Protest of Aggregate Award Provision

Roy's Rabbitry protested the proposed aggregate award by the National Institutes of Health (NIH) of a contract for nearly 10,000 rabbits for research purposes. The protester argued that the solicitation was unduly restrictive, would increase costs to the Government, and would eliminate a large number of capable, licensed suppliers. NIH responded that an agency may properly determine whether the Government's advantage lies in single, not multiple, awards. It was pointed out that the specifications of NIH are extremely stringent, and that multiple awards might result in procurement of rabbits subject to genetic variables or diseases. NIH contended that multiple awards would increase administrative tasks, including site visits and health monitoring. GAO held that the specifications provided an objective standard other than size; therefore, suppliers should be allowed to offer smaller quantities. The protest was sustained, and the agency was urged to resolicit in order to determine whether a single award or multiple awards would be most advantageous to the Government. It was suggested that administrative costs be considered when evaluating bids for award; however, GAO will not sanction restrictive contract procedures merely because of the administrative burden of obtaining maximum competition.