Leupold Stevens, Inc.

B-417796 Oct 30, 2019 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Leupold Stevens, Inc., of Beaverton, Oregon, protests a modification to a contract held by Sig Sauer, Inc., of Newington, New Hampshire, which was issued by the Department of the Navy, Navy Surface Warfare Center, for purchase of the second focal plane squad variable powered scope (S-VPS). The challenged modification is for the purchase and installation of the Horus T-8 glass-etched internal reticle in the Sig Sauer S-VPS. Leupold argues that the modification is outside the scope of Sig Sauer's awarded contract. We sustain 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:  Leupold Stevens, Inc. File:  B-417796 Date:  October 30, 2019 Alix Town, Esq., Oles Morrison Rinker & Baker, LLP, for the protester. W. Jay DeVecchio, Esq., Kevin P. Mullen, Esq., and Allisandra D. Young, Esq., Morrison & Foerster LLP, for the intervenor. Randall Kemplin, Esq., Department of the Navy, for the agency. Stephanie B. Magnell, Esq., and Amy B. Pereira, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that contract modification seeks services beyond the scope of the underlying contract is sustained, where the modification includes changes prohibited by the contract and the modification causes a material increase in the contract’s value. DECISION Leupold Stevens, Inc., of Beaverton, Oregon, protests a modification to a contract held by Sig Sauer, Inc., of Newington, New Hampshire, which was issued by the Department of the Navy, Navy Surface Warfare Center, for purchase of the second focal plane squad variable powered scope (S‑VPS).[1]  The challenged modification is for the purchase and installation of the Horus T-8 glass-etched internal reticle in the Sig Sauer S-VPS.  Leupold argues that the modification is outside the scope of Sig Sauer’s awarded contract. We sustain the protest. BACKGROUND On November 9, 2017, the Navy issued request for proposals (RFP) No. N00164-18-R-JQ30 in accordance with the procedures of Federal Acquisition Regulation (FAR) part 15.  RFP at 1.  The solicitation anticipated the award of a fixed-price indefinite-delivery, indefinite-quantity (IDIQ) contract with a 5-year base period and five 1-year option periods to the offeror proposing the best value to the agency, considering the following factors in descending order of importance:  technical, past performance, and price.  AR, Tab 6A, Contract BCM at 12-13.  The agency received seven proposals by the January 12, 2018 deadline.[2]  Id. at 14-15.  Sig Sauer proposed a wire reticle at a price of $13,803,359.50.  Id. at 15, 41.  Leupold proposed a “more expensive” glass-etched reticle at a price of $[DELETED].[3]  Id.; Contracting Officer’s Statement (COS)/Memorandum of Law (MOL) at 9.  According to the Navy, either “most” or “all” other offerors “proposed using a more-expensive glass-etched or hybrid reticle.”  COS/MOL at 9.  The other offerors’ prices ranged from approximately $27 million to $41 million.  AR, Tab 6A, Contract BCM at 41.  With their proposals, offerors provided the Navy with 12 scope samples for testing against the solicitation’s performance specifications, including the performance specifications for reticle performance and illumination.  AR, Tab 10, Navy Decl. ¶ 4; COS/MOL at 5; see also AR, Tab 6A, Contract BCM at 35, 39. On September 24, after noting that Sig Sauer offered a much lower price than any other offeror, the agency made award to Sig Sauer at a price of $12,077,565.