Parmatic Filter Corporation, B-283645; B-283645.2, December 20, 1999

Parmatic Filter Corporation, B-283645; B-283645.2, December 20, 1999 TITLE: Parmatic Filter Corporation, B-283645; B-283645.2, December 20, 1999 BNUMBER: B-283645; B-283645.2 DATE: December 20, 1999 ********************************************************************** Parmatic Filter Corporation, B-283645; B-283645.2, December 20, 1999 Decision Matter of: Parmatic Filter Corporation File: B-283645; B-283645.2 Date: December 20, 1999 Kevin M . Kordziel, Esq., Jenner & Block, for Parmatic Filter Corporation, the protester. Jeffrey I. Kessler, Esq., and Joseph M. Picchiotti, Esq., Department of the Army, for the agency. Glenn G. Wolcott, Esq., and Paul Lieberman, Esq., GAO, participated in the preparation of this decision. DIGEST Contracting officer reasonably determined that modification of ongoing contract was necessary to meet urgent requirements for a limited number of filters to protect against nuclear, biological and chemical threats, where the other potential source-- which would have to pass first article testing requirements and establish a production line under severe time constraints--had recently experienced multiple testing failures in attempting to produce similar filters. DECISION Parmatic Filter Corporation protests the Department of the Army's modifications to contract No. DAAE20-96-C-0222 that had been previously awarded to Hunter Manufacturing Company for the production of certain 200 cubic feet per minute (CFM) filter sets to protect against nuclear, biological and chemical (NBC) threats at various military facilities. The required filters are designed to remove toxic gases and particles from contaminated air, and to provide breathable air for mobile and permanent shelters used by the U.S. Army, Navy and Air Force. [1] Parmatic protests that it should have been afforded an opportunity to compete for the filter sets that were instead acquired without competition under the modifications. We deny the protest. BACKGROUND The Army awarded contract No. DAAE-20-96-C-0222 to Hunter in May 1996, calling for the production of a base quantity of 2,207 filter sets with three option quantities of 2,207 each. Hunter is currently completing production and delivery of the final option quantity. In the last half of 1998, the agency began planning for a follow-on procurement to meet the ongoing military requirements for NBC filters. A synopsis of that pending procurement was published in the Commerce Business Daily (CBD) in March 1999, stating that the estimated total requirements for 200 CFM filters under the follow-on contract were approximately 25,000 filters. In February 1999, the contracting officer learned that unanticipated deployments of Navy ships and activation of Air Force units had depleted the inventory of 200 CFM filters below acceptable levels, requiring the immediate acquisition of 3,600 filters, over and above the quantities to be obtained under the follow-on procurement. Contracting Officer's Statement at 1; Contracting Officer's Supplemental Statement, Nov. 15, 1999, at 2. At that time, the contracting officer considered the capabilities of both Hunter and Parmatic, but concluded that only Hunter was reasonably capable of supplying the immediate, interim requirements. Accordingly, a justification and approval for other than full and open competition (J&A) was prepared and executed. The Justification portion of the J&A states: This requirement is urgently needed for U.S. Navy and U.S. Air Force overseas deployments to NBC threat areas and non-availability could cause serious injury or death to troops. Added deployments of U.S. Navy ships and additional activations of the U.S. Air Force's TCP[E] and CHATH have caused critical depletion of inventory available for issue. Due to the current backlog of 4,222 each 200 CFM Filter Sets an urgent requirement exists. Hunter Mfg is the only current manufacturer to have passed First Article Test and be in continuous production. Hunter Mfg passed First Article Test [on] 4 June 1997 and has produced 4,499 units to date. As such they are the only manufacturer qualified for immediate production. Hunter could add 200 units per month to their current production schedule beginning in July 1999 and running through February 2000. Beginning with March 2000 Hunter could devote full production to meeting this urgent requirement with completion by June 2000. Agency Report, Tab C, Justification, J&A, 200 CFM Filter Set, at 1-2. Consistent with this J&A, on March 29, 1999, the agency issued modification No. 19 to contract No. DAAE20-96-C-0222, requiring Hunter to deliver 1,800 filter sets (the first half of the total quantity contemplated under the J&A). However, the delivery schedule in modification No. 19 reflected deliveries commencing at a later date than that discussed above in the J&A; specifically, modification no. 19 provided that deliveries would begin in February 2000 rather than beginning in July 1999. Modification No.