B-298864; B-298864.2, Barnes Aerospace Group, December 26, 2006

B-298864; B-298864.2, Barnes Aerospace Group, December 26, 2006 TITLE: B-298864; B-298864.2, Barnes Aerospace Group, December 26, 2006 BNUMBER: B-298864; B-298864.2 DATE: December 26, 2006 *************************************************************** B-298864; B-298864.2, Barnes Aerospace Group, December 26, 2006 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Barnes Aerospace Group File: B-298864; B-298864.2 Date: December 26, 2006 Jason A. Carey, Esq., Todd J. Canni, Esq., Kara M. Klaas, Esq., and John G. Horan, Esq., McKenna Long & Aldridge, for the protester. Randall W. Sweeney for Ferrotherm Corporation, an intervenor. Capt. Christopher M. Schumann, Department of the Air Force, for the agency. Ralph O. White, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protester's contention that the agency unreasonably delayed acting on the protester's request to become an approved source is denied where the record shows that the delay was not unreasonable. 2. Protest challenging sole-source procurement justified on the ground that only one source is available is sustained where the record shows that the presolicitation notice generated an expression of interest from a second source that has made significant progress towards becoming an approved source under the agency's source approval rules, and the remaining time required for approval is not long; as a result, a sole-source award, without considering the viability of the second source as part of the justification and approval process, is improper. 3. Protest is sustained where the record shows that the agency treated offerors unequally with respect to the application of its qualification requirements by requiring that a source seeking approval follow qualification rules while ignoring requalification requirements in those same rules for a previously approved source. DECISION Barnes Aerospace Group protests the decision of the Department of the Air Force to award a sole-source contract to Ferrotherm Corporation under request for proposals (RFP) No. FA8104-06-R-0276, issued to procure the repair of certain F100 engine parts. Barnes argues that the Air Force unreasonably delayed review of Barnes' request for source approval, and awarded to Ferrotherm at an unreasonable price. In a supplemental protest, Barnes argues that the agency has unfairly required Barnes to comply with the agency's source approval rules, while ignoring requalification requirements in those same rules with regard to Ferrotherm. We sustain the protest. BACKGROUND On March 1, 2006, the Air Force posted a presolicitation notice on the FedBizOpps website for repair of the third-stage air sealing ring segments (hereinafter, the "ring segments") for the F100 engine. The notice advised that the solicitation for the repair of approximately 18,900 ring segments would soon be issued. The notice indicated that award would only be made to an offeror qualified as an approved source by the date of award, and that Ferrotherm Corporation was the only approved source for these repairs. In this regard, the notice also indicated that: The government is not required to delay contract award to review pending Source Approval Requests (SARs). Therefore, offerors are encouraged to submit SAR[s] as soon as possible. If the government has not completed review of a SAR when the contract is awarded, the SAR will be retained and the source will be reviewed for possible source approval for future awards. Agency Report (AR), Tab 8, at 2. Five days later, by letter dated March 6, Barnes asked to be approved as a source for repair of the ring segments. Shortly thereafter, Barnes submitted the requisite information to begin the SAR process. AR, Tab 32. Prior to issuance of the presolicitation notice, the Air Force executed a justification and approval (J&A) document authorizing a sole-source purchase of repairs for the ring segment, citing the authority at 10 U.S.C. sect. 2304(c)(1) (2000), and Federal Acquisition Regulation (FAR) sect. 6.302-1(b)(1).[1] AR, Tab 7, at 3. The J&A indicated that the ring segment is considered an "aviation safety critical item," that its repair could only be undertaken by an approved source, and that Ferrotherm was the only approved source.[2] Id. at 3. Of relevance here, the J&A also indicated that "[t]his is the first contract repair for the [ring segments] . . . [and that] repair was previously done in house at [the Oklahoma City Air Logistics Center]." Id.