[Protest of Navy Solicitation and Contract Award for Management Services]

B-232663,B-232663.2: Jan 26, 1989

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A firm protested a Navy solicitation and subsequent contract award for management services, contending that the Navy improperly conducted a sole-source procurement, since it: (1) failed to solicit bids from other known potential sources; (2) allowed the awardee to compete despite an organizational conflict of interest; (3) tailored the personnel requirements to reflect the qualifications of the awardee's personnel; and (4) did not allow sufficient bid preparation time. GAO held that the Navy: (1) failed to solicit offers from as many potential sources as practicable; (2) did not allow sufficient bid preparation time; (3) was responsible for its urgency determination, since the urgency resulted primarily from its dilatory conduct; (4) required an excessively lengthy contract period; and (5) properly did not exclude the awardee from competition. GAO also held that the protester failed to show how the Navy's personnel requirements were unreasonable or overly restrictive. Accordingly, the protest was sustained, and GAO recommended that the Navy: (1) review the solicitation's personnel requirements; (2) issue a new solicitation and permit all known potential sources a reasonable time to prepare bids; (3) terminate the instant contract, if appropriate; and (4) reimburse the protester for its protest costs.