[Protests of Corps of Engineers Sole-Source Contract Award]

Two firms protested an Army Corps of Engineers contract award for emergency dredging of silt from the access channels of a Navy submarine base, contending that the Corps failed to adequately justify the need for cancellation of the solicitation or award of a sole-source contract and that the Corps' restriction to a certain type of dredge exceeded the Government's minimum needs. The Navy conducted a preaward survey, found the low bidder to be nonresponsible, and referred the matter to the Small Business Administration for possible issuance of a Certificate of Competency. In the meantime, additional shoaling was discovered that, according to the Navy and the Corps, was caused by the weather and created an unsafe and urgent situation. The Corps subsequently canceled the original solicitation and issued a sole-source contract to the fourth low bidder, the only firm with the type of dredge that the Corps felt was needed to remove the silt in the timeframe allowed. GAO stated that the burden of proving unreasonable an agency's determination of its minimum needs rests with the protester. GAO found that the protesters were not able to present any evidence to contradict the Corps' findings regarding the existence or cause of the additional shoaling or that its equipment restrictions exceeded the agency's minimum needs. GAO further stated that it will not object to a sole-source procurement with a reasonable basis such as a time limitation. Accordingly, the protests were denied, and GAO disallowed the protesters' claims for recovery of bid preparation costs.