[Protest of VA Termination of Contract for Mail Presorting and Metering]
B-251317.4: Oct 14, 1993
- Full Report:
A firm protested the Department of Veterans Affairs' (VA) termination of its contract for mail presorting and metering services and subsequent award to another firm, contending that: (1) VA improperly terminated its contract on the basis that it was not a labor surplus area (LSA) firm; (2) the composition of its workforce qualified it as a de facto LSA bidder; (3) VA awarded it a LSA contract under a previous solicitation; (4) it expended substantial sums of money for equipment purchases in anticipation of performing the contract; and (5) VA should have withdrawn the LSA set-aside when it became apparent that only one bidder was eligible for award. GAO held that: (1) the protester was not an LSA bidder eligible for award, since it could not perform the majority of the contract in a designated LSA; (2) there was no regulatory provision for de facto LSA determinations; (3) VA actions under previous procurements and the protester's equipment purchases had no bearing on the present procurement; (4) VA was not required to withdraw the LSA set-aside; and (5) VA properly terminated the protester's contract and made award to the eligible bidder. Accordingly, the protest was denied.