Rotair Aerospace Corporation (B-422816)

Category: Scope, sole-source requirements contract

Date: November 6, 2024

URL: https://www.gao.gov/products/b-422816

You should not care.

Rotair Aerospace Corporation protested a Defense Logistics Agency (DLA) order awarded to Sikorsky Aircraft Corporation for flight control capsule assemblies, alleging that the order exceeded the scope of the existing sole-source requirements contract. Rotair argued that DLA bypassed competition by failing to conduct adequate market research, despite agreeing to a competitive procurement during corrective action for a prior solicitation. DLA countered that the delivery order fell within the scope of the contract, which included a "buyback" provision allowing for certain inventory purchases.

GAO denied the protest, concluding that the buyback provision allowed the purchase of residual and committed inventory from Sikorsky, making DLA’s actions consistent with contract terms. The buyback quantity, calculated at 2,270 units, fell within contract allowances based on projected demand. GAO found no basis to question DLA’s reliance on Sikorsky's inventory numbers, nor evidence of impropriety in limiting competition. The decision underscores GAO's deference to agencies in contract scope interpretation where terms clearly define inventory obligations.

Digest

Protest that a delivery order exceeds the scope of an underlying requirements contract is denied where the record shows that the items ordered were within the express terms of the contract, providing for the buyback of inventory, and the protester’s allegations are based on facts not reflected in the record.