[Protest of AID Action in Terminating a Contract]

B-216084.2: May 10, 1985

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A firm protested the Agency for International Development's (AID) termination of its contract because it had a conflict of interest under the contract and would be in the position to promote its own equipment. The protester contended that the conflict of interest related only to manufacturers of systems, and it was fully responsive to the terms of the solicitation and was not a manufacturer as defined by AID regulations. GAO has held that the responsibility for determining whether a firm has a conflict of interest and to what extent a firm should be excluded from competition rests with the procuring agency. GAO found the agency determination reasonable since the protester would be in a position to further its own interests regardless of whether it was considered a manufacturer of systems or a supplier of systems. Accordingly, the protest was denied.