Sole-Source Justification
The GAO determined that the loitering munitions contract qualified as a “covered contract” under NDAA provisions, which allow noncompetitive awards for critical munitions and related support for Ukraine, Taiwan, and Israel, or for allied stock replenishment.
The Army’s D&F documents established that the contract would provide essential defense articles, including anti-tank weapons and unmanned aerial vehicles, under the Foreign Military Sales program. While Mistral argued the Army lacked specificity about foreign sales destinations and quantities, the GAO found the omission justified by operational security concerns.
Mistral also argued the five-year contract was too long given the temporary nature of the authority. However, the GAO noted that Congress allowed for “flexible acquisition procedures” and placed no restrictions on contract size or performance period under the NDAA provisions.
Industry Reaction
AeroVironment, based in Simi Valley, California, praised the GAO’s decision, saying it affirms the Army’s procurement integrity and commitment to operational needs. Representatives for Mistral and the Army did not immediately respond to requests for comment.
