BAE’s $825 Million Propellant Contract Withstands Protest

Island Pyrochemical Industries wasn’t able to protest the Army’s decision to extend and increase the value of BAE Systems, Ordnance Systems Inc.'s propellant contract from $423 million to $825 million because the challenger’s lack of production meant it wasn’t an interested party, the GAO said in a decision released Thursday.

Island Pyrochemical, which said the Army improperly issued a sole-source justification and approval to extend BAE’s performance, only offered a propellant product that represented an insignificant percentage of the $402 million contract increase, the Government Accountability Office said.

A protester that produces only a small component of a proposed sole-source ...