Protest concerning Exercise of Contract Option

B-191949: Oct 27, 1978

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A company protested the issuance and terms of a notice issued by an agency seeking firms to demonstrate certain equipment. The company is seeking to enjoin the agency on the basis of competitive solicitation, but the protest involving the exercise of a contract option was considered since it was by a firm seeking to compete for the requirement. Since the purchase option price was added by contract modification, interested suppliers should be given adequate notice and the opportunity for evaluation which would normally be accomplished through competitive procurement. The procedures established for potential suppliers to demonstrate equipment were unduly restrictive. The protest was sustained and a recommendation made that the protester be permitted to show the acceptability of its equipment.