[Request for Reversal of Denial of Protest Against SSA Contract Award]

A firm requested reconsideration of the denial of its protest against Social Security Administration (SSA) contract awards to two firms. The protester had contended that SSA improperly awarded the contracts under a negotiated procurement at prices higher than the low bid under a cancelled sealed-bid procurement. GAO had held that the Federal Acquisition Regulation did not preclude such an award, since the cancellation was not based on unreasonable prices or collusive bidding. In its request for reconsideration, the protester contended that the awardees' negotiated contract prices substantially exceeded the lowest bid price under the cancelled procurement, since they had to buy bid books. GAO held that, since the prohibition against award at a higher price did not apply, there was no limit on the amount by which a firm could increase its bid during negotiation. Accordingly, the prior decision was affirmed.