[Protest of Defense Logistics Agency Purchase Under Federal Supply Schedule Contract]

A firm protested the Defense Logistics Agency's (DLA) purchase of an automated storage and retrieval system for electronic spare parts, contending that the DLA economic analysis was erroneous in justifying the purchase of carousel units under the Federal Supply Schedule (FSS) contract of another firm. Further, the protester argued that the purchase violated the maximum ordering limitation of the awardee's FSS contract and questioned the propriety of the DLA order, because DLA needed materials handling equipment, and it ordered carousels which were classified as visible records storage items in the Federal Stock Class. GAO could see no logical basis for objecting to the DLA acquisition of the carousels for materials handling and held that a contracting agency may purchase equipment from the FSS which meets its requirements, even if the designated stock category indicates a use other than the one for which the agency will utilize the equipment. Stock designations are for the convenience of the Government and are not intended to limit users of multipurpose items to that designated use. DLA determined that the carousels would satisfy its minimum needs in the most cost-effective manner. GAO believed that DLA reasonably concluded that the carousels would adequately meet its minimum needs and held that the protester failed to show that the DLA decision involved bad faith or was otherwise unreasonable. According to the record, DLA ordered the carousels under one limitation in the awardee's FSS contract and ordered the accessories under another. Therefore, GAO held that DLA did not violate any limitation or applicable regulations. Accordingly, the protest was denied.