[Protest of Navy Issuance of Delivery Order]

A firm protested the Navy's issuance of a delivery order to another firm for a product for which both firms had nonmandatory Federal Supply Schedule contracts. The awardee offered the lowest price for the product and stated that its price was based on an equal product. Although the awardee's schedule contract listed no such product, the awardee explained that it was offering the same product at a reduced price. The protester alleged that the awardee committed fraud in offering a nonexistent product to the Navy and argued that schedule contracts are not intended to permit a contractor to determine, on a case-by-case basis, whether it can assemble a product that would be profitable at the price listed in the schedule and rename the product. However, the protester failed to submit evidence of any material misrepresentations by the awardee. Therefore, its allegation that the awardee acted fraudulently was unsupported. To the extent that the allegation concerns criminal conduct, the matter should be referred to the Department of Justice. Accordingly, the protest was denied.