An agency made several statements about the proposed work that were eventually determined to be erroneous (too detailed to recount here).  Relying on the misstatements, Lockheed Martin prepared and submitted an unnecessarily complex and costly proposal.  Based upon its costly alternative, the agency concluded Lockheed was not a viable source and found that Rockwell was the only source capable of meeting its needs and awarded a delivery order to it on a sole source basis.

Lockheed protested asserting the agency misled it about its needs and asserted it would have proposed a less costly approach had it known.  The Comp. Gen. agreed with Lockheed ruling the award violated the Competition in Contract Act which authorizes sole source awards only if the agency reasonably concludes a singe viable source exists to satisfy its needs.  Here the agency misled Lockheed, preventing its ability to show is was a viable source to perform the work (Lockheed Martin Sys. Integration – Oswego, Comp. Gen. Dec. B-287190.3).

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