[Protest of Proposed Navy Sole-Source Contract Award for Stud Link Chains]

A firm protested a proposed Navy sole-source contract award for mooring chain, contending that the proposed award excluded it from an opportunity to compete for portions of the Navy's requirements and was improper. The Navy's justification was that the awardee: (1) was the only known domestic producer of both mooring and anchor chain; and (2) could only remain a viable mobilization-base producer of anchor chain if the Navy awarded it the contract. GAO held that: (1) it was within the Navy's discretion to conduct procurements in the manner that enabled it to establish and maintain sources of supply for a particular item in the interest of national defense; (2) the Navy did not need to obtain full and open competition for a procurement for industrial mobilization purposes and was entitled to use other than competitive procedures where it was necessary to award the contract to a particular source; and (3) there was no evidence that the Navy had abused its discretion. Accordingly, the protest was denied.