the effort required for spare parts
administration; retraining the various forces also would be
unnecessary if the same pistol were procured.
In its challenge to the agency’s rationale, the protester points
out that the J&A does not support a conclusion that the
Pakistanis cannot effectively defend themselves if they procure
a pistol other than the Glock that they use now. The protester
also maintains that the disassembly and cleaning of the Glock
and the proposed Smith & Wesson firearms are identical; that,
given its worldwide popularity, there is no shortage of spare
parts for the protester’s pistol; and that personnel are
typically trained to service and repair or replace the parts for
many different types of semi-automatic weapons. The protester
also asserts that the difference between the trigger pulls of
the two weapons--the protester’s pistol has a heavier trigger
pull and a longer trigger travel--are at best minor distinctions
that would have no impact on the war fighting capabilities of
the Pakistani forces.
As an initial matter, to the extent that the protester argues
that the J&A is inadequate because it does not show that the
Glock pistol is indispensable to the forces who would use it,
its argument is based on a flawed premise. As discussed above,
the standard is not whether the item being procured is
indispensable, or even whether the Glock performs better than
the selected pistol, but whether the agency has offered
sufficient facts and rationale to support the decision to
procure it on a sole- source basis. The protester’s claim that
many organizations with armed personnel train them on several
different firearms is unpersuasive; what is at issue here is the
level of training received by the Pakistani fighting forces and
not, as in one example offered by the protester, the training
regimen of metropolitan cities in this country. There is nothing
in the record to suggest that the forces that would be supplied
with a different pistol than the current Glock would easily
adapt to a change in firearms.
It is undisputed that the parties using these weapons do so
under extremely hazardous and unstable conditions. Under these
circumstances, we conclude that the benefits to the fighting
forces cited in the J&A from procuring the same pistol currently
in use, such as avoiding the need for retraining on a different
model or the need to stockpile spare parts for different models,
are sufficient to support the agency’s decision to procure the
pistols on a sole-source basis. (Smith
& Wesson, Inc., B-400479, November 20, 2008) (pdf)
Turning to the July 2005 sole-source award to OSS for
expansion of the BBA-SME requirement, we find that the agency’s
J&A in support of the sole-source award to OSS was flawed
because it was premised on the unsupported conclusion that OSS
was the only contractor capable of meeting the BBA-SME
requirement in a timely and cost-effective manner. We therefore
sustain the protesters’ challenge to this second sole-source
award as well. The July 2005 J&A, which nominally cited “unusual
and compelling urgency” as the justification for the sole-source
award to OSS, was in fact prepared based on the exception to
full and open competition set forth in 10 U.S.C. sect.
2304(c)(1), which applies when the agency concludes that
required services are only available from one responsible
source. Specifically, the contracting officer testified with
regard to the July J&A as follows: “I wrote this J&A, believing
that I was going to use one responsible source. . . . I think
the situation in Iraq is urgent, but it was written for [‘only]
one responsible source’.” Tr. at 277. Moreover, the reasoning
set forth in the J&A is consistent with the “only one
responsible source” exception. The J&A expressly asserts that
OSS is “the only provider [deleted]. They are the only provider
that can perform the contract without significant additional
start-up costs and recruitment delays.” AR, Tab 1.b.1., J&A at
para. 5. (WorldWide Language
Resources, Inc.; SOS International Ltd., B-296984;
B-296984.2; B-296984.3; B-296984.4; B-296993; B-296993.2;
November 14, 2005) (pdf)
Turning to the propriety of the sole-source bridge
contract with EG&G, we first find that the sole-source award was
improper because it is not supported by a written J&A. In this
regard, when an agency uses noncompetitive procedures, such as
41 U.S.C. 253(c)(1) (2000), which authorizes the use of
noncompetitive procedures when the property or services are
available from only one responsible source, the contracting
officer is required to execute a written justification with
sufficient facts and rationale to support the use of the
authority, certify its accuracy and completeness, and obtain
approval of the action from the cognizant agency official prior
to making an award. See 41 U.S.C. 253(f)(1)(A), (B), (C);
Federal Acquisition Regulation (FAR) 6.303, 6.304. The only
