[Protest of Army Sole-Source Contract Award for M509 Projectiles]

A firm protested an Army sole-source contract award for projectiles, contending that it was improper because: (1) it would result in the shutdown of the protester's projectile production facilities; (2) it was inconsistent with the Army's obligation to obtain competition; and (3) the Army's justification for the award was inadequate. GAO held that the Army improperly awarded the contract on a sole-source basis since its justification and approval for the award did not meet Competition in Contracting Act requirements. Accordingly, the protest was sustained. GAO recommended that the Army: (1) seek official approval for the sole-source award, or terminate the contract; and (2) reimburse the protester for its protest preparation costs.