[Protest of Proposed Contract Award for Prosthetic Devices]

A firm protested a proposed Veterans Administration (VA) contract award to a university, contending that, since the university receives a substantial amount of money from state and federal governments, it had an advantage over other contractors. GAO has held that unrestricted competition on all government contracts between commercial concerns and nonprofit educational institutions is require by federal procurement regulations. Although certain awardees may enjoy competitive advantages, the government is not required to eliminate these advantages unless they are the result of unfair government action. In addition, GAO found that an allegation that the four firms currently holding requirements contracts with VA adequately meet the agency's needs was not a valid ground for protest. The protester also contended that a conflict of interest existed because VA physicians are on the university's staff; however, GAO found that the protester failed to prove that a conflict of interest existed. Accordingly, the protest was dismissed.