[Protest of Air Force Decision Not To Exercise Renewal Option]

B-208932: Sep 21, 1982

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A firm protested an Air Force decision not to exercise the renewal option in its contract to provide mess attendant services at an Air Force base. It also protested that the Air Force intends to award a contract for the services without competition to another small business. Where an option is exercisable at the discretion of the Government, the decision to exercise the option or to issue a new solicitation is a matter of contract administration, which GAO does not review. The Air Force also advised GAO that, to meet its needs, it is conducting a competition among firms that qualify for subcontracts under the Small Business Act's section 8(a) program. GAO does not review procuring agency determinations to set aside procurements for small businesses unless there is a showing of fraud or bad faith on the part of Government officials. The protester also suggested that the Air Force decision in this situation constituted de facto debarment without due process. As the protester has not been excluded from contracting with the Air Force or any other Government agency, the loss of the contract to the 8(a) program was not a de facto debarment. Accordingly, the protest was dismissed.

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