Request for Review of EPA Grantee Procurement Actions

A subcontractor requested that GAO review certain procurement actions taken by a Federal grantee under a project for the construction of a wastewater treatment plant. The grantee submitted a price request for a specific type of equipment to the prime contractor. The contractor in turn forwarded the request to the subcontractor, who replied that the equipment did not comply with the specifications and questioned why the grantee desired a price on nonspecified equipment. Later, the subcontractor was advised that revisions would be required of the drawings it had submitted to the grantee. In a subsequent letter to the contractor, the grantee reviewed and summarized the reasons for its rejection of the subcontractor's submission and advised that no new submittal had been received. The prime contractor then advised the subcontractor that it was issuing a change order to th subcontractor's contract canceling the contract in its entirety for noncompliance with the terms of the agreement. The subcontractor's complaint was based on the allegation that the grantee had disregarded the specifications contained in the original solicitation in changing from one type of equipment to another, thereby purchasing nonconforming equipment without the benefit of competitive bidding. After reviewing the record, GAO found that the subcontractor was merely continuing its protest of the cancellation of its contract. IT held that this was a matter of contract administration not for review by GAO. Accordingly, the complaint was dismissed.