B-216097, AUG 29, 1984, 84-2 CPD 240

B-216097, AUG 29, 1984, 84-2 CPD 240

CONTRACTS - OPTIONS - EXERCISABLE AT SOLE DISCRETION OF GOVERNMENT - BID PROTEST NOT FOR CONSIDERATION DIGEST: WHERE AN OPTION IS EXERCISABLE AT THE DISCRETION OF THE GOVERNMENT, THE DECISION NOT TO EXERCISE THE OPTION IS A MATTER OF CONTRACT ADMINISTRATION WHICH GAO WILL NOT REVIEW UNDER ITS BID PROTEST FUNCTION.

AIR MECHANICAL, INC.:

AIR MECHANICAL, INC. PROTESTS THE FAILURE OF THE DEPARTMENT OF THE ARMY TO EXERCISE THE OPTION TO EXTEND ITS CONTRACT, NO. DABT01-83-C 0217-1, WITH AIR MECHANICAL AND THE ARMY'S SUBSEQUENT RESOLICITATION OF THE REQUIREMENT FOR PLANT MAINTENANCE AND CUSTODIAL SERVICES AT FORT RUCKER, ALABAMA. AIR MECHANICAL ALLEGES THAT THE FEDERAL ACQUISITION REGULATION (FAR), 48 FED.REG. 41,102 (1983) (TO BE CODIFIED AT 48 C.F.R.), REQUIRES THE ARMY TO EXERCISE THE OPTION. WE DISMISS THE PROTEST.

THE PROTESTER STATES THAT THE FAR PROVIDES FOR NEW PROCUREMENTS IN LIEU OF OPTION EXERCISES WHEN THERE HAS BEEN UNSATISFACTORY SERVICE OR WHEN THERE HAVE BEEN SIGNIFICANT CHANGES TO THE ORIGINAL CONTRACT; THE PROTESTER FURTHER STATES THAT NEITHER CRITERION APPLIES HERE. WE ARE NOT AWARE OF THE FAR PROVISIONS REFERRED TO BY THE PROTESTER, NOR ARE WE AWARE OF ANY OTHER PROVISIONS IN THE FAR WHICH WOULD REQUIRE THE ARMY TO EXERCISE THE OPTION RATHER THAN RESOLICIT THIS REQUIREMENT. RATHER, THE OPTION IS EXERCISABLE AT THE SOLE DISCRETION OF THE GOVERNMENT. THEREFORE, A DECISION NOT TO EXERCISE THE OPTION IS A MATTER OF CONTRACT ADMINISTRATION AND NOT ONE THAT WILL BE CONSIDERED UNDER OUR BID PROTEST PROCEDURES. MARDAN MARINE, LTD., B-213953, JAN. 9, 1984, 84-1 CPD PARA. 62.

THE PROTEST IS DISMISSED.