Island Pyrochemical Industries (Unknown)

B-418994 Sep 29, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Island Pyrochemical Industries (IPI), of Mineola, New York, challenges the Department of the Army, U.S. Army Contracting Command – Rock Island's decision to execute a sole-source justification and approval (J&A) to award a contract modification to increase the ceiling price and ordering quantities of the Army's indefinite-delivery, indefinite-quantity (IDIQ) contract No. W52P1J-11-D-0013 with BAE Systems, Ordnance Systems, Inc. (BAE-OSI), of Radford, Virginia, for the production of propellant and propellant components. IPI alleges that the J&A lacks a reasonable basis and fails to include an adequate rationale to support the asserted basis that BAE-OSI is a "vital supplier" needed in case of a national emergency, or that, in the absence of a sole- source modification, there will be a break in the production of the propellant and propellant grains produced under the contract. We dismiss the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This version has been approved for public release.   Decision Matter of:  Island Pyrochemical Industries File:  B-418994 Date:  September 29, 2020 Richard J. Conway, Esq., and Adrien Pickard, Esq., Blank Rome LLP, for the protester. Jamie F. Tabb, Esq., Ryan D. Stalnaker, Esq., and John M. Satira, Esq., Vinson & Elkins LLP, and Catherine K. Ronis, Esq., BAE Systems, Inc., for BAE Systems, Ordnance Systems, Inc., the intervenor. Wade L. Brown, Esq., and Jessica L. Weiford, Esq., Department of the Army, for the agency. Evan D. Wesser, Esq., and Edward Goldstein, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency is improperly seeking to modify an indefinite-delivery, indefinite-quantity contract for the production of multiple propellants and propellant components to increase the contract’s ceiling and ordering quantities is dismissed where the protester, a potential supplier of a single component constituting less than 0.00[DELETED] percent of the proposed ceiling increase, is not an interested party to challenge the agency’s proposed modification. DECISION   Island Pyrochemical Industries (IPI), of Mineola, New York, challenges the Department of the Army, U.S. Army Contracting Command – Rock Island’s decision to execute a sole-source justification and approval (J&A) to award a contract modification to increase the ceiling price and ordering quantities of the Army’s indefinite-delivery, indefinite-quantity (IDIQ) contract No. W52P1J-11-D-0013 with BAE Systems, Ordnance Systems, Inc. (BAE-OSI), of Radford, Virginia, for the production of propellant and propellant components.  IPI alleges that the J&A lacks a reasonable basis and fails to include an adequate rationale to support the asserted basis that BAE-OSI is a “vital supplier” needed in case of a national emergency, or that, in the absence of a sole- source modification, there will be a break in the production of the propellant and propellant grains produced under the contract. We dismiss the protest. BACKGROUND On June 24, 2010, the Army issued request for proposals No. W52P1J-09-R-0015 on a full and open competition basis for the continued operation and maintenance of the Radford Army Ammunition Plant (RFAAP).  RFAAP is a government-owned, contractor-operated energetic (propellant) manufacturing plant; it is the primary producer of solvent propellants and the only producer of solvent-less propellants and Nitrocellulose, a key ingredient of several propellants required by the Department of Defense, in the National Technology and Industrial Base (NTIB).  The solicitation contemplated that the successful offeror would be awarded multiple contracts consisting of:  (1) a zero-dollar fixed-price contract for facilities operations and maintenance; (2) a fixed-price IDIQ contract for supplies; and (3) a basic ordering agreement utilizing task orders on a fixed-price or cost-reimbursable basis for direct-funded services and modernization projects.  Contracting Officer’s Statement and Legal Memo. (COS/MOL) at 2. Under the above contracting arrangement, the operating contractor would be required to operate and maintain RFAAP under a no-cost contract, and would need to recoup its operations and maintenance costs through product and service pricing.  Id. at 3.  The operations and maintenance contract has a 5-year base period, a 5-year option period, and incentives that could extend the contract for up to 25 years.  Id. at 2.  The IDIQ supply contract initially had a 5-year period of performance.  Id. On May 17, 2011, BAE-OSI was awarded three companion contracts as a result of the RFAAP competition, including IDIQ supply contract No.