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B-225950, FEB 11, 1987, 87-1 CPD 153

B-225950 Feb 11, 1987
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PROCUREMENT - SPECIAL PROCUREMENT METHODS/CATEGORIES - IN-HOUSE PERFORMANCE - ADMINISTRATIVE DISCRETION - GAO REVIEW PROCUREMENT - COMPETITIVE NEGOTIATION - REQUESTS FOR PROPOSALS - CANCELLATION - JUSTIFICATION - GAO REVIEW DIGEST: DECISION TO CANCEL SOLICITATION AND TO PERFORM WORK IN-HOUSE IS A MATTER OF EXECUTIVE POLICY THAT THE GENERAL ACCOUNTING OFFICE DOES NOT REVIEW WHERE. THE SOLICITATION WAS NOT FOR THE PURPOSES OF COMPARING THE COSTS OF IN-HOUSE PERFORMANCE WITH THE COSTS OF CONTRACTING. WITH THE TERMS OF THE RFP PROVIDING THAT AN AWARD WOULD BE MADE TO THE RESPONSIBLE OFFEROR WHOSE OFFER WAS CONSIDERED MOST ADVANTAGEOUS TO THE GOVERNMENT. WE HAVE RECOGNIZED. WE WILL CONSIDER A PROTEST THAT THE AGENCY FAILED TO FOLLOW ESTABLISHED COST COMPARISON PROCEDURES BECAUSE WE BELIEVE IT WOULD BE DETRIMENTAL TO THE PROCUREMENT SYSTEM IF.

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B-225950, FEB 11, 1987, 87-1 CPD 153

PROCUREMENT - SPECIAL PROCUREMENT METHODS/CATEGORIES - IN-HOUSE PERFORMANCE - ADMINISTRATIVE DISCRETION - GAO REVIEW PROCUREMENT - COMPETITIVE NEGOTIATION - REQUESTS FOR PROPOSALS - CANCELLATION - JUSTIFICATION - GAO REVIEW DIGEST: DECISION TO CANCEL SOLICITATION AND TO PERFORM WORK IN-HOUSE IS A MATTER OF EXECUTIVE POLICY THAT THE GENERAL ACCOUNTING OFFICE DOES NOT REVIEW WHERE, AS HERE, THE SOLICITATION WAS NOT FOR THE PURPOSES OF COMPARING THE COSTS OF IN-HOUSE PERFORMANCE WITH THE COSTS OF CONTRACTING.

CREATIVE RESOURCES, INC.:

CREATIVE RESOURCES, INC., PROTESTS THE CANCELLATION BY THE NAVAL SUPPLY CENTER, CHARLESTON, SOUTH CAROLINA, OF REQUEST FOR PROPOSALS (RFP) NO. N00612-86-R-0687. THE RFP SOUGHT OFFERS FOR THE SUPPLY OF REFERRAL AND COUNSELING SERVICES FOR A NAVAL FAMILY SERVICES CENTER. ACCORDING TO THE PROTESTER, THE NAVY CANCELED THE RFP AFTER DETERMINING TO PERFORM THE SERVICES IN-HOUSE. THE PROTESTER CONTENDS THAT IN REACHING THIS DECISION THE AGENCY FAILED TO COMPLY WITH OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-76-- ESTABLISHING THE EXECUTIVE BRANCH'S POLICY FOR DETERMINING WHETHER TO PERFORM SERVICES IN-HOUSE OR UNDER CONTRACT-- AND WITH THE TERMS OF THE RFP PROVIDING THAT AN AWARD WOULD BE MADE TO THE RESPONSIBLE OFFEROR WHOSE OFFER WAS CONSIDERED MOST ADVANTAGEOUS TO THE GOVERNMENT.

SINCE AN AGENCY'S DECISION WHETHER SERVICES SHOULD BE PERFORMED IN HOUSE OR BY A CONTRACTOR INVOLVES A MATTER OF EXECUTIVE BRANCH POLICY, NOT WITHIN OUR PROTEST FUNCTION, WE GENERALLY DO NOT REVIEW THE AGENCY'S DECISION. JETS, INC., 59 COMP.GEN. 263 (1980), 80-1 CPD PARA. 152; CROWN LAUNDRY AND DRY CLEANERS, INC., B-194505, JULY 18, 1979, 79-2 CPD PARA. 38. WE HAVE RECOGNIZED, HOWEVER, A LIMITED EXCEPTION TO THIS RULE WHERE AN AGENCY UTILIZES THE PROCUREMENT SYSTEM TO AID IN ITS DETERMINATION BY ISSUING A COMPETITIVE SOLICITATION FOR THE STATED PURPOSE OF COMPARING THE COSTS OF IN-HOUSE PERFORMANCE WITH THE COSTS OF CONTRACTING. WE WILL CONSIDER A PROTEST THAT THE AGENCY FAILED TO FOLLOW ESTABLISHED COST COMPARISON PROCEDURES BECAUSE WE BELIEVE IT WOULD BE DETRIMENTAL TO THE PROCUREMENT SYSTEM IF, AFTER THE SUBMISSION OF OFFERS, AN AGENCY WERE PERMITTED TO ALTER THE PROCEDURES IT HAD ESTABLISHED AND UPON WHICH BIDDERS HAD RELIED. CONTRACT SERVS. CO., 65 COMP.GEN. 41 (1985), 85-2 CPD PARA. 472.

THE FACTS DO NOT FIT WITHIN THE LIMITED EXCEPTION DESCRIBED ABOVE. HERE, THERE IS NO INDICATION THAT THE RFP INCLUDED A STATEMENT THAT OFFERS WOULD BE COMPARED WITH THE NAVY'S ESTIMATED COSTS OF IN-HOUSE PERFORMANCE FOR THE PURPOSE OF DETERMINING WHETHER TO PERFORM THE WORK IN-HOUSE. INSTEAD, THE CONCERN OF THE AGENCY SEEMS TO HAVE BEEN PRIMARILY THAT BECAUSE ITS FUNDING WOULD LIKELY BE REDUCED, IT WOULD BE WISER TO CONSERVE ITS FUNDS BY DOING THE WORK IN-HOUSE RATHER THAN TO CONTRACT OUT. UNDER CIRCUMSTANCES AS THESE, REVIEW BY OUR OFFICE IS NOT APPROPRIATE. SEE BLDG. SERVS. UNLTD., INC., B-222731, APR. 17, 1986, 86-1 CPD PARA. 380. FURTHER, IT IS WELL-ESTABLISHED THAT AN AGENCY MAY CANCEL A SOLICITATION WHERE THE SERVICES ARE NO LONGER REQUIRED BECAUSE THEY CAN BE PROVIDED IN- HOUSE AT A COST SAVINGS. SEE CARRIER CORP., B-214331, AUG. 20, 1984, 84-2 CPD PARA. 197.

THE PROTEST IS DISMISSED.

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