[Request for Reconsideration]

The Defense Logistics Agency (DLA) and a firm requested reconsideration of a sustained protest and the corrective recommendations. Because negotiation difficulties delayed the sole-source award for a drug, DLA issued another solicitation to partially fulfill its requirement. The sole-source awardee had refused to grant an extension of its offer while awaiting a U.S. Food and Drug Administration preaward survey and, subsequently, the contracting officer made award for the total requirement under the solicitation. Nevertheless, DLA requested the preaward survey, which found the bidder to be a qualified manufacturer, and then canceled the solicitation. The bidder under the resolicitation protested that the sole-source award was unjustified. GAO concluded that the DLA actions were improper and recommended that DLA study the feasibility of making award for the amount solicited under a reinstated solicitation, if practicable. In the request for reconsideration, DLA argued that GAO had incorrectly concluded that the awardee was not qualified as "all or none." GAO agreed and concluded that the contracting officer was not free to withhold award of any item under the first solicitation and that the partial award was no longer feasible or warranted. Accordingly, GAO reversed its prior decision, withdrew its recommendation for possible corrective action, and concluded that the sole-source award was justified.