Hydraulics International, Inc. (B-423114)

You should not care.

Category: Sole source justification

Date: 27 January 2025

URL: https://www.gao.gov/products/b-423114

Hydraulics International, Inc. (HII), protested the Army Materiel Command's intent to issue a sole-source contract to Sun Test Systems, Inc. (STS) for the Aviation Ground Power Unit (AGPU) 1.1, arguing that it could supply a compliant product without substantial duplication of costs. The justified its sole-source decision under 10 U.S.C. § 3204(a)(1) and FAR 6.302-1(a)(2)(ii)(A), determining that only STS could meet its requirements without excessive cost duplication.

Sole-source justification under CICA: Army claimed that only STS could meet its operational needs without substantial duplication of costs. HII argued that the agency misrepresented its needs and that other vendors could provide a suitable alternative. GAO upheld the Army's justification, finding that the agency properly documented its sole-source rationale.

Requirement for simultaneous and continuous functionalities: HII contended that Army had relaxed its requirement for AGPU 1.1 to provide simultaneous and continuous electrical, pneumatic, and hydraulic outputs. However, GAO found that the requirement remained unchanged and was incorporated into the sole-source contract.

STS’s compliance with requirements: HII challenged whether STS’s AGPU 1.1 actually met the simultaneous and continuous functionalities requirement, citing expert declarations. GAO found that Army had adequately demonstrated compliance through testing and documentation.

The protest was denied. GAO found that the Army's sole-source justification was reasonable and that HII failed to demonstrate a change in requirements or that STS's AGPU 1.1 did not meet them.

Digest

Protest of an agency’s intent to issue a sole-source award to another firm is denied where the record shows that no other responsible source can meet the agency’s needs without substantial duplication of cost.