[Complaint Concerning Contract Award]

A firm filed a complaint concerning a contract award by the Transit Authority of Northern Kentucky (TANK), a recipient of Federal funds, claiming that the low bid was nonresponsive. GAO held that the grantee's decision to reject both bids received under the solicitation and to negotiate with both offerors to effect a technically acceptable contract was proper. Both bids were nonresponsive because they failed to meet the solicitation specifications. When both firms were given an opportunity to cure deficiencies, the protester's offer was still unacceptable in several areas while the awardee's offer substantially satisfied the agency's minimum needs. GAO found that, although the awardee's one minor deviation from specifications was acceptable to the agency, in view of the number of deficiencies still found in the protester's proposal, the award was justified. Accordingly, the protest was denied.