Chase Defense Partners (SPE4A6-23-Q-0403)

B-421411 Apr 14, 2023 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Chase Supply, Inc. d/b/a Chase Defense Partners, of Hampton, Virginia, protests the terms of a solicitation under request for quotations (RFQ) No. SPE4A6-23-Q-0403, issued by the Defense Logistics Agency (DLA) for power cable assemblies. The protester contends that the agency's procurement of the power cable assemblies from a single approved source is unduly restrictive of competition. 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: Chase Defense Partners File: B-421411 Date: April 14, 2023 Alan Grayson, Esq., for the protester. Jaime Molbreak, Esq., Defense Logistics Agency, for the agency. Emily R. O’Hara, Esq., and Peter H. Tran, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of solicitation for power cable assemblies from a single approved source is denied where the record shows that the agency is procuring an approved source item and the agency’s determination to use the single approved source was reasonable. DECISION Chase Supply, Inc. d/b/a Chase Defense Partners, of Hampton, Virginia, protests the terms of a solicitation under request for quotations (RFQ) No. SPE4A6-23-Q-0403, issued by the Defense Logistics Agency (DLA) for power cable assemblies. The protester contends that the agency’s procurement of the power cable assemblies from a single approved source is unduly restrictive of competition. We deny the protest. BACKGROUND The agency issued the current RFQ on January 3, 2023, under the simplified acquisition procedures of Federal Acquisition Regulation (FAR) part 13.[1] AR, Exh. 1, RFQ at 1-2. The agency seeks to purchase 31 replacement power cable assemblies, identified by National Stock Number (NSN) 6150‑01‑468-3561. Id. at 3. These cable assemblies are used to supply ground power to various aircraft in the United States Air Force fleet. Specifically, the cable assemblies connect “flightline” generator sets to aircraft in order to provide external ground power for launch, recovery, and maintenance operations. AR, Exh. 4, Aircraft Generation Engineering Branch Chief Declaration at 1. Essex Electro Engineers, Inc. is the original equipment manufacturer (OEM) of the generator sets. AR, Exh. 6, Essex Letter at 1. As a combat support agency, DLA is responsible for the procurement of items for use by the military services. Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 1. The agency explains that while DLA is tasked with procuring this NSN item for the Department of Defense (DOD), the Air Force Engineering Support Activity (ESA) is the agency charged with approving and maintaining the list of approved sources for NSN 6150‑01‑468-3561. Id. at 3; AR, Exh. 3, DOD Instruction (DODI) 4140.69 § 2.3(j). Any requirement for cable assemblies, identified by NSN 6150-01-468-3561, must be procured from the approved source list.[2] Supp. COS/MOL at 3; see AR, Exh. 3, DODI 4140.69 § 2.2(i). Only the Air Force ESA can approve new sources for this NSN item; DLA does not have the authority to approve sources for critical application items. Supp. COS/MOL at 2-3; see AR, Exh. 3, DODI 4140.69 § 1.2(a). Relevant here, the Air Force ESA conducted market research in April and May of 2022, and the agency found that only one responsible source could satisfy the requirements for replacement power cable assemblies that are compatible with the flightline generator sets. COS/MOL at 4. The Air Force ESA identified ITW GSE, Inc. as the approved source because its part number (PN) JB8817-60NJ was the only product that met the specifications for NSN 6150-01-468-3561. Id. at 4; AR, Exh. 8, Approved Source List at 1. Consequently, the solicitation specifically identifies the cable assemblies as a critical application item, and notifies vendors of the following approved source of supply for the NSN: ITW GSE Inc., [commercial and government entity (CAGE)] code 0SMN2 and PN JB8817-60NJ. RFQ at 3. Chase submitted a quotation in response to the RFQ. Although Chase indicated that it did not take any exceptions, the quotation did not offer the product sought in the RFQ (i.e., ITW GSE PN JB8817-60NJ). AR, Exh. 2, Quotations at 1-2. Rather, the item quoted by Chase in response to the RFQ was PN 72HN-1517-0060, a product manufactured by Skyko International LLC.[3] COS/MOL at 2. At the same time, Chase also filed an agency-level protest with DLA on January 6, before the due date set for quotations, arguing that the solicitation term restricting the procurement to a single approved source was unduly restrictive of competition. Supp. COS/MOL, Attach. 3, Agency-Level Protest at 1.