exception to this requirement is where the agency uses
noncompetitive procedures because the agency's need for the
property or services is of such an unusual and compelling
urgency that the government would be seriously injured unless
the agency is permitted to limit the number of sources from
which it solicits bids or proposals. See 41 U.S.C. 253(c)(2),
(f)(2). Here, the agency did not execute a J&A prior to awarding
the letter contract, as required by the statute. While a draft
J&A has been provided during the course of our consideration of
this protest, the agency advises that this document is only the
agency's "deliberative processes" until a final document is
issued. See Agency Letter, Apr. 1, 2003, at 1. In fact, despite
our requests, the agency still has not provided an executed and
approved J&A. Thus, the agency's letter contract award to EG&G
constitutes an improper sole-source award. See Saltwater,
Inc.--Recon. and Costs , B-294121.3, B-294121.4, Feb. 8, 2005,
2005 CPD 33 at 3. (VSE Corporation;
Johnson Controls World Services, Inc., B-290452.3;
B-290452.4; B-290452.5, May 23, 2005) (pdf)
When an agency uses noncompetitive procedures under 10 U.S.C. §
2304(c)(1), it is required to execute a written J&A with
sufficient facts and rationale to support the use of the cited
authority, and publish a notice to permit potential competitors
an opportunity to challenge the agency’s decision to procure
without full and open competition. See 10 U.S.C. §
2304(f)(1)(A), (B); Federal Acquisition Regulation §§
6.302-1(d)(1), 6.303, 6.304; Marconi Dynamics, Inc., B-252318,
June 21, 1993, 93‑1 CPD ¶ 475 at 5. Our review of the agency’s
decision to conduct a sole-source procurement focuses on the
adequacy of the rationale and conclusions set forth in the J&A.
When the J&A sets forth a reasonable justification for the
agency’s actions, we will not object to the award. Global
Solutions Network, Inc., B-290107, June 11, 2002, 2002 CPD ¶ 98
at 6; Diversified Tech. and Servs. Of Virginia, Inc., B‑292497,
July 19, 1999, 99-2 CPD ¶ 16 at 3. Here, based on our review of
the record, we find no basis to question SSP’s overall
determination that only Draper could satisfy the agency’s need
for the establishment and certification of an ISF for the MK 6
guidance system. As documented in its J&A justifying award to
Draper, SSP determined that only Draper could establish and
certify the ISF SSP because, while individual ISCs were familiar
with their particular individual subsystems, only Draper, as the
design and development agent for the MK 6 guidance system, as
well as for the fleet ballistic missile guidance systems
generally, had (1) “comprehensive knowledge” of “all critical
elements unique to the guidance system’s performance,” and (2)
“comprehensive knowledge” of “the interrelationships of these
elements with the entire Trident II weapon system.” J&A at 2.
SSP concluded that Draper’s “overall systems engineering
knowledge and technical expertise in the MK 6 guidance system is
unmatched as a result of over forty years as sole design and
development agent on the [fleet ballistic missile] guidance
systems.” Id. We conclude that SSP reasonably determined that
Draper’s overall knowledge of all of the critical components of
the MK 6 guidance system, including the IMU, electronic
assembly/IMUEs, and 10-PIGA, was essential in view of the broad
scope of the requirement to establish and certify the ISF. (Kearfott
Guidance & Navigation Corporation, B-292895.2, May 25, 2004)
(pdf)
As explained below, the J&A and
its supporting documentation, as well as the agency's
submissions prepared in response to this protest and the
testimony of the agency representatives at the hearing held at
our Office in connection with this protest, contain so many
inconsistencies and inaccuracies that they cannot reasonably
justify the agency's intended award of a sole-source contract to
Rolls-Royce. Specifically, the J&A inaccurately describes
the overhaul services to be acquired, the dollar value of the
services to be acquired, and the length of time for which the
services will be needed. Additionally, the record does not
support the J&A's statement that only Rolls-Royce is capable
of providing either the engineering or overhaul services, and
similarly, fails to support the agency's position, as reflected
in the J&A and argued by the agency during this protest,
that the engineering and overhaul services must be performed by
the same contractor (Rolls-Royce). (Sabreliner
Corporation, B-288030; B-288030.2, September 13, 2001)
Agency's justification for
sole-source procurement is inadequate where the documentation
does not reasonably show that only this exact product will
satisfy the agency's needs, and does not show that the agency's
need for the item is of unusual and compelling urgency that was
not created by a lack of advance planning. (National
Aerospace Group, Inc., B-282843, August 30, 1999) |