[Protest of Sole-Source Treasury Contract Award]

A firm protested that a sole-source contract awarded by the Department of the Treasury for Olympic coins packaging should have been competed. It protested on the grounds that: (1) the public exigency claimed by Treasury in awarding the contract on a sole-source basis did not exist; (2) the patent which Treasury believed was held by the awardee for the product did not exist; (3) the award violated the Buy American Act; (4) Treasury could have used older molds for the plastic packaging to save more money; (5) the cost of the awardee's packaging was excessive; and (6) the awardee's packaging would have displayed the coins upside down. GAO dismissed the last three allegations, because the protester used factually incorrect information in making these charges. GAO held that, while the procurement was urgent in light of the upcoming 1983 Christmas season, Treasury could have competed the contract when its requirements became known, some 6 months before the contract was awarded. In addition, Treasury now believes that no patent exists for the product in question. GAO left this issue and the Buy American issue unresolved, sustaining the protest on the ground that the contract should have been competed, given that competition could have been accomplished through the use of expedited procedures. However, GAO found that no corrective action was feasible because the contract requires delivery of the product for the 1983 Christmas season, and no manufacturer could design and produce the packaging before then.