Request for Reconsideration

A firm requested reconsideration of a GAO decision involving the firm's bid for reprocurement after the Veterans Administration had terminated its contract for default. The firm's protest, which was denied by GAO, concerned the rejection of its bid. Since the earlier decision, the firm's contract termination for default has been converted to a contract termination for convenience by the Veterans Administration Board of Contract Appeals. The central issue presented by the firm's reconsideration request was whether a contractor, whose termination has been converted, is subject to the rulings set forth in the earlier decision. GAO ruled that, since the Veterans Administration Board of Contract Appeals did not issue its decisions and orders regarding the termination for default until several months after reprocurement, the Veterans Administration had a reasonable basis to consider the protesting firm's bid ineligible. Accordingly, the request for reconsideration was denied.