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[Request for Reconsideration of Dismissal of Protest Against Navy Procurement]

B-219997.2 Published: Oct 25, 1985. Publicly Released: Oct 25, 1985.
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Highlights

A firm requested reconsideration of a decision which denied its protest that the Navy's justification for a sole-source contract award for equipment it manufactured was invalid because it and the awardee failed to reach a subcontract agreement. The Navy had believed that the protester granted the awardee an exclusive license to market the equipment. GAO had held that the matter was one of contract administration since the awardee provided equivalent equipment that was permissible under the contract. In its request for reconsideration, the protester contended that: (1) the license it granted to the awardee was conditional upon a further subcontract agreement; and (2) GAO erroneously dismissed the matter as one of contract administration because the matter involved a contract modification that went beyond the scope of the work originally contemplated. GAO held that: (1) the Navy was unaware at the time it prepared the sole-source justification that the license was conditional; and (2) since the contract provided for the use of equivalent equipment, the matter did not involve an impermissible contract modification. Accordingly, the original decision was affirmed.

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Bid protest reconsiderationsContract administrationContract modificationsEquipment contractsLicensesNaval procurementSole source procurementU.S. NavyContract managementProcurementIntellectual property rights