Marvin Land Systems, Inc., B-276434; B-276434.2, June 12,

Marvin Land Systems, Inc., B-276434; B-276434.2, June 12, BNUMBER: B-276434; B-276434.2 DATE: June 12, 1997 TITLE: Marvin Land Systems, Inc., B-276434; B-276434.2, June 12, 1997 ********************************************************************** DOCUMENT FOR PUBLIC RELEASE A protected decision was issued on the date below and was subject to a GAO Protective Order. This version has been redacted or approved by the parties involved for public release. Matter of:Marvin Land Systems, Inc. File: B-276434; B-276434.2 Date:June 12, 1997 William A. Roberts III, Esq., Lee P. Curtis, Esq., and Richard P. Castiglia Jr., Esq., Howrey & Simon, for the protester. Joel R. Feidelman, Esq., Anne B. Perry, Esq., and Nancy R. Wagner, Esq., Fried, Frank, Harris, Shriver & Jacobson, for Napco International, Inc., an intervenor. Vera Meza, Esq., and Robert A. Maskery, Esq., Department of the Army, for the agency. Guy R. Pietrovito, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Where protester challenges exclusion from consideration for the award of a reprocurement contract, protest is denied as to base quantity, because agency reasonably determined that only the awardee could satisfy its requirements for the base quantity within the time required. DECISION Marvin Land Systems, Inc. protests the sole source award of contract No. DAAE07- 97-C-X065 to Napco International, Inc. by the U.S. Army Tank-automotive and Armaments Command (TACOM) for M113A3 conversion kits. The contract is a reprocurement of a requirement that had been previously awarded to Kit Pack Company; Kit Pack's contract was terminated for default. Marvin contends that the agency had no reasonable basis to exclude it from consideration for award of this requirement. We deny the protest. The M113A3 conversion kits are necessary to support ongoing upgrades at Anniston Army Depot, Alabama, and Bokuk Industries, Guji, Korea of the M113 Family of Vehicles (the M113 Armored Personnel Carrier, M577 Command Post Vehicle, M1068 Standard Integrated Command Post Systems, M58 Smoke, Opposing Forces Surrogate Vehicle, and M1064 120MM Mortar System). The kits contain more than 1,100 different parts, several of which (such as the armor plate, transmission controller, and variable speed fan drive) are long-lead items. These kits were the subject of an earlier competitive procurement. FMS Corporation submitted the lowest-priced offer under that procurement, but was found nonresponsible and was denied a certificate of competency from the Small Business Administration. The next low-priced offeror withdrew its offer. Kit Pack submitted the third low-priced offer and Napco the fourth low-priced offer. A contract was awarded to Kit Pack on October 30, 1995, for 764 kits, with delivery of 50 kits per month to begin October 21, 1996. On November 1, 1996, Kit Pack's contract was terminated for default because of Kit Pack's failure to make delivery due to its financial condition.[1] FMS, which had delivered more than 2,300 M113A3 conversion kits to the Army since 1987, filed for bankruptcy in June 1995. On August 30, 1995, Marvin purchased all of FMS's operational facilities, equipment, and machinery and retained most of FMS's key operational management personnel. After this date, Marvin expressed to the Army its interest in supplying kits to the agency. Two of FMS's contracts--a Field Artillery Ammunition Supply Vehicle (FAASV) kit contract and an M113-related kit contract--were novated to Marvin; Marvin did not agree, however, to the novation of three other M113-related kit contracts because the agency would not agree to price increases for those contracts. Marvin also won a limited competition to provide conversion kits for the Bradley Fighting Vehicle. After the termination of Kit Pack's contract, Marvin again expressed interest in supplying the M113A3 conversion kits. However, on February 26, 1997, the Army noncompetitively awarded a reprocurement contract with a total estimated value of $19,086,617 to Napco for 401 conversion kits with an option for 258 additional kits at a unit price of $28,963 per kit.[2] Napco is to begin delivery of 60 kits per month on September 26, 1997; delivery of the option quantity is to begin immediately after delivery of the basic quantities--exercise of the contract option is required to be within 240 days of contract award. The Army's sole source award to Napco was supported by a written "Justification and Approval" that found that only Napco could provide the required 659 conversion kits within the time required. Specifically, the Army found that Napco, which was delivering this kit under other contracts, was the only source with the production expertise and current production line capable of meeting the Army's urgent requirement for the kits.