B-232469, Sep 16, 1988, 88-2 CPD 255
Highlights
PROCUREMENT - Special Procurement Methods/Categories - In-house performance - Administrative discretion - GAO review DIGEST: General Accounting Office will not review an agency's decision to perform services in-house. A matter of executive policy which is not within GAO's bid protest function. We will not review the Air Forces's determination to produce the goods in -house rather than continuing to purchase them under contract. Will review them only where a competitive solicitation for cost comparison purposes has been issued. The Air Force's determination to produce the goods in house is not a proper matter for our review. The requirements of FAR Sec. 7.300 are inapplicable. The protest is dismissed.
B-232469, Sep 16, 1988, 88-2 CPD 255
PROCUREMENT - Special Procurement Methods/Categories - In-house performance - Administrative discretion - GAO review DIGEST: General Accounting Office will not review an agency's decision to perform services in-house, a matter of executive policy which is not within GAO's bid protest function, when an agency has not issued a competitive solicitation for cost comparison purposes under Office of Management and Budget Circular No. A-76.
Sterling Bakery, Inc.:
Sterling Bakery, Inc., protests a decision by the Defense Logistics Agency (DLA) to produce bread and bakery products for delivery to various Air Force bases in-house. Sterling contends that in deciding to produce the bakery products in-house, rather than by purchasing them from a private company, the agency acted improperly in not conducting a cost comparison in accordance with Office of Management and Budget (OMB) Circular No. A-76, which sets forth the executive branch's policy for determining whether to perform services in-house or under contract. addition, Sterling, has requested that the cost comparison be performed in accordance with the requirements of Federal Acquisition Regulations (FAR) Sec. 7.300 (FAC 84-37).
We dismiss the protest.
We will not review the Air Forces's determination to produce the goods in -house rather than continuing to purchase them under contract. We regard such decisions as matters of executive branch policy, and will review them only where a competitive solicitation for cost comparison purposes has been issued. W. B. & A., Inc., B-229926.3, May 19, 1988, 88-1 CPD Para. 475. Since no competitive solicitation has been issued here for purposes of performing a cost comparison under OMB Circular A-76, the Air Force's determination to produce the goods in house is not a proper matter for our review. Likewise, because no cost comparison need be performed by the Air Force in this situation, the requirements of FAR Sec. 7.300 are inapplicable.
The protest is dismissed.