[Protest of Sole-Source Reprocurement and Navy Contract Award]

A firm protested the sole-source reprocurement and contract award by the Navy after termination of the protester's contract for default. The firm also protested its being held liable for the excess cost of the reprocurement. The Navy canceled the contract because the firm failed to meet the delivery date and failed to furnish equipment conforming to contract specifications. GAO stated that it would not consider arguments concerning the propriety of termination for default or liability for a reprocurement's excess costs, because these are both matters of contract administration. In the sole-source reprocurement, the Navy awarded the contract to the only other bidder in the original procurement. Although the protester had assured the Navy of corrective action before the delivery date of the reprocurement, the Navy asserted that it could not reasonably expect the protester to perform the contract in a timely manner. GAO held that the Navy's basis for the sole-source award was reasonable and that the award to the next qualified offerer on the original solicitation is a recognized method of reprocurement. Accordingly, the protest was dismissed in part and denied in part.