B-221862.2, JUL 11, 1986, 86-2 CPD 57

B-221862.2, JUL 11, 1986, 86-2 CPD 57

CONTRACTS - PROTESTS - GENERAL ACCOUNTING OFFICE PROCEDURES - RECONSIDERATION REQUESTS - ERROR OF FACT OR LAW - NOT ESTABLISHED DIGEST: 1. PRIOR DECISION IS AFFIRMED ON RECONSIDERATION WHERE PROTESTERS HAVE NOT SHOWN THAT IT CONTAINS ANY ERROR OF FACT OR LAW. CONTRACTS - NEGOTIATION - REQUESTS FOR PROPOSALS - CANCELLATION - REASONABLE BASIS - CHANGED CONDITIONS, NEEDS, ETC. 2. REASONABLE BASIS EXISTS TO CANCEL AN RFP FOR CHAIRS FOR HISTORIC SITE WHERE, SUBSEQUENT TO THE ISSUANCE OF THE RFP, A PRIVATE ORGANIZATION OFFERS TO DONATE THE CHAIRS TO THE GOVERNMENT. CONTRACTS - PROTESTS - CONFERENCES - REQUEST DENIED 3. REQUEST FOR A CONFERENCE IN CONNECTION WITH A REQUEST FOR RECONSIDERATION IS DENIED SINCE THE MATTER CAN BE PROMPTLY RESOLVED WITHOUT A CONFERENCE.

RESTORATIONS UNLIMITED, INC.; WADE ASSOCIATES; FURNITURE CRAFTSMAN, INC.- - RECONSIDERATION:

THE JOINT VENTURE OF RESTORATIONS UNLIMITED, INC., AND WADE ASSOCIATES, AND FURNITURE CRAFTSMAN, INC. (PROTESTERS), REQUESTS THAT WE RECONSIDER OUR DECISION IN RESTORATIONS UNLIMITED, INC.; WADE ASSOCIATES; FURNITURE CRAFTSMAN, INC., B-221862, MAY 28, 1986, 86-1 CPD PARA. 493. IN THAT DECISION, WE DENIED THE PROTEST AGAINST THE CANCELLATION OF REQUEST FOR PROPOSALS (RFP) NO. 3-5-93 ISSUED BY THE DEPARTMENT OF THE INTERIOR, NATIONAL PARK SERVICE (INTERIOR), FOR THE PROCUREMENT OF 760 THEATRE CHAIRS FOR THE FORD'S THEATRE NATIONAL HISTORIC SITE (THEATRE) IN WASHINGTON, D.C. WE ALSO DENIED THE PROTESTERS' CLAIM FOR COSTS. AFFIRM OUR PRIOR DECISION.

THE RFP FOR THE DESIGN AND FABRICATION OF 760 REPLICA CHAIRS OF THE ORIGINAL THEATRE CHAIRS WAS ISSUED ON MAY 31, 1985. FOUR PROPOSALS WERE RECEIVED. AFTER THE EXECUTIVE PRODUCER OF THE FORD'S THEATRE SOCIETY (SOCIETY) /1/, A MEMBER OF THE TECHNICAL EVALUATION COMMITTEE VIEWED THE PROTOTYPES OF THE CHAIRS BEING OFFERED, THE SOCIETY NOTIFIED INTERIOR THAT IT WOULD LIKE TO DONATE THE CHAIRS TO THE THEATRE, THEREBY ELIMINATING THE NEED FOR INTERIOR TO USE APPROPRIATED FUNDS TO PURCHASE THE CHAIRS. THE SOCIETY THEN DEVELOPED A PLAN TO RAISE MONEY FOR THE PURCHASE OF THE NEW CHAIRS BY SELLING THE OLD CHAIRS (VALUED AT $20 EACH) FOR $500 EACH. SINCE INTERIOR NO LONGER NEEDED TO PURCHASE THE CHAIRS UNDER THE RFP, THE SOLICITATION WAS CANCELED. SUBSEQUENTLY, WITH MONEY RAISED FROM THE SALE OF THE OLD CHAIRS, THE SOCIETY PURCHASED THE NEW CHAIRS FROM ONE OF THE OFFERORS UNDER THE RFP, JOSEPH'S REFINISHING, AND DONATED THEM TO THE GOVERNMENT.

