Zodiac of North America, Inc.

B-414260 Mar 28, 2017 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Zodiac of North America, Inc., of Stevensville, Maryland, protests the modification of contract No. W56HZV-13-D-0151, awarded to Atlantic Diving Supply, Inc. (ADS), of Virginia Beach, Virginia, by the U.S. Army Contracting Command - Warren for production of inflatable combat raiding craft and inflatable combat assault craft. Zodiac argues that the Army improperly relaxed the specification requirements such that it will be acquiring materially different boats, and has effectively awarded a sole-source contract to ADS in violation of the Competition in Contracting Act (CICA). We deny the protest. We deny the protest. View Decision 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:  Zodiac of North America, Inc. File:  B-414260 Date:  March 28, 2017 Stanley R. Soya, Esq., Ellen M. Lynch, Esq., and Anthony C. Scalice, Esq., Baker Botts LLP, for the protester. William A. Wozniak, Esq., and Robert E. Korroch, Esq., Williams Mullen, for Atlantic Diving Supply, Inc., the intervenor. Wade L. Brown, Esq., and Laura K. Anderson, Esq., Department of the Army, for the agency. Charmaine A. Stevenson, Esq., and Laura Eyester, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the agency’s modification of a contract is denied where modification of the contract was within scope and of a nature that competitors could have reasonably anticipated at the time of the original award. DECISION Zodiac of North America, Inc., of Stevensville, Maryland, protests the modification of contract No. W56HZV-13-D-0151, awarded to Atlantic Diving Supply, Inc. (ADS), of Virginia Beach, Virginia, by the U.S. Army Contracting Command - Warren for production of inflatable combat raiding craft and inflatable combat assault craft.  Zodiac argues that the Army improperly relaxed the specification requirements such that it will be acquiring materially different boats, and has effectively awarded a sole-source contract to ADS in violation of the Competition in Contracting Act (CICA). We deny the protest. BACKGROUND The underlying request for proposals (RFP) No. W56HZV-13-R-0186 was issued on February 28, 2013, and anticipated award of a fixed unit-price, indefinite-delivery/indefinite-quantity contract to provide 7-person inflatable combat raiding craft (I-CRC), 15-person inflatable combat assault craft (I-CAC), and corresponding outboard motors.  RFP at 4, 111. The 7-person I-CRC will be used to support missions such as airborne and air mobile infiltration, clandestine over-the-horizon insertion and extraction, submarine infiltration and exfiltration of special operations forces, surface swimming operations, SCUBA operations, river reconnaissance, searching, water gap crossing, and humanitarian missions.  Id. at 4.  The 15-person I-CAC will be used to support missions such as hydrographic survey and side-scan sonar operations, bridging operations, water gap crossing for larger forces, and safety and diver recovery platform.  Id.  Award was to be made to the lowest-priced, technically acceptable offeror.  Id. at 111.  The RFP included the Federal Acquisition Regulation (FAR) clause at § 52.209-4, First Article Approval -- Government Testing (SEP 1989) -- Alternate I (JAN 1997) and Alternate II (SEP 1989), which requires that the contractor provide two units of each of the boats and motors for first article test within 60 days of contract award.  RFP at 74.  The clause further provides: (c) If the first article is disapproved, the Contractor, upon Government request, shall submit an additional first article for testing.  After each request, the Contractor shall make any necessary changes, modifications, or repairs to the first article or select another first article for testing.  All costs related to these tests are to be borne by the Contractor, including any and all costs for additional tests following a disapproval.  The Contractor shall furnish any additional first article to the Government under the terms and conditions and within the time specified by the Government. . . .