[Protest Against Rejection of Bid Under VA Solicitation]

A firm protested the Veterans Administration's (VA) rejection of its bid as nonresponsive under an invitation for bids (IFB) for servicing X-ray equipment. The firm also protested the VA decision to terminate the contract and resolicit after revising a defective clause, claiming that it should have been awarded the contract on the basis of its original bid. GAO found that, since the defective IFB provided no common basis for evaluating the bids, VA could not determine the low bid and could not award the contract based on the most favorable cost to the government. GAO agreed with VA that cancellation of the solicitation was proper. Accordingly, the protest was denied. GAO also advised VA of its concern that VA had not taken any action to terminate the awarded contract and resolicit the requirement despite having advised GAO that it intended to do so.