Atlantic Diving Supply, Inc. (W912CH24R0017)

B-422758,B-422758.2 Oct 15, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Atlantic Diving Supply, Inc. (ADS), of Virginia Beach, Virginia, protests the agency's intent to award a sole-source contract to Caterpillar, Inc., of Peoria, Illinois, under request for proposals (RFP) No. W912CH-24-R-0017, issued by the Department of the Army for service life extension program (SLEP) work on Caterpillar earthmoving equipment. ADS contends that the agency's decision to award this contract on a sole-source basis lacks proper justification. 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: Atlantic Diving Supply, Inc. File: B-422758, B-422758.2 Date: October 15, 2024 Paul Hawkins, Esq., J. Bradley Reaves, Esq., Beth V. McMahon, Esq., and Jacob D. Noe, Esq., ReavesColey, PLLC, for the protester. Amy C. Hoang, Esq., and Sarah E. Barney, Esq., Seyfarth Shaw LLP, for Caterpillar, Inc., the intervenor. Jonathan A. Hardage, Esq., Misty L. Caldwell-Colen, Esq., and Jonathan G. Van Natter, Esq., Department of the Army, for the agency. Kenneth Kilgour, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that decision to award a sole-source contract lacks a proper basis is denied where the record supports the reasonableness of the agency’s justification and approval of the sole-source contract award. DECISION Atlantic Diving Supply, Inc. (ADS), of Virginia Beach, Virginia, protests the agency’s intent to award a sole-source contract to Caterpillar, Inc., of Peoria, Illinois, under request for proposals (RFP) No. W912CH-24-R-0017, issued by the Department of the Army for service life extension program (SLEP) work on Caterpillar earthmoving equipment. ADS contends that the agency’s decision to award this contract on a sole-source basis lacks proper justification. We deny the protest. BACKGROUND The Requirement The Army requires a contractor to provide SLEP services on approximately 240 pieces of government-owned Caterpillar compaction and earthmoving equipment. Agency Report (AR), Tab 3-3, SAM.gov Posting, May 2, 2024, at 3. The SLEP effort will consist of two parts--a core effort that includes “only those tasks that are common to and performed on each vehicle,” and an additional work effort (AWE) for “repair actions beyond the Core Effort which are unique to each individual vehicle based on its condition.” Id. Contract performance will also include providing warehouse space, vehicle pick-up and delivery, and vehicle inspection and testing, among other ancillary services. AR, Tab 3-1, Revised RFP at 199-200. Initial Market Research On May 19, 2022, the Army issued a sources sought questionnaire, also referred to as a request for information (RFI), “to better understand the availability and capabilities of the Original Equipment Manufacturer (“OEM”) [Caterpillar] or other qualified equipment sources to provide SLEP on Army Combat Engineer equipment.” Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 3; see AR, Tab 6-1, Questionnaire. On July 5, ADS and Caterpillar responded to the questionnaire. See AR, Tabs 6-2, ADS Questionnaire Response, and 6-3, Caterpillar Questionnaire Response. ADS stated that its team included Carter Machinery[1] and Red River Army Depot (RRAD); “ADS would provide total contract management support, RRAD would complete the disassembly and assembly of the vehicles, while Carter Machinery will provide all the parts, component rebuilds, and technical support.” Id. at 1. Under performance capabilities, item 1.1, the questionnaire asked: “Has your company previously performed SLEP or RESET[[2]] for the U.S. Department of Defense [(DOD)]?” AR, Tab 6-1, Questionnaire at 5. The questionnaire required firms to “[s]tate the [DOD] service, the systems, age of the systems and what work was performed.” Id. In response, ADS provided an extensive list of equipment serviced, without indicating whether the work was SLEP or RESET, the systems, or the age of the systems. See AR, Tab 6-2, ADS Questionnaire Response at 8-10, 24. In Caterpillar’s response to that same question, the intervenor indicated that it has 26 years of experience performing as the primary contract holder for SLEP contracts and listed its five most recent contracts. AR, Tab 6-3, Caterpillar Questionnaire Response at 10. Caterpillar stated that [s]cope of work includes returning SLEP rebuilds to “like-new” condition (zero hour/zero mile), including a core effort, which are tasks that are common to and performed on each vehicle and an additional work effort, which is a set of repair actions beyond the core effort which are unique to each vehicle based on its condition.