Department of the Navy--Reconsideration

B-286194.7: May 29, 2002

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Edda Emmanuelli Perez
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The Department of the Navy requested reconsideration of a GAO decision in which GAO sustained the protest challenging the Navy's determination, pursuant to Office of Management and Budget Circular A-76, that it would be more economical to perform base operations and support services in-house than to contract for those services with the protester. GAO sustained this protest on the basis of multiple procurement flaws, including the Navy's failure to comply with the conflict of interest requirements of the Federal Acquisition Regulation, subpart 3.1. GAO presumed prejudice on the Navy's part. Accordingly, the decision is affirmed, but the recommended corrective action is modified to reflect only prospective application of the conflict of interest portion of the decision.