[Protest of Corps of Engineers' Decision To Cancel Advertised Solicitation]

A firm protested the Corps of Engineers' decision to cancel an advertised solicitation for the construction of two buildings in favor of negotiating a modification of an ongoing contract to meet the requirements. GAO reviews protests concerning contract modifications where the basis of the protest is that the modified contract exceeds the scope of the original contract, since such a modification, in lieu of a competitive procurement, may be tantamount to an inadequately justified sole-source procurement. GAO found that, because of its magnitude, this modification was tantamount to a sole-source award under a new procurement. A sole-source award is authorized when it is required by the legitimate needs of the Government. The Corps reported that: (1) the work called for in the modification was interrelated to the work currently being performed; (2) physical crowding of the congested work site by another contractor would result in a significant loss of efficiency; and (3) additional costs and delayed completion dates were expected to be incurred should a contractor other than the incumbent contractor perform the work. Under these circumstances, GAO did not find the Army's position to be unreasonable. Accordingly, the protest was denied.