[Protest of Navy Sole-Source Contract Award for Tug Services]

A firm protested a Navy sole-source contract award for tug services, contending that: (1) the awardee was the only firm that a local harbor authority franchised to perform tug services in the locality where the Navy required the services; and (2) the awardee's tugs were not properly equipped. GAO held that: (1) the matter of the awardee's sole franchise was a dispute between the protester and the harbor authority, which it would not consider; (2) the sole-source procurement was necessitated by the harbor authority's refusal to franchise additional firms and, as such, was beyond the Navy's control; and (3) the matter of the acceptability of the awardee's tugs was one of bidder responsibility, which it would not consider. Accordingly, the protest was dismissed.