[Protest of IRS Termination of Contract for Optical Disk Storage Subsystems]

A firm protested the Internal Revenue Service's (IRS) decision to terminate its contract for optical disk storage subsystems and reevaluate all bids, contending that IRS should have reopened discussions with all bidders in the competitive range and requested a new round of best-and-final offers (BAFO). GAO held that IRS: (1) properly took corrective action, since it misevaluated the awardee's technical proposal; and (2) was not required to reopen discussions and request new BAFO, since its communications with the unsuccessful bidder did not constitute post-BAFO discussions. Accordingly, the protest was denied.