Mistral Inc. (B-422905; B-422905.2)

You might care.

Category: Sole source, NDAA

Date: 13 December 2024

URL: https://www.gao.gov/products/b-422905%2Cb-422905.2

Mistral Inc., a women-owned small business, protested the US Army's award of a sole-source, $990 million IDIQ contract to AeroVironment, Inc., for loitering munitions systems (a lightweight, semiautonomous aerial weapon designed to patrol an area, identify targets, and strike with precision). Army justified the award using temporary acquisition authorities under the fiscal 2023 and 2024 National Defense Authorization Acts (NDAAs), which permit streamlined, noncompetitive procurement for defense articles supporting Ukraine, Taiwan, and Israel. Mistral alleged Army's determination and findings (D&F) lacked sufficient justification for bypassing competitive procedures and failed to consider limited competition among viable vendors.

Use of sole-source procedures: Mistral argued that the public interest exception should not preclude limited competition when multiple capable vendors exist. GAO upheld Army’s rationale that expediting the contract aligned with national security imperatives and the specific flexibilities authorized under the NDAAs.

Scope of authority: Mistral contended the contract exceeded the temporary authorization's intent because of its its duration and inclusion of testing and evaluation services. GAO found the contract aligned with the NDAAs’ provisions, including for “related services.”

Foreign military sales: Mistral challenged the lack of detailed destinations for units designated for foreign allies. GAO determined operational security concerns justified withholding this information.

The protest was denied. GAO concluded the Army’s D&F sufficiently demonstrated compliance with the statutory requirements, including the public interest exception and the covered contract criteria under the NDAAs.

Digest

Protest challenging the agency’s award of a sole-source contract pursuant to temporary acquisition authority is denied where the record demonstrates the agency’s written determination and findings (D&F) was sufficient to support the use of the authority for other than full and open competitive procedures.