[Protest of Proposed Army Sole-Source Contract Award]

A firm protested a proposed sole-source Army contract award and an amendment to the solicitation which increased the quantity of goods procured. The solicitation was issued on a sole-source basis in order to maintain the manufacturing capability of an industrial mobilization base producer and because there were insufficient requirements to justify expansion of the mobilization base to more than one producer. The protester contended that it can and has produced the solicited product and that the quantity being procured is more than that needed to keep the industrial mobilization base producer viable. GAO has previously held that sole-source awards may be properly made to create or maintain a producer's readiness to produce essential military supplies; however, GAO will consider whether facts support sole-source requirements. GAO found that neither the capabilities of the protester nor a requirement for maximizing competition required the Army to procure the product competitively. Furthermore, GAO failed to find that the Army abused its discretion as to which and how many producers of the item must be kept in active production. Accordingly, the protest was denied.