Complaint About a Defective Solicitation

A firm complained that an invitation for bids (IFB) issued under a Federal grant to a State transportation department failed to include evaluation criteria regarding performance, standardization, and life-cycle costs as required by the Urban Mass Transportation Act and various Department of Transportation appropriations acts. The solicitation requirements were based on the federally required specifications for advanced design buses. The agency contended that the Act does not require consideration of life-cycle costs, performance and standardization, but rather permits them to be considered. The agency agreed that two pertinent appropriation acts do require consideration of these factors. However, the agency contended that the specifications used consider those factors, even though the award was made to the low bidder. The grantee also certified that it had considered these factors. The agency argued that, since there are no legislative guidelines concerning what consideration of these factors means, as the primary administering agency, its interpretation should be accorded great weight. The agency also contended that the 1982 Department of Transportation Appropriation Act did not apply to grants awarded prior to the effective date of the Act. GAO agreed with the agency and accordingly, the complaint was denied.