Request for Reconsideration

The Milwaukee Area Technical College requested reconsideration of a GAO decision which found that its award of a contract for television broadcasting equipment had not been obtained in open and free competition, and which recommended that the funding agency withhold Federal grant funds or determine whether extenuating circumstances make it appropriate to fund the grant notwithstanding the degree of competition. The protester argued that the clause contained in the solicitation regarding waiver of any discrepancies or irregularities in the equipment offered was acceptable under Federal Procurement Regulations and past GAO decisions. The protester contended that under its State law, any reservation of the right to waive discrepancies or irregularities is specifically permitted. GAO concurred with the protester that under State law minor irregularities could be waived, and upon reconsideration concluded that the clause did not prevent open and free competition for the procurement. The award could not be terminated, even if GAO agreed with the protester, since the contract had been substantially performed. The only question which remained was whether the grant funds should be released. As the agency already concluded that the protester acted reasonably in this matter, no useful purpose would be served by GAO review of the complaint. Therefore, the prior recommendation by GAO to consider withholding of funds was withdrawn.