[Protest of Navy Contract Award for Spur Gears]

A firm protested a Navy contract award for spur gears, contending that the Navy's mismanagement of the procurement caused the urgent circumstances which necessitated award to the sole bidder whose product had already undergone first-article testing. GAO held that the Navy unreasonably delayed its determination that the protester's product required first-article testing. Accordingly, the protest was sustained, and GAO recommended that the Navy: (1) redetermine the number of spur gears which it urgently required; (2) recompete the requirement for the spur gears it did not urgently need; and (3) reimburse the protester for its bid and protest preparation costs.