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Incumbent Protests Contract Award

B-194708 Published: May 23, 1979. Publicly Released: May 23, 1979.
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Highlights

The incumbent contractor protested the issuance of an invitation for bids (IFB) by the Air Force. The present contract, due to expire on July 31, 1979, contains a provision giving the Government the option to renew the contract for 2 years. The protested IFB reserved the right to reject all bids if the apparently successful bidder did not offer a price lower than the current contract price. The protester contended that the Government should either exercise the option or be bound by the results of the competitive bidding. Defense Acquisition Regulations specifically permit the Government to test the market with a competitive solicitation when deciding whether to exercise an option. The action taken by the Air Force was proper and accordingly, the protest was denied.

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