Protest of Photocopier Lease Renewal

B-201047: Mar 16, 1981

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A company protested the renewal of a lease for a photocopier. The company contended that the agency, contrary to Federal regulations, ignored its proposals to lease equipment under the company's Federal Supply Schedule (FSS) contract at a cost savings to the Government. The agency stated that, because there was a decrease in its photocopy requirements, a continued lease from the incumbent contractor was less expensive. Since the record indicated that there was a definite decrease in the agency's photocopy requirements and that no increase was expected in the future, GAO concluded that the agency was correct in its determination that a lease with the incumbent was less costly. In addition, the company's proposed monthly rate was derived from its low volume pricing plan which was not for consideration by GAO in determining the lowest delivered price for the procurement. GAO determined that the company's applicable monthly FSS price was actually higher than that of the incumbent. Therefore, Federal regulations which require the agency to justify a purchase at other than the lowest FSS price were not applicable. Accordingly, the protest was denied.