Protest Concerning Propriety of Agency's Exercising Option Instead of Conducting New Competition

A contract for automatic lead computing sights was awarded on a sole-source basis with an option clause allowing the Army to order an additional quantity of the equipment. Because stock supplies were low and the Army did not have a data package ready for competitive procurement, the option was exercised prior to negotiations in order to finalize the price of the basic contract and to allow the Government to negotiate a larger quantity at one time. The protester argued that it was producing an identical configuration and, therefore, an adequate technical data package for competition did exist. GAO, however, found no objection to the Army's decision to exercise the option, since the Army's urgency to obtain the equipment was a determining factor. When the legitimate needs of the Government can be satisfied only by a single source, the Government is not required to compromise its needs in order to obtain competition.