[Complaint Against City of Whitehall, Wisconsin, Contract Award]

A firm filed a complaint against a contract award made by the city of Whitehall, Wisconsin, for water treatment filtration improvements. The solicitation provided that an award would be made to the lowest responsible bidder and required a bidder to name the equipment manufacturer that formed the basis of the bid. Bidders were permitted to name two alternate equipment manufacturers, with related bid price adjustments. An award was made to a firm based on its use of either the protester's equipment or that of another supplier. During an equipment investigation, the city found that: (1) firms using the protester's equipment had experienced problems with the equipment; and (2) the protester did not operate or maintain a manufacturing facility with company personnel for providing quality control for component parts. As a result, the city awarded the contract to the firm based on its use of the other supplier's equipment. The protester argued that: (1) the award to the firm based on its use of the other supplier's equipment was improper because the firm's bid based on its use of the protester's equipment was lower; and (2) the equipment it offered was in full compliance with the specifications. GAO held that the city's rejection of the awardee's bid based on its use of the protester's equipment was a negative determination of the protester's responsibility, and GAO does not deal with a nonresponsibility determination unless it is shown to be unreasonable. Since the protester did not show that the basis for the city's decision was unreasonable, GAO concluded that rejection of the protester's equipment was not contrary to applicable federal procurement principles. GAO also rejected the protester's allegations that: (1) the decision to reject its equipment may have resulted from collusion by the city's investigating engineer and the alternate supplier; and (2) the solicitation requirement for two installation references may have been unnecessary. Accordingly, the protest was denied in part and dismissed in part.