[Protest of Navy Purchase of Business Machines]

A firm protested a contract award to another firm under a Navy solicitation for word processing equipment, contending that: (1) the Navy should have purchased the equipment under a General Services Administration schedule contract; and (2) it would receive a commission from the equipment manufacturer if the Navy made use of the schedule contract. GAO held that: (1) the Navy was not required to purchase from the nonmandatory schedule contract; and (2) the Navy followed the small purchase procedures outlined in the Federal Acquisition Regulation, even though it was not able conduct a formal price comparison. Accordingly, the protest was dismissed.