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[Protest of Cancellation of GSA Solicitation]

B-210654 Published: Dec 23, 1983. Publicly Released: Dec 23, 1983.
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Highlights

A firm protested the General Services Administration's (GSA) cancellation of an invitation for bids (IFB) for janitorial services, contending that the action was improper because it was not based on one of the justifications for cancellation specified in procurement regulations. The protester also claimed bid and schedule preparation costs. Subsequent to bid opening, Congress passed a resolution that prohibited GSA from obligating funds to contract out for janitorial services that were being performed by GSA employees prior to the enactment date, and the contracting officer canceled the solicitation. The protester alleged that the resolution was not applicable to this procurement since its price was lower than either the incumbent contractor's or the cost of in-house performance. GAO held that GSA was prohibited by the resolution from contracting out for the services in the second phase of the IFB and that the issue of the protester's lower price did not alter that fact. Procurement regulations require that a contracting officer have a compelling reason for cancellation of a solicitation and must determine that cancellation is in the best interest of the Government. GAO found that GSA did have a proper basis for canceling the second phase of the IFB. GAO determined that, although cancellation of the entire IFB was not required, the contracting officer did not act arbitrarily in deciding to cancel the solicitation rather than terminate an existing contract. Accordingly, the protest and claim were denied.

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Bid preparation cost claimsMaintenance services contractsPrivatizationSolicitation cancellation protestsSolicitationsProcurement regulationsBid evaluation protestsProcurementIntellectual property rightsCoastline