[Protest of Military Sealift Command Decision To Include Certain Work Under an Existing Contract]

A firm protested a Military Sealift Command decision to include certain shipments under an existing contract with another firm, contending that the work to be done should be opened to competition rather than included in the existing contract. The agency contended that the protester failed to include a detailed statement of factual and legal grounds for protest; however, GAO believed that the protest was stated in such a way as to apprise the agency of the specific aspects of the procurement protest. The agency also stated that: (1) the additional requirements could be accommodated under the existing contract with the contractor's equipment; (2) an equitable adjustment to the compensation amount is not tantamount to a modification of the contract beyond its original scope; and (3) any additional costs would be less than the cost of contracting with another firm. GAO has held that, if a contract is changed and the resulting contract is materially different from the contract for which competition was held, the contract should be terminated and the new requirement competed. However, GAO was unable to conclude that the additional cargo represented work which was significantly different from that originally competed. Accordingly, the protest was denied.