IN OUR EARLIER DECISION, WE STATED THAT SINCE INTERIOR DECIDED TO CANCEL THE RFP AFTER THE SOCIETY OFFERED TO DONATE THE CHAIRS TO THE THEATRE, INTERIOR HAD A LEGITIMATE BASIS FOR CANCELING THE RFP DUE TO THE POTENTIALLY GREAT COST SAVINGS. SEE BUSINESS COMMUNICATIONS SYSTEMS, INC., B-218619, JULY 29, 1985, 85-2 CPD PARA. 103. IN ADDITION, WE DENIED THE PROTESTERS' ARGUMENT THAT INTERIOR MAY HAVE VIOLATED THE LAWS AND REGULATIONS WHICH GOVERN THE DISPOSAL OF SURPLUS GOVERNMENT PROPERTY BY TRANSFERRING THE OLD THEATRE CHAIRS TO THE SOCIETY FOR THE SOCIETY'S SALE BECAUSE INTERIOR WAS AUTHORIZED BY THE GENERAL SERVICES ADMINISTRATION (GSA), PURSUANT TO GSA'S JURISDICTION UNDER 40 U.S.C. SEC. 484 (1982) OVER THE DISPOSAL OF GOVERNMENT SURPLUS PROPERTY, TO DISPOSE OF THE OLD CHAIRS IN THE MANNER IN WHICH IT DID. FINALLY, WE FOUND THAT THE PROTESTERS WERE NOT ENTITLED TO THEIR PROPOSAL PREPARATION OR BID PROTEST COSTS BECAUSE THERE WAS NO SHOWING THAT THE GOVERNMENT ACTED IN BAD FAITH IN ISSUING THE RFP. SEE COMPUTER RESOURCE TECHNOLOGY CORP., B-218292.2, JULY 2, 1985, 85-2 CPD PARA. 14.

IN THEIR REQUEST FOR RECONSIDERATION, THE PROTESTERS CONTEND THAT ON THE DATE THE RFP WAS CANCELED, OCTOBER 31, 1985, THERE WAS NOT A REASONABLE BASIS TO CANCEL THE RFP BECAUSE IT WAS NOT UNTIL 3 MONTHS LATER THAT INTERIOR RECEIVED PERMISSION FROM GSA TO USE THE OLD THEATRE CHAIRS TO HELP THE SOCIETY RAISE THE FUNDS TO PAY FOR THE NEW CHAIRS.

ALTHOUGH THE RECORD SHOWS THAT INTERIOR DID NOT RECEIVE PERMISSION TO DISPOSE OF THE OLD CHAIRS THROUGH THE SOCIETY UNTIL APPROXIMATELY 3 MONTHS AFTER THE RFP WAS CANCELED, THE PROTESTERS STILL HAVE NOT SHOWN THAT INTERIOR LACKED A REASONABLE BASIS TO CANCEL THE SOLICITATION. INTERIOR CANCELED THE SOLICITATION BECAUSE THE SOCIETY AGREED TO DONATE NEW CHAIRS. AS WE SAID BEFORE, THE POTENTIAL FOR SUCH A COST SAVINGS IS A REASONABLE BASIS ON WHICH TO CANCEL AN RFP. BUSINESS COMMUNICATIONS SYSTEMS, INC., B-218619, SUPRA. THE FACT THAT TECHNICAL DETAILS FOR THE COST SAVINGS BY WAY OF THE DONATION OF THE CHAIRS WERE WORKED OUT AFTER THE CANCELLATION OF THE RFP DOES NOT MAKE THE CANCELLATION ITSELF IMPROPER. AS IS EVIDENCED HERE, ALL THE NECESSARY DETAILS WERE WORKED OUT, THE SOCIETY DONATED THE CHAIRS TO INTERIOR, AND INTERIOR REALIZED A SUBSTANTIAL COST SAVINGS. IN THE CIRCUMSTANCES, WE CONCLUDE THAT INTERIOR DID HAVE A REASONABLE BASIS TO CANCEL THE RFP.

THE PROTESTERS HAVE REQUESTED A CONFERENCE TO DISCUSS THE ISSUES RAISED ABOVE. WE WILL NOT CONDUCT A CONFERENCE ON A RECONSIDERATION REQUEST, HOWEVER, UNLESS THE MATTER CANNOT OTHERWISE BE RESOLVED EXPEDITIOUSLY. GLOBAL ASSOCIATES-- RECONSIDERATION, B-212820.2, AUG. 21, 1984, 84-2 CPD PARA. 203. WE DO NOT THINK A CONFERENCE IS WARRANTED IN THIS CASE.

SINCE THE PROTESTERS HAVE NOT SHOWN THAT OUR PRIOR DECISION WAS BASED ON ANY ERROR OF FACT OR LAW, IT IS AFFIRMED.

/1/ THE FORD'S THEATRE SOCIETY IS A NONPROFIT, TAX-EXEMPT GROUP, SET UP BY AGREEMENT WITH INTERIOR TO ASSIST IN THE MANAGEMENT OF THE THEATRE AND ITS BOOKING.