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[Protest of Cancellation of Lease by GSA]

B-209816 Published: May 17, 1983. Publicly Released: May 17, 1983.
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Highlights

A firm protested the General Services Administration's (GSA) cancellation of a solicitation for a 10-year lease for office space. The protester contended that it had executed a contract with GSA in good faith and that the GSA cancellation constituted a breach of contract. The protester also argued that there was no compelling reason to cancel the solicitation and that the cancellation resulted from undue pressure exerted from the contracting officer's superiors. GAO noted that, regardless of the protester's intent to fulfill the contract, GSA did not accept the protester's offer which was required to make the agreement binding. GSA indicated that market conditions changed its need for office space and enabled it to enter a lease agreement at a substantially lower cost. GAO held that, since GSA no longer required the office space, it had a reasonable basis to cancel the solicitation. The protester failed to provide any evidence showing that the cancellation was improperly motivated and, therefore, did not meet its burden of proof. Finally, GAO noted that the GSA failure to notify the protester of the reasons for rejection of its offer was a minor procedural deviation and did not affect the legality of the solicitation cancellation. Accordingly, the protest was denied.

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Office buildingsReal estate leasesSolicitation cancellation protestsOffice spaceBid evaluation protestsReal propertyNegotiated procurementProtestsBid proposalsFederal acquisition regulationsSolicitation cancellationBreach of contractSolicitations