Allegation That Agency Misuses Multiple-Award Schedule

In a protest against any award under a solicitation issued by the General Services Administration, Federal Supply Service (GSA), the protester contended that negotiated multiple-award contracts should not be used when single source contracts are available which offer almost the identical item. The protester also contended that the maximum order limitation (MOL) for these multiple award schedules should be reduced to less than $25,000. The protester held the competitively awarded single source contract for metal frame dormitory furniture, and felt that the Air Force as purchasing agency was misusing the multiple-award schedule by procuring wall units for use as dormitory furniture which should be used exclusively as office furniture. GSA disagreed and pointed out that the Department of Defense is not a mandatory user of Federal Supply Service (FSS) contracts, and depending on its needs, has the option to use multiple award FSS sources in lieu of single source contracts. Since an agency is allowed a reasonable range of judgment and discretion in determining its needs, GSA generally will not question the agency's determination unless a clear showing indicates that the determination has no reasonable basis. The protester did not present evidence showing unreasonable determination on the part of the Air Force. Therefore, the Air Force can purchase wall units designed for offices and use them as dormitory furniture without violating the protester's FSS contract for dormitory wall units. Since the protester did not show that GSA acted unreasonably or in violation of any regulation in establishing the MOL in question, GAO found no basis for questioning the MOL size. Accordingly, the protest was denied.