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B-257047.2 1 (1995-11-13)

handle is hein.gao/gaocrptabyk0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision


Matter of: Sippican, Inc.

File:        B-257047.2

Date:     November 13, 1995

Leon J. Glazerman, Esq., and Michael J. Lacek, Esq., Palmer & Dodge, for the
protester.
Robert G. Fryling, Esq., and Anthony 0. Boswell, Esq., Blank, Rome, Comisky &
McCauley, for Sechan Electronics, Inc., an interested party.
Christine A. Blazina, Esq., Department of the Navy, for the agency.
Susan K. McAuliffe, Esq., and Michael R. Golden, Esq., Office of the General
Counsel, GAO, participated in the preparation of the decision.
DIGEST

Protest that contracting agency improperly exercised a contract option is denied
where the protester has not shown that the agency failed to follow applicable
regulations or that the determination to exercise the option was unreasonable.
DECISION

Sippican, Inc. protests the exercise of the third option year under contract
No. N00024-94-C-6153, which was awarded to Sechan Electronics, Inc., by the
Department of the Navy. Sippican contends that the agency's determination to
exercise the option was made without complying with applicable regulations.

We deny the protest.

On April 8, 1994, the Navy awarded a contract for a base year plus 3 option years to
Sechan, under solicitation No. N00024-93-R-6126, to produce EMATTS (expendable
anti-submarine warfare sonar training targets). The first year option was exercised
concurrently with the award of the base year contract. The second year option was
exercised in March 1995. The third year option, the subject of the current protest,
was exercised on June 28, 1995.

Sippican contends that the Navy improperly exercised the most recent option
without making a reasonable determination that the option was the most
advantageous method of fulfilling the government's needs, as required by Federal
Acquisition Regulation (FAR) § 17.207. Sippican, the incumbent contractor, bases
its protest principally upon the fact that the firm sent several communications to
the agency after Sippican lost the base contract competition to Sechan in 1994,
stating that Sippican believed recompetition for the contract's option requirements


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